A

PROJECT REPORT

ON

TO STUDY MARKET SHARE & CONSUMER

PERCEPTION TOWARDS AMUL PRODUCTS IN PUNE CITY

AT

AMUL INDIA, PUNE

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR AWARD OF THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

MR. PRAJWAL GANESH ALVA

UNDER THE GUIDANCE OF

PROF.ATUL PISE

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION

AND

COMPUTER APPLICATION, LONAVALA-410401

[2012-2014]

0

DECLARATION

I, the undersigned, hereby declare that the project report entitled “Market Share and

Consumer Perception Towards Amul Products” written and submitted by me to the

University of Pune, Pune in Partial fulfillment of the requirements for the award of degree of

“ Master of Business Administration” under the guidance of Prof. Atul Pise, is my original

work except the topics on organizational profile and the conclusion drawn therein are based

on the material collected by myself.

SIBACA, Lonavala PRAJWAL G. ALVA

Date :

1

CONTENTS

CONTENT Page No

ACKNOWLEDGEMENT 03

CHAPTER I: Introduction 07

CHAPTER II: Profile of the Organization 10

CHAPTER III: Research Methodology 35

CHAPTER IV: Data Analysis and Interpretation 41

CHAPTER V: Findings and Analysis 53

CHAPTER VI: Suggestions and Conclusion 54

BIBLIOGRAPHY 56

ANNEXURES 57

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ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude to Professor

M.N.Navale, Honorable Founder President, Dr.(Mrs.) S.M.Navale, Founder Secretary, The

Sinhgad Technical education Society, Pune and Dr.Parag Kalkar, Director SIBACA. They

have been a source of inspiration to me and I am indebted to them for initiating me in the

field of research.

I am deeply indebted to Faculty Member, SIBACA Prof. Atul Pise my research guide at

Sinhgad Institute of Business Administration and Computer Application, Lonavala without

whose help completion of the project was highly impossible.

I take this opportunity and privilege to articulate my deep sense of gratefulness to the

Mr. Amit Kumar, Branch Manager, Gujrat Co-operative Milk Marketing Federation

Limited, Pune for his timely help and positive encouragement.

I wish to express a special thanks to all teaching and non-teaching staff members of Sinhgad

Institute of Business Administration and Computer Application, Lonavala for their

continuous support. I would like to acknowledge all my family members, relatives and

friends for their help and encouragement.

Last but not least I would also thankful to all AMUL family, Consumers and Retailers who

helped me during my project work.

SIBACA, LONAVALA

Date : PRAJWAL G. ALVA

3

EXECUTIVE SUMMARY

Amul is the market leader of dairy products in Pune City. Katraj, Chitale, Britannia,

Gowardhan and other Local brands are the major competitors in the market. In today’s

competitive world while entering in the market it is very necessary to have good knowledge

of the potential customers and retailers 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. The main aim of the project is to study the market share and consumer

perception towards the Amul products. The primary focus will be on the marketing strategy

and competitor analysis, over the years, which has made Amul the most recalled brand.

The Project is concern with the market share and consumer perception towards the Amul

products in Pune city. The project included as part of MBA Programme and the project is

done from 25th May to 25th July.

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1.1 Title:“MARKET SHARE AND CONSUMER PERCEPTION TOWARDS AMUL

PRODUCTS IN PUNE CITY”.

1.2 Organization: “Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)”.

1.3 Objective: To know the preferences of AMUL products with comparison to other competitive

brands.

The researcher has tried to know about the following points:

1. To determine the market share of Amul Dairy Products ( Butter, Milk, Ghee,

Ice-cream and Cheese) in specified areas of Pune City according to the Consumer

survey.

2. To know the Perception of Consumers regarding Amul Dairy Products.

1.4 Research Methodology:

Research type was descriptive. The research was done through customers. I have collected

the primary data through questionnaire which was filled by customers. Questions were close

ended. The secondary data was collected from website www.amul.com.

Sampling done is probability sampling. The type of sampling method was Simple Random

sampling.

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1.5 Findings:

The company has a monopoly in the butter market and they enjoy that. The company has

captured 72% market in the butter segment. There is no advertisement from the company like

posters, hoarding, and Neon sign boards, glow sign boards.

1.6 Data Analysis:The data analysis has done area wise. It gives idea about the competitors of Amul dairy

products.

It gives information regarding their market share and consumer perception towards Amul

products.

1.7 Conclusion:Amul has a good brand image and market share in Dairy products in the country. But in Pune

region it has maximum market share only in Butter and Cheese while in other segments like

Ice-cream, Milk and Ghee it has low share as compared to other Local competitors because

perception of customers towards the product is somewhat negative.

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Introduction

1.1 CONTEXT OF THE TOPIC:

My project is directed to study the share of AMUL’s products in the market through

consumer survey. Basically it is a survey approach and I have tried my level best to collect

data and genuinely applied it to obtain my project goal, and proudly I present it before you.

