Introductio

n
& history

1
 In the year 1946 the first milk union was established. This union
was started with 250 liters of milk per day. In the year 1955 AMUL
was established. In the year 1946 the union was known as KAIRA
DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union
selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived

from the Sanskrit word “AMULYA” which means “PRICELESS”.
A quality control expert in Anand had suggested the brand name
“AMUL”. Amul products have been in use in millions of homes since
1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food
brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a
symbol of many things like of the high-quality products sold at
reasonable prices, of the genesis of a vast co-operative network, of
the triumph of indigenous technology, of the marketing savvy of a
farmers' organization. And have a proven model for dairy
development (Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of
Kaira district were farming and selling of milk. That time there was
high demand for milk in Bombay. The main supplier of the milk was
Polson dairy limited, which was a privately owned company and
held monopoly over the supply of milk at Bombayfrom the Kaira
district. This system leads to exploitation of poor and illiterates’
farmers by the private traders. The traders used to beside the prices
of milk and the farmers were forced to accept it without uttering a
single word.

2
 However, when the exploitation became intolerable, the farmers
were frustrated. They collectively appealed to Sardar Vallabhbhai
Patel, who was a leading activist in the freedom movement. Sardar
Patel advised the farmers to sell the milk on their own by establishing
a co-operative union, Instead of supplying milk to private traders.
Sardar Patel sent the farmers to Shri Morarji Desai in order to gain
his co-operation and help. Shri Desai held a meeting at Samarkha
village near Anand, on 4th January 1946. He advised the farmers to
form a society for collection of the milk.

These village societies would collect the milk themselves and

would decide the prices at which they can sell the milk. The district
union was also form to collect the milk from such village co-operative
societies and to sell them. It was also resolved that the Government
should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means.
It gave the negative response by turning down the demand for the
milk. To respond to this action of govt., the farmers of Kaira district
3
went on a milk strike. For 15 whole days not a single drop of milk was
sold to the traders. As a result the Bombay milk scheme was

severely affected. The milk commissioner of Bombay then

visited Anand to assess the situation. Having seemed the condition,
he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and

district level to collect and sell milk on a cooperative basis, without
the intervention of Government. Mr. Verghese Kurien showed main
interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Co-
operative unions at the village level. The Kaira district milk producers
union was thus established in ANAND and was registered formally on
14th December 1946. Since farmers sold all the milk in Anand
through a co-operative union, it was commonly resolved to sell the
milk under the brand name AMUL.

At
the
initial stage only 250 liters of milk was collected every day. But with
the growing awareness of the benefits of the cooperativeness, the
collection of milk increased. Today Amul collect 11 lakhs liters of
milk every day. Since milk was a perishable commodity it becomes

4
difficult to preserve milk flora longer period. Besides when the milk
was to be collected from the far places, there was a fear of spoiling of

milk. To overcome this problem the union thought out to develop the
chilling unit at various junctions, which would collect the milk and
could chill it, so as to preserve it for a longer period. Thus, today Amul
has more than 150 chilling centers in various villages. Milk is
collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt.
of New Zealand under the Colombo plan, of Rs. 50 millions for factory
to manufacture milk powder and butter was planned. Dr.Rajendra
Prasad, the president of India laid the foundation on November 15,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India
declared it open at Amul dairy on November 20, 1955.

PEOPLE
POWER:
AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market

at remunerative prices for producers' milk besides acting as a
channel to market the production enhancement package. What's
more, it does not disturb the agro-system of the farmers. It also
enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the
business was cornered by the middlemen, the system ensured that
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the profit goes to the participants for their socio-economic upliftment
and common good. Looking back on the path traversed by Amul, the
following features make it a pattern and model for emulation
elsewhere.

Amul has been able to:

• Produce an appropriate blend of the policy makers farmers board

of management and the professionals: each group appreciating
its rotes and limitations,
• Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
• Provide a support system to the milk producers without
disturbing their agro-economic systems,
• Plough back the profits, by prudent use of men, material and
machines, in the rural sector for the common good and
betterment of the member producers and
• Even though, growing with time and on scale, it has remained
with the smallest producer members. In that sense. Amul is an
example par excellence, of an intervention for rural change.
The Union looks after policy formulation, processing and marketing of
milk, provision of technical inputs to enhance milk yield of animals,
the artificial insemination service, veterinary care, better feeds and
the like - all through the village societies. Basically the union and
cooperation of people brought Amul into fame i.e. AMUL (ANAND
MILK UNION LIMITED), a name which suggest THE TASTE OF
INDIA.

