A STUDY ON CRM SRTATEGIES OF AMUL

NAME - Akash Sunilkumar

ROLLNO. – 8504

CLASS- TY Bms Marketing

SUBJECT- CRM
EXECUTIVE SUMMARRY

The Gujarat Cooperative milk Marketing Federation Ltd, Anand (GCMMF) is the largest food
products marketing organization of India. It is the apex organization of the Dairy Cooperatives of
Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an
economic network that links more than 3.1 million village milk producers with millions of consumers
in India.
These cooperatives collect on an average 9.4 million liters of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless labourers and include a
sizeable population of tribal folk and people belonging to the scheduled castes. This report analyzes
about the "Amul Vidya Awards" the new way of CRM. The report is divided into four parts. The first
part gives information about company and then theoretical background on this project topic.
The second part mentions the objective, scope and limitations of the project.
The third part contains the research of different area of Pune. In this we will collect the data of
schools like contact number, email, principal name, time of inception etc. Then we prepared the
presentation on Vidya Awards and present it to the school.

In last part of the report we cover that how Amul continuously maintain its relationship with its
customer and looking for its long term projects.
INTRODUCTION

Gujarat Cooperative Milk Marketing Federation Ltd. The seeds of this unusual saga were sown more
than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative
trade practices followed by the local trade cartel triggered off the cooperative movement. Angered
by unfair and manipulative practices followed by the trade, the farmers of the district approached
the great Indian patriot Sardar Vallabhbhai Patel for a solution.

He advised them to get rid of middlemen and form their own co-operative, which would have
procurement, processing. In 1946, the farmers of this area went on a milk strike refusing to be
cowed down by the cartel Under the inspiration of Sardar Patel, and the guidance of leaders like
Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative,
the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-
operative societies and 247 litres of milk and is today better known as Amul Dairy.

Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the
founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the
task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should
become the basis of a National Dairy Development policy. He understood that the success of Amul
could be attributed to four important factors. The farmers owned the dairy, their elected
representatives managed the village societies and the district union, Â they employed professionals
to operate the dairy and manage its business.

Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their
demands. At his instance in 1965 the National Dairy Development Board was set up with the basic
objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its
Chairman and asked to replicate this model throughout the country.

Value addition to the company by this project:-

 Better relations with customer
 Complete data base of India’s every school
 New market base for AMUL PRO
 AMUL PRO target customer is basically students, the projects helps them to
get in touch with them easily
Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy Technology has been defined as that
branch of dairy science, which deals with the processing of milk and the manufacture of milk
products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world. The
dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the
State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per
day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling
centres operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared
with the U.S' 63 cents, and Japan's $2.8 dollars. Also to take advantage of this lowest cost of milk
production and increasing production in the country multinational companies are planning to
expand their activities here. Some of these milk producers have already obtained quality standard
certificates from the authorities.
CASE STUDY ON CRM STRATEGIES

A key characteristic of many, if not

all, of the very successful
organisations is a supply chain that
is truly connected to
their customers. A customer driven
supply chain starts
with understanding the customer
requirements, senses and
responds rapidly to demand signals
from all partners. The
challenge is to successfully put in
place the organisation
structure, systems and processes
which tackle the root
causes of supply chain
inefciency.
A key characteristic of many, if not
all, of the very successful
organisations is a supply chain that
is truly connected to
their customers. A customer driven
supply chain starts
with understanding the customer
requirements, senses and
responds rapidly to demand signals
from all partners. The
challenge is to successfully put in
place the organisation
structure, systems and processes
which tackle the root
causes of supply chain
inefciency.
A key characteristic of many, if not
all, of the very successful
organisations is a supply chain that
is truly connected to
their customers. A customer driven
supply chain starts
with understanding the customer
requirements, senses and
responds rapidly to demand signals
from all partners. The
challenge is to successfully put in
place the organisation
structure, systems and processes
which tackle the root
causes of supply chain
inefciency.
A key characteristic of many, if not all, of the very successful organisations is a supply chain that is
truly connected to their customers. A customer driven supply chain starts with understanding the
customer requirements, senses and responds rapidly to demand signals from all partners. The
challenge is to successfully put in place the organisation structure, systems and processes which
tackle the root causes of supply chain inefficiency.