Indian business scenario is improving. Different commodities are contributing to increasing

business volume. In this process companies are struggling hard to increase their commodity

market share and further down their company market share. In food industry also there is

intense competition and different food industries are making deliberations to improve their

market share. AMUL is one of them, so I have selected AMUL to study its market share in

Pune by studying small samples of market in the city of Pune where I put up. I have carried

out surveys through questionnaires and interviews with the consumers in the working of my

project.

AMUL has many competitors and in the cutthroat competitive scene of today’s market it has

to fight tough against them to maintain its no. 1 position especially in dairy products.

I have also studied the consumer perception about AMUL products and also the competitor’s

products.

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The biggest strength of GCMMF is the trust that it has created in the minds of its consumers

regarding the quality of its products. Amul stands for guaranteed purity of whatever products

it produces. None of its products is adulterated. In India, where such trust is hard to come by,

this could provide a central anchor for GCMFF's future business plans.

1.2 Need of Study:

The purpose of the study is to get practical knowledge and to get experience and also to

know the various challenges that are faced in the corporate world. The main intention of

choosing this topic is to study/to know-

1 Customer’s buying factors and their expectations towards Amul Dairy Products.

2 To know the reasons for decrease in sales.

3 This project helps to improve the market share in the Pune City.

As a student of marketing management it is advisable to understand the various interactive

marketing forces. One of the significant indicators understanding the influence of marketing

forces on companies is the market share achieved by a company. Therefore the project

undertaken has given me an opportunity to study the creation of market share of AMUL in

Pune Region.

1.3Statement of the Problem:

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“MARKET SHARE & CONSUMER PERCEPTION TOWARDS AMUL PRODUCTS IN

PUNE CITY”

“The study was made to understand the factors which have led consumer to buy the Amul

Dairy Products and the factors which have made consumer to adopt different brands rather

than Amul Products.”

1.4Objectives of the project:

The main objective of the study is:

To know the preferences of AMUL products with comparison to other competitive

brands.

The researcher has tried to know about the following points:

1. To determine the market share of Amul Dairy Products in Pune Region according to

the Consumer survey.

2. To know the Perception of Consumers regarding Amul Dairy Products

1.5 Scope of the study:1. The research was undertaken to gather information from the respondents, to know

consumer perception and the market share of Amul dairy products.

2. The questionnaire was specifically framed keeping in mind all the aspects and

requirements that would fulfill our objectives and give us exact picture and that

would help the organization to take better decisions.

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3. Primary data was collected by administrating questionnaire of 150 respondents. In the

questionnaire all the questions were specifically framed as per the survey

requirements and following are its details.

4. Direct contact was made with the respondents through the Random sampling and all

the customers were those who had come to buy the products.

5. The study was conducted at various part of the Pune City customers located in

different parts of the Pune city. The information was collected through Questionnaire.

The questionnaire was administrated and collected on the spot.

COMPANY PROFILE

2.1 Name and Location of the company:

AMUL INDIA

“Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)”,

Bajaj Alliance Building, Opposite Gunjan Theatre,

Yerwada Pune

Head Office:Gujarat Cooperative Milk Marketing Federation Ltd.

Amul Dairy Road,

P B No.10, Anand - 388 001,

Gujarat, India.

2.2 Vision and Mission of the Organization:-

a) Vision:GCMMF will be an outstanding marketing organization, with specialization in marketing of

food and dairy products both fresh and long life with customer focus and IT integrated. The

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network would consist of over 100 offices, 7500 stockiest covering at least every Taluka.

Head quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving

several co-operatives.

GCMMF shall also create markets for its products in neighboring countries.

b) Mission:We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of

the world through excellence in the marketing by our committed team. Through co-operative

networking, we are committed to offering quality product that provides best value for money.

2.3 Historical background of the Organization:-

In the 1940s, in the district of Kaira of the State of Gujarat, India, a unique

experiment was conducted that become one of the most celebrated success stories of India.

At that time, in Gujarat, milk was obtained from farmers by private milk contractors and by a

private company, Polson's Dairy in Anand, the headquarters of the district. The company had

a virtual stranglehold on the farmers, deciding the prices both of the procured as well as the

sold milk. The company arranged to collect, chill and supply milk to the Bombay Milk

Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat, Polson's

Dairy also extracted dairy products such as cheese and butter. Polson's Dairy exploited its

monopoly fully; the farmers were forced to accept very low prices for their products, and the

decisions of the company regarding the quality and even the quantity of the milk supplied by

the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom and social

worker, named Tribhuvandas Patel, organized the farmers into co-operatives, which could

procure milk from the farmers, process the milk and sell it in Bombay to customers including

the Bombay Milk Scheme, Purely by chance, in 1949, a mechanical engineer named

Varghese Kurien, who had just completed his studies in engineering in the USA, came to

India and was posted by the Government of India to a job at the Dairy Research Institute at

Anand.

