Complete Project PDF

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 53

A Project Report

‘’A Study on Comparative Marketing Strategies of milk and milk products at


GCMMF LTD’’
Undertaken at

Project report submitted to

Institute of Public Enterprise, Hyderabad


In
Partial fulfilment of the PGDM(Retail marketing) curriculum
For Academic Year 2016-2018
By
Ye rrabapani Karshak Reddy
(1602007)
Under the supervision of
V Anji Raju, Associate Professor,
Marketing
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Marketing
Marketing is the activity, set of institutions, processes for creating, communicating,
delivering exchanging offerings that have value for customers, clients, partners and society at
large.

From a societal point of view, marketing is the link between a society’s material requirements
and its economic pattern of response. Marketing satisfies these needs and wants through
exchange process and building long term relationships. Marketing can be looked at as an
organizational function and a set of process for creating delivering and communicating value
to customers, and managing customer relationship in ways that also benefit the organization
and its shareholders. Marketing is the science of choosing target markets through market
analysis and market segmentation, as well as understanding consumer buying behaviour and
providing superior customer value.

There are five competing concepts under which organizations can choose to operate their
business: the production concept, the product concept, the selling concept, the marketing
concept, and the holistic marketing concept. The four components of holistic marketing are
relationship marketing, internal marketing, integrated marketing, and socially responsive
marketing. The set of engagements necessary for successful marketing management includes
capturing marketing insights, connecting with customers, building strong brands, shaping the
market offerings, delivering and communicating value, creating long-term growth, and
developing marketing strategies and plans.
The scope of marketing can be understood in terms of functions that an entrepreneur has to
perform. This includes the following
a. Functions of exchange – which include buying, selling, assembling
b. Functions of physical supply – includes transportation, storage, where house
c. Functions of facilitation – product planning and development, marketing research,
standardisation, grading, packaging, branding, sales promotion, financing.

Importance of marketing in small business

Since marketing is consumer orientated, it has a positive impact on business firms. It


enables the entrepreneurs to improve the quality of goods and services. Marketing
helps in improving the standard of living of the people by offering a wide variety of
goods and services with freedom of choice, and by treating the customer as the most
important person. Marketing generates employment in both production and
distribution areas. Since, the business firm generates revenue and enhances profits by
carrying out marketing functions, it will engage in exploiting more and more
economic resources of the country to earn more profits.
Large scale businesses can have its own formal marketing networks, media campaigns
and sales force, with a small unit may have to depend totally on personal efforts and

2016-2018 Page 1
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

resources, making it informal and flexible. Marketing makes or breaks small enterprise. An
enterprise grows, stagnates or perishes with the successes or failures, as the case may be, of
marketing, is appropriate example of the successes of the small scale enterprises.

Market segmentation

Market consists of large number of individual customers to differ in terms of their needs,
preferences and buying capacity. Therefore it becomes necessary to divide the total market
into different segments or homogeneous customer groups. Such division is called market
segmentation. They may have uniformity in employment patterns, educational qualifications,
economic status, preferences, etc.

Market segmentation enables the entrepreneur to match his marketing efforts to the
requirements of the target market. Instead of wasting his efforts in trying to sell to all
types of customers, a small scale unit can focus its efforts on the segment most
appropriate to its market.

Market can be segmented on the basis of the following variables-


1. Geographic segmentation - the characteristics of customers often differs state,
region, cities or neighbourhoods the entrepreneur can decide to operate to and of a
few or all the geographic areas, but pay attention to differences
2. Demographic segmentation – variables such as age, sex, family size, income,
occupation, education, race, religion and nationality widely used for market
segmentation.
3. Psychological variables – personality, lifestyle, social class, etc. can also be used
for market segmentation. For ex products like pens, cosmetics, watches briefcases
are designed differently for common man and status seekers.
4. Behavioural segmentation: buyers are divided into several groups of buyers on the
basis of their knowledge, attitude and use of response to a product.

Marketing Mix:

A brief description of four elements of marketing mix is as follows:-


1. Product: The first element of marketing mix is product. A product is anything that
can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or a need. Products include physical objects, services, events, persons,
places, ideas or mixes of these. This element involves decision concerning product
line, quality, design, brand name, label, after sale service product range etc., an
appropriate combination of features and benefits by the small firm will provide the
product with USP (unique selling proposition). This will enhance the customer loyalty
towards the product. Products and services are broadly divided into cons umer
products and industrial products. Consumer products are bought for final

2016-2018 Page 2
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

consumption whereas industrial products are bought by individuals and organizations


for further processing or for use in conducting business.

2. Price. The second element is the price, which affects the volume of sales. It is one of
the most difficult tasks of the marketing manager to fix the right price. The variables
that significantly influence the price of a product are: demand of the product, cost,
competition and government regulation. It includes determination of unit price of the
product., pricing policies and strategies, discounts and level of margins, credit policy,
terms of delivery, payment etc. pricing decisions have direct influence on the sales
volume and profits of the firm. Price, therefore, is an important element of the
marketing mix. Right price can be determined through pricing research and by
adopting test marketing techniques.
Small firms should think of pricing as a method whereby prices are set with regard to
costs, profit targets, competition and the perceived value of products. Because of their
simplicity, cost-plus-pricing are attractive to small businesses, though this is not the
only mode of pricing utilized by small firms. For example- the profit margin in the
cost- plus approach may well be fixed after examine both the nature of the market and
the competitor activity within it. It is a mistake for all small firms to rely wholly on
cost-plus, but very often small firms do that to the detriment of pro fits and market
share.

3. Promotion. Promotion is the important part of marketing mix of a business


enterprise. The purpose of promotion is to inform, persuade and influence the
prospective customers. Advertising, salesmanship, sales promotion and publicity are
often used to inform the people about the availability of products and create among
them the desire to buy the products. No business enterprise can market its products
unless it takes promotional activities effectively. The prospective customers have to
be informed about the product, its features, utility and availability. The need for
promotional activities has increased because of stiff competition, widening of market,
rapid changes in the technology and tastes of customers.
4. Place. This is another key marketing mix tool, which stands for the various activities
the company undertakes to make the product available to target customers. Place mix
or delivery mix is the physical distribution of products at the right time and at the
right place. In every industry, catching the eye of the c ustomer and making it easy for
them to buy it is the main aim or good distribution or ‘place strategy’. Retailers pay a
premium from the right location. it is also helpful for the company to decide its target
customers and carryon its business operations.