ACHIEVEMENT:

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Amul: Asia’s largest dairy co-operative was created way back in1946
to make the milk producer self-reliant and conduct milk- business with
pride. Amul has always been the trend setter in bringing and adapting
the most modern technology to door steps to rural farmers.
Amul created history in following areas:
a)First self motivated and autonomous farmers‟ organization
comprising of more than 5000000 marginal milk producers of Kaira
District.
b) Created Dairy co-operatives at village level functioning with milk
collection centers owned by them.
c) Computerized milk collection system with electronic scale and
computerized accounting system.
d)The first and only organization in world to get ISO 9000 standard for
its farmers co-operatives.
e)First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor
marginal farmers can provide means for the socio-economic
development of the under privileged marginal farmers.

Amul in abroad:

Amul is going places. Literally After having established its presence in

China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing
Federation (GCMMF), India’s largest milk cooperative, is waiting to
flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export
destinations. Amul products are already available on shelves across
several countries, including the US, China, Australia, West Asian
countries and Africa.
GCMMF recorded a turnover of Rs 2,922 corer last fiscal. Its products
include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter,
cheese and buttermilk.

7
Product
profile of
AMUL

8
LIST OF AMUL PRODUCTS SURVEYED

Bread
spread

Amul masti dahi

9
 Amul
paneer

Liquid milk

10
 Amul ghee

Amul ice-cream

11
Amul cool and
coco

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RESEARCH
METHODOL
OGY

13
TITLE OF THE STUDY

Analytical study of Survey for AMUL products questionnaires for

retailers.

RESEARCH DESIGN

A Research design specifies the methods and procedures for

conducting a particular study. It is a map (or) blue print to which the
research is to be conducted. Descriptive research design has been
considered as a suitable methodology for present study and for data
analysis.

SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-

probability sampling method. The convenience factors were the
availability and approachability of the respondents.

POPULATION

Pune Wards 144

All types of outlets that stock and sell Amul products in the markets.
The outlets have been classified into as follows

Super market:

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 Bakeries

Tea and snacks shops

Sample size

The size of the sample is –

Ward 11
Retailers 142

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Sample techniques

There are total 144 wards and these wards are allotted to 22 trainees
by purposive sampling method, according to their convenient place.

OBJECTIVE OF THE RESEARCH

To find out that which products of AMUL are being sold most (milk,
butter, ice-cream, cheese) compare to their substitute players
product and to know the satisfaction level of retailer toward our
product and distribution channel.

PROBLEM STATEMENT

There has been a drop in the percentage sale of AMUL milk because
of lack of proper distribution channel and misconduct of distributor
with retailer.

SCOPE OF THE STUDY

The scope of the study is for improving AMUL’S market share in dairy
product and binding customers loyalty by providing best quality to
the customer as well as retailers and also providing best distribution
channel as well as possible.

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SOURCES OF DATA

Primary data

Primary data is a data which have been collected originally for the
first time. in other words, primary data may be outcome of an original
statistical inquiry, measurement of facts or a count that is undertaken
for the first time. For instance data of population census is primary.
Primary data being fresh from the fields of investigation is very often
referred to as raw data. In the collection of primary data, a good deal
of time, money and energy are required.

The following are the method of collecting primary data:

➢ Collection directly by personal investigation.

➢ Collection indirectly by oral investigation.

➢ Collection by questionnaires and schedules.

➢ Collection from statistical reports of correspondents and from

local sources.

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Here in this project all data was collected for the first time by the
application of questionnaires method of collecting primary data for
Amul products and for retailers. In this research project we were 20
students and we had given the ward wise area of Pune as well as
Pimpri - Chinchwad.

Field work

The field work for research was conducted during 1st June 2009 to July
11th, 2009 nearly spread all over the Pune area. Total 144
ward/location were divided among the group of 22 people.
The prime job was to cover 144 wards of Pune city. We were given
questionnaires to fill them by retailer. There was target given to us for
one day that we have to get at list 15 retailer’s data and also we have
to get the best possible information from the retailer about Amul
products.
I have covered the following places for the survey of Amul products
and its retailer’s view on Amul products quality and distribution
channel.