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Settling down in Anand was hardly a part of his career plans; however, a meeting

with Tribhuvandas Patel changed his life and changed India's dairy industry. What Mr. Patel

requested of Dr. Kurien was hardly to bring about such a revolution. All the wanted was help

in solving various problems with bringing into working order some of the equipment just

purchased by his co-operative, especially the chilling and pasteurizing equipment. These

items of equipment malfunctioned, leading to the rejection of large quantities of milk by the

Bombay Milk Scheme.

Dr. Kurien's involvement with the Kaira District Co-operative Milk Producers' Union

Limited (KDCMPUL; the registered name of the co-operative) grew rapidly. Initially he

merely provided technical assistance in repairing, maintaining and ordering new equipment

but subsequently he became involved with the larger sociological issues involved in

organizing the farmers into co-operatives and running these co-operatives effectively. He

observed the exploitation of farmers by the private milk contractors and Poison's Dairy, and

noted how the co-operatives could transform the lives of the members. The most important

feature of these co-operatives is that they run purely as farmer's co-operatives, with all the

major decisions being taken by the farmers themselves. The co-operatives are not 'run' by a

separate bureaucracy with vested interests of its own; the farmers are truly in charge of their

own decisions. Any farmer can become a member by committing to supply a certain quantity

of milk for a certain number of days in a year and shall continue to be a member only if he

keeps up this commitment.

Each day, the farmers (or actually, in most cases, their wife and daughters) bring their

milk to the village collection centres where quantity of milk is checked in full view of all and

quality (milk fat content) is checked using a simple device, again in full view of all. The

farmers are paid in evening for the milk they supplied in the morning, and in the morning for

the evening's milk. This prompt settlement in cash is a great attraction to the farmers who are

usually cash starved. Thanks to the above system, there are no disputes regarding quantity or

quality of the milk supplied by each farmer. It was soon realized that it was not enough to

merely act as the collection and selling for the farmers. A variety of support services were

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also required to enable the farmers continue selling milk of adequate quality and to avoid

disasters such as the death of their cattle (for a family owning just one or two cattle and

depending on its/their milk for their income, death of cow could indeed be a disaster). The

farmers were progressively given new services such as veterinary care for their cattle, supply

of good quality cattle feed, education on better feeding of cattle and facilities for artificial

insemination of their cattle. All these were strictly on payment basis; none of services were

free. This experiment of organizing farmers into co-operatives was one of the most

successful interventions of India. With good prices paid for their milk, raising milch cattle

could become a good supplementary source of revenue to many households.

The co-operatives were expanded to cover more and more areas of Gujarat and in

each area, a network of local village level co-operatives and district level co-operatives were

formed on a pattern similar to that at Anand (the so called Anand Pattern). In 1955,

KDCMPUL changed its name to Anand Milk Union Limited, which lent itself to a catchy

abbreviation, Amul, which meant priceless in Sanskrit. The word was also easy to

pronounce, easy to remember and carried a wholly positive connotation. It became the

flagship brand name for the entire dairy products made by this union.

In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into

milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food

were added-for the first time in the world, these products were made from buffalo milk.

Subsequent years saw the addition of more plants to produce different products. Starting

from a daily procurement of 250litres in 1946, Amul had become a milk giant with a large

procurement base and a product mix that had evolved by challenging the conventional

technology.

In his visit to Anand in 1965, the then Prime Minister of India, Lal Bahadur Shastri,

was impressed by what he saw-a system that procured, processed and delivered high quality

milk to distant markets cost efficiently. Shastri could also see the difference that the income

from milk had made to the standard of living of farmers in the area.

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What impressed him the most was that Amul had done all this without Government

assistance in market contrast to number of Government sponsored dairy programmes that

were doing poorly in terms of procuring and marketing good quality milk and boosting

farmer's incomes. Shastri asked Dr. Kurien to replicate Anand's success all over India.

A pattern similar to the Anand Pattern was to be built in other states of India. This

was carried out under a programme launched by the Government of India, entitled "

AMUL’S SUCCESS STORY:

The decision to constitute Amul’s first co-operative was taken on 4th January, 1946 at a

meeting called by Morarjee Desai under the advice of Sardar Vallabbhai Patel. Sadar Patel’s

vision was to empower the farmers by allowing them to control the production, procurement,

and marketing of the milk. The task was entrusted to qualified professionals, and thus the

middlemen were to be eliminated.