2016-2018 Page 3
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Four elements of brand image

When brands look to holistically improve customers’ brand experiences, it can be helpful to
consider four criteria: Impression, Interaction, Responsiveness and Resilience.

1. Impression- ‘I like what this brand has to offer me’

It’s quite simple – to attract a customer they have to like what a brand has to offer – in
other words, its proposition. The effectiveness of a brand’s proposition is based on its
relevance to a customer – whether it firstly targets the right customer and then meets a
need (or creates one first, in order to meet it). Another key element of marketing the right
impression is differentiation. Standing out from peer brands is important but standing out
across categories can ensure share of mind in a world where consumers are constantly
assaulted with competing marketing messages. But probably the most critical element is
that the proposition must be based on organizational truths. If it doesn’t link to a core
competency, and operational advantage, to business strategy (or even all three), it has the
potential to leave the brand exposed.

2. Interaction- ‘This brand does what it says’

Creating a brand is all well and good, but how often do customer find that it isn’t delivering
on what it promised? Optimizing delivery is contingent, first and for most, on consistency. If
a brand doesn’t consistently reinforce its contingent, first and foremost, on consistency. If a
brand doesn’t consistently reinforce its message through every possible touch poi nt, it’s
missing an opportunity to optimize the opportunities created by the impression. Several
organizations today are aligning their ‘experience’ across bricks -and-mortar operations as
well as on line channels in an effort to do this. The other key component of delivery is
access- is the brand available to people when and where they want it with an effective
channel, distribution and online strategy? And finally there’s the delivery – if plenty kitchen
towels didn’t actually absorb 25% more as compared with store label towels, it would
simply lose all credibility.

3. Responsiveness- ‘This brand responds to my needs’

If impression and interaction seem like standard brand fare, this element is where brands
truly start to make a difference. ‘Personalization’ (not to be mistake for bespoke) is an
essential requirement to ensuring your brand doesn’t become commoditized. At the basic
end, this can mean variants of shampoo that address ‘issue’ such as dandruff , frizz or hair –
loss. At a more sophisticated end, it means a digital strategy that adapts itself to users to
deliver a custom experience, the more and more and more y ou use it.

2016-2018 Page 4
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Responsiveness also includes the concept of approachability. This is about more than just
general access-it about a customer felling that a brand like direct can be approached easily
and will respond appropriately. Perhaps most important however, is the concept of
adaptability- does the brand pro-actively look at its audiences and practice incremental
innovation that addresses needs or adapts to emerging lifestyles? For instance, when British
airways intercede electronic boarding passes, it was based on an understanding of how their
customers’ lifestyle were changing.

4. Resilience- ‘This brand cares about our future’

One may see this element as a nice-to-have, but it’s the pillar that some of the world’s most
powerful brands build their businesses around. A key element of resilience is imparting a
reputation of ‘responsibility’ this has far outgrown traditional expectations of being
‘sustainable’-it now manifests itself as organizational integrity. No one expects a brand to be
infallible, which is may be why apple get away with suicides at manufacturing plants in china
or how Nike managed to ultimately come out on the right side of a sweatshop scandal it’s
about perception more than anything else –but it does mean brand now have to subject
their supply chain to unprecedented scrutiny – so that your burger don’t end up with
horsemint’ or that your dishwashing liquid doesn’t suddenly earn itself a reputation for
wiping out entire ecosystem

Brand also need to be future-proof—this now transcends categories like bank that are
meant to safe gaur your assets and provide much needed credit to business over extended
periods of time. Today, brand in almost any category that aren’t perceived as having strong
business behind them simply lack credibility, which can undermine the other elements of
the brand experience. The ultimate component of this categories however, is category
influence. Brand that think beyond the confines of categories, market and capabilities –
apple, google, amazon, Netflix- are usually the ones that ones that shatter conventions,
transform expectations and change the way customer live their lives.

BEHAVIOUR:
PHILLIP KOTLER defines four patterns of behaviour

1. Hard-core loyal – who buy the brand all the time


2. Soft-core loyals - who buy two or three brands.
3. Shifting loyalty – moving from one brand to another.
4. Switchers - with no loyalty (possible dual pro, constantly looking
For bargains or vanity buyers, looking for something
Different.)

2016-2018 Page 5
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

EXECUTIVE SUMMARY
Indian dairy industry is very diverse. Dairy farming is an important livelihood opportunity
across India. Milk and dairy products play an important role in a healthy balance diet in
Indian food .Andhra Pradesh is the second largest milk producer in India and has a market
share of 9% only next to Uttar Pradesh which contributes 18%.
The brand purpose of this project is:

 From Retailers aspect- The objective of the study is to know the prefere nce of
Retailers towards the launching of a new product for amul to have an edge over other
brands.
 To observe the marketing mix of amul dairy products in Hyderabad.
 To understand the challenges faced in the distribution of the products.
 To know the demand and perception of Amul brand in Hyderabad.

Purpose method was used for selecting the respondents. A total of 50 respondents were
selected for the survey across the city of Hyderabad. All the retailers were used as a sample
for market research. The survey was conducted through a structured questionnaire but as and
when needed we conducted unstructured interviews and discussion with some dealers and
with concerned persons; and based upon their answers and responses and the conclusion, the
data has been collected, analyzed and interpreted.
Customers’ perception, preference, demand, comparative sales and satisfaction level has been
studied.
The major findings were –Around 80% of the retailers prefer a higher margin to sell the
product.
About 72% of the customers are brand switchers and are ready to shift their brand if they are
being provided with what they require.
Hyderabad market has cut throat competition in the dairy market segment.
Timely delivery, easy availability and margin in the milk are the major factors that are being
considered by the retailers.
Amul is being considered as a trusted brand by the customers and are ready to switch from
their current brand if their preferences are being considered.

