UNIVERCITY OF MUMBAI

YASHWATRAO CHAVAN COLLEGE OF

ARTS COMMERCE & SCIENCE

NAVI MUMBAI

PROJECT REPORT

DETAIL STUDY OF AMUL COMPANY

AND THEIRE MARKETING STRATEGIES
FOR DISTRIBUTION

SUBMITTED BY

NISHA RAMNATH MAURYA

ROLL NO-BM613

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 INDEX
Executive Summary
Introduction
Birth of AMUL
Industry Profile
Company Profile
Vision, Mission & Objectives
Organizational Structure
Production & Operational Management
Marketing
Financial Department
Performance Appraisal & Total Quality Management
Achievements
Data Analysis
Research Methodology
Limitations
KEY FINDINGS
SUGEESTIONS
BIBLIOGRAPHY

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 EXECUTIVE SUMMARY

AMUL is a co-operative sector. It is the institution of farmers, for the farmers and from the
farmers. The Amul gives pleasure to the farmer to change the own price, which was not possible
in earlier years. This union was born on 14th December 1946. The union provides facilities to its
members like more return, satisfactory price, insemination, first aid, group insurance, cattle food
at confessional price etc.

I have done case analysis on HRIS of AMUL and from that I have to know how organization
operates and how the functions have been carried in the organization. From this case I have come
to know how a wide organization like AMUL manages its Human resource.

AMUL dairy has five main departments like finance, personnel, commercial, milk procurement
and production. The finance department does the clerical work and takes care of inflow and
outflows of the cash. The other work of finance department is to audit of annual work.

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 INTRODUCTION

The Birth of Amul

It all began when milk became a symbol of protest.. Founded in 1946 to stop the
exploitation by middlemen, Inspired by the freedom movement

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These 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 and marketing under their control.

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 liters 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, 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.

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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.

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ROLE MODEL OF AMUL

BORN - 26 November 1921

(Calicut, Madras Presidency, British India)

DIED - 9 September 2012 (aged 90)

(Nadiad, Gujarat, India)

NATIONALITY - Indian

OTHER NAMES - Milkman of India

ETHNICITY - Malayali

0CCUPATION - Founder of AMUL Ex-Chairman GCMMF, NDDB,

Institute of Rural Management Anand

KNOWN FOR - Widely acclaimed as the Father of White Revolution in

India

RELIGION - None ( Atheism )

SPOUSE - MOLLY

CHILDREN - Nirmala Kurien

AWARDS - World Food Prize ( 1989 )

Padma Vibhushan ( 1999 )

Ramon Magsaysay Award

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 INDUSTRY PROFILE
INDIA is the 2nd largest in the emerging economies in the world, with a GDP growth rate of
~6.5%, 3th largest economy in the world (based on PPP) with a GDP of US $ 4.4Trillion, and
according to BRIC report published by Goldman Sachs, India will be the 2 largest economy after
China by the year 2035.

India, world's largest milk producer, accounting for more than 16% of world's total milk
production, is the world's largest consumer of dairy products. The total amount of milk produced
has tripled from 23 million tonnes back in 1973 to 95 million tonnes in 2008 and expected a
production level of 135 million tonnes by 2015. But the projected demand for milk by 2021-22
estimated at 180 million tonnes which implies that milk production will be doubled.

Milk production is growing at 3.3% while consumption is growing at 5% leaving a gap between
demand and supply. In order to meet the rapid growing demand and to increase the milk
production, Union Government has started a central scheme National Dairy Plan Phase 1, for a
period of 2011-12 to 2016 17.This scheme will be implemented with a total investment of
about 2242 crore. This scheme main objective is to help provide rural milk producers with
greater access to the organized milk processing sector and thus to bridge the gap between the
demand and supply of milk in the country.

The share of the total milk processing capacity by private sector is 44%of total installed capacity
of 73 MLPD (Million Liters per Day) in the country. Therefore, the total share of the organized
sector, both cooperatives as well as the private sector is barely 12%. What is, therefore,
disquieting is that as much as 88% share of the total milk production is commanded by the
unorganized sector. In order to attract promote Dairy Industry and attract more investment in this

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sector, government has also reduced the excise duty of 16% to Zero on Dairy processing
Machineries.

The untapped potential of the dairy sector is immense and opportunity to set up a new dairy
venture is great. And there is vast potential for the export of dairy products, as the cost of milk
production in India being the lowest.

These factors are attracting huge amount of investments in dairy processing, manufacturing dairy
processing equipment, fruit packaging equipment and equipments for biotechnology related
dairy industry.

Four dairy enterprise models

The following section presents analysis and comparisons of four dairy enterprise models in India.
Chosen for the analysis: i) a private dairy operating in Mumbai (NAGORI) ii) The Maharashtra
State Cooperative as an example of a functioning cooperative, iii) the Gujarat Cooperative Milk
Marketing Federation as an example of a strong functioning cooperative and iv) a mutually aided
cooperative society as an alternative model. Models such as producer companies (emerging as a
new generation cooperative) are still in a developing stage.

