SUMMER TRAINING PROJECT ON DISTRIBUTION OF AMUL MILK IN GHAZIABAD AMUL LIMITED

SUBMITTED TO: Mrs PREETY BAJAJ

SUBMITTED BY: NAINA SEHGAL (BBA/45105/08)

DECLARATION CERTIFICATE
This to certify that the work presented in the project entitled distribution of Amul milk in Ghaziabad in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration Birla institute of technology ,Mesra, Ranchi, is genuine work carried out under my supervision. To the best of my knowledge, the content of this project does not form a basis for the award of any previous degree to any one else..

Mrs. Preety Bajaj Department of management Birla institute of technology Noida, U.P

CERTIFICATE OF APPROVAL
This project on distribution of Amul milk in Ghaziabad, is hereby approved as a Creditable study of research topic and has been presented in satisfactory manner to Warrant its acceptance as prerequisite to the degree for which it has been submitted. It is understood that by its approval, the undersigned do not necessarily endorse any Conclusion drawn or opinion expressed therein, but approve the project for the purpose For which it is submitted.

Mrs. Meenakshi Sharma IN-CHARGE(Management)

Dr. S. L. Gupta ACADEMIC COORDINATOR

DIRECTOR BIT NOIDA

ACKNOWLEDGEMENT
I am deeply indebted to the management of Amul Milk for providing me an opportunity to undergo summer training in the organization. I pay my sincere thanks to without much difficulties. I am very grateful to for his valuable guidance and support at all time. I also take the opportunity to thanks all gentlemen who have directly or indirectly helped me during the project work. for his timely suggestions & valuable guidance helped me to

carry out the project work & complete the summer training within stipulated time period

CONTENTS
Page No:

CHAPTER 1: INDIAN MILK INDUSTRY Objective of the study CHAPTER 2: RESEARCH METHODOLOGY Research Methodology Data Collections CHAPTER 3: INDIAN MILK INDUSTRY Major Competitors CHAPTER 4: PRODUCTS PROFILE CHAPTER 5: FINDINGS & ANALYSIS Graphical Data Interpretation CHAPTER 6: FINDINGS & SUGGESTIONS CHAPTER 7: LEARNING BIBLIOGRAPHY ANNEXURE

7 9 10 11 12 26 50 56 74 75 84 87 90 92

INTRODUCTION
The basic strength of the Indian economy is agriculture on which seventy percent of the population depends for their livelihood. And a part of it is the Indian dairy industry.

INDIAN DAIRY INDUSTRY IN 1940s

Inferior quality of locally marketed milk. Heavy dependence on imports. Unorganized production and processing. The rich dairying heritage being eroded.

FORMATION OF NATIONAL DAIRY DEVELOPMENT BOARD

The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organizations. NDDBs programmes and activities efforts are cooperative principles and the Anand Pattern of cooperation.

SOME

OF

THE

MAJOR

DAIRY

COOPERATIVE

FEDERATIONS INCLUDE:
Andhra Bihar Gujarat Haryana Pradesh State Dairy Development Milk Milk Producers Marketing Cooperative Cooperative Federation Federation Federation

Federation Ltd(APDDCF) Cooperative Ltd(COMPFED) Cooperative Dairy Ltd(GCMMF) Development Ltd(HDDCF) Pradeshik Cooperative Dairy Federation ltd(UP)(PCDF) Punjab State Cooperative Milk Producers Federation Ltd(MILKFED) Rajasthan Cooperative Dairy Federation Ltd(RCDF) Tamilnadu Ltd(TCMPF) Cooperative Milk Producers Federation

OBJECTIVES OF THE RESEARCH

To ascertain the awareness level of Amul milk. To analyze of Amul milk with other brands.

CHAPTER TWO RESEARCH METHODOLOGY

10

RESEARCH METHODOLOGY

According collecting,

to

Clifford

Woody and

research

comprises data,

defining

and

redefining the problems, formulating hypothesis or suggested solutions, organizations evaluating making deductions making deductions and reaching conclusion and at last carefully testing the conclusions whether they fit the formulating hypothesis.

METHOD.
Questionnaire method Open ended questions. Close ended questions.