OVERVIEW OF THE STUDY


The project work entitled “A study on comparative marketing strategies of milk and milk
products at GCMMF LTD” with special reference to Gujarat co-operative milk marketing
federation (GCMMF) ,is mainly conducted to segment, target and position the product. This
study mainly focused on 4p’s(marketing mix) and marketing challenges. This study was
carried out in the Hyderabad city.
The purpose of the study is focused on launching the butter milk in the market and improving
the retailing of the butter milk curd and milk products in Hyderabad. This study considered

2016-2018 Page 6
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

the feedbacks given by the retailers to evaluate the problems and improving the quality of
supply chain. Milk and curd comes under necessities; so availability of product matters a lot.
Considering this fact amul focused more on the supply chain. Based on the findings of this
study, the company can expect its future marketing plan and marketing strategy.
Dairy activities have traditionally been integral to India’s rural economy .the country is the
world’s largest producer of dairy products and also their largest consumer.
In India after white revolution many new private milk companies had opened and many milk
cooperatives were also formed due to this the dairy products market became a competitive
fleld and thus dairy sector tried to increase its market share and started introducing new
technique for producing new dairy products range such as curd, buttermilk, lassie, cheese,
ghee, butter etc.
Curd is considered to be an essential part of a meal of the Indian food culture. Has now a
days most of the people in the family are working members the need for the purchase of curd
has arose. This has increased the sales of packed curd too along with milk.

Hyderabad being a cosmopolitan city and with many competitors in the field of dairy
products, there is a rise in the brand of milk. Amul being one of the best brands in dairy
products and it has now entered into the sale of milk it needs to withstand the competition by
being able to give its customers what they required so that it could reta in its present
customers and also grab the attention of other customers.
Food still accounts for highest share of monthly household expenditure in india, number of
urban Indian households growing by more than three times in the next 50 years, we anticipate
sharp rise in demand for branded, packaged, nutritious food products which are easily
available and offer value – for money as well as convenience. Affordability and easy
availability, along with food, milk and dairy products account for the highest share of
expenditure (after cereals) for an average Indian household.

NEED OF THE STUDY


The managers of consumer market must react in a different way to change the markets,
develop products to meet these changes and market them in exclusively different way to
target and sophisticate customers. They can face many distinctive marketing situations in the
consumer market. For marketing effectiveness, the product should always be regarded as
variable and should be viewed from the perspective of customer, customers satisfaction, need
satisfaction should be the center of attention . further customer satisfaction should be
dominant in all corporate decision making. So before taking any major decision it is very
important to know customer’s preferences about the factors they consider to be available in
a product of their choice . it can help in taking major decisions.
Dairy sector is one of the fastest growing sectors in India as it is still having 85% of
unorganized sector. Competition is growing day by day as many MNC’s are focusing on the
Indian market. The dairy industry is dominated by the co-operative sector. Marketing is the
process through which the goods of the manufacture goes to its final consumer. It is the

2016-2018 Page 7
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

process through which the selling of the product happens through which revenue generates.
Its importance can be seen from the fact that according to Philip kotler in the united states
channel member collectively have earned margins that accounts for 30%to 50% of the
ultimate selling price. In contrast advertising typically accounts for less than 5% to 7% of
final price. It ranges in a similar manner for south Asia as well. One of the chief roles of the
marketing channel members is to convert potential buyer into profitable buyer. Marketing
channels must not serve market but also make markets.
OBJECTIVE OF THE STUDY
Hyderabad is having a wide range of milk products available in the market. Hyderabad is the
major consumption area of milk products in the state of Telangana. There are many dairy
companies national as well as local who competes with each other to capture the market
share. This study was conducted in busy places all over Hyderabad. This study has four
aspects that are
1) Product
2) Price
3) Place( distribution)
4) Promotion

It has also focused on STP (segmentation, targeting positioning) model.


 Segmentation: segmentation has been done considering the demographics, behaviour
and benefit point of view. Segmentation is a practice that seeks out pieces of the total
market that contain customers with identifiable characteristics, as defined by income,
age, personal interests, ethnic background, special needs and so forth.
 Targeting: Based on the segmentation, targeting has been done with special strategies
and offering. Amul applied market specialization and full market coverage strategies
in Hyderabad market. Market specialization is dealing with one specific market only.
Amul tried to meet many needs of a particular customer groups.

 Positioning: Placing the product in the minds of consumers in positioning. Success of


products starts from here. Amul is able to come up with unique selling proposition for
the product.

METHODOLOGY
Sampling:
Cluster sampling technique has been used to collect the data. Retailers who already exists and
new retailers who had joined to sale amul products
Framework of the study:
A Structured questionnaire was used to carry out this study that was conducted on retailers.
At times even the data was collected through an unstructured interview and discussion, the
data has been collected, analyzed and interpreted.

2016-2018 Page 8
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Source of the study;


Primary data was collected through questionnaire and by interviewing the retailers at time the
primary data was also collected through un-structured interviews and discussions. Data was
also collected by visiting the site and interviewing or discussing the concerned matter with
the authorized person.
Secondary data is collected through the various websites of the government which are related
to milk, milk procurement and milk products and also through the webs ites of various milk
product companies situated in telangana, reports that are annually published by the
department and research papers which are written earlier on the related topic.
Significance of the study:
Milk plays a major role in every individual’s life, there are many food items prepared out of
milk. Curd is considered to be one of the import parts of an Indian meal. Consumers prefer
various qualities of milk. This study will help us to know the importance of retailing in the
milk industry. This study will help us capture the market towards amul brand of milk which
would be according to the preferences of its customers so that it could win an edge over other
brands of milk in the Hyderabad market.
The finding, conclusion and the suggestion of the study will help GCMMF to make
marketing plans in the future and by using these strategies company can increase its market
share.
Comparative sales, demand, satisfaction level, perception, preferences etc. are the tools used
for the study.

