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Customer Satisfaction
Customer Satisfaction
Customer Satisfaction
INTRODUCTION
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1.1 INTRODUCTION TO WORLD MILK INDUSTRY .
World milk output reached 811 million tons in 2018, 1.4 percent higher than in 2017. Across
geographic regions, milk output expanded in Asia , Americas and Europe; stagnated in
Africa; and declined in Oceania. World dairy exports in 2018 reached 71.6 million tons, 1.3
percent higher than in 2017. Milk exports from Africa, Central America, Europe and North
America increased, but those from Asia, Oceania and South America declined. A key factor
that influenced this extension was the continued rise in import demand from China, UAE ,
Japan, Mexico and Australia that counterbalanced import contractions from elsewhere,
especially Egypt, Brazil, the Philippines, the Russian Federation, Saudi Arabia and Indonesia.
Increased supplies from the Europe , Mexico, Canada and the United States were adequate to
cover export shortfalls from some leading exporters, including New Zealand, Argentina,
Australia, Belarus, and Uruguay. The average dairy export price in 2017 was up 31 percent
from 2016. In the first half of the year 2017, prices remained stable as ample export supplies
from the Northern Hemisphere were sufficient to meet import demand. But from May to
September 2017 dairy prices strengthened, driven by strong import demand, especially from
Asia, reflecting tighter exportable supplies from Oceania, South America and Europe. From
September onwards, dairy prices started to weaken as export supplies increased from almost
all major producing countries.
India's output expansion was mainly a result of rising numbers of dairy animals, as yields
continued to rise slowly which is due to the limited availability of quality feed and fodder,
estimated at 10 percent of the national requirement. India is contributing about 20% of world
milk production at around 167 million metric ton and we are growing at the rate of 4.5%.
World is growing at the rate of around 1.8%. Out of 1.8% growth, 1% is coming from India.
Milk is India's largest crop worth around Rs 6.5 lakh crores it is much more than paddy and
wheat put together. Till the „70s, per capita consumption was only 110 gram per person per
day. Today, it is 360 gram per person per day and that is really growing. In another 50 years,
our per capita consumption will be equal to that of the US or Europe for about 800 grams per
person per day, which is already there in some parts. In north of Punjab, there might be
consumption of around 800 grams per person per day. Now, as far as the growth is
concerned, 40% is retained at the producer level in the villages, 60% is surplus. Of that
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surplus, about one-third is coming to the organised sector -- cooperatives and private
companies put together and two-third is going to be the unorganised sector. Growth in an
organised sector is coming from two places -- one is increase in consumption and people
shifting from unorganised or move to the organised sector. Volume wise, the organised sector
is growing at a double digit. More or less, in all categories, on an average 10% to 12%, 15%
growth is coming. Some new categories like cheese, cream may be growing at 20%, 30% but
old categories like butter, ghee etc. may be growing at around 8% to 10%. This is the overall
picture of the dairy industry in India.
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CHAPTER 2
ABOUT THE ORGANIZATION
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2.1 HISTORY.
Gujarat Cooperative Milk Marketing Federation Ltd. (GCCMF), is the largest food
commodity market institution in India with an annual turnover of rupees 292.2 billion in 2017
– 2018. At the initial stage only 250 litres of milk was collected every day. But with the
growing awareness of the benefits of the cooperativeness, the collection of milk increased.
Today GCCMF collect 18 million litres of milk every day. Since milk was a perishable
commodity it becomes difficult to preserve milk flora longer period. Besides when the milk
was to be collected from the far places, there was a fear of spoiling of milk. To overcome this
problem the union thought out to develop the chilling unit at various junctions, which would
collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul
has more than 150 chilling centres in various villages. Milk is collected from almost 1073
societies. GCCMF has an employee strength of 56 sales officer, 10000 dealers and 10 lakh
retailers, making it one of the largest force in India.
2.2 AMUL.
Amul is the flagship brand marketed by GCMMF which stands for Gujarat Cooperative Milk
Marketing Federation Ltd. among a variety of other brands. The word Amul is derived from
a Sanskrit word “Amoolya'' which means Priceless. It stands for Anand Milk Union Limited.
