CHAPTER-1

INTRODUCTION
1.1 OVERVIEW : AMUL
Amul is the name of a dairy cooperative in India. Derived from the Sanskrit word "Amulya,"
Amul means invaluable.
Formed in 1946, it is a brand name managed by an Indian cooperative organisation, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03
million milk producers in Gujarat, India.
Amul is based in Anand, Gujarat and has been a successful example of cooperative
organization. Amul spurred the White Revolution in India which in turn made India the largest
producer of milk and milk products in the world. It is also the world's largest vegetarian cheese
brand .
Amul is the largest food brand in India and world's largest pouched milk brand with an annual
turnover of US $2.2 billion (2010-11). Currently Unions making up GCMMF have 3.1 million
producer members with milk collection average of 9.10 million litres per day. Besides India,
Amul
has
entered
overseas
markets
such
as Mauritius, UAE, USA, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and a
few South African countries. Its bid to enter Japanese market in 1994 did not succeed, but it
plans to venture again.
Dr Verghese Kurien, former chairman of the GCMMF, is recognized as a key person behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.

23

The AMUL Plant at Anand featuring the Milk Silos

Amul: The origin
The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas.
Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White
Revolution' in India. It began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today. Today Amul collects, processes
and distributes over a million liters of milk and milk products per day, during the peak, on behalf
of more than a thousand village cooperatives owned by half a million farmer members. Further,
as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol
of the aspirations of millions of farmers.Creating a pattern of liberation and self-reliance for
every farmer to follow.
The start of a revolution
The revolution started as an awareness among the farmers that grew and matured into a protest
movement and the determination to liberate themselves. 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. In order to do
that they needed to form some sort of an organization. This realization is what led to the
establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly
known as Amul) which was formally registered on December 14, 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An
assured market proved a great incentive to the milk producers of the district. By the end of 1948,
more than 400 farmers joined in more village societies, and the quantity of milk handled by one
Union increased from 250 to 5,000 liters a day.
Obstacles: Springboards for success.
Each failure, each obstacle, each stumbling block can be turned into a success story. In the early
years, Amul had to face a number of problems. With every problem came opportunity. A chance
to turn a negative into a positive. Milk by products and supplementary yield which suffered from
the same lack of marketing and distribution facilities became encumbrances. Instead of being
bogged down by their fate they were used as stepping stones for expansion. Backward
integration of the process led the cooperatives to advances in animal husbandry and veterinary
practice.

23

1.2 COMPANY PROFILE- GCMMF

GUJARAT COOPERATIVE MILK MARKETING FEDERATION
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims
to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money.

MEMBERS:
12 district cooperative milk producers' Union
No. of Producer Members:
2.28 million
No. of Village Societies:
11,132
Total Milk handling capacity:
6.7 million litres per day
Milk collection (Total - 2002-03):
1.86 billion litres
Milk collection (Daily Average 2002-03):
5.08 million litres
Milk Drying Capacity:
510 metric Tons per day
Cattlefeed manufacturing Capacity:
1450 Mts per day

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SALES TURNOVER

2001-03

Rs (million)
US $ (in million)
11140
355

2003-04

13790
400

2004-05

15540
450

2005-06

18840
455

2006-07

22192
493
22185
493

2007-08

2008-09

22588
500

2009-10

23365
500

2010-11

27457
575

23

1.5 SWOT ANALYSIS

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:
Demand profile: Absolutely optimistic.
Margins: Quite reasonable.
Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding
to your product line.
Availability of raw material: Abundant. Presently, more than 80 per cent of chocolate
produced is flowing into the unorganized sector, which requires proper channelization.
Technical manpower: Professionally-trained, technical human resource pool, built over last 30
years.
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 cant 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 consumers home!

23

 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: There is a phenomenal scope for innovations in product development,
packaging and presentation. Given below are potential areas of value addition:
Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer,
khoa, flavored milk, dairy sweets, chocolates etc. This will lead to a greater presence and
flexibility in the market place along with opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength - both in terms of
utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, caseinates and other
dietary proteins, further opening up export opportunities.
Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.
Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new treaty, opportunities
will increase tremendously for the export of agricultural products in general and dairy products
in particular.
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.