RESEARCH DESIGN
11

A research design is the overall plan on programme of research. It includes an outline of what the investigator will do from writing the hypothesis and their operational implications to the final analysis of data. Various uses of having a research design are as follows: It provides answers to various questions. It acts as a standard guide post. It helps in carrying out research validity, objectively, accurately and economically.

DATA COLLECTION:
Two types of data have been used in data collection:-

PRIMARY DATA:
It has been collected with the help of structured non-disguised

questionnaires, which were personally administered. Both closed and open-ended question were used to get the desired information. A questionnaire was designed for various tea stalls in the sampling unit. Important scales ranking methods were used for collecting the primary data.

12

SECONDARY DATA:
It has been collected with the help of Internet and oral discussions. It is used for a brief history of liquid milk industry.

SAMPLE DESIGN:
Type of sampling used-: convenience. SAMPLE SIZE SAMPLE AREA AREA COVERED : : : 50 Ghaziabad Indirapuram, Vaishali and Vasundhra.

13

CHAPTER THREE THE INDIAN MILK INDUSTRY

14

COMPANY PROFILE

GUJARAT

COOPERATIVE

MILK

MARKETING

FEDERATION

GCMMF: AN OVERVIEW

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.

Members: No. of Producer Members:

13 district cooperative milk producers' Union 2.6 million

15

No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2006-07): Milk collection (Daily Average 200607): Milk Drying Capacity: Cattlefeed manufacturing Capacity:

12,792 10.16 million litres per day 2.38 billion litres 6.05 million litres 594 metric Tons per day 2640 Mts per day

16

17

Objectives and Business Philosophy of GCMMF

The main stakeholder of GCMMF is the farmer member for whose welfare GCMMF exists. GCMMF states that its main objective is the carrying produce, out of activities for the economic and development animal of agriculturists by efficiently organizing marketing of milk and dairy veterinary medicines, vaccines other health products, agricultural produce in raw and/or processed form and other allied produce. GCMMF aims to market the dairy and agricultural products of cooperatives through: Common branding Centralized marketing Centralized quality control Centralized purchases, and Efficient pooling of milk

18

GCMMF has declared that its business philosophy is as follows:

To serve the interests of milk producers and To provide quality products that offer the best value to consumers for money spent

ORGANIZATIONAL STRUCTURE OF GCMMF

GCMMF is a lean organization, a strategy that is believed to provide it with a cost advantage. At its headquarters in Anand, four General Managers (GMs) and four Assistant General Managers (AGMs) assist the Managing Director (MD). The four AGMs look after the functions technical marketing of marketing, systems, and co-operative GMs are services in charge and of and projects, (dairy respectively. products), The four

Human

Resources

Development

19

Marketing (Dhara and new business), finance and quality assurance, respectively.

SALES TURNOVER
Year 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Rs (Million) 22185 22588 23765 27457 28941 29225 37736 42778 US$ (Million) 493 500 500 575 616 672 850 1050

The above data shows that the sales increasing since 1995 at a great pace & this is the reason that proves Amul as a good competitor in this modern world. The biggest strength of GCMMF is the trust that it has created in the minds of its consumers regarding the quality of its products. Amul stands for guaranteed purity of whatever products it produces. None of its products is adulterated. In India, where such trust is hard to come by, this could provide a central anchor for GCMFF's future business plans.

20

21

THE AMUL HISTORY

In the 1940s, in the district of Kaira of the State of Gujarat, India, a unique experiment was conducted that become one of the most celebrated success stories of India. At that time, in Gujarat, milk was obtained from farmers by private milk contractors and by a private company, Polson's Dairy in Anand, the headquarters of the district. The company had a virtual stranglehold on the farmers, deciding the prices both of the procured as well as the sold milk. The company arranged to collect, chill and supply milk to the Bombay Milk Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat, Polson's Dairy also extracted dairy products such as cheese and butter. Polson's Dairy exploited its monopoly fully; the farmers were forced to accept very low prices for their products, and the decisions of the company regarding the quality and even the quantity of the milk supplied by the farmers were final.

THE BIRTH OF AMUL

22

Linked to the freedom movement of India Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen. Inspiration of pre-eminent National leaders. A Co-operative movement member control on milk production, processing and marketing. A humble beginning with two village societies and 247 Litres of milk.

