Amul Final Project Report
Amul Final Project Report
A PROFECT REPORT ON
AMUL FED DAIRY
SUBMITTED TO:-
Submitted by :-
Name :- aditya kher
Division:- A
Roll no :- 32
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PREFACE
Creating this project report has helped us to gain a better understanding of the
topic
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ACKNOWLEDGEMENT
I also thanks MR. Kamal patel for guiding and encouraging me in finishing
the assignment and also for making us the visit to the industry
-ADITYA KHER
- BBA SEM 2
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SR.NO PARTICULARS
B COMPANY PROFILE
C PRODUCTION DEPARTMENT
D MARKETING STRATEGIES
E FINANCE DEPARTMENT
F HUMAN RESOURCE
MANAGEMENT
G SWOT ANANLYSIS
H CONCLUSION
I REFERENCE
INDIAN
DAIRY
INDUSTRY
:A
PROFILE
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India’s dairy sector is expected to triple its production in the next 10 years in
view of expanding potential for export to Europe and the West; so all the
countries are looking at Indian dairy industry markets for exports. As per
GATT agreement the export subsidy is reduced. Because of this India is
expecting major changes in dairy industry of North America, Europe and
Australia. It may also get some advantage in this situation. After reduction in
subsidies given by other countries India would be able to compete with their
products efficiently on price in international markets. At present India has a
negligible export to international markets.
Both public and private sector have contributed to the dairy industry growth in
India. Government dairy distributes 90% of its milk in sachets or in containers
while remaining 10% is marketed as butter, ghee etc. On contrary, private
sector only markets 20% of milk and remaining 80% of milk is made into
preparations suitable for exports. Amul have Chocolate as their main product.
COMPANY
PROFILE
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The ‘AMUL revolution’ started as awareness among the farmers grew and
matured into a protest movement. Over four decades ago, the life of a farmer in
Kaira District was very much like that of his counterpart anywhere else in
India. His income was derived almost entirely from seasonal crops. The income
from milch 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 throwaway prices. In this situation,
the one who gained was the private trader. Gradually, the realization dawned on
the farmers that the exploitation by the trader could be checked only if
marketed their milk themselves.
Currently AMUL has 2.28 million producer members with milk collection
average of 5.08 million liters/day.
MAIN BUSINESS
MISSION STATEMENT
VALUES
• Customer orientation
• Commitment to producers
• Integrity
• Co-operation
• Excellence
• Leadership
• Quality
• Innovation
• Growth orientation
• Belongingness
• Pride in the organization
• Employee satisfaction
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SALES TURNOVER
Members 12 district cooperative milk
producers' Union
PARTICULAR RESULT
The annual sales turnover of AMUL in last 9 years is as follows, which itself is
the proof of hugeturnover and the success and profitability of the company.
Production
department
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About 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 cooperative network. Of the triumph
of indigenous technology. Of the marketing savvy of a farmers' organisation.
And of a proven model for dairy development.
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Products
MARKETIN
G
STRATEGI
ES
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HEAD OFFICE
ZONAL OFFICE
DEPOT OFFICE
WHOLESALE DEALERS
RETAILERS
CONSUMERS
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MARKET RESEARCH
AMUL conducts basically two types of market research. One is for products and
another for the advertising conducted by the company. These research results
serve as an input in future decision making. The company basically collects
feedback from the customers, about the effectiveness of its advertising
campaign and liking of the product especially in case of new products
launched. It tries to find out by conducting a survey in a target market whether
or not the product is liked by the consumers and ask for their suggestions for
improvement. However AMUL is not much into conducting research before the
launch of the product. Most of its research is done only once when the product
is already launched in the market. It doesn’t have any separate department for
this purpose but its sales agents themselves do the work of research for the
company. Yet the results are almost comparable to those conducted by
professionals.
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• Market analysis
• Deciding whether to launch the product across the country or in the selected
area
• Appointing distributors
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Products like milk, butter, chocolate and cheese are in the maturity
stage, while ice-creams , chocolates and shrikhand are still in the
growth stage. On the other hand, products like milk powders, infant
food, frozen food items and mix are in introduction stage.