23

CHAPTER - 2

Research Methodology
2.1 STATEMENT OF PROBLEMS
First Step in marketing research is clearly state the problem statement, which is stating
the management dilemma, its background, its consequences and the resulting management
question.
Past and presently every organization focus on the customers feedback, because
Customers feedback it is most important and easy way to increase business. After the get
feedback we know what the problem of our customer. On that basis we try to solve their problem
and increase business.
After the get feedback we know what is their problem? May be we know
customer Problem regarding price, Quality, Quantity, Packing Size, Freshness of product,
availability of product, Purchase place, Behavior of Dealer as well as retailer ,any complain etc.
and should try to this problem. And know what is customer actually wanted?
In my Research study my topic is CUSTOMER PREFERENCE OF AMUL DAIRY
PRODUCT.
2.4 OBJECTIVE &SCOPE OF THE STUDY
2.4.1 OBJECTIVES
Basic concept of measurement and selling
Once a research objective is finding and particular plan of action is chosen to solve the
problems that general plan set direction in the three major stages of gathering primary data.
Designing questionnaires and related instrument for data collection
Planning sampling techniques and size.
Determining field procedures for the field workers.
The tasks in designing and writing the data collection forms to be used, particularly the
data by questions rather than observation.
In non-probability sampling method do not provide every elements of the population any
known chance of being selected in the sample. In non-probability sampling method, the
convenience sampling is used in my marketing research survey for milk of Amul dairy. Under
convinces sampling the samples are selected at the convenience of the researcher investigation.
2.4.2 SCOPE

23

 The scope of study is very limited in Jaipur city only.

The study helps out in having consumer view .
The project work done will definitely prove to be a helping hand for firm as well.
2.5 DATA COLLECTION METHOD AND METHODOLOGY
MARKET RESEARCH
Various authors have defined it in different way. Research starts with the question or
problem. Its purpose is to find out answer to question through the application or scientific
method. It is systematic and intensive study directed to word a more complete knowledge of the
subject study. Research can be classified in to two broad categories.
a. Basic research
b. Applied research
Market research is systemic and objective study of problems relating to the market of
goods and services. It may be emphasized that is not restricted to many particular area of
marketing. But it is applicable to all phase of aspect.
Marketing research is a key of education of successful marketing stretchy of programmed
research is used to study competition and analyses the competitors product positioning and how
to gain competitive advance stage. It is also an importance tools to study consumer opinion.
The systematic and objective search for an analysis so information relevant to the
identification and solution of any problems in the field marketing
Marketing research is the systematic design collection and reporting of data and finding
relevant to a specific marketing situation facing the company.
RESEARCH DESIGN
Research Design is the plan, structure, and strategy of investigation conceived so as to
obtained answers to research questions and to control variance.
The definition consists of three importance term plan structure & strategy.
TYPE OF RESEARCH
1) Exploratory research
2) Descriptive research
3) Causative research
On the context of my topic consumers opinion survey, I had selected descriptive
research.
Descriptive research:Descriptive research is carried out to descriptive a phenomenon or market. characteristics
of the target market is a descriptive research continuing the above example of services quality are

23

search done on now customer evaluating the quality of competitive services institution can be
considered as an example of descriptive research. Generally descriptive research is carried out
only when the researcher understand be phenomena or opinions characteristics.
Descriptive study can be divided in to two broad categories cross sectional & longitudinal
of the two, the former types of study is more frequently used.
Cross classification has two methods to research.
1) Cross field
2) Survey
SOURCE OF DATA
There are two types of sources of gathering marketing information namely primary
sources and secondary sources.
Primary data:
The primary data are those, which are collected fresh and for the first time, and thus
happen to be original in character. Here I have collected the primary data through survey of
customer who use products of Amul through questionnaire.
Secondary data:
The secondary data are those which have already been collected by somewhere else and
which have already been passed through the statistical process.
RESEARCH APPROACH
Primary data can be collected in the ways observation, focus group research survey and
experimental research. In my marketing research survey I had collected primary data through
survey research.
Survey best suited for descriptive research and it is only concerned with getting practical
knowledge. I had undertaken survey to learn about peoples knowledge, beliefs, preference and
satisfaction of Amul, Sagar and Banas dairy products.
RESEARCH INSTRUMENT
Marketing research has choice of two main research instruments in collecting primary
data; questionnaire and mechanical devices. In my marketing research survey I have used a
questionnaire for collecting data.
A questionnaire consists of a set of questions presented to respondents for their answers.
The questionnaire is the most common instrument used to collect primary data. A questionnaire
consists of two types of questions close ended and open-ended questions. Close-ended questions