This decision marked a new era in Indian dairy industry. The milk producers’ co-operatives

in villages formed a federation at the district level, which will handle the milk sale from

Kaira to the Bombay Milk Scheme. Initially, the colonial Government refused to recognize

the milk society, but a fifteen-day strike by the milk producers made it relent. The Kaira

District Milk Producers’ Union Limited was formed and registered on the 14th December

1946.

The original Anand model envisioned co-operatives at the village level and processing unit at

the district level, called a “union”. Similar models were replicated elsewhere, and in 1973,

the Gujarat Co-operative Milk Marketing Federation (GCMMF) was formed, to market the

products of the small unions more effectively. Since then, GCMMF is the sole marketer of

the Amul brand.

Amul’s success is due to its ability to convert the value it offers to customers to profits.

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Objectives and Business Philosophy of GCMMF

The main stakeholder of GCMMF is the farmer member for whose welfare GCMMF

exists. GCMMF states that its main objective is the carrying out of activities for the

economic development of agriculturists by efficiently organizing marketing of milk and dairy

produce, veterinary medicines, vaccines and other animal health products, agricultural

produce in raw and/or processed form and other allied produce.

GCMMF aims to market the dairy and agricultural products of co-operatives through:

Common branding

Centralized marketing

Centralized quality control

Centralized purchases, and

Efficient pooling of milk

GCMMF has declared that its business philosophy is as follows:

To serve the interests of milk producers and

To provide quality products that offer the best value to consumers for money spent

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2.4 Organization Structure:

Organization Structure is divided into two parts:

External Organization Structure

Internal Organization Structure

External Organization Structure

External Organization Structure is the organization structure that affects the organization

from the outside.

State Level Marketing Federation

District Milk Product Union Ltd

.

Village Milk Product Union Ltd.

Villagers

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As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative

organization. The villagers of more than 10000 villages of Gujarat are the bases of this

structure. They all make village milk producers union, district level milk producers union and

then a state level marketing federation is established. The structure is line relationship, which

provides easy way to operate. It also provides better communication between two stages.

Internal Organization Structure

The following is internal organization chart of Amul:

Organization Structure ChartChairman

Managing Director

General Manager

Ass. General Manager

Finance Production Marketing Sales & Purchase Personnel

Dept. Dept. Dept. Dept. Dept.

Senior Senior Senior Senior Senior

Manager Manager Manager Manager Manager

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Finance Production Marketing Sales Personnel

Manager Manager Manager Manager Manager

Accountant Officer Marketing Officer P.R.F.

Executive

Officers Supervisor F.S.R. Salesmen Executive

2.5 Different product profile of the Organization:

AMUL PRODUCTS – A BRIEF INTRODUCTIONCheck out this vast and ever-growing range of 'tasteful' Amul delectable!

Bread Spreads:

Amul ButterUtterly Butterly

Delicious

Amul LiteThe low at Fat Bread

Spread

Powder Milk:

Amul Spray

Infant Milk

FoodStill, Mother's Milk is

Best for your baby

Amul Instant

Full Cream

Milk PowderA dairy in your home

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Sagar Skimmed

Milk PowderWhich is especially

useful for diet

preparations or for use

by people on low calorie

and high protein diet.

Sagar Tea

Coffee Whitener

Amulya Dairy

WhitenerThe Richest, Purest

Dairy Whitener

Fresh Milk:

Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurized in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

Amul Taaza Slim and Trim

Fresh Cream Chocolate Milk

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Flavoured Milk

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Cheese:

Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavors.

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavor and hazelnut aroma

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

Gouda Cheese

   

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For Cooking:

Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

Cooking Butter

Amul PaneerReady to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

Masti Soups    

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Desserts:

Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

Gulab Jamun Mix

Kulfi Mix Amul ChocolatesThe perfect gift for someone you love.

Healthy Drink:

NutramulMalted MilkFood made from malt extract has the highest protein content among all the brown beverage powders sold in India.

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2.6 Current Status of the Company:

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's

largest food product marketing organisation with annual turnover (2012-13) US$ 2.54

billion. Its daily milk procurement is approx 13 million lit per day from 16914 village

milk cooperative societies, 17 member unions covering 24 districts, and 3.18 million

milk producer members.

The Amul brand has significant presence in overseas markets such as Mauritius, the UAE,

US, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African

countries.

In 2012-13, Amul expanded its distribution footprint to reach new geographical

markets. It added 306 distributors, 65 super-stockists and 900 sub-stockists.

The plan for 2013-14 includes expanding the distribution reach to 700 new markets by

adding more distributors and super-stockists. It plans to add seven new branch offices within

the next few months.

Amul further consolidated its status as the largest single-brand retailer in the country by

adding at least three exclusive parlours every day in 2012-13, taking the total tally of its

exclusive stores to 7,000.

The federation plans to increase the parlour network to 10,000 within the next two years.

With 20 per cent growth in milk procurement, Amul entered its “golden phase” in 2012-13,

said the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the

Amul brand of milk and milk products.