PRODUCT MIX
A product mix consists of all the product lines and items that a particular seller
offers for sale. A company’s product mix has four important dimensions :
width, length ,depth and consistency.
Product mix width refers to how many different product lines the company
carries. AMUL has 4 different product lines namely milk and milk products,
chocolate and ice-cream, wet products and dry products.
Product mix length refers to the total number of items in the mix . In the milk
and milk products line there are 14 different products, while in ice-cream and
chocolate range there are 21 products and in wet and dry products line there
are 20 and 10 different products respectively.
Product line depth refers to how many variants are offered of each product in
the line .
Product line consistency refers to how closely related the various product lines
are in the end use, production requirements, distribution channels or some
other ways . Although the products vary in many ways there is still product line
consistency in AMUL. All the products of AMUL are marketed through same
channels of distribution.
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PACKAGING
Packing includes the activities of designing and producing the container for the
product. Packaging has become the potent marketing tool. Well designed
packages can create convenience and promotional value. Various factors
contribute to packaging growing use as a marketing tool:
• SELF SERVICE
• CONSUMER AFFLUENCE
• INNOVATION OPPORTUNITY
LABELING
Labeling printed information that appears on or with the package, is also a part
of packaging. Labels may range from simples tags attached to products to
complex graphics that are part of the package. Label identifies describes and
promotes the product through attractive graphics. The label might carry only
the brand name or great deal of information or pictures. Even if the seller
prefers a simple label the law may require additional information.
The labels of the products of AMUL are attractively designed. It contains all the
information as per statutory requirements. Information like name of product,
brand name, logo, date of packing & manufacturing, expiry date, price, code
number, ingredients, storage and usage instructions, weight, manufacturer’s
and marketer’s name, logo showing “ PURE VEG ” etc appears on the label of
the products
BRANDING
UMBRELLA BRAND
The network follows an umbrella branding strategy. Amul is the common brand
for most product categories produced by various unions: liquid milk, milk
powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed
milk.
INFORMATION
TECHNOLOGY
INTEGRATION
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Few dairies of the world have the wide variety of products produced by the
GCMMF network. Village societies are encouraged through subsidies to install
chilling units. Automation in processing and packaging areas is common, as is
HACCP certification. Amul actively pursues developments in embryo transfer
and cattle breeding in order to improve cattle quality and increases in milk
yields.
GCMMF was one of the first FMCG (fast-moving consumer goods) firms in
India to employ Internet technologies to implement B2C commerce.
Today customers can order a variety of products through the Internet and be
assured of timely delivery with cash payment upon receipt.
Farmers now have better access to information on the output as well as support
services while providing a better planning tool to marketing personnel.
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PRICING
The amount of money charged for a product or service or the sum of the values
that consumers exchange for the benefit of having or using the product or
service is called its price. A company’s pricing decisions are affected by both
internal factors like company’s objectives, marketing mix strategy, cost and
organizational considerations and external factors like nature of the market
and demand, competition and other environmental elements.
While deciding the price of its products AMUL takes into consideration all the
below mentioned factors, this is true for all the products.
• Cost of labour
AMUL believes that the company with largest market share will enjoy lowest
cost and highest long run profit to become the market leader. They set prices as
low as possible.
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FINANCE DEPARTMENT
Any organization, whether it is small or large scale, clears with financing every
businessman keeps separate records of financial matters. Finance and account
department of the business depends upon the financial policy of the firm.
Financial management is mainly concerned with finding out rational basis
through answering following three questions.
What total value of funds should be invested in the business?
What specific assets should the business require?
How should the required funds be raised?
The scope of financial management comprises traditional approach on
procurement of funds rather than its allocation and use. While modern
approach covers not only acquisition but also allocation and utilization of
funds.