23

refer to provide two or more possible alternatives to the respondent. And the open-ended
questions allow the respondents to answer in their own words. In my marketing research I have
used both types of questions in questionnaire.
SAMPLE SIZE AND AREA:
The survey was conducted in Jaipur city and the survey include 50 consumers as
respondents for making the reports.

CHAPTER 3
CONCEPTUAL DISCUSSION
3.1 INTERNATIONAL BUSINESS
AMUL stands out a star performer both in the domestic and international market.
With the perfect mix of technical know how and business acumen the company has
grown into a major of milk and Mmilk products producing company.
AMUL is Indias largest exporter of dairy products. It has been accorded a Trading
House status. It has received the APEDA Award from Government of India for
excellence in dairy product exports for the last 8 years.
AMUL has its market in almost 20 countries which include USA, Iraq, Kuwait,
Russia, Nepal, Qatar, Muscat, Singapore, Saudi Arabia, Sri Lanka, Bangladesh,
Gambia, Uganda, Madagaskar, Tanzania, U.A.E., Bahrain. Major export products of
AMUL are:
Consumer Packs
AMUL

PURE GHEE
AMUL

BUTTER
AMUL

SHRIKHAND
AMUL

FULL CREAM POWDER

23

AMUL

MITHAEE GULAB JAMUN

AMUL

SKIMMED MILK POWDER

NUTRAMUL

BROWN BEVERAGE
AMULSPRAY

INFANT MILK FOOD

AMUL

CHEESE
AMUL

MALAI PANEER
AMUL

UHT MILK (LONG LIFE)

AMUL

FRESH CREAM
Bulk Packs
AMUL

SKIMMED MILK POWDER

AMUL

FULL CREAM MILK POWDER

INTERNATIONAL DISTRIBUTION STRATEGIES
The company has appointed special carry forward agents for distributing its
products in the international market .It has rented cold storages in various
countries to store its products from where they are distributed as per orders.
Although the distribution network for international market is not so well
knitted as in case of domestic market, it has been successful in maintaining a
satisfactory network that ensures smooth functioning.
INTERNATIONAL PRICING STRATEGIES
While deciding the prices for international market the company takes into
consideration the prices of the competitors , production cost , distribution cost for
international market , taxes and duties to be paid ,etc. However the company tries
not to have much difference in prices in National and the International markets.
PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in
National and International markets, except for the fact that the company has to
maintain the quality standards as per the regulations of the respective countries.
Not all the products manufactured are yet available in International market
because of the difference in preferences and consumption pattern of the people
in various countries.
EXPORT POTENTIAL
India has the potential to become one of the leading players in milk and milk product
exports.

23

Location advantage: India is located amidst major milk deficit countries in Asia and
Africa. Major importers of milk and milk products are Bangladesh, China, Hong
Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf
countries, all located close to India.
Low Cost of Production: Milk production is scale insensitive and labor intensive.
Due to low labor cost, cost of production of milk is significantly lower in India.
CONCERNS IN EXPORT COMPETITIVENESS ARE :
Quality: Significant investment has to be made in milk procurement, equipments,
chilling and refrigeration facilities. Also, training has to be imparted to improve the
quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain
cost competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered
all over the world.
EXPORT NEWS:Amul to spread its taste to US, Europe
Popular Indian dairy brand, Amul, plans to take its products to overseas shores.
The Kaira District Cooperative Milk Producers Union Ltd, better known as Amul Dairy, will
target ethnic South Asians living abroad with manufacturing bases outside India. The country's
premier dairy cooperative, which was recently rated as the top Indian green brand by Green
Brands Global Survey, will initially produce ghee and paneer (cottage cheese) for the global
market.
Chairman Ramsinh Parmar said: There is great potential in Europe and US for Amul products.
"Plans are afoot to establish our own manufacturing facility in the US.
We shall shortly finalise steps to be taken in this direction to ensure quality for the dairy
products that are made available in these countries.
The Gujarat-based co-operative union will pick the exact location for the proposed facilities
within a month.
While California, Virginia and Wisconsin are considered to milk-rich states in the US, the
concentration of Indians is more in states such as New Jersey and New York.