LIMITATIONS OF THE STUDY


The survey was conducted on a total sample size of 50. The survey was conducted on 30
existing Amul retailers and 20 competitors’ retailers which makes the total sample size as 50
So the study may not hold true and correct for the whole of the population of Hyderabad. The
methodology that was used to analyze the responses may have some limitations and errors.
Random sampling method was used to conduct they survey. The analysis was based on the
responses of the interviewee.
The conclusions and finding cannot be verified, as there is no method to verify whether the
conclusions obtained and the findings that we obtain truly hold good.
The same study is conducted on other sample size or on other set of respondents, then the
analysis result can bee different and the conclusions and findings may vary from the original
survey.
LITERATURE REVIEW
Consumer preferences are defined as the individual tastes, as measured by utility, of various
bundles of goods. Customer perception is defined as the way the customer usually view or

2016-2018 Page 9
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

feel about certain services and products, it can also be related to customer satisfaction which
is the expectation of the customer towards the products.
Zeithaml(1988) pointed out that perceived value is very subjective and distinct and it is
different from one customer to another. After consolidating four consumers’ expressions of
value, she defined perceived value as a customer’s overall assessment of the utility of a
product based on the perception of the same product-differently at different occasions. To
illustrate; a customer may regard price as the most important criteria at the time of marking
decision to purchase a product. Subsequently, when he/she is faced with any problem with
regards to the product, he/she might consider that customer service is the most important
factor that will affect his/her satisfaction/dissatisfaction.
MONROE(1991) defined customer perceived value as the ratio between perceived benefits
and perceived sacrifice. The perceived sacrifice was not solely referred to the purchase price
but also includes all other possible costs that the customer might face in the purchasing
process.
Perception is the process by which people select, organize and interpret stimuli into a
meaningful and coherent picture. Marketer’s managers first identify the important attributes
such as price or quality that the targeted consumers want in a product and design signals to
communicate these attributes. Consumers also associate quality and reliability with certain
brand names. Companies watch their brand identity closely on a large part because a strong
link has been established between perceived brand value and customer loyalty.
Brown et al.(2000)reported that the need for educating young generation specially those who
are in their adolescence are noticeably increasing, given their regular food eating habits and
behavior, children who are in their teenage prefer food with respect to food nutritious as wee
as three factors play a very important role, home environment, school and social gatherings.
Aaker (2000) assess that brand awareness plays a vital role in consumer perception especially
in their buying pattern is not defined. Branded items gives the feeling of familiarity especially
in low involvement problems for example soaps and other day to day usage items, media and
advertisement are effective tools for awareness.
Nandagopal and chinnaiyan (2003) conclude that the mode of purchase also effecting buying
patterns and so perception of consumer.

The most important factor which effect consumer perception/preference is:


Accessibility
Availability
Quality
Durability
Regular supply of product
Mode of payment

2016-2018 Page 10
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Product quality has two forms


1. Accurate quality
2. Expected quality
The actual quality contains the actual benefits achieved from the purchase of product the
other hand perceived quality contain consumer expectations from product.
Vanniaranjan and kubendran (2005) describe that consumer perception and usage of any
product can be changed due to change in food eating habit. If income and urbanization
increases among consumers then the percentage of income spent on consumption increases.
The urban consumer mostly like branded products as compared to rural consumers.
Kumar et al.(1987) examined those factors which effect buying decisions making of large
number of respondents for different food products. Country, origin and brand of the product
impact effectively and largely. Brand of the product is the most important factor since
consumers are more attracted towards brand. Income, age and awareness are dependent
factors.
Sabesson(1992),stated that brand of processed food is chosen by its quality, taste of the
product and price of the product. These are the major factors which affects the criteria of food
brand selection.

2016-2018 Page 11
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Industry Profile
India is the highest milk producer in the entire globe. India is well known as the 'oyster' of the
global dairy industry, with opportunities galore for the entrepreneurs globally. It might be
dream for any nation n the world to capitalize on the largest a nd fastest growing milk and
milk products' market. The dairy industry in India has been witnessing rapid growth with
liberalization. As the economy provides good opportunities for MNCs and foreign investors
to release the full potential of this industry. The main objective of the Indian dairy industry is
to manage the nation resources in a manner to enhance milk production and upgrade milk
processing using innovative technologies.
The crossbred technology in the Indian dairy industry has further augmented with the
viability of the dairy units by increasing the milk production per animal. Then subsequently
milk production also increased at an exponential rate while the benefits of an increase in milk
production also reached the consumers from relatively lower increase in the price of milk
producers for the dairy industry in India however appeared to have weakened during the
90's,a decline in the real price of milk being noticed after the year 1992. And then slowly
regained it is glory after 1992 to till now.
In India dairying from very much earlier is regarded as an instrument for social and economic
development. The country's milk supply comes from millions of small producers, who are
dispersed throughout the rural areas. All these farmers maintain an average herd of one or
two milch animals, comprising cows and/or buffaloes. Mostly ample labor and a small land
base encourage farmers to practice dairying as an occupation subsidiary to agriculture . As
income from crop production is seasonal instead dairying provides a stable which is a year
round income and also an important economic incentive for the small farmer.

INTRODUCTION :

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is a brand name managed by an apex cooperative organization, Gujarat co-operative Mil
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk
producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization’s success in the long term.
It is one of the best examples of co-operative achievement in the developing company.
Amul has spurred the White Revolution of India, which has made India the bigges t producer of
milk and milk products in the world.
It is also the world’s biggest vegetarian cheese brand.
Amul is the largest food brand in India and world’s largest Pouched milk Brand with an annual
turnover of US $ 1050 million (2006-07)

2016-2018 Page 12
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Currently Amul has 2.6 million producer members with milk collection average of 10.16 million
litres per day.
The brand name Amul means “AMULYA”. This word derived from the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested t he
brand name “AMUL”.
Amul Products have been in use in millions of homes since 1946. Amul butter, Amul Milk
powder, Amul Ghee, Amul Spray, Amul Cheese, Amul Chocolates, Amul Shirkhand, Amul Ice
cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

HISTORY :