Private State
Table 8: Model features GCMMF MACS
dairy cooperative

Number of farmers involved 150 000 224 000 2 700 000

Average liters milk procured per 700 000 322 000 60 000
day

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 Liters of milk processed at dairy 10 200 000
plant per day

As previously noted, cooperatives have been successful only in some parts of the country. This is
largely because the cooperative law falls under the state policy and is formulated differently in
different states. In states such as Gujarat, where the model succeeds, the cooperative is headed by
elected managers and managed by professionals. In many other states, civil servants manage the
cooperative, which results in a lot of government interference in the day-to-day functioning and
leads to a lack of democracy and hence no sense of ownership or responsibility at the village
level.

Three key differences distinguish the Gujarat (GCMMF) cooperatives from the other states: i) an
oversight board elected by farmer members; ii) professionals employed by the cooperatives to
manage the cooperatives and iii) the cooperatives have autonomy and freedom in their operating
policies from interference by government and politicians.

Changing from the cooperative model to the society model has many associated bureaucratic
problems. To overcome the hassles, the concept of producer companies was introduced as a way
of transforming cooperatives to work more efficiently as representatives of farmers.

Major Competitors
Amul is a well known brand with a wide product range in FMCG giving a tough competition to
its competitors. The following are the major competitor in some of its product range.

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 PORTERS FIVE FORCES MODEL

Before we actually analyze AMUL as a company, industrial analysis is primary requisite.

Therefore, I have used Porters five forces model here.

There are no entry barriers because, all we need is a bunch of high yielding milch
animals, sell the milk, get returns and expand.

Consequently there will be many brands and local players making up the competitive
rivalry.

Bargaining power of customers is high because of various competitors.

Bargaining power of suppliers is low because the suppliers are rural milk producers. Even
if the suppliers are paid rs.200 per kg fat of milk instead of say rs.245 per kg fat of milk.

Threat of substitutes is high because of availability of other products like jams, sauce etc.

3 cs Model of Amul Company

COMPANY

CUSTOMER

COMPETITOR

COMPANY :

Largest milk brand in Asia. It is no. 1 in Asia and no. 2 in world.

More than 30 dairy brands.

Market leader in Ghee and Butter with 85% market share.

Very strong supply chain.

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 Enjoys fine reputation. Though the company is grown so big, it never left its key
players- the milk suppliers.

Quality with affordability.

CUSTOMER :

Are extremely satisfied.

Moved from loose milk to packaged milk. Moving consumers from loose milk to
packaged milk and then gradually moved them up the value chain i.e., the tetra
pack.

Being exposed to a brand is natural for a customer to try more products. This is
the umbrella strategy that AMUL follows.

Improved socio-eco conditions of the customers, has changed their lifestyles and
thus the scope for product innovation has increased.

COMPETITOR :

Amul has to defend against Mahananda, Gokul, Mother dairy, Prabhat, Varna etc.

Aggressive moves against Britannia, Nestle, Mother dairy, and Kwality.

Amul has a competitive sustainable advantage. This lies in the procurement part.
Its ability to collect 14 million litres of milk from 3.1 million farmers and convert
it in to Rs. 12 crores worth products and distribute them to 6 lakhs retailers is a
tough job.

Intelligent marketing.

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 COMPANY PROFILE
Amul (Anand Milk Union)
Formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an
apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town
of Gujarat and has been a sterling example of a co-operative organization's success in the long
term.

The Amul Pattern

It has established itself as a uniquely appropriate model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest producer of milk and milk products in the world. It
is also the world's biggest vegetarian cheese brand.

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

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream,
shrikh and, paneer, gulab jamuns, basundi, nutramul brand and others.

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Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter
Japanese marketing 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets.
Other potential markets being considered include Sri Lanka.

GCMMF-An overview

Year of Establishment 1973

Members 17 District Cooperative Milk Producers' Unions
No. of Producer Members 3.23 Million
No. of Village Societies 17,025
Total Milk handling capacity per day 23.2 Million litres per day
Milk Collection (Total - 2013-14) 4.79 billion litres
Milk collection (Daily Average 2013-14) 13.18 million litres
Cattle feed manufacturing Capacity 6190 Mts. per day
Sales Turnover -(2013-14) Rs. 18143 Crores (US $ 3.0 Billion)

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Vision

GCMMF will be an outstanding marketing organization, with specialization in marketing of food

and dairy products both fresh and long life with customer focus and IT integrated. The network
would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter
servicing nearly 10 lakhs outlets with a turnover of Rs.10, 000 Cr and serving several co-
operatives. GCMMF shall also create markets for its products in neighboring countries.

Mission

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the
world through excellence in the marketing by our committed team. Through co-operative
networking, we are committed to offering quality product that provides best value for money.

Objectives

The main objective of the Study can be listed as follows

A. Primary Objective

1. To find size of retail network of Amul Taaza and Amul Gold in specific areas of
Vashi city.

2. To find the problems faced by retailers in selling and storing.

3. To collect the information about the competitors.

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4. To generate sales

ORGANISATIONAL STRUCTURE
EXTERNAL ORGANISATIONAL STRUCTURE
INTERNAL ORGANISATIONAL STRUCTURE

EXTERNAL ORGANISATIONAL STRUCTURE:

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd

Villagers

EXTERNAL ORGANISATION STRUCTURE:

It is organization structure that effects organization from outside

GCMMF is unit of Gujarat Milk Marketing Federation, which is a
Co-operative organization. The villagers of more than 10,000 villages
of Gujarat are the bases of this structure.
Its also provide better communication between two stages.
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 The structure is Line relationship, which provides easy way to operation.