23

The group currently exports products to these markets, mainly under the Amul and Sagar brands.
Amul has found over the years that there is significant demand for its products amongst Indian
families in these markets and a local facility would enable better control over logistics and costs
and cut 45 days out of the shipping time.
The group plans to source white butter and raw milk from local cooperative dairies to cater to the
US market.
Amul is run by a co-operative representing 3 million farmers from the country's north-west and
sold $2.1 billion worth of ghee, milk and other dairy products last year, with 10 per cent of the
ghee production being exported.
Amul to hit big in export route:Ratna Bhushan, TNN Jun 30, 2011, 10.42pm IST
NEW DELHI: Spurred by the recent reduction in dairy subsidies by the European Commission
and stagnant milk output in the US and Europe, and aided by low-cost production in India, the
Gujarat Cooperative Milk Marketing Federation (GCMMF) has set itself its single biggest export
target ever.
It has projected doubling of exports in 2004-05 from last fiscal, amounting to Rs 90 crore.
"With the EU subsidy cut, low-cost imports from Europe and other markets will dip. This will
increase the Indian dairy sector's competitiveness globally," says RS Sodhi, GM, marketing,
GCMMF.
The subsidy cut will also help Indian exporters achieve higher realisations from the EU, and
subsequently better returns for farmers.
The reductions are primarily on butter oil, skimmed milk powder (SMP) and white butter.
Top on GCMMF's export list are SMP in bulk, UHT milk in tetrapaks, butter, cheese, ice-cream,
ghee (or clarified butter), paneer (cottage cheese) and desserts.
All these are being exported under the Amul umbrella brand. Bulk exports of SMP have the
highest growth potential.
Among branded products, Amul is pitching its UHT milk - branded Amul Long Life - upfront.
"We expect to sell Rs 20 crore of UHT milk in 1-litre tetrapaks in overseas markets this fiscal,"
says Sodhi.

23

Branded consumer products are being targeted at NRIs. Last year,Amul initiated a potential foray
in Wal-Mart for some of its milkbased products.
In 2003-04, GCMMF's sales grew 5 per cent to Rs 2,882 crore, with dairy business growing 18
per cent despite the loss of its edible oils business.
Milk production in India - at 86 million tonnes, making it the largest milk producing country - is
growing at 4-5 per cent.
Output in the US, the second largest, is estimated at close to 72 million tonnes.
LIST OF PRODUCTS MARKETED
Breadspreads:

Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix

UHT Milk Range:

23

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk
Amul Slim-n-Trim 0% fat milk
Amul Chocolate Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Amul Taaza Double Toned Milk

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat

Curd Products:

Amul Masti Dahi (fresh curd)

Amul Butter Milk

23

Amul Lassee

Amul Ice creams:

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival,
Badshahi Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond)
Chocolate & Confectionery