The Indian households have been using AMUL products since independence of the country.
Some of the most popular product-lines of Amul which help in establishing itself as one of
the leading brands in the country are its butter, milk-powder, ghee, cheese, paneer, and milk.
Amul remained focused on three basic business principles. These are:
i. Be customer driven.
iii. Look forward to change and act today to meet tomorrow's challenges.
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2.3 THE AMUL MODEL
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation
of member unions at the state level.
Professional management
MILK PRODUCER
VILLAGE DAIRY
COOPERATIVE
DISTRICT MILK
COOPERATIVE UNION
STATE COOPERATIVE
CONSUMER
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Fig .2.2 The Amul Model showing different levels.
The Amul model has helped India to emerge as the largest milk producer in the world. More
than 13 million milk producers pour their milk in 1, 28,799 dairy cooperative societies across
the country. Their milk is processed in 176 District Co-operative Unions and marketed by 22
State Marketing Federations, ensuring a better life for millions.
GCMMF main motive is to satisfy the taste and nutritional requirements of the customers of
the world, through excellence in marketing by our committed team. Through co-operative
networking, we are committed to offering quality products that provide best for money.
AMUL's vision is to provide more and more satisfaction to the farmers, their customers,
employees and distributors.
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2.6 THE LOGO OF AMUL.
The above logo is the logo of Amul. The four words written below “Amul” in the above logo
– “The Taste of India”, does not merely signify a slogan, in fact these four words are all
meant to position the products of Amul in the minds of the Indian consumers in a manner that
they relate food, taste and Indian sentiments altogether in a wonderful way. (amul website)
The Product Range of Amul consists of various dairy products some of which are listed
below:
1. BREAD SPREADS
Amul Butter, Amul Lite, Delicious Table Margarine, Amul Unsalted Butter, Amul Choco
Buttery Spread.
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3. FRESH MILK
Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza
Toned Milk 3% fat, Amul Slim & Trim, Amul Cow Milk.
7. CURD PRODUCTS
Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk, Amul Lassi.
Available in 200g, 400g, and 1000g pack(Curd). Amul Lassi is available in 200ml tetra pack
and pet bottle as well as 1000ml tetra pack.
8. PURE GHEE
9. ICE-CREAM
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Sundae Range, Amul Epic, Amul Cream Rich.
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CHAPTER 3:
RESEARCH METHOLOGY
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3.1 RESEARCH PROBLEM .
The research problem in this study is to understand the customer satisfaction level of the fresh
milk and tetra packed milk and understand the consumer behaviour in buying milk in
Guwahati city. In order to remain and compete in today's competitive market it is necessary
for the company to satisfy its customers and work on to improve customer satisfaction.
Studying the customer need is the basis of marketing and it helps companies to get a
competitive advantage over its competitors. It helps the company to identify the reason which
customer values and also finding out the percentage of importance the customers give to each
of these factors. It allows the company to keep the customers satisfied in this market situation
where opportunity and threat exist together . It is crucial to understand the preference for
one's product by the customers and compare it with the competitors. It also helps to analyse
what the customers want and which attribute they value so that the company is able to
analyse their position as well as the position of the competitors and get a competitive
advantage in placing their product.
1. To study the customer satisfaction level of AMUL tetra packed milk and fresh milk with other
brands.
Geographical Boundary: This survey is carried out in parts of Guwahati City and has covered
almost all the major crossections within the city and the findings and conclusions were drawn
based on data gathered in those areas.
The research was conducted to find out about customers satisfaction of AMUL and other
milk brands in Guwahati City. And also study the loose milk market and why they are selling
in unorganised milk sector
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3.4 ABOUT THE COMPETITION.