Announcing its results this year at its Annual General Meeting, the federation said group

turnover reached Rs 19,100 crore or $3.2 billion

Next year, said Chairman Vipul M. Chaudhary, the target is to achieve a turnover of Rs

17,000 crore.

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Market Share of Amul in India

The brand positions itself as a brand of both masses and classes, unlike competitors like

Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand

of milk and dairy products, posted sales of Rs 11,670 crore for the year ended March 2012,

almost 55% more than Nestle India’s Rs 7,541-crore sales.

Amul owns 85 percent share in butter market and 75 percent in cheese share market. It may

be mentioned here that Amul is the market leader in Rs 600 crore cheese market in India with

65-66% share, 63% share in infant milk and 45% market share in dairy whitener. Amul also

enjoys a 26% share in the 25,000-crore packaged milk market. With expected growth rate of

20 percent, 12% growth rate can be attributed to price rise and another 8 percent to rise in

demand for dairy products.

Rapid expansion

Amul’s long-life UHT milk has shown value growth of 53 per cent and sales of Amul cream

also increased by 57 per cent in value terms.

Amul’s innovative milk beverages range showed quantum value growth of 27 per cent.

In ghee, the two mega-brands, Amul and Sagar, together achieved growth of 31 per cent.

Sales of Amul butter and cheese grew 18 per cent and 19 per cent, respectively, while ice-

cream sales grew 21 per cent, said Chaudhary.

Saying that “rapid expansion” will be the organization’s mantra for 2013-14, he said the 63

per cent growth in milk production in the last four years was the result of the high

procurement price paid to farmers.

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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.

Year of Establishment 1973

Members17 District Cooperative Milk Producers' Unions (16

Members & 1 Nominal Members)

No. of Producer Members 3.18 Million

No. of Village Societies 16,914

Total Milk handling capacity

per day16.8 Million liters per day

Milk Collection (Total - 2012-

13)4.66 billion liters

Milk collection (Daily Average

2012-13)12.7 million litres

Cattle feed manufacturing

Capacity5890 Mts. per day

Sales Turnover -(2012-13) Rs. 13735 Crores (US $ 2.54 Billion)

No of Farmers Engaged 35 Lac Farmers

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It operates through 48 Sales Offices and has a dealer network of 5000 dealers and 10

lakh retailers, one of the largest such networks in India. Its product range comprises milk,

milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer,

chocolates, and traditional Indian sweets; etc

GCMMF is India's largest exporter of Dairy Products. It has been accorded a

"Trading House" status. Many of our products are available in USA, Gulf Countries,

Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA

Award from Government of India for Excellence in Dairy Product Exports for the last 13

years. For the year 2009-10, GCMMF has been awarded "Golden Trophy" for its

outstanding export performance and contribution in dairy products sector by APEDA.

It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category.

In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business

World. In 2003, it was awarded the IMC Ramkrishna Bajaj National Quality Award - 2003

for adopting noteworthy quality management practices for logistics and procurement.

GCMMF is the first and only Indian organization to win topmost International Dairy

Federation Marketing Award for probiotic ice cream launch in 2007.

Amul (Anand milk union ltd.) is a based on four hands, which are coordinated with each

other. The actual meaning of this symbol is co-ordination of four hands of different people by

whom this union is at the top position in Asia.

First hand is of farmers, without whom the organization would not have existed.

Second hand is of processors, who process the row material (milk) into finished

goods.

Third hand is of marketer, without whom the product would have not reached the

customers.

Fourth hand is of customers, without whom the products would have not carried on.

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Plants

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

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Third plant is at Kanjari, which produces cattelfeed.

Fourth plant is at Katraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

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2.7 Future Plans of the Company:

Amul plans to open 1,000 outlets this fiscal

The largest food brand in India currently has around 6,500 outlets selling various items,

including dairy and frozen product.

GCMMF is targeting to make Amul an Rs 30,000-crore brand by 2018.

Amul plans to increase export by 20 percent.

Plans to invest $600 million (Rs 3,000 crore) in doubling its processing capacity for

milk and milk products over the next six years.

Plan is to set up five processing plants outside Gujarat and another four in Saurashtra.

Targets are to increase milk procurement capacity to 200 lakh litres by 2020.

Planning to reposition itself in the chocolate segment, planning to introduce larger

chocolate packs of 150 grams size in future which will cost near about Rs.90.

Next year, said Chairman Vipul M. Chaudhary, the target is to achieve a turnover of Rs 17,000 crore.

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2.8 Achievement & Awards:

Amul a co-operative society and its co-operation has led many different awards in its

favour.

Magsaysay award for community leadership presented in manila.

Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president

Of India.

1987: “Best Productivity” awarded by national productivity council for the year 1985-

86 awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by the

President of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide

ICA regional office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO

9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000.