3.2 CURRENT ISSUES

The Land of sacred cows has become the worlds largest producer of vegetarian cheese.
Indias top dairy co-operative Amul is now the biggest brand for vegetarian cheese as the Global
Indian even now prefers desi shuddh taste over the premium Bries and Camemberts of the West.
With demand pouring in from London to Ludhiana, exports will hit a record 600 tonne this year
as Amul shreds competition with a growth of more than 20per cent.
For those who dont know what makes vegetarian cheese different, here is a quick low-down.
Cheese is made by coagulating milk to give curds which are then separated from the liquid,
whey, after which they can be processed and matured to produce a wide variety of cheeses.
Milk is coagulated by the addition of rennet. The active ingredient of rennet is the enzyme,
chymosin (also known as rennin). The usual source of rennet is the stomach of slaughtered
newly-born calves. On other hand, vegetarian cheeses are manufactured using rennet from either
fungal or bacterial sources.
Amul is exporting cheese to the Middle East, USA, Singapore, Hong Kong, and neighbouring
countries like Bhutan, Nepal and Sri Lanka.
Though there are many vegetarian cheese producers in the world, we would certainly be the
single largest exporter. Our main customers abroad are NRIs. We market the product to them,
Mr Sodhiadded.
Amul Cheddar is the top selling brand in India, with a 50per cent share of the market. Its cheese
spreads have a 90per cent share of the market, while it is the only large player in mozarella pizza
cheese.

23

The local branded cheese market is estimated to be 6,000 tonnes per annum, with an average
retail price of Rs 200/kg. The demand for cheese is projected to grow from about Rs 4.50bn in
2003-04 to Rs 6bn in 06-07 and to over Rs 11bn by 14-15.

23

3.3.1 History Of The Company

The Kaira District Co-operative Milk Producers' Union was registered on December 14,
1946 as a response to exploitation of marginal milk producers by traders or agents of existing
dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers had to
travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk
went sour as producers had to physically carry the milk in individual containers, especially in the
summer season. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the
government at that time had given monopoly rights to Polson Dairy to collect milk from Anand
and supply it to Bombay city in turn. Angered by the unfair and manipulative trade practices, the
farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy
Prime Minister and Home Minister of free India) under the leadership of the local farmer
leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply
milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but
gave low prices to the producers). He sent Morarji Desai(who later became Prime Minister of
India) to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to
be further oppressed. Thus the Kaira District Cooperative was established to collect and process
milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers
were marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level
cooperatives were established to organize the marginal milk producers in each of these villages.
The Cooperative was further developed and managed by Dr.Verghese Kurien along with
Mr H.M Dalaya. Dr.Kurien, a World Food Prize and Magsaysay winner, was the pioneer of
this White Revolution. The first modern dairy of the Kaira Union was established at Anand.
Indigenous research and development and technology development at the Cooperative had led to
the successful production of skimmed milk powder from buffalo milk for the first time on a
commercial scale anywhere in the world. The success of the dairy co-operative movement
spread rapidly in Gujarat. Within a short span five other district unions - Mehsana, Banaskantha,
Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the
market while saving on advertising and avoid a situation where milk cooperatives would
compete against each other it was decided to set up an apex marketing body of dairy cooperative
unions in Gujarat. Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was
established. The Kaira District Co-operative Milk Producers Union Ltd. which had established
the brand name Amul in 1955 decided to hand over the brand name to GCMMF
(AMUL). Impressed with the development of dairy cooperatives in Kaira District and its
success, Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964,
asked Dr. Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National
Dairy Developed Board was formed and Operation Programme was launched for replication of
the Amul Model all over India

23

3.3.2 Development Of the Company

3.1 million milk producer member families

15,760 village societies
15 District Unions
9.4 million liters of milk procured per day
150 million (US$2.99 million) disbursed in cash daily
GCMMF is the largest cooperative business of small producers with an annual turnover
of 53 billion (US$1.06 billion)
The Govt. of India has honoured Amul with the Best of all categories Rajiv Gandhi
National Quality Award.
Largest milk handling capacity in Asia
Largest Cold Chain Network
48 Sales offices, 5000 Wholesale Distributors, 7 lakh retail outlets
Export to 37 countries worth 150 crore (US$29.93 million)
Winner of APEDA award for nine consecutive years.

Amul Brand Building

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 5,000 wholesale dealers and more than
7,00,000 retailers.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today in
over 40 countries of the world. AMUL is exporting a wide variety of products which include
Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee)
and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the
Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory.