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Area covered by me:

Ward Admn Populat

No Ward Name Ward ion
Shankar Rao More
57 School Karve Road 17103
58 Rambaug Colony Karve Road 15394
59 Kishkindha Nagar Karve Road 15861
Ram Krishna
60 Paramhans Nagar Karve Road 14887
61 Ved Bhavan Karve Road 17723
Mahatma Society-
62 Kothrud Karve Road 16468
63 Vanaz Company Karve Road 18008
Yashwant Rao
64 Chavan Natyagrah Karve Road 16386
65 Ideal Colony Karve Road 15234
Warje-
Deena Nath Karve
66 Mangehskar Hospital Nagar 16848
67 Deccan Gymkhana Ghole Road 16844
Bhavani
86 Lohiya Nagar Peth 17923

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 Data
analysis

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1) Fresh milk
Total milk consumption: 11406 liter per day
Total no brand: 10
Most preferred brand Chitle

By analyzing the data we are able to know that in the fresh-milk

category there are most preferred brand is Chitle with 52% market
share and after that amul comes at no.2 with having 21% market
share in this category and then Katraz brand comes on no.3 with
having market share of 13% , so here we can say that in fresh milk
category Chitle comes on no.1 position and Amul comes after that at
no.2 and katraz come on no.3.

2) Curd
Total no of brand: 4
Most preferred: Sphruiti

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By analyzing this data we are able to know that in the curd category
Sphruity brand comes on no.1 with having market share of 52% at
after that on no.2 Amul comes with the market share of 37% and on
the third rank govardhan comes with having market share of 8%.

3) Butter

Total no of brand: 4

Most preferred brand: AMUL

By analyzing the data of butter category we are able to know that in

butter category consumers’ first strike is done toward after Amul with
having market share of 89% and after that Britannia brand comes
with having market share of 6% and then Nestle comes on no. 3rd with
having market share of 5%.

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 4) Ghee

Total no of brand: 10

Most preferred brand: AMUL

By analyzing this data that in ghee category the most preferred brand
is Amul with the market share of 57% and after that Chitle comes on
the 2nd place with the market share of 17% and then Govardhan
brand come on 3rd rank with the market share of 7%.

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5) ICE-CREAM

TOTAL NO OF BRAND: 5

MOST PREFERRED: AMUL

By analyzing the data of ice-cream category, here we can see that

Amul comes 1st in this category with market share of 74% and after
that Kwality walls comes with having market share of 16% and then
pyramid ice-cream come on no.3 with the market share of 6%.

2. Are these products delivered at your doorstep?

• YES
• NO

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If yes, who delivers the products?
• Company Directly
• Distributor
• Whole-seller
• Buying on own from market

3. Are you satisfied with the way these products are

delivered to you?
• Yes
• No

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4. Are you satisfied with the Quality of products you are
selling currently?
• Yes
• no

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5. Are you satisfied with the Quality of service provided by
Company / Distributor?
• Yes
• No

6. What are the schemes / promotion support provided by

the Company?
- In this question we have ask to retailer what are the
schemes / promotions provided by the company or distributor in
current order. From this question we can easily know that retailer has
getting benefit or not which is provided by the company, there may
be chances of cheating by the distributor to the retailers by not giving
the schemes to them. This question will help to indentifying the fraud
distribution between suppliers to retailer.

7. Any suggestions for improvements in ‘Amul’ products?

- In this question we are taking suggestions through retailer
for improvements in AMUL products. If retailers have bad experience
with AMUL product they use to give there open suggestions to us,

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because AMUL is such a big brand in dairy products which giving the
best quality product to the consumer with affordable price.
From this question we can easily identifying the rotten products
if it’s delivered to retailer, then company can get help to rectify these
errors.

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Problem
statements
of retailers

1. Are you satisfied with the Quality of products you are selling
currently?.
2. Are you satisfied with the Quality of service provided by
Company / Distributor?
3. What are the schemes / promotion support provided by the
Company?
4. Are you satisfied with the way these products are delivered to
you?
5. Any suggestions for improvements in ‘Amul’ products?