The firm may have any objectives but financial management has the objectives
of profit maximization or weather maximization. Keeping in mind this
particular objectives only major 3 decision are taken that are:
Investment Decision
Financing Decision
Dividend Policy Decision
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FINANCIAL PLANNING
Planning is pre-requisite for managing any little things too. When we think
about fund, financial planning comes at first. Financial planning answers the
following questions: -
WORKING CAPITAL
CASH
The cash is needed for various purposes in business. They may be speculative,
transitive and precautionary motives. The management of cash requires cash
planning. It is a technique to plan & control the use of the cash. Cash is the
most liquid current asset. Finance manager has to do cash planning. Manager
the cash flows decide optimum balance of cash and invest the surplus cash in
marketable securities.
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ACCOUNT RECEIVABLE
INVENTORIES
HUMAN
RESOURCE
MANAGEME
NT
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The dairy industry is moving forward by leaps and bounds. Aided and supported by extensive
R&D, emergence of new state of the art Dairy plants, training programs conducted by NDDB
and quality control measures that make sure the end consumer gets optimum value for
money.
The National Dairy Development Board - the accolades for the progress of the
dairy industry rest squarely on it's collective shoulders.
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The screw compressor room of the refrigeration plant at the 30 TPD Power
plant, Meerut, the first of it's kind in the country.
► Facilities
Employees and their family members are periodically examined and the report
is given to them with doctor’s suggestions for remedial action.
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CANTEEN:
Canteens have been provided at our factories, which provide lunch, tea and
snacks. Canteen management committees consisting of the employees also
monitor the menus, cleanliness, quality of food. Canteen Subsidy is paid @ 7%
of the basic pay to officers and @ 5% of basic pay to workmen
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TRANSPORT FACILITIES :
AMUL is providing bus facility to its employees for coming to their workplace at
our factories.
SWOT
ANALYSI
S
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The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’
far outweigh ‘weaknesses’ and ‘threats’. The strengths and opportunities are
fundamental and weaknesses and threats are transitory.
STRENGTHS:
WEAKNESSES:
• Perishability:
Pasteurization has overcome this weakness partially. Which gives chocolate
long life. Surely, many new processes will follow to improve chocolate quality
and extend its shelf life.
• Lack of control over yield:
Theoretically, there is little control over chocolate yield. However, increased
awareness of developments like embryo transplant, artificial insemination and
properly managed animal husbandry practices, coupled with higher income to
rural milk producers should automatically lead to improvement in chocolate.
• Logistics of procurement:
Woes of bad roads and inadequate transportation facility make milk
procurement problematic. But with the overall economic improvement in India,
these problems would also get solved.
• Problematic distribution:
Yes, all is not well with distribution. But then if ice creams can be sold virtually
at every nook and corner, why can’t we sell other dairy products too? Moreover,
it is only a matter of time before we see the emergence of a cold chain linking
the producer to the refrigerator at the consumer’s home!
• Competition:
With so many newcomers entering this industry, competition is becoming
tougher day by day. But then competition has to be faced as a ground reality.
The market is large enough for many to carve out their niche.
OPPORTUNITIES:
Value addition:
•Addition of cultured products like yoghurt and cheese lend further strength -
both in terms of utilization of resources and presence in the market place.
• Yet another aspect can be the addition of infant foods, geriatric foods and
nutritional.
Export potential:
THREATS:
Milk vendors, the un-organized sector:
Today chocolate vendors are occupying the pride of place in the industry.
Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.
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CONCLUSI
ON
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This is the vision of the future which the company sees for itself:
‘‘AMUL will be an outstanding marketing organization, with specialization in marketing
of food and dairy products, both fresh and long life with customer focus and information
technology integration.
The network would consist of over 100 offices, 7500 stockists covering at least every
taluka head quarter town, servicing nearly 10 lakh outlets with a turnover of Rs.10,000
Crore, and serving several co-operatives.
AMUL shall also create a market for its products in the neighboring countries.”
REFERENCES
•Principles of Marketing –
S.A.Chunawala, 1999.
• Research Methodology
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C.R. Kothari
• www.amul.com
• www.gcmmf.org
• www.indiandairy.com
• www.nddb.com