23

Advertising

An Amul butter ad on Pakistan's War fiasco. The image shows the "Amul baby" in
between George Fernandez and Atal Behari Vajpayee.
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency ASto
design a new ad campaign for Amul Butter. daCunha designed an ad campaign as series of
hoardings with topical ads, relating to day-to-day issues. The campaign was widely popular and
earned a Guinness world record for the longest running ad campaign in the world. Since the
1980s, cartoon artist Bharat Dabholkar has been involved with sketching the Amul ads, who
rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman
Varghese Kurien with creating a free atmosphere that fostered the development of the ads.
Despite encountering political pressure on several occasions, daCunha's agency has made it a
policy of not backing down. Some of the more controversial Amul ads include one commenting
on Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and the one
depicting the Amul butter girl wearing a Gandhi cap[
Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream.

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

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 Products Purchased Daily

PRODUCT

NO. OF RESPONDENT

PERCENTAGE%

MILK

35

70%

BUTTER MILK

10

20%

GHEE

6%

SWEETS

4%

OTHER

INTERPRETATION:
According to my convenience method in Jaipur I selected 50 consumers of dairy product,
in this I found that nearly about 70% customers use milk, 20% customers use butter milk, 6%
customers use ghee, 4% customers use sweets ETC..

Purpose of purchase of a product

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No. of Res.
SELF USE

32

SELLING PURPOSE

11

MAKE A NEW PRODUCT

INTERPRETATION:
From the above data collected graph it can be interpreted that 32% customers purchase
products for self use, 11% customers purchase for selling purpose and 7% customers purchase
for making a new product.

Place of Purchase

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No. of Res.

PERCENTAGE%

Amul dairy

12

24%

Dealer

12%

Retailer

32

64%

INTERPRETATION:
From the above data I conclude that nearly about 12% customers purchase the products
from dairy, 6% customers purchase from dealer and 32% customers purchase from retailer.

Dairy Product at Expected time or No

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NO. OF RESPONDENT

PERCENTAGE%

Yes

43

87%

No

07

13%

INTERPRETATION:
From the above graph I conclude that nearly about 43% customers get the products
within expected time, So they customers do not face the shortage problem of the product.

Dairy Product in desired Quantity Yes or No

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No. of Res.

% of Res.

Yes

45

95%

No

05

5%

INTERPRETATION:
From the above data we can interpret that 95% customers get the product in desired
quantity so customers are satisfied with their own demand of dairy products.

Satisfied with the packing of Dairy Products or No

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No. of Res.

% of Res.

Yes

40

60%

No

10

40%

INTERPRETATION:
From above graph we can interpret that customers are not much satisfied with the
packing of the product due to lack of good packaging material customers face the problems such
as leakage and spoiling of the dairy product.

Opinion about the Quality of Dairy Product

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No. of Res.

% of Res.

Satisfied

35

75%

Medium

14

24%

Dissatified

01

1%

INTERPRETATION:
From the above graph about 75% of respondents opined that the quality of dairy products
is satisfied, 24% of respondent said that the quality of dairy products is medium and 1% of
respondent are somewhat dissatisfied.

Which brand cheese do you use?

Which brand butter do you use?

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 Which brand ghee do you use?

Products
Butter
Ghee
Cheese

Brands

Lebon
1%
2%
5%

Amul
45%
38%
42%

Britania
2%
8%
3%

Handmade
2%
12%
0%

Interpretation:- According to this analysis,

On the basis of Butter 1% persons like Lebon, 45% like Amul, 2% like Britania and 2% persons
like handmade butter.
On the basis of Ghee 2% persons like Lebon, 38% like amul, 8% like Britania, and 12% like
housemade ghee.
On the basis of Cheese 5% like Lebon, 42% like Amul, 3% like Britania.

Satisfied with the weight/Quantity of Amul dairy Products

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No. of Res.

% of Res.

Yes

44

94%

No

06

6%

INTERPRETATION:
From the above graph we can say that nearly about 94% customers are satisfied with the
weight/quantity of dairy products.. Dairy should continue with the same quantity as well as
quality.

Purchase place from your house

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No. of Res.

% of Res.

Near

45

95%

Far away

05

5%

INTERPRETATION:
From the above graph we can interpret that the customers get the products easily, for
purchase of the product nearly about 95% customers get the products nearby their house. It
means dairy have enough retailers.