INTERNAL ORGANISATIONAL STRUCTURE

A systematic & well-defined organizational structure plays a vital role & provides
accurate information to the Top-Level Management.
An organization structure defines a clear cut line of authorites & responsibilities among
the employees of GCMMF.
The organization structure of AMUL is in well-arranged structure.

Chairman

Managing Director

General Manager

Asst. General Manager

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AMUL PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk & butter milk. It was established in 1973.

Second plant is at MOGAR, which engaged in manufacturing chocolates, Nutramul,

Amul Ganthia and Amul bite. This plant established in 1973. It is situated on Anand
Vadodara Highway No.8.

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 Third Plant is at Kanjari, which produces cattle feed.
Old plant established in 1964 and new plant in 1980.

Fourth plant is at Khatraj, which engaged in producing cheese. It is situated between

Nadiad-Ahemdabad.

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PRODUCT PROFILE

Nutritional Information*
Amount per 200 ml
Energy, kcal 26
Energy from Fat, kcal 9
Total Fat, g 1
Saturated fat, g 0.5
Cholesterol, mg 3
Total Carbohydrate, g 2.3
Added Sugar, g 0

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 Protein, g 2.1
Calcium, mg 91
Sodium, mg 30
Phosphorous, mg 79
Thiamine, mcg 25
Riboflavin, mcg 73
Niacin, mcg 61
Folic acid, mcg 4.5
Unlike carbonated soft drinks, Amul Masti Spiced Buttermilk is 100% Natural and Sucrose Free
without any color or preservative added. It is a low fat product with lower sodium salt content. It
contains protein with almost 50% lower calorie than soft drinks. The spices and condiments
added to the product enhance its taste and flavor.

Scientific bacterial culture in Amul Buttermilk improves digestion. It is conventionally packed in

pouches and easily available at Amul Milk outlets spread all over major cities of India.
Buttermilk is traditionally known as "Chhash" (Gujarat & MP), "Mattha" (UP & Delhi), "Tak"
(Maharastra), and Ghol" (Bengal).

Product Application
Take a glass full in early morning in place of Tea; Amul buttermilk will improve the digestive
function. Replace your soup with Amul Buttermilk; it will give you dieting benefits. Take a glass
of Amul Buttermilk after lunch / dinner for better digestion. Just give "Tadka" to Amul
Buttermilk and use it as your "Dal". Add some coriander cumin and salt to Amul Buttermilk and
your guest offering is ready. You can prepare Besan Kadhi from Amul buttermilk.

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Pricing of Product
Amul Buttermilk - PLAIN RS 11

Amul Spiced Buttermilk MASALA RS

PRODUCTION & OPERATIONAL MANGEMENT

Production management is refers to the process of correction of past mistakes catching up with
the new techniques, taking up steps with developing techniques and taking measures for the
production of goods at competitive cost.

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The basic philosophy of production management is to launch a frontal attack on direct costs and
effective use the availability manpower weaving new techniques in to the whole to keep the
production unit efficient and developing production management is the process of planning,
organizing, directing and controlling.
The Amul is started with only 250 liters of milk per day. But now Amul collect average 9
lakhs of liters milk per day. At the initial stage, Amul has not any problem regarding milk, but in
the winter season there was excess supply of milk. So, Amul has to sell out that excess milk at
the low price or Amul hastofaceloss. To removing these problems Amul take decision to set up
a plant to process the surplus milk butter and milk powder.

The Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24hours a day
continuously. The all manufacturing process is done automatically. The production is done in the
special machines. These machines and the technology are import-id from the TRFTA PEAK
Company. There is also facility of chilling of milk, so that the milk remains usable.

Three plant of AMUL perform different functions:

AMUL1 Presently it is use as a go down for storing raw materials.
AMUL2 In this unit, the production process of Ghee and packing's are running.
AMUL3 This unit is producing AMUL butter, spray power, and flavored milk.

Milk Collection Cycle:

The success of each and every dairy industry is the getting the milk from the farmers and making
that milk in use as soon as possible before that milk get spoiled because the milk is the perishable
product. For the smooth running the business of dairy industry the industry must concentrate on
the milk collection cycle.
Amul dairy is very conscious about the milk collection cycle because the base of the success of
the Amul is milk collection cycle.

Production capacity of Amul:

Butter 50 to 60 Tones.
Powder plant 70 tones.

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 Powder plant 60 tones.
Flavour milk 40000 bottles.

Amul 2 Raw Reception Dock:

Reception dock is the very first department of any dairy where milk is unloaded and
simultaneously tested. Amul-2 has a well designed RMRD, situated in the west wing of dairy.
Raw milk at Amul- 2 is received mainly through cans. There are 2 reception lines for unloading
milk cans in Amul 2.
About 60 % of reception is of buffalo milk and remaining 40% is cow milk.