The Amul Revolution was started as awareness among the farmers. It grew and matured into a
protest movement that was channeled towards economic prosperity.
The Kaira District Co-operative Milk Producers Union Limited (KDCMPUL) began pasteurizing
milk for the Bombay Milk Scheme in June 1948.
By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of
milk handled by one Union increased from 250 to 5,000 litres a day.
Meanwhile, Dr. Verghese Kurien, fed up being at the government creamery in Anand,Gujarat,
which held to challenge, Volunteered to help Shri Tribhovandas Patel, the chairman of
KDCMPUL, in setting up a processing plant.This marked the birth of AMUL in 1946.
The Success of Amul was instrumental in launching the White Revolution that resulted in
increased milk production of India. It is officially termed as Operation Flood by Amul. The break
through technology of spray drying and processing buffalo milk, developed by Mr.H.M. Dalaya,
was one of the key factors that contributed the Revolution.
Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere
else in India. His income was derived almost entirely from seasonal crops. Many poor farmers
faced starvation during off–seasons. Their income from milk buffaloes was undependable. The
milk marketing system was controlled by contactors and middle men. As milk is perishable,
farmers were compelled to sell their milk for whatever they were offered. Often they had to sell
cream and ghee at a throw away price.
They were in genera illiterate. But they could see that the system under which contractors could
buy their produce at a lower price and arrange to sell it at huge profits was just not fair. This
became more noticeable when the Government of Bombay started the Bombay Milk Scheme in
1945.Milk had to be transported 427 kilometers, from Anand to Bombay.
After preliminary trails, the government of Bombay entered into an agree ment
with Polsons Limited to supply milk from Anand to Bombay on a regular basis. The arrangement
was highly satisfactory to all concerned except the farmers.
The Government found it profitable; Polsons kept a good margin. Milk contractors took the
biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers. Thus

2016-2018 Page 13
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

under the Bombay Milk Scheme the farmers of Kaira District were no better off ever before.
They were still at the mercy of milk contractors. They had to sell their milk at a price the
contractors fixed. The discontent of the farmers grew. They went in deputation to Sardar Patel,
who had advocated farmer’s co-operatives as early as 1942.
Sardar Patel reiterated his advice that they should market their milk through a co-operative
society of their own. This co-operative should have its own pasteurization plant. His advice was
that the farmers should demand permission to set up such a co-operative. If their demand was
rejected, they should refuse to sell their milk to middlemen.
The Trio’s (T.K.Patel,Kurien and Dalaya’s) success at the cooperative’s dairy soon spread to
Anand’s neighborhood in Gujarat. Within a short span of,five unions in other district’s –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira
union , which had the brand name Amul with it since 1955, transferred to GCMMF.
In 1999, it was awarded the “Best of all” Rajiv Gandhi National Quality Award.
In June 2013, it was reported that the Kaira District Cooperative milk Producers Union Limited,
better known as Amul Dairy, had signed a tripartite agreement to start a dairy plant in Waterloo
village in upstate New York. The plant will initially manufacture paneer and ghee. Amul will use
an existing dairy plant owned by New Jersey-based NRI Piyush Patel for manufacturing. The
plant is strategically located, as it close to supply centres from where raw material is procured,
and is near New Jersey, which has a large Indian population.

2016-2018 Page 14
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF)

Gujarat Cooperative Milk Federation Ltd. (GCMMF), s India’s largest food product marketing
organization with annual turnover (2013-14) US$ 3.0billion. Its daily work milk procurement is
approx. 13.18 million lit per day from 17,025 village milk cooperative societies, 17 members
unions covering 31 districts, and 3.23 million milk producer members. It is the apex organization
of the Dairy Cooperatives of Gujarat, popularly known as ‘AMUL’, which aims to provide
remunerative returns to the farmers and also serve the interest of consumers by provid ing quality
products which are good value of money. Its success has not only been emulated in India but
serves as a model for rest of the World. It success has nit marketing organization of ‘Amul’ and
‘Sagar’ branded products. It operates through 53 Sales & offices and has a dealer network of
10000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range
comprises milk, milk powder, health beverages, ghee, whey 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,
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. In 2013-14, GCMMF took giant strides in
expanding its presence in International markets. Amul’s presence on Global Dairy Trade (GDT)
platform in which only the top six dairy players of the world sell their products, has earned
respect and recognition across the world. By selling milk powders & many on GDT, GCMMF
could not only realize better prices as per market demand but it also firmly established Amul in
the league of top dairy players in world trade.

For its consistent adherence to quality, customer focus and dependability, GCMMF has received
numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality
Awards in 1999 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 Ramakrishna
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 top most
International dairy Federation Marketing Award for probiotic ice cream launch in 2007. For the
innovations, GCMMF has received AIMA-RK Swamy High performance brand award 2013 and
CNN- IBN Innovating for better tomorrow award in 2014. For the tree plantation activit y
GCMMF has received seven consecutive Good Green Governance award from Srishti during the
year 20107 to 2013.
The Amul brand is not only a product, but also a movement. It is one way, the representation of
the economic freedom of farmers. It has given farmers the courage to dream which we can hope
to live.

2016-2018 Page 15
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GCMMF Today:
GCMMF is India’s largest food products marketing organization. GCMMF markets and
manages the Amul brand. From mid- 1990’s Amul has entered areas not related directly to its
core of the business Its entry into Ice Cream was regarded as successful due to the large market
share it if was able to capture within a short period of time – primarily due to the price
differential and the brand name. It also entered the Pizza business, where the base and the recipes
were made available to restaurant owners who could price it as low as Rs. 30/- per pizza when
the other players were charging upwards of 100 rupees
In September 2007, Amul emerged as the leading Asian brand according to a survey but the
name Synovate to find out Asia’s top 1000 brands.

Collection of Milk:
Every day Amul collects 4,47,000 litres of milk from 2.12 million farmers (many illiterate),
converts the milk into branded, packaged products, and delivers goods worth Rs.6 crore i.e.;
(Rs.6o million) to over 5,00,000 retail outlets across the country. Its supply chain is easily
one of the most complicated in the world. How do managers at Amul prevent the milk form
there souring? Walk into much Amul or Gujarat Cooperative Milk Marketing Federation
(GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi. But you
will certainly see one particular photograph It shows a long line of Gujarati women waiting
patiently for a union truck to come and collect the milk they gave brought in shinning brass
matkas.