1999: Best of All" Rajiv Gandhi National Quality Award for the year,

2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the

Top scorer in the service category of the prestigious IMC Ramkrishna Bajaj

National Quality Award.

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2003: Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award

For Resourcefulness.

2003: Qimpro Gold Standard Award

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2006-07: GCMMF has bagged award for excellent performance in exports of dairy

Products from Agricultural and Processed Food Exports Development

Authority (APEDA).

2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award at World Dairy Summit.

2009: Amul Bags Srishti G-cube Award For Good Green Governance.

2009: Amul Bags International Dairy Federation Award .

2010: GCMMF receives Srishti's G-Cube Award.

2010: Dr. V.Kurien honoured with Life Time Achievement Award .

2010: Amul receives Green Globe Foundation Award. 2010-11: ET-Corporate Citizen Award of the Year to GCMMF.

2013: GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013

under the category of "Best Run Award in Finance".

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2.9 Sales Turnover of Amul

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

2013-14 191000 3200

The above data shows that the sales increasing since 1995 at a great pace & this is the reason

that proves Amul as a good competitor in this modern world.

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2.10 Information about Competitors in Pune City

Butter Competitors :

Mother Dairy

Britannia

Nutrilite

Home Made

Milk Competitors :

Katraj

Chitale

Nestle

Mahanand

Gokul

Others Local Brands

Ghee Competitors :

Katraj

Govardhan

Mother Dairy

Other Local Brands

34

Ice-cream Competitors :

Kwality Walls

Vadilal

Natural

Mother Dairy

Other Brands

Cheese Competitors :

Govardhan

Britannia

Other Brands

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RESEARCH METHODOLGY

3.1 Sampling Design:The research was conducted from 25th May to 25th July, 2013. The research include

meeting with customers and retailers.

Representation of a particular population and is the subset of the population.

Concerned to my project, in a city like Pune where a population is more so each person’s

opinion cannot be sought. So the respondents were chosen randomly from different areas of

Pune city.

The research instrument was the structured questionnaire formulated for the

respondents. The questionnaire was only for consumer and the personal interviews were

taken from retailers. There were also the area maps.

Types of Question:

The second important aspect in the designing a question is to decide which types of question

are to be used. Question can be classified in various ways.

Questionnaire contains following type information-

1. Close-ended question

2. Dichotomous question

The questionnaire consists of all two types of question. Mostly all questions are

multiple type questions. Dichotomous question are few in number.

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Sampling Units :

150 units were sampled who were both males and females.

Size of Sample:

This refers the number of items (outlets) to be selected from the finite universe to constitute a

sample size. The survey was conducted of 150 Consumers and Few General and Retail

Stores.

In this project report, the data is collected through primary data source.

DATA COLLECTION

TYPE OF DATA

COLLECTION

METHOD ADOPTED MODE OF

COMMUNICATION

Primary Questionnaire Personal Interview

Sampling Technique:

A Probability sampling technique was used. A Simple Random Sampling was done by

selecting the respondents as per convenience basis.

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3.2 Sources and Methods of Data Collection

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

secondary data.

Information requirement

I had to know about all the competitors present in the Milk, Butter, Ghee, Cheese, Ice-Cream

segment (Reputed and well established brands as well as Local brands).

Primary data

It is define as information collected directly from the source through

1. Observation

2. Conversation

3. Questionnaire.

The degree of reliability, validity, and precision required depends on how you intend

to use the information. Visitor response to surveys is one example of primary data.

It is direct form of investigation, involving face-to-face communication with free

feedback information. It offers a sense of participation. It is more flexible form of

data collection. Use of unstructured, close-end questions is possible.

The interview can have questions to secure more information.

Secondary data

It is define as information collected by others such as government agencies and/or

nonprofits that pertains to your area of interest. The degree of reliability, validity, and

precision in secondary data depends on how it was collected and interpreted. Census

data is one example of secondary data.

38

In this project we have used secondary data sources such as

Company Website

Other Related Websites

Company annual reports

Company records

3.3 Methods of Data Analysis:

The data has been analyzed through tabular analysis, graphical analysis and percentage

analysis.

The graphical analysis had done by using:

Pie Charts.

Bar & Column Charts.

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3.5 Area of Operation:The areas of operation were the research was done are as follows:

Viman Nagar.

Vishrant wadi.

Old Mundwa Road.

Shastri Nagar.

Gokul Nagar

Nagar Road.

Sai Nath Nagar.

Hadapsar.

Magarpatta

Ganesh Nagar.

Dhanori Road.

Lohgaon.

Yerwada.

Chandan Nagar.

Koregaon Park

40

3.6 Limitations of the Study

As the project involved the marketing research using questionnaires, views expressed by

the respondents are confined to the elements of questionnaire. But I tried to get more

information through general questions so that I could reach at the clear picture of the

situation.