When it comes to the completion of Amul Milk there are a few present in the market
Sitajakhala cooperative which is an organized milk cooperative near Guwahati and provide
milk retail service at various locations in Guwahati through their employees , Purabi milk's
pouch which is also popular in Guwahati. The real competitor for Amul Milk is the countless
unorganised loose milk retail shops spread across Guwahati City.
b. First, the objectives were set, and then the sample was defined.
k. The study was confined to the geographical location of Guwahati City. Primarily the
Beltola , Six mile , Supermarket and VIP road till Borbari Region.
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3.6 RESEARCH PLAN
SAMPLING DESIGN.
The sampling plan compromises of sampling elements, sampling unit, sampling size and
sampling procedure.
1) Sampling Element:
In the study, the sampling element is the consumers who purchase milk in Guwahati region.
2) Sampling Unit:
In case of the customers the sampling unit is identical with the element.
3) Sampling Technique:
4) Sampling Size:
SOURCES OF DATA.
1) PRIMARY DATA
a) Questionnaires
b) Interaction with the organization guide, Institutional Guide and the consumers.
c) Personal observation
2) SECONDARY DATA
In order to get some additional information regarding the study, some secondary sources of
data were also referred to namely:
a) Internet
b) Book
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DATA COLLECTION METHODS.
1. Field Survey
2. Personal Interview
3. Online Survey
PERIOD OF STUDY.
The study was carried out for a period of two months from 1st June 2018 to 31st July, 2018.
The study area comprises of Guwahati The study was confined to the geographical location
of Guwahati City . Primarily the Beltola , Six mile , Supermarket and VIP road till Borbari
Region . It is one of the fastest growing cities in India .
RESEARCH INSTRUMENT.
The research instrument used is questionnaire. The questionnaire has been prepared with
prior consultation of the academic as well as the organizational guide. The major questions
were closed ended.
SOFTWARE USED.
MICROSOFT EXCEL
A pilot survey has been done for finding out the problems raised from the questionnaire
before carrying out a large scale survey. After the preparation of the draft questionnaire, a
pilot survey was conducted on 15 respondents. This was Performed to find out any
modification in the questionnaire. The number of respondents for the pilot survey was capped
at 15 as instructed by the organisational guide for convenience purpose.
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3.8 LIMITATIONS OF THE STUDY.
To do a certain project there are some basic requirements for the project to be performed . If
those requirements are not available or not up to the mark then it limits the functionality or
productivity of the project . The major difficulties faced were:
a) While filling the questionnaire the consumer might have committed an error.
b) The consumers were in hurry and were not finding it important might have given random
responses.
c) False answers might have been received from a consumer who is not finding it
important.
d) The survey for understanding the consumer satisfaction of milk was performed with
100 customers which doesn’t represent the entire customer base of Guwahati City
accurately . So findings of this report may vary because this doesn’t consider the
actual population .
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CHAPTER 4:TO STUDY THE CUSTOMER
SATISFACTION LEVEL OF AMUL FRESH MILK AND
COMPARE WITH OTHER BRANDS.
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4.1 INTRODUCTION.
From the survey conducted to understand the consumer satisfaction level of fresh milk in Guwahati city.
The following data interpretations are presented with the help of tables and graphs .
4.2 TO FIND OUT ABOUT WHERE THEY BUY THE MILK FROM.
Responses Number
Retail Shop 69
Wholesale 9
22%
Retail Shop
Wholesale
9%
Loose Milk Vendor
69%
Interpretation:- From the data collected from the survey , it can be seen that around 69% of the
respondents buy their milk from the retailer and around 9% of people buy their milk from wholesale and
remaining 22% buy their milk from the Loose milk vendors.
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4.3 TO FIND OUT ABOUT WHICH BRAND RESPONDENT PREFER
Brand Number
AMUL 56
Other Brands 26
Loose Milk 18
Total 100
60% 56%
50%
40%
30% 26%
20% 18%
10%
0%
AMUL Other Brands Loose Milk
Interpretation:- From the data collected from the survey , it can be seen that around 56% of the respondent
prefers AMUL and 26% of the people prefer other brands like Purabi, Keventers , etc and the rest 18%
prefers Loose Milk .