T H E G RO W T H O F A M U L
Co-operative movement spread like wild fire in the state. Rapid increase in milk procurement. Identification of Bombay liquid market.

23

Investing in manufacturing plants that produce milk powder, butter, cheese and condensed milk. Launch of Amul as a brand.

Creation of a comprehensive model.

Milk production enhancement program. Member education and involvement. Democratic setup at grass root level. Animal health and veterinary services. Cattle feed manufacturing and marketing. Milk processing through latest technology.

FORMATION OF GUJARAT COOPERATIVE MILK MARKETING FEDERATION LTD. (GCMMF) Formed No. of cooperative Unions No. of Dairy plants Capacity 1973 12 19 6,595Thousand Litres per Day It is Apex Marketing Federation of 12 District Milk Unions in Gujarat to operate own marketing and distribution networks pan India and abroad.

24

Milk product Range:

Infant Milk Food and Milk Mix

Ice-Cream and Skim Milk Powder

Ghee

25

 Dairy Whitener and Paneer

Sweetened Condensed Milk and Malai Peda

Gulabjamun Mix and Shrikand

Pizza Cheese and Butter

26

COMPETITORS OF AMUL MILK:

1. MOTHER DAIRY 2. PARAS (Ved Ram & sons) 3. GOPAJJEE (G.K. DAIRY) 4. PARAM

27

28

TYPES OF MILK
Variation in different types on milk is due to the different in their in their Fat and SNF content.

Type of milk Full cream milk Standardized milk Toned Milk Double Toned milk Skimmed

Fat% 6.0 4.5 3.0 1.5 0.1

SNF% 9.0 8.5 8.5 9.0 9.0

MARKETING MIX OF AMUL PRODUCT

Amul's philosophy Despite being priced economically, Amul maintained its product quality,trust and taste in all had all along been to deliver value for money to its customers..

PRICE

29

The pricing of AMUL is very competitive. It uses second degree price discrimination i.e. more the quantity, lower the price. PRICE/QUALITY MATRIX Price Quality High Luxury Segment Ideal For High Penetration AMUL Overpriced Middle Make The Sale Low and Run Unhappy Customers Cheap Goods Average Real Bargain Premiere Offering Middle Low

PLACE AMUL has a very wide distribution of its products through 3000 distributors&500000 retailers. A distribution of agents and manufacturing locations is given below.

30

GCMMF's formidable distribution network comprised 300 stock keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an 18,000-strong cold chain, and 500,000 non-refrigerated retail outlets AMUL distribution network extends beyond India in the following countries as well:

DISTRIBUTION NETWORK Brazil Australia

31

Asia

PROMOTION :Over the years, Amul's advertising philosophy had been "to be simple, fresh and innovative". The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern...

32

33

CHAPTER-FOUR

PRODUCT PROFILE OF GCMMF

34

LIST OF PRODUCTS MARKETED:

Bread spreads: Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range: Amul pasteurized cheese

Amul processed cheese

35

Mithaee Range (Ethnic sweets): Amul shrikhand (Mango, Saffron, Almond Pistachio,

Cardamom) Amul Amarkhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamuns Mix Amul Mithaee Kulfi Mix

36

UHT Milk Range: Amul Tazaa 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Silm-n-Trim 0% fat Milk

Amul Chocolate Milk

37

Amul Fresh Cream

Amul Taaza Double Toned Milk

Pure Ghee: Amul Pure Ghee

38

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6months)

Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food

39

Fresh Milk: Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 3% fat Amul Smart Double Toned Milk 1.5%fat

Curd Products: Amul Masti Dahi (fresh curd)

40

 Amul Butter Milk

Amul Lassee

Amul Ice Creams: Royal Treat Range (Rajbhog, Cappuchino,

Chocochips, Butterscotch, Tutti Frutti)

41

Nut o Mania Range(Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply

Delicious

Range

(Vanilla,

Strawberry,

Pineapple, Rose)

42

Natures Treat(Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Current)

Sundae

Range(Mango,

Black

Currant,

Chocolate,

Strawberry)

Millennium

Icecream(Cheese

with

Almonds,Dates

with honey)

Milk Bars (Chocobar, Mango Dolly Raspberry Dolly Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

43

Cool Candies( Orange, Mango)

Cassatta

Tricone Cones (Butterscotch Chocolate)

Megabite Almond Cone Frostik 3 layer chocolate Bar

Fundoo Range exclusively for kids

Chocolate & Confectionery: Amul Milk Chocolate

44

Amul Fruit & Nut Chocolate

GCMMF BUSINESS PHILOSOPY

To serve the interests of milk producers. To provide quality products to consumers value for money

INDUSTRY STANDING Indias largest food products marketing organization with an annual turnover of over Rs. 2700 crores. Markets popular brands Amul and Mother Dairy. Indias largest exporter of dairy products. Indias largestcold chain network.

