Title - “A STUDY ON MARKETING STRATEGY OF AMUL MILK”

Abstract:

The topic of my project is “A Study on Marketing Strategy of Amul in Milk Market in NCR

Region”. This project was undertaken with the objective of promotion of brand AMUL in

schools & nearby area canteens. The study was conducted at AMUL India Ltd. Delhi branch.

The retailer's preference was studied through using questionnaire. A sample size of 100

consumers was taken for the study, whose responses were studied and interpreted The sampling

design was used descriptive sampling. The process of analysis was done through excel work

sheets, frequency table, percentage analysis etc. It was found that canteen holders are having the

problem in storage of AMUL products because company does not provide refrigerator to them

that's why they do not keep Amul products in their canteens. Retail outlet. Trust of the

company was the first preference of the retailer's then credit on the product. Retailers want to

keep AMUL products but they want some facilities from the company side. Finally the whole

study of the research work.

 INTRODUCTION

Amul is basically operated from Anand and it’s on co-operative basis. Amul produces

large variety of product range starting from Milk, Delhi, Mozzarella, Cheese and Ready

to eat pizza as well as Ice creams and chocolates. Amul has been the market leader in

butter for last 55 years. No such competitor stands before Amul butter.

Therefore Amul decided to enter into Ice cream field in 2012. After a long research in

this field, an output obtained was positive. Though of the tough competitors like Mother

Dairy, HUL, Britannia, Cadbury and many more. Amul was ready to face them. Amul

was very successful and got a positive response from the market in 2012. It was because

of its brand image, product range and test which were given to the retailers.

The main competitors in Sahibabad and Ghaziabad were Mother Dairy, Paras and Parag

milk . Mother Dairy was very strong due to its facilities as well as it has made a room in

customers mind. Whereas Amul had also provided a deep freezer on security on

preference of the retailer. Paras was the second major competitor due to its huge

investments of money on sales promotion as well as Paras provides a large variety of

product range and attractive packaging.

Amul had a very good advantage of its good brand image. It has captured a very good

market in Ghaziabad and Sahibabad area. Amul has a start to end range of every product.

Consumers are very much attracted towards Amul’s quality, which was highest among all

competitors.
 LITERATURE REVIEW
REVIEW OF LITERATURE

A review of literature is designed to identify related research, to set the current research work
within a conceptual and theoretical context. Review of literature is the important step in a
research work, which has to be done adequately in order to reveal the significance of the study.
In this chapter a detailed review of literature has been done by reviewing the previous studies
relating to the core area of the research. These studies have been taken from published journals,
articles and Ph.D. thesis.
Termorshuizen, Meulenberg and Wierenga conducted a study on consumer behaviour in respect
of milk in the Netherlands and their aim was to gain insight into the factors that influence buying
and consumption behaviour with respect to milk and into the applicability of integrated models
to consumer behaviour regarding generic products, such as liquid milk. They used a model based
on the Engel, Kollat and Blackwell(EKB) model, a so-called integrated model of consumer
behaviour for this purpose. It was found that liquid milk was
perceived as a neutral drink: not ordinary or luxury, as a food not a drink for pleasure, and not as
being refreshing. Liquid milk was perceived differently at varying times of consumption during
the day. The most important socioeconomic variables explaining individual differences in
consumer beliefs regarding milk are: age, level of education, and residential area. The results -
suggest that empirical models of the EKB type can contribute to the understanding of consumer
behaviour in respect of generic food products.
Sukumaran Bhaskaran in his study attempted to analyze the market potential for the export of
value-added dairy products to Malaysia and to compare the market entry and operations
strategies of successful dairy companies operating in Malaysia and also to analyze the strengths,
weakness, opportunities and threats that characterize Malaysia as a market for the Australian
dairy industry. The study revealed that the Australian dairy industry is not appropriately
structured or focused nor has in place effective marketing strategies to maximize opportunities in
this rapidly expanding market. The study also revealed that the macro environment is conducive
for Australian exporters as there is substantial and growing demand for dairy products in
Malaysia. Consumption has been forecasted to reach 330,000 tonnes by the year 2020 in
Malaysia and it is been estimated that 95 per cent of demand would be imported. Therefore,
imports have been forecasted to reach 315,000 tonnes in 2020. The growth in demand for dairy