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4.4 CUSTOMER SATISFACTION OF AMUL USERS:-
AMUL Percentage
Very Satisfied 9
Satisfied 31
Average 14
Dissatisfied 2
Very Dissatisfied 0
60% 55%
50%
40%
30% 25%
20% 16%
10%
4%
0%
0%
Very Satisfied Satisfied Average Disatisfied Very
Dissatisfied
Interpretation:- From the data collected from the survey , it can be seen that 16% of the respondent
AMUL user are very satisfied and around 55% are just satisfied and around 25% said it is average and 4%
are dissatisfied and there are no respondent who is very dissatisfied with AMUL.
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4.5 REASON FOR CUSTOMER SATISFACTION OF AMUL USERS:-
AMUL Number
Availability 19
Quality 29
Price 6
Delivery 2
60
52
50
40
34
30
20
11
10
3
0
Availability Quality Price Delievery
Interpretation:- From the data collected from the survey , it can be seen that 34 % of the AMUL user are
satisfied due to the availability factor and around 52% are satisfied due to the Quality of the milk of
AMUL and 11% of the respondent are satisfied due to the price factor and at last 3 % are satisfied
because of delivery factor .
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4.6 CUSTOMER SATISFACTION OF OTHER BRANDS USERS:-
50% 46%
45%
40%
35%
35%
30%
25%
20%
15% 11%
10% 8%
5%
0%
0%
Very Satisfied Satisfied Average Disatisfied Very
Disatisfied
Interpretation:- From the data collected from the survey , it can be seen that 11% of the Other Brand user
are very satisfied and around 46% are just satisfied and around 35% said it is average and 8% are
dissatisfied and there are no respondent who is very dissatisfied with Other Brands.
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4.7 REASON FOR CUSTOMER SATISFACTION OF OTHER BRAND USERS:-
60%
50%
50%
40% 38%
30%
20%
12%
10%
0
0%
Availability Quality Price Delievery
Interpretation:- From the data collected from the survey , it can be seen that 38 % of the Other Brand user
are satisfied due to the availability factor and around 50% are satisfied due to the Quality of the milk of
Other Brand and 12% of the respondent are satisfied due to the price factor and at last no one is satisfied
because of delivery factor .
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4.8 CUSTOMER SATISFACTION OF LOOSE MILK USERS:-
50%
44%
45%
40%
35%
30% 28%
25% 22%
20%
15%
10% 6%
5%
0%
0%
Very Satisfied Satisfied Average Disatisfied Very
Disatisfied
Interpretation:- From the data collected from the survey , it can be seen that 6% of the Loose Milk user are
very satisfied and around 22% are just satisfied and around 44% said it is average and 28% are
dissatisfied and there are no respondent who is very dissatisfied with Loose Milk.
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4.9 REASON FOR CUSTOMER SATISFACTION OF LOOSE MILK USERS:-
45%
39%
40%
35% 33%
30%
25%
20% 17%
15%
11%
10%
5%
0%
Availability Quality Price Delievery
Interpretation:- :- From the data collected from the survey , it can be seen that 39 % of the Loose Milk
user are satisfied due to the availability factor and around 11% are satisfied due to the Quality of the
Loose Milk and 33% of the respondent are satisfied due to the price factor and at last 17% are satisfied
because of the delivery factor.
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4.10 OVERALL CUSTOMER SATISFACTION OF ALL BRAND USERS:-
50% 47%
45%
40%
35% 31%
30%
25%
20%
15% 13%
9%
10%
5%
0%
0%
Very Satisfied Satisfied Average Disatisfied Very
Disatisfied
Interpretation:- From the data collected from the survey , it can be seen that 13% of the All Brands user
are very satisfied and around 47% are just satisfied and around 31% said it is average and 9% are
dissatisfied and there are no respondent who is very dissatisfied with All Brands.
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4.11 MAJOR FINDINGS:-
1. From this survey it is seen that around 36% of the respondent have chosen their brands because of
Availability of the product and around 44 % have chosen because of the quality of the milk , 15%
have chosen due to price and around 5% of respondent have chosen due to Delivery.