45

No. 1 market share holder in India for Butter, Cheese, Ice-cream, Dairy whitener, condensed Milk, UHT Milk, and Baby food.

Presently marketing pouch liquid milk in five states namely, Gujarat, Maharashtra, Chattisgarh, Rajasthan, Delhi and Madhya Pradesh.

GCMMFS VALUES:Customer Orientation. Commitment to producers. Belongingness. Co-operation. Pride in Organization. Employee Satisfaction. Integrity. Excellence. Leadership. Quality. Innovation. Growth Orientation-New Products.

MISSION STATEMENT

46

We,

at

GCMMF,

endeavor

to

satisfy

the

taste

and

nutritional requirements of the world, through excellence in marketing through our committed team. Through co-operative network, we are committed to

offering quality products that provide best value for money.

CHAPTER FIVE
47

FINDINGS AND ANALYSIS

48

ANALYSIS OF OPEN ENDED QUESTIONS

1. What first comes into your mind about AMUL milk?

Taste of India A good brand Purity Value for money Good for health and health conscious people Real taste and mazaa Reliability Good in taste A leading brand in the Indian Market

2 . W h a t i s y o u r v i e w a b ou t t h e q u a l i t y of t h e A M U L milk?
Good Taste is good

49

Excellent Add vitamins to your milk A effective brand ambassador Amul should give consumer scheme.

QUESTIONNAIRE FOR CONSUMERS

1. Which brand of milk you prefer?
A. B. C. D. E. MOTHER DAIRY AMUL OTHERS PARAS D.M.S 23 17 4 1 5

50

Which milk do you buy?

OTHERS 8% D.M.S. 9%

MOTHER DAIRY 46%

MOTHER DAIRY AMUL PARAS D.M.S. OTHERS

PARAS 2%

AMUL 35%

ANALYSIS:-As the table and pie chart shows that there is enough opportunity to Amul Milk to grow in the market. The chart shows the market share of Amul Milk is 32%. It

51

shows Amul Milk has lots of opportunity to grow in Ghaziabad.

2 . W h a t m a k e s y o u t o b u y t h at m i l k ?
A. B. C. D. E. PRICE QUALITY BRAND TASTE OTHERS 8 23 12 5 2

What ma

ANALYSIS:consumer mainly attracted towards its quality.

As the pie chart shows Amul Milk takes a lead in quality and its

TASTE 10%

3. Have you heard about the AMUL milk?

A. B. YES NO

36 14

Have you

BRAND 26%
52

ANALYSIS We found that people are aware of Amuls liquid 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. People perceive Amuls dairy product as Natures perfect food for the health of their family.

4. Whether AMUL milk is available to your nearest shop?

A. B. YES NO 39 11

Whether AMUL milk

ANALYSIS:-

NO 22% 53

In that part wee tried to know about availability

of AMUL milk and there was surprising answer. AMUL has covered the area in the short span of 6 months. 78% people say that they find the AMUL milk

available from where purchases the milk, which means AMULs distribution, is good.

But much work is yet to be done to penetrate

even deeper into the market and make new customers.

5 . W h a t t y p e o f m i l k y ou b u y ?
A. B. C. FULL CREAM TONED DOUBLE TONED 19 24 7

What

ANALYSIS: We found that the perception that full

DOUBLEh aTONED consumer ve a c r e a m m i l k i s g 15%t h e r ood ra

Indian

than the toned and double toned milk. He likes milk, which is heavy and gives malai. Moreover

54

people liked malai because they extracted ghee from it and used to make curd from it. 38% people are using full cream milk and 47% people consume toned milk and at present double toned milk are not popular as full cream and toned milk. We found that people didnt held good opinion of double toned milk. Few people were health conscious.