Butter section:
The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul
dairy along with the famous butter girl. The butter section is located in Amul-3 which
manufactures Table Butter, white butter and renduced salt butter. The section is completely
computer controlled and is equipped with most modern imported equipments. Butter section very
important as it handles fat, which is the costliest constituent. The cream obtained from process
section is fully utilized for butter making. Amul white and table Butter is exported to USA and
various Middle Eastern countries.

OPERATION:
The cream for manufacturing Butter is receiving from Amul-3 process section while
standardization of milk. In Amul -3 the milk fat will be separated at above 60
Celsius, the centrifugal separators in line with Milk pasteurizer separate this as cream. The cream
thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo. After
ageing at 8 Celsius for 24 hrs, cream is pumped to cream chilling unit in the butter section. There
the temperature of cream is adjusted to the required churning temperature of continuous Butter
Making Machine.

Packing materials used:

Delocalize market Double laminated is used for export. Tin used for 400g Army pack

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Card board box- used for tertiary packing 3ply for 9.1 g weight package 5ply for normal &
export.

Powder plant:
F-35 plant is situated in Amul -2 near to the railway siding. The plant is a single stage drying
plant having a capacity of 35 TDP. The plant is not in regular use and mainly used for the
manufacturing of cheese whey powder .

F-35 CONDENSING PLANT DETAILS:

Make : SSP ,Faridabad.
Type : Falling film vertical tube type.
No of Pre heater : 5.
No of calendria : 7.
No of vapor separators : 5.

OPERATION DETAIL:
MILK: One of the most versatile food consumed by us. All children start with mothers
milk and continue to use it in one other throughout their life. It is the secretion from the
mammary glands of a lactating mammal. The white fluid, know as milk, is made up of
milk fat and other milk solids.

MANUFACTURING PROCESS FOR MILK :

MILK PROCUREMENT: Total milk procurement by our Member Unions during the
year 2006-07 averaged 67.25lakh kilograms (6.7million kg) per day, representing a
growth of 4.5 per cent over 64.38lakh kilograms (6.4 million kg) per day achieved during
2005-06. The highest procurement as usual was recorded during January 2007 at 84.09

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 lakh kilograms (8.4million kg) per day. This increase in milk procurement is very
impressive, keeping in mind the massive loss suffered by our farmers due to floods
during the monsoon season, specially in Surat district
MILK PROCESSING:

Homogenization: Milk must then be homogenized. Without homogenization, the

milk fat would separate from the milk and rise to the top. Milk fat is what gives
milk its rich and creamy taste. In this process Milk is transferred to a piece of
equipment called a homogenizer. In this machine the milk fat is forced, under
high pressure through tiny holes.

Pasteurization: Pasteurization is the process that purifies milk and helps is stay
fresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds then
quickly cooling it to 4C. Pasteurization is named after Louis Pasteur, the famous
Scientists.

Adding Vitamins: Before homogenization, vitamin D is added to all milk.

VitaminD combined with the calcium that naturally exists in milk help gives us
strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk.
Vitamin A is good for our eyesight.

Packaging Milk: Milk is now ready to be packaged. Milk is pumped through

automatic filling machines direct into bags, cartons and jugs. The machines are
carefully sanitized and packages are filled and sealed without human hands.
During the entire time that milk is at the dairy, it is kept at 1 - 2C. This prevents
the development of extra bacteria keeps the milk fresh.

Storing: Milk is delivered to grocery stores, convenience stores and restaurants in

refrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk
and immediately place it in their refrigerated storage area. Because fresh milk is
so important to our diets, dairies, and our health.

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QUALITY MOVEMENT
Quality Policy: The motivated and devoted work-force of AMUL- are committed to
produce wholesome and safe foods of excellent quality to remain market leader through
deployment of Quality management systems, state-of-art-technology, innovation and eco-
friendly operations to achieve delightment of customers and betterment of milk
producers.

Quality of Life: Assured market for their milk and daily income round the year from
milk has improved the quality of life of farmers. The role village dairy co-operative
societies in the overall development of the villages have brought better social
infrastructures in the villages such as roads, communication system, schools, health
centers, water facilities, banks etc.

MARKETING
Concept: The marketing concept holds the key to achieving its organizational goals
consists of the company being more effective than competitors in creating, delivering and
Communicating customer value to its chosen target markets. Marketing starts with the
Determination of consumer wants and ends with the satisfaction of those wants. The
concept says that any business should be organization around the marketing function,
anticipating and stimulating and meeting customers need.

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 The marketing concept rests on four pillars and they are:
1. Target market.
2. Customer needs.
3. Integrated marketing.
4. Profitability.

AMUL has also its own marketing concept. AMUL targets all type of Customers like
babies, children, young customers and old age customers etc. Amul try best for satisfying
needs by providing good quality products.

STRUCTURE OF MARKETING DEPARTMENT

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4PS OF MARKETING
Product
Price
Place
Promotion

PRODUCT
Over the years, Amul has come up with many products. There has been product line extension as
well as product category extensions. The picture below is the snapshot of various SBUs of
Amul.