Organization Structure:
It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and there by ensure maximum in returns of their
efforts.
Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as
Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat
network in now covers 3.12 million farmers, 10,411 village level milk collection centers and
fourteen as such district level plants (unions) under the overall supervision of GCMMF.
There are similar federations in other states. Right from the beginning, there was recognition
that his initiative would directly benefit and transform small farmers and contribute to the
edge development of society. Markets then and even today, are primitive and poor in
infrastructure. Amul and GCMMF acknowledged that development and growth could not be
left to market if forces and that proactive intervention were required. Two key requirements
were identified.
To implement their vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, this today forms the robust supply chain behind GCMMF’s
endeavors. The vast and complex supply chain stretches from small suppliers to large

2016-2018 Page 16
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

fragmented markets. Management of this network is made more complex by the fact that
GCMMF is directly responsible only for a small part of the chain, with a number of third
party players (distributors, retailers and logistics support providers) playing large roles.
Managing this supply chain efficiently is critical as GSMMF’s competitive position is driven
by low consumer prices supported by a low cost system.
Today customers can order a variety of products through the Internet and be assured of
delivery with payment upon receipt.
Another e- initiative underway is to provide farmers access to information relating to markets,
technology and best practices in the dairy industry through net enabled kiosks in the villages.

2016-2018 Page 17
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Products

AMUL TAAZA MILK


Pasteurised toned milk
It is available in 500ml, 1000ml, 200ml, and 5Ltr

AMUL GOLD MILK


Pasteurised double toned milk
It is available in 500ml, 1000ml, 200ml, and 5Ltr

2016-2018 Page 18
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

AMUL SLIM N TRIM


Skimmed milk
Available in poly pack of 6L, 5L, 1L, 500ml, 250ml

AMIUL MASTI DAHI


Curd made from pasteurized Toned milk
Available in poly pack of 200gm, 400gm, 1 kg
Pp cup 200gm, 400gm, 100gm

2016-2018 Page 19
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

AMUL BUTTER MILK


Pasteurized butter milk
Available in poly pack of 500ml

2016-2018 Page 20
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Organizational structure

2016-2018 Page 21
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Swot Analysis

Strengths
1. Strong network of over 3 million mik producers.
2. World’s largest manufacturer of pouched milk.
3. India’s largest food brand, trusted for its quality.
4. Many types of mik made products such as ice cream, ghee, butter, paneer, dahi etc...
5. Products available at affordable prices.
6. Market leader in butter segment.
7. Successful advertising and marketing campaigns
8. Strong network of amul retail outlets , parlours and APO’s ( AMUL Preferred outlets)
9. A popular mascot in the AMUL girl

Weakness
1. Lack of capital invested as compared to other companies.
2. There are many milk brands in Hyderabad which acts as major competitors,
restricting the growth.
3. Amul offers fewer profit margins to its distributors and retailers.
4. Risk of highly complex supply chain management.

Opportunities
1. There is a lot of potential for growth and development as huge population stay in rural
market where other companies are not targeting.
2. Rise in purchasing power of people.
3. Use of E-commerce to sell their products.

Threats
1. Competitors like Heritage, Jersey, Masqati, vijaya
2. Growing prices of milk and milk products.
3. The yield of Indian cattle is still much lower than other countries.

2016-2018 Page 22
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE1

TABLE SHOWING RESPONSE OF THE RETAILERS WITH REGARD TO DO THEY


SELL AMUL MILK OR NOT.

SOURCE NO OF RESPONDENTS PERCENTAGE%


YES 45 90
NO 05 10

TOTAL 50 100

ANALYSIS
The above table shows that 90% of retailers sell AMUL milk while the rest 10% of retailers
sell other brands of milk.

2016-2018 Page 23
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 1

GRAPH SHOWING RESPONSE OF THE RETAILERS WITH REGARD TO DO THEY


SELL AMUL MILK OR NOT.

INTERPRETATION
As the above diagram shows that majority of retailers prefer to sell AMUL milk while very
few retailers prefer tho sell other brands milk.

2016-2018 Page 24
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 2

TABLE SHOWS THE RESPONSE OF THE RETAILERS WITH REGARD TO OTHER


BRAND’S MILK THEY SELL OTHER THAN AMUL

SOURCE NO OF RESPONDENTS PERCENTAGE%


HERITAGE 19 38

JERSEY 15 30
MASQUATI 13 26
VIJAYA 3 6
TOTAL 50 100

ANALYSIS
The above table shows that 38% of retailers sell heritage 30% sell jersey 26% sell masquati
and 6% sell vijaya milk other than amul.

2016-2018 Page 25
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 2
GRAPH SHOWS THE RESPONSE OF THE RETAILERS WITH REGARD TO OTHER
BRAND’S MILK THEY SELL OTHER THAN AMUL

20

18 19
16

14 15
12 13
10

2 3
0
A) Heritage B)Jersey C) Masqati D) Vijaya

INTERPRETATION
As the above graph shows that majority of retailers sell heritage milk followed by jersey
masqati and vijaya other than AMUL . All the four brands should be considered as
competitors for AMUL.

2016-2018 Page 26
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 3

TABLE SHOWING THE RESPONSE OF THE RETAILERS WITH REGARD TO THE


REASON FOR SELLING OTHER BRANDS MILK.

SOURCE NO OF RESPONDENTS PERCENTAGE%


MARGIN 45 90

CUSTOMER PRIORITY 5 10
AVAILABILITY 0 0

PACKING AND OTHER 0 0


TOTAL 50 100

ANALYSIS
From the above table we can observe that 90% of retailers sell other brands mik for high
margin compared to amul while the rest 10% sell them according to the customer preference.

2016-2018 Page 27
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 3

GRAPH SHOWING THE RESPONSE OF THE RETAILERS WITH REGARD TO THE


REASON FOR SELLING OTHER BRANDS MILK.

45

5 0 0

A) Margin B) Customer C) Availability D) Packing &


Priority Other

INTERPRETATION
From the above graph we can clearly observe that majority of retailers prefer to sell other
brands milk for high margins and few sell them according to the customers preference. none
of the retailers sell other brands because of lack of availability or packing issues with AMUL.

2016-2018 Page 28
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 4

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO AMOUNT


OF MILK SOLD EVERY DAY.

SOURCE NO OF RESPONDENTS PERCENTAGE%


MORE THAN 70 LTS 10 20
30-70 LTS 20 40
11-30 LTS 15 30
LESS THAN 10 LTS 5 10

TOTAL 50 100

ANALYSIS
The above table shows the quantity of milk sold per day by retailers. 20% sell more than 70
lts 40% sell between 30-70 lts 30% sell around 11-30 lts and the rest 10% sell less than 10 lts.