Sample size of the study is restricted to 150 consumers only.

Most of the respondents and retailers hesitate to give information but how ever an attempt

is made to collect the data systematically.

Time frame required was not enough to survey more number of outlets.

Between the sender and the receiver, due to differing perceptions, communication errors

in the form of miscomprehension, selective perception etc. creeps in. In this case too,

these were unavoidable, and thus might have added to slight inaccuracy in my results.

All customers are not alike. Thus the results may not hold true for every individual.

In some instances respondents may not have revealed the truth.

41

DATA INTERPRETATION AND PRESENTATION

Q1) What all Dairy Products does your Family Consume in Daily Life?

Options No of

Respondents

Butter 67

Ghee 24

Cheese 39

Milk 124

Chocolate 68

Ice-cream 72

Interpretation :

Milk is consumed maximum in daily life of the consumers. Out of 150, 124 respondents said

that they consume milk more than other dairy products in their day to day life.

42

Q2) Your Idea behind choosing a brand as your food item?

Options No of Respondents

Cost 52

Hygiene 38

Nutrition 43

Image 88

Interpretation :

Most of the consumers prefer company image while buying any products. They believe that a

good known brand assures them pure and good quality product. Then the Second prefrence is

the Cost of the product and then Nutrition and Hygiene. So as per the observation and

personal inetrview they believe that Good Company Image may assure them better nutrition

as well as good Hygiene.

43

Q3) Which Brand Butter you Consume?

Options No of Respondents

Amul 111

Mother Dairy 11

Nutrillite 9

Homemade 11

Others 12

Interpretation :

Amul has captured 72% market in the butter segment. We can say that Amul has a monopoly

in the butter market and they enjoy that. Amul owns 85 percent share in butter market in

India. It is a leader in Butter market. The other butter brands are Mother dairy, Nutillite and

other Local brands.

44

Q4) Which pack size of butter do you normally purchase?

a) 100g b) 20g c) 500g

Options No. of Respondents

100g 76

20g 45

500g 44

Interpretation :

Most of the people noramlly purchase 100g Butter Pack. It is also easily available in any

retail store. So 46% of the consumer normally purchase 100g butter pack while others

purchase 500g butter pack and 20g butter cube.

45

Q5) Which brand Milk do you consume?

Options No. of Respondents

Amul 42

Chitale 51

Katraj 31

Mahanand 12

Milkman 14

Other Local Brands 20

Interpretation :

Chitale, the local brand of Pune has the highest market share of 30% in Pune Region

compared to Amul and Other Brands.

Most of the people in Pune Rgion believe that Chitale as best Quality and Pure Milk.

Amul has 25% share as per consumer survey people still believe it as a good image and

brand as well as trustworthy in the market.Amul Milk includes Amul Gold and Amul Taaza.

Other Local Brands are Prabhat, Urja, Gokul, etc.

46

Q6) Which brand Ghee do you consume?

Options No. of Respondents

Amul 49

Gowardhan 58

Katraj 21

Mother Dairy 14

Others 42

Interpretation :

Gowardhan 31% share and Amul Pure Ghee 27% are the close competitors in Pune Region

but Gowardhan Ghee is more preferable because of easy availablity compared to other

brands. Other brands are still prefered but not as much as Gowardhan and Amul. Other

Brands are also more preferable as Chitale, Gokul, Prabhat and Homemade so they too have

23% market share.

47

Q7) Which brand Ice-cream you prefer the most?

Options No. of Respondents

Amul 32

Kwality Walls 62

Natural 41

Mother Dairy 16

Others 22

Interpretation :

Market share of Amul Ice-cream is less than its competitor Kwality Walls and

Natural. In survey it came out that from all the customers of Amul Ice-cream

only half of them are loyal customers, remaining prefer to buy Amul Ice-cream along

with Other Brands.

The common reason behind Kwality Walls having maximum market share is easy

availability in Pune in most of the retailers.

48

Other Brands are Vadilal, Havmor, Baskin Robins and other Local Brands which constitute

13% of market share.

Q8) Which brand Cheese you prefer or consume?

Options No. of Respondents

Amul 91

Gowardhan 29

Britannia 12

Others 28

Interpretation :

Amul Cheese has the maximum market share in Pune City. It has 57% of share in Pune City

which is far above from the other competitors. People trust the brand from past many years.

The competitors are Gowardhan, Britannia and Other Local Brands.

Amul cheese are also mostly preferred in hotels and sandwich corners.

49

Q9) Are you satisfied by the purity and packaging of Amul Products?

Options No. of Respondents

Yes 123

No 27

Interpretation :

As per the consumer survey out of 150 respondents 123 respondents are satisfied with Purity

and Packaging of Amul Products. Consumers still have more trust on the brand.