55

CHAPTER SIX

FINDINGS & SUGGESTIONS

56

FINDINGS
By the analysis of collected data following important applicable points have come out, which can practices in the organization so that services of Amul Milk towards consumer make an impressive impact. The points are Delivery of Amul Milk is not smooth and managed well. Sales force is not utilized perfectly. Survey shows 46% of people adhere to quality of the milk. Advertising has emerged as the best way to reach to the

customers mind. And in this aspect Amul uses media (TV & Newspapers) as its medium. Our survey also shows that 22% people dont have access to Amul Milk easily i.e. Amul Milk market. So it mart be sorted out to grow in the market.

57

CONCLUSION:
On the basis of my study, I conclude that: 1) Amul is the second biggest player in the dairy product market. 2) Company has adopted a good distribution channel but it needs to focus on the advertisements as 22% of people are unaware about the product. 3) There should be emphasis on the distribution of Amul Milk in the rural areas of Ghaziabad. 4) Majority of people stick to the brand because of its good quality.

SUGGESTIONS
By the analysis of collected data following important applicable points have come out, which can practices in the organization so

58

that services of Amul Milk towards consumer make an impressive impact. The points are Need to popularize AMUL MILK as a brand like (Mother Dairy). Non availability of TOKEN MILK. Need to increase awareness about Amul Milk in Ghaziabad. Should make advertisement campaign in electronic media and print media and the main emphasis should be on making awareness of quality standard of Amul Milk. Good efforts are to be made to increase market base in just 6 months. Efforts should be made to increase the existing base in Ghaziabad. Need to increase consumer percentage of full cream segment of Amul Milk in Ghaziabad. More emphasis on advertisement like making a brand ambassador for Amul milk.

59

LIMITATIONS
1) Respondents were reluctant to answer the questions. 2) Scope of the study was narrow. 3) Primary data collected may not be reliable.

60

61

CHAPTER SEVEN

LEARNINGS FROM TRAINING

62

LEARNING FROM TRAINING

As a part of my curriculum I have to undergo a practical training for two months so that I could get an exposure to the real market situations. Academics is important but what one can learn during the work practically he find it in books. This training has imparted valuable knowledge and skills which is an addition to the balanced development of our personality. Now we can really appreciate the management skills, which I was taught in classroom only by going out in the field.

During the training program, I learnt the practical way of conducting practically a i.e. research and how of they are implemented testing it, preparation questionnaire,

collecting the data and analysis techniques. I gained the experience of the set environment of corporate offices and how things move in corporate offices.

I acquired the knowledge regarding the features of milk, brands, quality, prices, and specifications and gained a good knowledge of liquid milk industry. During the market research I learnt a lot about the

interpersonal relationships and skills i.e. how to approach a respondent.

63

 To talk to the respondent s and extract the right information for him. During the interaction with the dealers I learnt how the market is and how the dealers manage to sell more and earn handsome profits and do consider before keeping any brand in there store. I came to know about the expectations from branded milk and the factors, which influence there buying behavior. It was an opportunity for me to work in the strong

organizational structure of GCMF where there is a

CHAPTER EIGHT

ANNEXURES

64

QUESTIONNAIRE FOR CONSUMER

Dear respondent I am a bba student and doing market research on standard quality of Amul Milk. I would appreciate if you please extend your cooperation to me. Name:-. Age:- Members in family:-.. Address: .. Contact Number:- 1.Which milk you buy? A. Mother dairy A. Price B. Amul C. Paras D. D.M.S. E. E. Others 2.What makes you to buy that milk? B. Quality C. Brand D. Taste

3.Have you heard about Amul Milk? A. Yes B. No

4.What first comes to your mind about Amul Milk? 5.Whether Amul Milk is available to your nearest shop? A. Yes B. No

6What type of milk you buy? A. Full cream B. Toned C. Double Toned

65

7.What is your view about the quality of the Amul Milk?

66

CHAPTER-NINE

BIBLIOGRAPHY

67

BOOK: Marketing Management by Philip Kotler. MAGAZINES: Business Today Business World NEWSPAPER Economic Times Business Standard The Financial Express WEBSITES: www.amul.com www.parasdairy.com www.motherdairy.com www.economictimes.com www.business-standard.com www.google.com

68

69

70