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Using the BCG matrix for product analysis, we can know which of these SBUs is of outmost
importance to the company or the brand Amul.
Looking above, we may say that Amul needs to perform product innovation if it wants to convert
Amul chocolates, Masti dahi, and Amul lassi to star products. The above matrix also states that
Amul may also choose to disinvesting Nutramul and Amul Shakti.
The following table describes the market share that Amul holds for each product line.

CATEGORY MARKET SHARE MARKET POSITION

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 Butter 85% 1
Milk Powder 40% 1
Cheese 50% 1
Ice-cream 34.75% 2
Sweets 40% 2
Dahi 65% 1
Milk 67% 1

In ice-cream, HUL is just above the market share i.e. 29.73%, with Mother Dairy in 3rd place
with 9.66%.

In chocolates, Cadbury has the maximum share of 70% and Nestle has 20% of the market share.

AMUL, being a co-operative union offers a variety of services to the members of village and
district level co-operate societies.

The main services offered by AMUL are

Medical facilities for the Cattle of Farmers :

AMUL provides medical facilities to cattle of farmers at a concessional rate of Rs. 50/-includes
medicines, treatment charge.

Cattle Feeding :

AMUL provides the Dan to the cattle of member farmers. AMUL produces the by pass
protein Dan and Purk Dan to the cattle of farmers at reasonable cost.

Artificial Insemination :

AMUL has established Artificial insemination center at Ode village near Anand.

Free Animal Vaccination :

Often Animals are caught up in unknown disease. To protect animals from such diseases
periodical Vaccination programme are arranged by AMUL.

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 Scholarships :

AMUL also provides scholarship to children of member of society.

AMUL, does all the above to ensure high yield of milk and thus ensure that there should be
continuously supply.

Amul STP is as follows

Segmentation;

Segmentation is not so easy because of mixed audience and various culinary applications.

Nevertheless, we may do segmentation based on:

Consumer type:

Kids - Amul kool, Amul chocolates, Nutramul, etc.

Womens - Amul Calci+

Youth Cheese variants, utterly delicious pizza, etc.

Calorie conscious Amul lite, Amul lite slim and trim milk, etc.

Targeting

After segmentation, one has to decide where to find market segment and what should be the size
of segment. Example, Amul has identified youth as one of his potential segment. Now it has to
decide where to find youth who will actually go get their product and the number of youth that
the company, i.e., Amul requires.

Therefore, Amul has come up with ice-cream parlours for this reason.

Positioning

A mass market player, no premium offerings.

USP Quality with affordability.

Amul as taste of India creates a value for everyone in the value chain, both customers and
farmers.

New offerings for health conscious and vibrant India in the form of Probiotic wellness Lassi, Ice-
cream, and sugar free delights for the diabetic patients and Amul kool caf for the youth of today.

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PRICE

The prices of products of Amul are also decided by the GCMMF. The GCMMF conducts the
market survey to check the validity and feasibility of prices in the market and accordingly
decides the prices of Amul products.

The price of the products of Amul are also decided by the GCMMF .The GCMMF conducts the
market survey to check the validity and feasibility of prices in the market and accordingly
decides the price of Amul products . However, the price is inclusive of several elements like:

Cost of milk.

Labour cost.

Processing cost.

Packaging cost.

Advertising cost.

Transportation cost.

Sales promotion cost.

Taxes etc.

The GCMMF considers all this cost. Aspects and set them up in pricing

structure to decide the selling price of milk and milk products.

PLACE

Place refers to marketing activities that make products available to consumers at the right time
in a convenient location. Place refers as distribution Channels .IT is the process of moving
products from the producer the consumer.

Amul has developed federation and Amul parlors located in several parts of country. Amul have
managed to create more than 2300. Amul have identified certain potential locations such as
Railway, Airports, universities, and shopping malls. The GCMMF handles the workers relating
to Managing of stocks and distributors to in the country.

PROMOTION
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One of the most conservative FMCG entities GCMMF spends a mere 1% of its turnover on
promotion. Amul has re written the rules of the game. Amul butter girl is one of the longest run
ad campaigns in the country for more then 43 years!!!

The reason Amul topical are so successful because, it doesnt plead the customer to go and buy
Amul instantly. Instead Amul captures latest news headlines and showcases them in such a way
that the moment we see it, we register it in our brains.

The basic aim here is to make butter synonymous to Amul. Next time we to buy butter, the first
brand that will come to our mind is Amul. Amul uses rotational promotional strategy to be in
touch with the customers/consumers throughout. After every 3-4 years, Amul comes up with
something new and a promotional campaign for the same is placed.

AMUL promotional strategies are

MARKETING THE KIOSK WAY

A massive KIOSK activity was carried out across zone 3 from the period of 4weeks. The activity
includes selling and promotion of Amul Spiced Buttermilk at special offer.
The offer was buy 2 pouch of Amul Spiced Buttermilk (Rs 5/pouch) and get 1 free, Buy 5 pouch
and get 2 pouches free followed by buy 7 pouch and get 3 pouches free.

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The activity was carried across different distributors and retailers point. The activity resulted into
massive boost in sales in that particular region. Within the period of 15th may to 29th may
around 35 crates were sold.