products in Malaysia should provide Australian exporters substantial opportunities. Australian

dairy exports to Malaysia averaged 30,000 tonnes annually. If Australian exports do not increase
substantially, market share in Malaysia is been forecasted to fall from current levels of
approximately 20 percent to less than 10 per cent by 2020.
Nagapani in his study on the marketing aspects with special reference to Coimbatore district co-
operative milk producer union limited made an attempt to identify the reasons for low
procurement of milk and to know about the demand in that area. The study found that the reason
for low procurement in the areas of shanmugapuram and sultanpet chilling centers was due to the
competition in procurement from private dairies. The sale of milk in 500 ml sachet was found to
be high among the available size of sachets.
Radder and Natalie heather smith conducted a study on milk marketing by selected dairy
companies in port Elizabeth. The objectives of the study were to determine consumers’ milk
consumption patterns and factors which influence consumers’ milk consumption and to review
the major competitors in the Port Elizabeth. The study found that most of the respondents used
milk for whitening of tea or coffee and they had the opinion that the milk was very healthy and it
was an enjoyable tasting beverage and they felt that quality, availability and freshness were the
most influencing factors. The study also found that the increasing competitiveness in the milk
industry, including the no-name brand milk was forcing dairy companies to sell the milk at very
low profit margins.

Jha and Debroy made a study on globalizing Indian dairy sector. The study found that the
impressive growth of India's dairy sector during the last 3 decades has been possible through
supportive trade policies. In light of the World Trade Organization (WTO) Agreement on
Agriculture, pressures on India to liberalize imports have been increasing. Nations such as the
USA and countries of the European Union continue to support their own dairy industry to the
extent that it distorts the world dairy market. In India, dairy products are largely protected; skim
milk powder (SMP) is, however, an exception. The Indian government decision to allow free
import of SMP at zero duty can adversely affect the entire dairy sector. Trade restrictions on
other dairy products would eventually be lifted following WTO agreements. The existing rate of
import duty (around 38%) will be sufficient to protect domestically manufactured dairy products.
Therefore, removal of import restrictions on these products will have minimal effect. Indian milk
products are not competitive in the world market despite the fact that milk price in India is one of
the lowest in the world. This indicates inefficiency in processing of milk in India.
Vrontis and Vignali in their study made an attempt to investigate the impact of internal and
external environmental forces and dairy products in France. The study revealed that the
consumers of chocolate bars and confectionery are very price conscious, especially on basic
items. The market is highly competitive and price-cutting is widespread. Retail prices and
margins vary widely according to products outlet. Prices in large food stores, especially for
products sold under distributors brands, are much lower than those of products retailed by other
miscellaneous shops and this has been an important factor in the growth of own labels in this
market and consumption of chocolate bars varies regionally. Consumption of milk chocolate bars
is relatively higher in east and south west regions of France.
Ashoke Kumar Ghosh and Keshav Lall Maharjan under took a study on milk marketing channels
in Bangladesh. The objective of the study was to understand general features of milk marketing
in Bangladesh, price variations under different stages of marketing and selling spots and also
identified the problem faced by farmers in milk marketing. The study revealed that the price
fluctuation in marketing was one of the important constraints for the small dairy farmer. The
seasonal price fluctuation was higher for both the villages of Labutalla and Tarabunia at local as
well as at urban markets. However, the cooperative price was fixed and it varied according to the
fat content of the milk. The average price of milk received by the dairy farmers was higher for
the Potajia, with cooperative marketing system compared to other places. It means marketing
channels of cooperative are more efficient than the other channels. The higher and fixed price of
milk would help farmers to better dairy farm planning. Therefore, further development of dairy
farming depends upon the organized marketing channel in which farmer can get fair price.
Keeping in mind for mass of the small producer, cooperative milk marketing system can be
developed for betterment of the rural
dairy farmers.
 RESEARCH

METHODOLOGY

Samplings Areas : Delhi & Ghaziabad (Sahibabad)

Sampling technique Non-Probability Sampling

Convenience sampling

Sample Size : 100 Customers + 100 Retailers

Primary Data : Responses through questionnaires

Conducted personal interviews with the

respondents.