It provides enhanced opportunities to use data and information to both understand customers and
create value with them. This requires a cross-functional integration of processes, people, operations,
and marketing capabilities that is enabled through information, technology, and applications (Payne
& Frow, 2005). CRM capabilities are embedded in CRM activities in organisational processes, and
they reflect a firm’s skills and accumulated knowledge to “identify attractive customers and
prospects, initiate and maintain relationships with attractive customers, and leverage these
relationships into customer level profits”

CRM is a cross-functional organisational process that focuses on establishing, maintaining, and

enhancing long-term relationships with attractive customers (Payne & Frow, 2005; Parvatiyar &
Sheth, 2001). CRM is a strategic approach that is concerned with creating improved shareholder
value through the development of appropriate relationships with key customers and customer
segments. CRM unites the potential of relationship marketing strategies and IT to create profitable,
long-term relationships with customers and other key stakeholders.

In an era of rapidly changing technology and highly unpredictable markets, manufacturers must
enhance their innovation capabilities to satisfy market demands and customer preferences in order
to maintain a long-term competitive advantage (Panayides, 2006). Good customer relationship
management (CRM) between manufacturing firms and industrial customers not only retains
customers but also encourages them to provide important suggestions for improving products and
service (Ramani & Kumar, 2008). CRM helps firms refine their knowledge about customers’ tastes
and preferences. The effectiveness and efficiency of CRM are increasingly recognised as means for
developing innovation capability and providing a lasting competitive advantage

A good CRM strategy can increase sales by improving relationships with customers, thus enhancing
customer loyalty . Sin, Tse, and Yim (2005) indicated that CRM involves activities that manufacturers
practice to satisfy customer needs, identify customer preferences, resolve customer complaints,
provide after-sale service, and establish longterm relationships with their customers.

CRM activities which help in gaining competitive advantage and enhancing organisational
performance. These are:

(a) Information Sharing: It refers to the sharing and exchange of essential and exclusive information
through interactive activities between manufacturers and their customers. The commonly shared
information includes market demand, customer preferences, sales promotion, and new product
introduction.

(b) Customer Involvement: It is related to customer participation in new product development (NPD)
activities, technical meetings, supply chain annual conference, and market evaluation conferences.
Customers normally provide market trend/direction and technical support in the process, which
should lead to better understanding of future demands

(c) Joint Problem Solving: It refers to collaboration between manufacturers and customers in solving
problems together and sharing responsibilities when they encounter difficult or unexpected
situations.

(d) Technology-based CRM: It involves manufacturers using computer technologies to facilitate

various CRM activities and actively offer technology assistance to customers, including data storage,
data mining, and CRM software systems

POINTS WE CAN LEARN FROM AMUL’S CRM

1.Stay Active and turn on the LISTENING mode.

It is imperative for a brand to listen to the conversations on Social Media and respond to them
accordingly. At the first instance of this situation, Amul could have responded to the complaint
online, presenting the facts and information on the move. This would have resolved the customer
complaint and decelerated the journey of virality for the post.
2.Transparency holds the KEY

The complaining customer reported the whole incidenct on Social Media and to the Amul team as
well. Amul responded to her in quick time and expected her to be transparent to state the whole
process. While the customer should have been more transparent in updating her experience, Amul
could have responded to the thread with the video and explanation.

3. RISK is rewarding. Take it.

The conventional school of thought would argue that Amul should have kept mum throughout and
addressed the issue only if it had gone out of hand, say a news article in main stream media. Amul
took the risk of addressing the issue amongst 12 Lakh followers on Facebook which is 15 times more
than the number of shares for the post. I believe it has paid off well scintillating people’s emotions
for Amul and restoring faith in the taste of India.

4. Eye for DETAIL never hurts anyone

Brands and customers need to develop a critical skill set that’s an eye for detail. For brands this
assists in enhancing customer experience and resolving customer grievances. For customers this is
really crucial to make an informed decision.

RECOMMENDATIONS
 Company Should go for other CRM program.

 Ensure that every school is satisfied.

 Should increase the awareness of AMUL Vidya Awards

 Provide forms and details on time.

 Take feedback from every schools.

 Provide some financial help to poor meritorious students.

 There should a customer care for Amul Vidya Awards.

 Advertisement of Amul Vidya Awards to reach mass numbers

Bibliography

www.amul.com

www.wikipedia.com

www.investopedia.com