FINANCIAL DEPARTMENT

INTRODUCTION:
AMUL is Asias no. 1 and worlds second number co-operative dairy. It has large market and
dairy network in every state of India and across the India, like central Asian countries,
Bangladesh, Thailand, Indonesia, Malaysia, Singapore, etc. It was started with 250 liters of milk
and 2 societies and now, it produces 10 lakhs litters milk per day and has 1113 societies and more
than 6 lakes farmer members. It produces milk and milk products. The main motto of AMUL is
to help farmers. Farmers were the foundation stone of AMUL. The system works only for
farmers and for consumers, not for profit. The main aim of AMUL is to provide quality products
to the consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of
money to the farmers. Vision of AMUL is to provide and vanish the problems of farmers (milk
producers). The AMUL apparition was to run the organization with the co-operation of four main
parties, the farmers, the representatives, the marketers, and the consumers.

Year Milk procured (in kgs) Sales turnover (Rs. In lack)

2000-01 277840861 50919

2001-02 258692443 46878

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 2002-03 257957726 48834

2003-04 255856435 54593

2004-05 276150374 60047

2005-06 297436246 70922

2006-07 324410536 81632

2007-08 401718616 107712

2008-09 468587136 137807

2009-10 498033310 169989

2010-11 515900000 211140

FUCTIONS OF FINANCE MANAGEMENT

To give financial concurrence as per delegation of power for each proposal involving :-
Capital & Revenue expenditure
Purchase of material/ stores/ tools and other services.
Manpower requirement
Project report
Finance planning
Decision making in finance

ROLES AND RESPONSIBILITIES OF A FINANCE MANAGER IN A

COMPANY

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Senior leader of an organization are responsible for all aspects of its financial health. Managers
are charged with understanding the units financial situation and not allowing unintended deficits
to occur.
Finance managers remain accountable for the resources entrusted them, including funding,
facilities and staffing, even if they have delegated budget and accounting responsibilities to their
staff.
His roles and responsibility include making decisions related to :-
1. Working capital and cash management decision.

2. Investment decision

3. Portfolio management

4. Risk management

5. Budgeting

6. Inventory management

7. Decision making

A finance manager also acts as a mediator, well-wisher, leader etc. finance manager also control
the cost of funds has to achieve the organizational goals. These are the certain rules and
responsibility of a good finance manager.

STRUCTURE OF FINANCE DEPARTMENT:-

FINANCE
MANAGER
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 CAPITAL ACCOUNT
TREASURER EXPENDITURE MANAGER

MATERIAL
ACCOUNT COST ACCOUNT

PERFORMANCE APPRAISAL:
Performance appraisal is the process of evaluating the performance and qualification of
employees in terms of the requirement of the jobs for which they are employed. It is
highly useful in making decision regarding the promotion, transfer, wage and salary
administration etc.
The AMUL adopts the following appraisal system Final confirmation with the
recommendation by the divisional heads comes from the MD on annual basis. His work
is evaluated by Check list Method of Performance Appraisal. These are a various method
used to appraise the performance of an employee.
In Amul the following methods are used:

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 1. Self appraisal: If individuals understand the objectives they are expected to achieve the
standards by which they are to be evaluated they are to a great extent in the best position
to appraise their own performance. In this method employee himself.
2. Managers Appraisal: The general practice is superiors appraise the performance of
their subordinate. Other supervisors, who have close contact with employees work may
also appraise with a view to provide additional information.
3. Wages and Salary: It is a common method is followed for the wage and salary
administration according to Muster roll . Timekeeper sends that muster roll to the
account department for attendance of each and every employee. This will analyze and
entered in the computer. After this salary is calculated for each employee through
computer according to that they prepare salary sleep of employees.

TOTAL QUALITY MANAGEMENT

In 1994 AMUL had embarked on the Total Quality Management and in 1999 received the
Rajiv Gandhi National Quality Award for the year 1999, Indias premier recognition for
quality. Continuing to learn their employees have consistently striven to maintain
improved product and service quality at each stage of the value chain.
More than 25000 Kaizens small improvements in work areas-were made by employees
in different areas like cost cutting, time saving and process improvement. To ensure
minimum wastage and maximum productivity and quality, house keeping initiatives have
been zealously pursued at the Federation offices, Warehouses and Distributor points.
Learning from employing Total Quality Management principles have been cascaded to
both the member dairies as well as distribution channel members. Workshops on
Statistical Quality Control have been conducted across the member dairies to achieve
total quality in the production process.

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 On of AMULs most remarkable achievements has been creation of more than 225Quality
Circles across the length and breadth of the country. The federations wholesale dealers
meet every month in these quality circles and discuss and resolve
distribution problems and improve their distribution process.
Amul continues its commitment on improving the competency of its professional
managers through its Competency Based Training Programs which builds both generic
and functional skills through in-house, customized training programs.