Secondary Data : Websites .

News papers
 RESEARCH METHODOLOGY

In simple terms methodology can be defined as, it is used to give a clear cut idea on what the

researcher is carrying out his or her research. In order to plan in a right point of time and to advance the

research work methodology makes the right platform to the researcher to mapping out the research

work in relevance to make solid plans. More over methodology guides the researcher to involve and to be

active in his or her particular field of enquiry. Most of the situations the aim of the research and the

research topic won't be same at all time it varies from its objectives and flow of the research but by

adopting a suitable methodology this can be achieved. Right from selecting the topic.

Research methodology drives the researcher in the right track. The entire research plan is based

on the concept of right methodology. More over through methodology the external! environment

constitutes the research by giving a depth idea on setting the right research objective, followed by

literature point of view, based on that chosen analysis through interviews or questionnaires findings will

be obtained and finally concluded message by this research.

OBJECTIVE OF THE PROJECT

The topic of my project is “A study on marketing strategy of Amul, in milk Market in

NCR Region” in Delhi & Ghaziabad (Sahibabad). This includes the following objectives

to find out:-

 Packaged milk market in Delhi & Ghaziabad (Sahibabad) against loose milk.

 Brands available in the market and their average daily sales.

 The most effective media of promotion.

 Highest and lowest sale of particular Amul product and area of sale.

 Factors influencing consumer buying behaviour.

 Expectations of retailers from Amul.

 Response of the retailers to Amul as well comparative brands.

 Complaints and suggestions of retailers for a winning brand.

 Ascertain the awareness level of Amul market and its distinct image.
 RESEARCH DESIGN USED IN PROJECT

In this research report of a study on marketing strategy of Amul, in milk market in NCR region .

I used descriptive research design.

Descriptive research studies are those studies which are concerned with describing the

characteristics of a particular individual, or of a group, studies concerned with specific

predictions, with narrations of the fact and characteristics concerning individual, group or

situations are examples of descriptive research studies.

SAMPLING DESIGN

In this research report a study on marketing strategy of Amul, in milk market in NCR region. I

use non probability sampling i.e.; Convenience sampling. I choose my sample according to my

convenience and which are relevant to my research project.

CONVENIENCE SAMPLING

Convenience sampling refers to the non-probability process by which a scientist gathers

statistical data from the population. This form of selection is done based on the ease of gaining

the statistical data. Rather than gathering a more accurate array of data from the population, the

researcher simply gathers data from people nearby. A researcher might go to a nearby mall, or

street comer to gather data. This form of data collection works for some areas of study, but

researcher bias may result in inaccurate

SAMPLE SIZE-

100 Customer & 100 Retailer from National Capital Region ( NCR).

METHODS OF DATA COLLECTION

The data was collected both with the help of primary as well as secondary

sources.

PRIMARY DATA

For primary data, I proceeded with the drafting of the questionnaire for consumers.I choice open end and

multiple question in my project report And it was handed personally by me to the respondents to be

analyzed, questionnaire was of multiple choices and the pattern of questions was as simple as possible.

With every question, multiple choices were given and respondents were asked to select one of them. The

questionnaire technique was structured and not disguised as the questions followed one pattern and

reason behind the questionnaire was stated properly. All the questions were directly related to the

subject.