CHAPTER - 5
FINDING AND CONCLUSIONS
FINDINGS
After the completion of this research survey I found some problems which are helpful to
make some necessary decision which are beneficial for the dairy.

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 Generally, I found that most of the customers used milk as a primary product.
Most of the customer use dairy product for self use only.
Mainly customer purchases the product from the retailer.
Customers are satisfied as they get the product within the expected time and in
desired quantity.
Mainly the customers are facing problem with packaging of the product from my
survey I found out that out of 50 nearly 5 customers were complaining about the
packaging of the product.
Customers are somewhat satisfied with the quality of dairy product. But nearby 25%
customers complain of bad quality of dairy product and especially of milk.
Customers are satisfied with the weight as well as quantity of dairy product.
Many retailers are available so customers do not face any problem and get the dairy
products easily.

I found that the behavior of dealer is good because 43 customers satisfied with their
behavior.

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 CONCLUSION
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.

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CHAPTER 6
SUGGESTIONS

23

APPENDICES
CONSUMER QUESTIONNAIRE

CUSTOMER PROFILE
NAME:-________________________________________________AGE:-________
OCCUPATION:-_____________ EMAIL ID:- ______________________________
CONTACT NO:-_________________

1).Which dairy products do you purchase daily?

NAME

MILK

BUTTER
MILK

GHEE

OTHER

SIZE

2).For whom do you purchases a product.

A. Self Use
( )
B. Selling Purpose
( )
C. For make a other Product ( )
3).From where do you Purchases a product?

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A. Amul Dairy ( )

B. Dealer ( )

C. Retailer( )

4).Do you get the Dairy Product at Expected time?

A. Yes( )

B. No ( )

5).Do you get the Dairy Product in desired Quantity?

A. Yes ( )

B. No ( )

6). Which brand cheese do you use?

A. Lebon ( )

B. Amul ( )

C.Britannia ( )

D. Other ( )

7). Which brand butter do you use?

A. Amul ( ) B. Parag ( ) C. Mother dairy ( ) D. Britannia. ( ) E. Home Made ( )
8). Which brand ghee do you use?
A. Amul pure ghee ( ) B. Anik ( ) C. Everyday ( ) D. Mother dairy ( )
E. Parag ( ) F.Other, specify
9).Are you satisfied with the packing of Dairy Products?
A. Yes ( )

B. No ( )

10).Any Suggestion regarding Packing:_______________________________________________________________

11). Please give the opinion according to Quality of Dairy Product
A. Satisfied ( )

B. Medium ( )

C. Dissatisfied ( )

12). Any Query about Quality of Dairy Product:__________________________________________________________________

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13). Are you satisfied with the weight/Quantity of Amul dairy Products?
A. Yes ( )

B. No ( )

14).Are you satisfied with the price of Amul dairy Products compare to the other
brand products?
A. Yes ( )

B. No ( )

15).How far a Purchase place from your house?

A. Near ( )
B. Far Away ( )
16). Please give the opinion according to behavior of dealer;
A. Satisfied ( )

B. Medium ( )

C. Dissatisfied ( )

17).Any Suggestion regarding the behavior of dealer:__________________________________________________________________

18).Are you find any difficulties while purchasing the dairy products?
A. Yes ( )

B. No ( )

If yes than which type:

______________________________________________________
19).Do you complain if any defect in the dairy products?
A. Yes ( )
B. No ( )
If yes then to whom?
Dairy ( )

seller ( )

20). Do you expect to get any other Dairy product from Amul Dairy?
Name:-_________________________________________
Quality:-________________________________________
Quantity:-_______________________________________

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Date:-

Customers Sign.

23

BIBLIOGRAPHY
Web Sites
Research From Company Web Site:
www.amul.com
www.yahoo.com
www. google.com
Books
Marketing Management
Research Methodology
Marketing Research

- Philip Kotler
- C.R. Kothari
- Boyd

Company Literature
Printed Literature obtained from Amul India.
AMUL Brochures
Magazines
Business Today
Business World
Economic India
Newspapers
Economic Times
Business Standards
Financial Express

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