ACHIEVEMENTS:

GCMMF bags APEDA AWARD for 11th year in a row[06-07]

Amul pro-Biotic Ice-cream gets the international dairy Federation Marketing Award at
the World Dairy Summit [2007]
Ramkrishna Bajaj National Quality Award [2003] GCMMF top scorer in service
category.
Amul The Taste Of India (GCMMF) receives International Cio 100 Award for
resourcefulness in IT management and practices.
Rajiv Gandhi National Quality Award 1999, for excellence in business re4sults,
customer satisfaction as well as societal and environmental impact.
ISO 9001 and hazard analysis Crital Control Point [HACCP] :
1st food company in Asia.
One of the 100 companies in the world

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DATA ANALYSIS AND ITERPRETATION

Consumer Research Data

Q.1 Gender

Sr. No. GENDER NO. OF RESPONDENTS

1 Male 39
2 Female 61
TOTAL 100

Interpretation According to the survey total sample size of 100 includes 43 male respondents
and 57 female respondents. This show female population plays greater role in purchase decision.

Q.2 What would you prefer?

Sr. No. PREFERENCE NO. OF RESPONDENTS

1 Homemade Buttermilk 68

2 Packaged Buttermilk 32
TOTAL 100

Interpretation According to the survey, consumer perception about the Buttermilk is narrow as
majority of them would prefer homemade buttermilk (68%) rather than going for packaged
buttermilk (32%).

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This perception of consumer can be changed over a period of time with the help of sale
promotion activity which will make them induce TRAIL.

Q.4 Have you ever tried Amul Buttermilk (Chaas)? If yes than are you continue using it on
day to - day basis?

Sr. No. NO. OF CONTINUOS

RESPONSE RESPONDENTS USAGE

1 Yes 81 52

2 No 19 48
TOTAL 100 100

Interpretation According to the survey, Majority of the population had tried Buttermilk in past
and out of the majority there are many potential prospect who are still a regular users who can
become future sales.

For this there is a need of creating more and more awareness about the Amul Buttermilk.

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 Sr. No. BRANDS % OF RESPONDENTS
1 Danone 28%
2 Amul 90%
3 Gokul 24%
4 Aarey Buttermilk (Aarey
center) 48%
5 Britannia 13%

Q.5 Which of the following brands of buttermilk have you heard of? (Select all that
apply.)

Interpretation - According to the survey, the brand awareness of Amul Buttermilk is highest
among the competitors in the market. This is plus point for the brand as other brands from same
parent Co. (GCMMF) gives Amul Buttermilk more visibility and exposure.

Co. should use this opportunity by giving free samples of Amul Buttermilk (200ml) with other
products.

AREA

MAHIM to VILE PARLE (ZONE 3)

Q.1. Do you have cooling facility in your store?

Yes No

Sr. No. RESPONSE NO. OF RESPONDENTS

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 1 YES 68%
2 NO 29%
TOTAL 100%

Interpretation According to the survey around 70% of the retailers have cold facility whereas
30 % dont have any support of cold storage.

So for a Retailer to keep dairy product (such as Buttermilk) it is must to have cold storage.

So for this reason my 30% of the total population is not tapped because of absence cold storage
facility.

Q.3 Which Brand of Buttermilk does you keeps?

Sr. No. NO. OF RESPONDENTS (out of

BRANDS 40)

1 Danone 4

2 Amul 11

3 Gokul 8

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 4 Aarey Buttermilk (Aarey
center) 14

5 Britannia 1

6 Others 2

TOTAL 40

Interpretation According to survey most of the retailers keep Aarey Co. Buttermilk, after that
Amul ranks 2nd in the race.

When reason asked most of the retailers said they get good margin on Aarey product and they get
lowest margin on Amul products.

Also consumer are more familiar with Aarey products , most of the retailers said.

Q.4 Any problem related to the product (Amul Buttermilk)? If yes please specify.

Sr. No. NO. OF RESPONDENTS (11 out

RESPONSE of 40)
1 YES 9
2 NO 2
TOTAL 11

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Interpretation - Most of the retailers have problem with Amul Buttermilk, which is not good for
the brand like Amul.

The problems were as follows:-

Margin related Problems

Replacement of damaged products

Dumping of old batch production, of which the expiry date is near.

Late delivery

Q.5 Which variants of Amul Buttermilk if more economical for you? Please specify the
reason.

200ml - Pouch pack Spiced Buttermilk

500ml - Pouch pack Plain Buttermilk

Interpretation According to the survey, majority of the retailers across zone 3 prefer keeping
200ml Spiced buttermilk as compared to 500ml - plain buttermilk.

Reason given:-

200ml Spiced Buttermilk

Size of the product It is easy to hold and store, save space.
Margin The margin on this product is 0.50 paise/pouch and which
sells out very fast.

Which is good as compared to 500 ml pack which has 0.85

paise/pouch margin?
Easy to Display It is easy to display the product as a sample.

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RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the problem. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them. Thus, When we talk about research methodology we not only talk of the
research methods but also consider the logic behind the methods we used in the context of our
research study and explain why we are using a particular method or technique and why we are
not using others so that research results are capable of being evaluated either by the researcher
himself or by others.

RESEARCH DESIGN

A sample size of 100 consumers and 40 retailers was taken into consideration..

The survey was conducted in the area Mumbai Zone 3 (includes Vile parle to Mahim)

Sampling techniques
A quota sampling technique was adopted because the sample audience was made out of potential
purchasers of the product. The sample was carefully drafted. A lot of care was taken when
designing the questionnaire and also when collecting information

Primary data
The primary data consists of information obtained from the retailers, distributors and through
consumer interaction.