SECONDARY DATA

Secondary data was also collected personally by me, which the company has furnished for the general

public. The secondary data was gathered with the help of various magazines, newspapers, journals,

brochures and also through the internet.

DATA ANALYSIS

&

INTERPRETATION
 DATA ANALYSIS & INTERPRETATION

QUESTIONNAIRE FOR CONSUMERS

Sample Size: 100 consumers

1. Which Flavoured milk do you buy?

A. Branded 60

B. Loose 26

C. Both :8

BOTH
8%
26%

1
66%
LOOSE 2
3

BRANDED

BRAND NO. OF CONSUMERS

AMUL KOOL 150

GAGAN 180
INTERPRETATION

 The area covered Ghaziabad is in the vicinity of New Delhi, the capital of India; branded

things and even fresh milk is in great demand among literate consumers.

 People are conscious of hygienic products and people of Rs. 10000+ income group have

a general inclination for branded packaged flavored milk because it is believed that loose

milk is generally not safe to consume.

 We found that 66% of our respondents use branded milk and 26% people use loose milk.

 Moreover 8% of respondents have indicated that they use both branded and loose milk.

2.Do you know that Amul has launched its flavoured milk in bottle &

tetrapack?

Yes : 65

No : 35

NO, 35%
1
2
YES, 65%

INTERPRETATION

 We found that people are aware of Amul’s flavoured milk and Amul has good reputation

among the consumers. GCMMF Ltd., is considered to be one of the best companies in the

dairy products category in FMCG sector.

  When GCMMF Ltd declared that it is going to launch flavored milk in Delhi the

consumers accepted it in leaps and bound. People perceive Amul as the triumph of

indigenous technology.

 People perceive Amul’s dairy product as Nature’s perfect food for the health of their

family.

3.How do you come to know about Amul Kool?

A. T.V. : 25
B. Banners : 23
C. Radio : 5
D. Newspaper : 15
E. Friends : 23
F. P.O.P. : 9

P.O.P, 9% T.V.ADD.
Friends, 23% 25%

BANNER S 23%
NEWSPA PER, 15%5%
Radio,

INTERPRETATION

 It is very important for a company to know that medium of promotion is most effective

on the consumers and which is reachable to the consumers. Regarding this 15% people
 says that they came to know about Amul Kool through newspaper. Those who got the

information from Banners 23%, radio 5%, t.v.25% , friends 23%, pop 9% .Advertisement

has emerged as the best way to reach way to reach into the customer mind. Means in

today era advertisement plays important role in building image. The collected by us is

also says that advertisement is big factor for spreading the awareness of consumers. The

outcome is that a good spending in advertisement generally pays in the long run.

1. Please give the 1st rank to the following brand as per your choice?

A. Amul : 41 , B. Amrit Food : 20

c. Gopal Ji : 17 , D. Other : 13 E. Nestle: 9

Other 13%
1
NESTLE
AMUL 41% 2
9%
3
4
GOPALJI
AMRIT FOOD 5
17%
20%

INTERPRETATION

Only rank cannot help to winning the market. While in winning the market a Company needs to

have good quality as well as availability and the right price supported by proper advertisement

support and since Amul is fulfilling these requirements it is the best in dairy products since

1946. That’s why after launch of flavored milk in the short period of time Amul is rising

progressively to become the market leader in the area covered those who tried Amul Kool once
they became the permanent customer of Amul Kool. 41% consumer says that Amul Kool is

number 1 and there is good amount who says that Amul Kool is number2 brand {140}. But till

the survey Amrit Food has the percentage 20% and Nestle is at third place.

QUESTIONNAIRE FOR RETAILERS

Sample Size: 200 Retailers

1. For how long you are in this business?

0 – 5 yrs : 11 Retailers

6 – 10 yrs : 30 Retailers

11 – 15 yrs : 35 Retailers

16 – 20 yrs : 17 Retailers

21 and more : 7 Retailers

21yrs& more, 7%
16-20yrs, 17% 1 - 5 yrs,
11% 1
2
3
6 - 10 yrs,
4
30%
5
11-15 yrs,
35%

INTERPRETATION

 35% of the retailers are doing business from 11 to 15 years. And they

formed The highest group of this category.