2016-2018 Page 29
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 4

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO AMOUNT


OF MILK SOLD EVERY DAY.

25

20

15

10

0
MORE THAN 70 LTS 30-70 LTS 11-30 LTS LESS THAN 10

INTERPRETATION
From the above graph we can see that majority of the retailers sell more than 30 lts per day .
the milk sale is very high in each retail outlet . while few oulets sell less than 10 lts a day.

2016-2018 Page 30
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 5

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO AMOUNT


OF CURD SOLD EVERY DAY.

SOURCE NO OF RESPONDENTS PERCENTAGE%


LESS THAN 1 KG 25 50
1-5 KGS 15 30

MORE THAN 5KGS 10 20


TOTAL 50 100

ANALYSIS
The above table states that 50% of retailers sell less than 1kg curd a day 30% sell 1-5 kgs and
20% sell more than 5kgs per day

2016-2018 Page 31
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 5
GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO AMOUNT
OF CURD SOLD EVERY DAY.

25

15

10

A) Less than 1 kg B) 1-5 kgs C) More than 5 kgs

INTERPRETATION
From the above graph we can see that majority of retailers selling less than 1kg of curd per
day. Eventhough they sell a lot of milk the sale of curd is very limited. AMUL should
concentrste on lot of promotional activities to increase the sale of curd in the market.

2016-2018 Page 32
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 6

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THEIR


SATISFACTION LEVEL WITH THE SERVICE PROVIDED BY AMUL.

SOURCE NO OF RESPONDENTS PERCENTAGE%


HIGHLY SATISFIED 30 60
SATISFIED 10 20
NOT SATISFIED 8 16
HIGHLY NOT SATISFIED 2 4

TOTAL 50 100

ANALYSIS
The above table shows that 60% of retailers are highly satisfied by the service provided by
AMUL 20% are satisfied while 16% are not satisfied and 4% are highly dissatisfied.

2016-2018 Page 33
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 6

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THEIR


SATISFACTION LEVEL WITH THE SERVICE PROVIDED BY AMUL.

35

30

25

20

15

10

0
HIGHLY SATISFIED SATISFIED NOT SATISFIED HIGHLY NOT SATISFIED

INTERPRETATION
As the above graph shows that majority of retailers are highly satisfied by the service
provided by AMUL while very few are not satisfied with their service.

2016-2018 Page 34
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 7

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THEIR


SATISFACTION TOWARDS THE DELIVERY SYSTEM OF AMUL.

SOURCE NO OF RESPONDENTS PERCENTAGE


YES 47 94
NO 3 6
TOTAL 50 100

ANALYSIS
From the above table we can observe that 94% of retailers like the delivery system of amul
while the rest 6% doesn’t like it.

2016-2018 Page 35
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 7

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THEIR


SATISFACTION TOWARDS THE DELIVERY SYSTEM OF AMUL.

6%

94%

A) Yes B) No

INTERPRETATION
The above graph shows that majority of retailers like the delivery system of amul. It means it
is always on time. Especially in dairy market delivering goods on time is the most important
component for any brand.

2016-2018 Page 36
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 8

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


DIFFERENCE THEY NOTICED IN AMUL MILK PRODUCTS COMPARED TO THAT
OF OTHER BRANDS.

SOURCE NO OF RESPONDENTS PERCENTAGE

TASTE 30 60
PRICE 2 4
AVAILABILITY 3 6
DEMAND 15 30
TOTAL 50 100

ANALYSIS
The above table shows that 60% of retailers feel that taste is the factor that differentiates amul
from other brands while 4% feel price 6% feel availability and 30% feel demand.

2016-2018 Page 37
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 8

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


DIFFERENCE THEY NOTICED IN AMUL MILK PRODUCTS COMPARED TO THAT
OF OTHER BRANDS.

35

30

25

20

15

10

0
A) Taste B) Price C) Availabilty D) Demand

INTERPRETATION
From the above graph we can observe that majority of retailers feel that the taste of AMUL
milk products is different compared to other brands followed by its demand.

2016-2018 Page 38
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 9

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


REASON FOR NOT SELLING MORE OF AMUL PRODUCTS.

SOURCE NO OF RESPONDENTS PERCENTAGE%


MARGIN 35 70
AVAILABILITY 2 4
COMPETITORS 7 14
DEMAND 6 12

TOTAL 50 100

ANALYSIS
The above table shows that 70% of respondents feel that margin is the only reason for not
selling more of AMUL brand 4% availability 14% say competitors 12% say demand.

2016-2018 Page 39
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 9

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


REASON FOR NOT SELLING MORE OF AMUL PRODUCTS.

40

35

30

25

20

15

10

0
MARGIN AVAILABILITY COMPETITORS DEMAND

INTERPRETATION
From the above graph we can notice that margin is the main issue for majority of the retailers.
Any retailers runs his business or sells a product only for profit . if he is not satisfied nwith
the margin he will naturally sell other brand products for profits.

2016-2018 Page 40
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 10

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


SCHEMES INTRODUCED BY AMUL ARE USEFUL OR NOT

SOURCE NO OF RESPONDENTS PERCENTAGE


YES 47 94
NO 3 6
TOTAL 50 100

ANALYSIS
The above table shows that 94% of retailers feels that the schemes introduced by amul are
useful to them while the rest 6% feel that they are not.

2016-2018 Page 41
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 10

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO THE


SCHEMES INTRODUCED BY AMUL ARE USEFUL OR NOT

A) Yes B) No

INTERPRETATION

From the above graph we can notice that majority of etailers say that the schemes introduced
by AMUL are useful to them. AMUL should launch more of such schemes which are
beneficial to retailers so that they get motivated to sell mopre of AAMUL products.

2016-2018 Page 42
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 11

TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO HOW MANY


OF THEM WON PRIZES IN MALEMAL SCHEME

SOURCE NO OF RESPONDENTS PERCENTAGE


YES 40 80
NO 10 20

TOTAL 50 100

ANALYSIS
The above table shows that 80% of retailers won prizes in malemal scheme while the rest
20% haven’t won any prizes.