Secondary data
The secondary data is obtained from the information already published in research articles ,
books and newspaper. The websites like Amul.Com ,Scribd. Com , Wikipedia , PTI , etc were
also useful.

Methods of Data Collection

The source of the data collected for the research is both primary data and secondary data

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Primary Data

By Observation Method

By Personal Interviews: The data was also collected by pitching consumers at retailers and
distributors place across Zone 3. Each consumer was asked questions with the help of tool
(questioner). Though the Questioner was close-ended but it made consumers think for a while
when responding.

When it comes to retailers the data was collected by visiting the Retail outlets across Zone 3 by
seeing the displayed Amul products in that stores.

The data was collected on the following parametrs:

Price (Margins).

Visibility.

Shelf Life.

Discounts Offered.

Limitations

The research was carried out for 2 months which proved to the insufficient to tap the accuracy of
the study.

Time factor has been a very big limitation in the research survey like this

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Restriction w.r.t location on study. We cannot expand our research to other geographical
location.

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SWOT Analysis

STRENGTH :
Largest food brand in India and Asia.

High quality, low price.

Most well known brand in terms of milk and fresh product division.

WEAKNESS :
Strong dependency on weak infrastructure.

Complex supply chain.

Short life of product.

Alliance with third party.

OPPORTUNITIES :

Penetrate on international market.

People in India mainly trust AMUL for their good and better quality this creates a
good brand image and goodwill into the minds of the peoples.

Use internet to sell its product.

Diversify product portfolio to enter new product categories.

THREATS :

Various competitors such as; Gokul, Mahanada, Mother dairy, Prabhat etc. Gokul
milk is nowadays the main threat to AMUL milk.

Competition from MNCs in butter.

Ban on export of milk powder.

Price rise of milk.

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MCKINSEYS 7S FRAMEWORK

The figure on the previous page illustrates the multiplicity interconnection between the elements
that define the organizations ability to change. The theory helped the managers to think about
how companies could be improved. It says that it is not just a matter of devising a new strategy
and following it through nor is it matter to setting up new system & letting them generate
improvements. The 7s model is an anthropological way to understand the culture. The model
shows that corporate success requires the development of both hard Ss (Strategy, System, &
Structure) and soft Ss (Skill, Staff, Shared value, & Style of leadership).

It helps the leader as a

1. Mental model to understand culture

2. Guide for change in management strategy
3. Tool to design initiative holistically
4. Reminder of hard & soft assets to integrate align & measure.

The 7ss are

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 a) Structure Strategy The route that the organization has chosen for its future
growth, a plan an organization formulates to gain sustainable competing
advantages.
b) System- The formal & informal procedure including Innovation system, Quality
control system, management information system, capital acceleration system, that
govern everyday activities.
c) Style- The leadership approach of the top management and the organizations
overall approach. Also the way in which the organizations employees present
themselves to the outside world, to supplier & customer.
d) Staff The organizations human resources refers to how people are developed,
trained, socialized, integrated, motivated & how their carrier are managed.
e) Skill- what the company does best, the distinctive capabilities & competencies
that reside in the organization.
f) Shared value- originally called super ordinate goals, the guiding concept, &
principles of the organizations value & aspiration often unwritten that go beyond
the conventional statement of the corporate objectives, the fundamental ideas
around which a business built; the things that influence group to work together for
a common aim.

FINDINGS

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1.With respect to the above study and the findings thereby, the product (Amul Buttermilk) is
working on regional pattern i.e. Amul Buttermilk Sales is highest in Vile Parle and Sanatacruz
where as in Mahim it is very low.

2. The awareness of the product is very low amongst consumers.

3. Amul Buttermilk as a Product is somewhat seasonal in nature. In summers the sales are at
peak.

4. There were about 4 out of 10 local unorganized Buttermilk sellers who were selling buttermilk
in plain glass bottle with no brand name.

5. Study shows that Aarey Buttermilk is the biggest competitor for Amul Buttermilk, where as
Danone is also few steps behind in the race and Gokul has gained competitive position as well.

6. According to the survey it is founded that, Aarey Co. pays highest markup.

7. According to Survey, Aarey co. has best after sales service (like return of defective pouch,
customer grievances) followed by Amul and Gokul.

8. Majority of the dealers are not satisfied with the profit margin of Amul.

9. Sales promotion scheme had boosted the sales of Amul Buttermilk in certain region.

SUGGESTIONS & RECOMANDETION

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 Company should improve its sales and distribution in order to tackle the problem related to late
delivery.
Company should distribute free samples more often for making brand popular among people.
Company should introduce new variants and flavors.

Distributors and Retailers desire more advertisement to be done through local newspaper and
cable TV ads. To make consumers aware about the product.

Company should increase the margins of retailers.

Company should target middle class or semi-middle class customers. Also target according to the
cultural group.

BIBLOGRAPHY

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www.Amul.com/home/product/63chbjduij/jv

www.mma.com/ysis

www.Notca.com/researchdata/ydncid/$hd/km

www.economictimes.com/archives/13/sjdjdamul?

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