  30% of the retailers are doing business from 6 to 10 years.

 17 % of the retailers are doing business from 16 – 20 years.

 11% of the retailers are doing business from 0 – 5 years.

 7% of the retailers are doing business from 21 years and more

2. Which brands you are selling?

Amul  Mother Dairy 

Paras  Gopaljee 

Others …………………

Amul Kool Yes – 42 No- -48

YES 42%
NO
58%
1
2
INTERPRETATION

 We found that 47% of the retailers kept Amul Kool.

3. If selling Amul, since how long you are selling Amul Kool?

 Almost all the retailers who kept Amul Kool were keeping it since its launch . They were

satisfied with the growing demand of Amul Kool and said it showed a fair retention

power among consumers. Quite a good no. of consumers tried Amul Kool and became

loyal to Amul Kool.

 FINDINGS
 It is found in the survey that customer are influencing thought word of mouth.

 41% of the retailers said that they push the brand which has the highest margin. Retailers

are chiefly considered with margin and goods and commodities which can be sold.

 11% of the retailers said that if any customer doesn’t give any specific choice of brand

then they give the brand which is of the old stock.

 48% of the retailers said that this is not specific and they give any brand.

 Thus we see that 46% of the shopkeeper who were keeping not keeping Amul Kool said

they are interested in keeping Amul Kool.

 54% of the retailers said they are interested because of poor demand and of non-

availability of refrigerators and of the risk involved in Amul Kool business because

unsold stock is not returnable.

 It is the finding in the survey that females are the main decision maker for the milk. as

per the data 65% Female and 35% of Males makes purchase decision.
 LIMITATIONS
 Every research is conducted under some boundations and this research is not an

exception. Limitations of this project are-

 The sample size of 500 consumers is too small to project the opinion of consumer

regarding a particular brand and also degree of success of a particular brand.

 There might have been tendencies among the respondents to amplify or filter their

responses under the testing conditions.

 Since the study involved sampling method, ‘Drop in’ or ‘Go through’ error might have

crept in.

 Since the results have been drawn on the basis of the information provided by the

respondents, chances of error might have crept in.

 SUGGESTIONS

AND

RECOMMENDATIONS

Amul as a brand has very “Brand Equity” and is a common name in India’s every household.

Through its vast product range and variety , it has created a strong presence in dairy segment.

Although it is monopoly in butter segment but in chocolate field it needs a lot of measures to

take to ensure the high performance.

1: Separate Butter Division

There is strong competitor like Parag in the market so Amul should also have separate division

for butter. They should watch their competitors properly and adopt strategies accordingly.

2: Small Wholesale Division In Interior Region

A small wholesale division should be established in interior region where sales are low and

regular visit bears high transportation cost.In such area either retailers purchase from other area

or don’t keep butter to sell.

3: Market Survey At Regular Interval By Representatives

Company’s representatives must survey the market themselves at regular interval in order to

know the opportunities in the market and to solve the retailers problems.
4: Provision of Target Even To Salesman

In order to increase the sale, salesman should also be given target to achieve and paid them as

quick as possible in form of cash not cheque .

 BIBLIOGRAPHY
NEWSPAPER:

Economic Times

Business

Standard

The Financial Express

BOOKS:

Majumdar,Ramanuj` :Marketing Research”:Sahitya Bhawan Publication,

(2008)

Gupta and Pal ; “Consumer Behavior”.Pargati Prakashan,(2007)

Philip Kotler ; “Marketing Management” :Prakash Prakashan,(2009)

WEBSITES:

www.amul.com

www.parasdairy.com

www.motherdairy.com

www.economictimes.com

www.sify.com/finance

www.business-standard.com

www.rediff.com/money

www.ask.com

www.google.com