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These are the question which denotes the Amul’s whole and sole
picture about its product and its quality as well as services provided
by Amul and its distributors.
1) Here for the question no 1 , according to my findings in Karve area
there are 95% of retailer are fully satisfied with the quality of
products and remaining 5% retailers are not satisfied with the quality
of the product.
The remaining 5% retailers were facing problems that:
➢ Sometimes there is come bad smell from the Amul butter.
➢ Amul milk is not having good durability after some day it
becomes stale earlier compare to the other company’s milk.
2)Here for the question no 2 , there are 76% retailer who are satisfied
with the quality services provided by the distributors but there are
24% of the retailer who are not satisfied with the services provided
by the distributors
The remaining 24% retailers were facing problems are as follows:
➢ delay in delivery of product
➢ customer are demanding Amul product but there are no
distributor provided to some shop,so they have to sale other
brand.
➢ sometimes distributor dilevers product when exp date comes to
close.
➢ this retailer wants to sale amul product but there is no
distributor them.
➢ distributor is not coming regularly.
➢ replacement is not done if product rotten.

3) The Amul Company is providing such scheme as buy 24qty Amul

cool and get 1qty free and buy 10qty butter milk and get 1qty free ,
but this kind of services are not provided to the retailers by
distributors.
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 ➢ 99% of the retailer are not provided any scheme from the
distributor.
4)Here for this question no 4, according to my findings in karve area
there are 86% retailers who are satisfied with the way the product
are being delivered by distributors but there are 14% retailer who are
not satisfied with the way the product are delivered to them.
The remaining 14% retailers facing the problems as follows:
➢ There are no distributor allotted to the retailers in some
backward area
➢ Ice-cream delivery is not done in time and not done in enough
quantity.
5) There are many suggestion given by retailers are as follows.
➢ Quality of Amul is very good.
➢ Increase number of distributors for catering good service.
➢ Provide ice-cream delivery in time and in enough quantity
➢ Provide replacement if product is rotten before expired date.
➢ Increase some margin in profit.

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Suggestion
s

32
Suggestions:-

➢ Amul is not providing good margin compare to the other brand in

spite of retailer have to sale Amul products because customers
are very brand loyal.
➢ Provide replacement if product is being rotten before expired
date.
➢ Amul should concentrate on pause area as well as backward
area too
➢ Amul should provide some scheme as other company is
providing.

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Conclusion

34
Conclusion:-

I concluded that Amul has a very good image in the

eye of its customer, has a very good brand name. But one thing I
come to know that its distribution channels in not good in some wards
nd because of which retailers has to face many problem.
I also saw that the price of Amul product is high as
compare to its competitor product and hence Amul competitors are
able to attract consumer towards their product.
Another thing is that Amul don’t give the replacement
offers to the retailers and because of which retailers are very much
dissatisfied.

Bibliography
35
➢ Book - Research Methodology by Aditham Bhujanga Rao
➢ www.amul.com
➢ www.Wikipedia.com
➢ www.marketresearchworld.net
➢ www.emarketer.com

36
 Appendixe
s

Style of questionnaires:

SUR VE Y F OR AMUL P RODU CTS QUE ST IONN AIRE F OR

RE TAILE RS
1. What Kind of milk & milk products do you sell?
37
 Rate
Avg. Wheth If Rate If Rate If
(Rs./Pa
Sale er Packa (Rs./Pa Packa (Rs./Pa Packa
ck) &
Product per Packag ged ck) & ged ck) & ged
Margin
wee ed or BRAN Margin BRAN Margin BRAN
( in
k Loose? D1 (in Rs) D2 (in Rs) D3
Rs)

Liquid Milk

Curd / Dahi

Paneer
Milk
Powder
Butter

Ghee

Cheese

Condensed
Milk
Milk
Sweets
(Shrikhand,
Gulab
Jamun
etc. )
Flavoured
Milk
Buttermilk
/ Lassi
Ice-Cream
Other (pl.
specify)

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2. Are these products delivered at your doorstep?

• Yes
• No

If yes, who delivers the products?

• Company Directly
• Distributor
• Whole-seller
• Buying on own from market
• Any other (Please specify) ___________

3. Are you satisfied with the way these products are delivered to
you?

• Yes
• No

If No, how would you like it to be delivered?

_____________________________________________________________________________

4. Are you satisfied with the Quality of products you are selling
currently?

• Yes
• No

If No, what are the problems with quality of these products?

_____________________________________________________________________________

5. Are you satisfied with the Quality of service provided by Company

/ Distributor?

• Yes
• No

If No, what are the problems with quality of service?

_____________________________________________________________________________

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6. What are the schemes / promotion support provided by the
Company?

_____________________________________________________________________________

7. Any suggestions for improvements in ‘Amul’ products?

Retailer Information:

Name of the Establishment: ___________________

Type of Establishment: ___________________

Contact Person: ___________________

Address & Phone No.: ______________________________________________________

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