Consumers believe that Amul Brand is still as pure as it was earlier i.e. a trustworthy brand.

Thus 82% of the consumers are satisfied with purity and Quality of Amul.

27 respondents out of 150 are not satisfied with the purity and packaging of Amul.

Consumers also have some common problems.

The common complaints are as below:

50

Do not mention Manufacture and Expiry date in most of the products.

No replacement of products if spoiled.

Q10) Can you recall Amul’s Logo?

Options No. of Respondents

Yes 135

No 15

90% of the respondents could recall the Amul’s Logo. They got very good strategic plans

which are helping them in moving ahead with the Logo.

10% of the respondents failed to recall the Amul’s Logo. The reason can be lack of

advertisement.

51

52

FINDING AND ANALYSIS

1. Milk is consumed maximum in daily life of the consumers compared to other dairy

products.

2. Consumer believes that a good known brand assures them pure and good quality

product.

3. The company has captured maximum market share in Butter and Cheese segment.

4. The company has captured 72% market in the butter segment thus company has a

monopoly in the butter market and they enjoy that.

5. Chitale, the local brand of Pune has the highest market share of 30% in Pune Region

compared to Amul and Other Brands.

6. Gowardhan Ghee is more prefered by consumers than the Amul Pure Ghee in Pune.

7. In Ice-cream segment, Kwality Walls is more preferred because availability of the

Kwality Walls is more as compared to Amul.

8. Consumers believe that Amul Brand is still as pure as it was earlier i.e. a trustworthy

brand.

53

SUGGESTIONS

1. The company should make policy for replacement of products.

2. New avenues of advertising should be launched like posters etc.

3. The company should provide promotional schemes to attract more customers.

4. Prices should be kept in comparison to competitor’s products so that the company can

earn more profit by selling large volumes.

5. The company should contribute towards Corporate social responsibility.

54

CONCLUSION

As we know that Amul has a good brand image and market share in Dairy products in the

country. But in Pune region it has maximum market share only in Butter and Cheese while in

other segments like Ice-cream, Milk and Ghee it has low share as compared to other Local

competitors because perception of customers towards the product is somewhat negative.

Most of the consumer continuously using other brand and they do not want to switch over

other brand. It also tells that the company is playing a vital in increasing their market value.

The company has launched many products in the market which generally liked by the

customers.

The main negative drawback is lack of advertisement otherwise they got very good strategic

plans which are helping them in moving ahead with the logo.

THE TASTE OF INDIA, AMUL.

55

BIBLIOGRAPHYWeb Sites

www.amul.com

www.yahoo.com

www. google.com

www.wikipedia.com

www.business-standard.com

http://www.thehindubusinessline.com

Books

Philip Kotler Marketing Management

C.R. Kothari Research Methodology

Boyd Marketing Research

Company Literature

Printed Literature obtained from Amul India.

AMUL Brochures

Magazines

Business Today

Business World

Economic India

56

CONSUMER QUESTIONNAIRE

Name: Area:

Q.1 What all dairy products does your family consume in daily life?

a. Butter ( ) b. Ghee ( ) c. Cheese ( )

d. Dairy Milk ( ) e. Chocolate ( ) f. Ice-cream ( )

g. Others ……………….

Q.2 Your idea behind choosing a brand as your food item. a. Cost ( ) b. Nutrition ( ) c. Hygiene ( ) d. Company image ( )

Q .3 Which brand butter do you use?

a. Amul ( ) b. Mother dairy ( ) c. Britannia ( ) d. Nutrilite ( ) e. Home Made ( ) f. Others ( )

Q.4 Which brand Milk do you use?

a. Amul ( ) b. Katraj ( ) c. Milkman ( )

d Nestle ( ) e. Mahanand ( ) f. Other……..

Q.5 Which brand ghee do you use?

a. Amul pure ghee ( ) b. Katraj ( ) c. Gowardhan ( )

d. Mother dairy ( ) f. Other, specify …………….

Q.6 Which brand vegetable oil do you use?

a. Dhara ( ) b. Fortune ( ) c. Gemini ( )

e. Saffola ( ) f. Other, specify……………….

57

Q.7 Which brand Ice-cream you prefer the most?

a. Amul ( ) b. Vadilal ( ) c. Natural ( )

d. Kwality Walls ( ) e. Mother Dairy ( ) f. Others ( )

Q.8 Which brand cheese do you use ?

a. Amul ( ) b.Britannia ( )

c. Gowardhan ( ) d. Others ( )………

Q.9 Are you satisfied by the purity and packaging of amul products? a. Yes ( ) b. No ( )

Q.10 Which pack size of butter do you normally purchase?

a. 100g ( ) b. 20g ( ) c. 500g ( )

Q.11 Can you recall Amul’s logo?

a. Yes ( ) b. no ( )

58