2016-2018 Page 43
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 11
GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO HOW
MANY OF THEM WON PRIZES IN MALEMAL SCHEME

A) Yes
B) No

INTERPRETATION
From the above graph we can observe that majority of retailers won prizes in malemal
scheme. AMUL should launch amany more schemes like malemal in future so that the desire
to win prizes in the mind of retailers may lead to increase in indents.

2016-2018 Page 44
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

TABLE 12
TABLE SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO SINCE HOW
LONG THEY ARE SELLING AMUL DAIRY PRODUCTS.

SOURCE NO OF RESPONDENTS PERCENTAGE%


LESS THAN 6 MONTHS 10 20
6-12 MONTHS 20 40

1-2 YEARS 15 30
MORE THAN 2 YEARS 5 10
TOTAL 50 100

ANALYSIS
The above table shows that 20% of retailers selling amul dairy products since the last six
months while 49% since last 12 months 30% since last 2 years and 10% since more than 2
years.

2016-2018 Page 45
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

GRAPH 12

GRAPH SHOWING THE RESPONSE OF RETAILERS WITH REGARD TO SINCE


HOW LONG THEY ARE SELLING AMUL DAIRY PRODUCTS.

25

20

15

10

0
less than 6 months 6-12 months 1-2 years more than 2 years

INTERPRETATION
From the above graph we can observe that majority of retailers are selling amul products
since more than 12 months. A lot of new additions are also taking place in the last 6 months .
this is a good sign for any dairy company

2016-2018 Page 46
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Summary of findings

 Majority of the retailers prefer to sell AMUL milk for its quality.
 It is found that heritage is the brand that is being sold by most of the retailers .
 Most of the retailers give much importance to the margin that they are being provided
and the also focus on the timely delivery of milk and curd.
 It is observed that most of the retailers sell different brands based on the benifits they
are getting out of it.
 60% of the retailers are satisfied by the service provided by AMUL.
 Majority of retailers are highly satisfied by the delivery system of AMUL.
 Retailers fell that taste is the main differential factor between AMUL milk and other
brands milk.
 Majority of retailers have margin issues with AMUL brand.
 Majority of retailers are beneficiated by various schemes introduced by AMUL such
as Malemal scheme, PM sales .
 More than 70% of AMUL retailers have won prizes in Malemal scheme.
 Majority of AMUL retailers are selling its products since a long time.
 Majority of retailers prefer to sell other brand products if the margin given by one
brand is not satisfactory,
 Majority of retailers feel that customers would mostly prefer amul milk over other
brands.
 Majority of retailers fell that ‘high margin’ is the most important factor they consider
while selling a dairy product.

2016-2018 Page 47
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Suggestions

 Retailers margin has to be increased.


 Retailers will not be loyal to any brand, they are fully related to profit margin they are
getting. According to this data margin of the product will have actual impact on sales.
 Greater the satisfaction level, greater the sale , amul have to focus on the people who
are not satisfied. To increase retailers sales we have to provide an easier process of
problem identification and problem solving system.
 AMUL should launch many more schemes like Malemal scheme which are beneficial
to retailers.
 Amul should do more of promotional activities to increase its average sale.
 Retailers margin should be increased mainly in milk segment.
 The company should diversify with many more outlets (AMUL Prefered outlets).

2016-2018 Page 48
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

Conclusion

 The project title being “ a study on comparative marketing strategies of milk and milk
products at GCMMF LTD” . after completion of study and careful analysis of the data
collected can conclude that AMUL is very successful in implementing its marketing
strategies compared to its competitors. The only concern which is affecting the sales
of AMUL is its margin. Majority of the retailers prefer to sell other brands for margin
as it is the only factor which a retailer wants. If AMUL increases the margin for
retailers then the sales will shoot- up and it may gain a larger market.

2016-2018 Page 49
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

ANNEXURE
Questionnaire for retailers
Respected sir/madam
I student of INSTITUTE OF PUBLIC ENTERPRISE , Hyderabad is currently doing my
summer internship from AMUL, and conducting a survey on comparative marketing
strategies. In my effort to collect data , i have prepared a sample questionnaire . it would help
me immensely in my internship if i get to know your views. The information received will
remain confedential.
Name of the retailer:
1. Are you selling Amul milk?
a. yes b. No
2. Brands that you prefer to sell other than Amul?
a. Heritage
b. Jersey
c. Masqati
d. Vijaya
3. Reason for selling other brands milk?
a. margin b. Customer priority c. Availability d. Packing and other
4. Quantity of milk sold per day?
a. More than 70 ltr
b. 30-70 litres
c. 11-30 ltrs
d. Less than 10 ltrs
5. How much quantity of curd being sold per day?
a. less than 1kg
b. 1-5 kgs
c. more than 5 kgs
6. How satisfied are you by the services provided by Amul?
a. highly satisfied
b. satisfied.
c. not satisfied
d. highly not satisfied

2016-2018 Page 50
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

7. Do you like the delivery system of Amul?


a. yes b. No
8. what is the difference that you observed with Amul milk products compared to other
brands?
a. taste
b. price
c. availability
d. demand
9. what is the reason for not selling more of amul products?
a. margin
b. availability
c. competitors
d. demand
10. Are the schemes introduced by amul are useful to you?
a.yes b no
11. Have you won any prizes in malemaal scheme?
a. yes b. No
12. how long you have been selling amul products?
a. less than 6 months
b. 6-12 months
c. 1-2 yrs
d. more than 2 years

2016-2018 Page 51
‘’A Study on Comparati ve Marketing Strategies of milk and milk products at GCMMF LTD’’

BIBLIOGRAPHY

 Milk marketing in INDIA: A review paper on the role and performance of informal
sector by Indian society of Agribusiness Professionals.
 Karmakar, K.G.,& Banerjee, G.D.(2006). Oppurtunities and challanges in the Indian
dairy industry.
 www.indiancooperative.com
 www.gcmmf.com
 www.dairyindia.com
 www.vijayamilk.com
 www.apddcf.gov.in
 http: //www.mbaskool.com/brandguide/food-and-beverages/3349-amul.html

2016-2018 Page 52

You might also like