2. For AMUL we can say that Quality is most important factor for Customer Satisfaction followed
by the Availability then Price and at last Delivery.
3. For Other Brands we can say that Quality is most important factor for Customer Satisfaction
followed by the Availability then Price. Here Delivery factor has no affect.
4. For Loose Milk we can say that Availability is most important factor for Customer Satisfaction
followed by the Price then Delivery and at last Quality which has very less importance in Loose
Milk customer.
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CHAPTER 5:TO STUDY THE LOOSE MILK
RETAILER'S POV ON ORGANIZED MILK SECTOR
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5.1 INTRODUCTION.
The Second survey has been conducted in Guwahati City to study the loose milk Retailer's
POV on organised sector and are they interested in selling their milk to AMUL or not
interested . A questionnaire was used as a tool for data collection. A total of 30 loose milk
retailers covered in Guwahati City. The data collected are analysed and interpreted in this
section of the report.:
5.2 TYPE OF VENDOR.
To segregate the vendors in different types based on the source of milk they sell and find the
total number of vendors in each section.
10%
Producer
27%
Retailer
Other Stores
63%
Interpretation:- From the data collected from the survey , It can be seen that most of the Loose
milk Vendors are producer which is exact to be 63% , The Retailers are around 27% and rest are
the considered into "Other Stores" which is around 10%. The Hotels , etc will come under Other
Stores.
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5.3 DISTRIBUTION OF VENDORS BASED ON THEIR INTEREST OF JOINING AMUL
From the data gathered from the survey based on the interest of associating with AMUL , is shown
below:
120%
100%
25%
80% 34%
0% 0%
Producer Retailer Other Stores
Interpretation:- From the data collected from the survey , It can be seen that 0% of the producer
are not interested in selling their milk to AMUL which is due to two reasons. Firstly, they don’t want
to be controlled by AMUL , in the sense they have to sell at the rate given by AMUL and they have to
follow all the norms of AMUL and Secondly due to family business. 75% of the retailer are interested
and 25% of them are not interested . 66% of the "Other Stores" are interested and 34% are not
interested.
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5.4 MAJOR FINDINGS
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CHAPTER 6:RECOMMENDATIONS
AND CONCLUSION
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RECOMMENDATIONS
1. Availability is factor which we can control and improve in Guwahati region . No Doubt
AMUL covers most of the main area but they don’t cover all the stores in the bye lanes ,
this is where other brands take the benefit.
2. Similarly Delievery is the factor that we can control , AMUL is a brand that don’t target
the Residential Apartments where other brand do Delievery in the residential apartments
can boost the sales and also the customer satisfaction level .
3. Delivery to Residential Apartments can be implement very easily through the respective
distributor of the respective beats.
4. Availability factor can also be improve if the Distributor puts little bit pressure on the
sales man assigned for the respective beats.
5. Loose milk vendor may also be willing to associate with AMUL if AMUL make the
vendors feel more important or feel like VIP.
6. Build a trustworthy relationship with the Loose Milk Vendor's and even the retailers the
sell AMUL milk.
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CONCLUSION
This study gave the opportunity to understand and learn about the Customer
Satisfaction of Fresh Milk of different brands around Guwahati city. And also to
find out about the factors for customer satisfaction of different brands including
loose milk. From this survey it is seen that most of the vendors that are selling are
male. More than 50 % of the respondent prefers Amul and the most important factor
is because of quality and availability. AMUL in Guwahati covers almost every
single area or called as beat . This areas are covered with the help of different
Distributors for different area .Now for Loose milk, producer's are not interested in
selling their milk to AMUL but some of the retailers and Hotel and Restaurant are
interested in selling Amul milk but they require higher profit margin. Quantity of
milk sold in Beltola and Six mile is more than most of the beats . Emerging
competitor of Amul in Guwahati is SITAJAKHALA co-operative. Purabi's puoch
milk is also a competitor . Keventers after their success in soft drinks they also
started selling tetra packed milk in Guwahati city.
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