4/6/2012

ANALYSIS OF READY TO DRINK AMUL MILK BEVERAGES

AND
DESIGNING (PROMOTIONAL ACTIVITY)
IN
HYDERABAD AND SECUNDERABAD

AMUL
SUMMER INTERNSHIP

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A REPORT
ON

ANALYSIS OF READY TO DRINK AMUL MILK BEVERAGES
AND
DESIGNING (promotional activity)

IN
HYDERABAD AND SECUNDERABAD.

BY
ABHISHEK BHATIA
[Enrollment no: 11BSPHH010027]



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A REPORT
ON

ANALYSIS OF READY TO DRINK AMUL MILK BEVERAGES
AND
DESIGNING (promotional activity)

IN
HYDERABAD AND SECUNDERABAD.


A report submitted in partial fulfillment of the requirements of MBA
Program of IBS, Hyderabad.




Submitted By: ABHISHEK BHATIA ( 11BSPHH010027 ).
Date of Submission- 01/06/2012.
Submitted to:
Mr. S.V. CHARY (COMPANY GUIDE AMUL HYDERABAD).

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S. no. TOPICS PAGE NO.
i.
INTERNSHIP CERTIFICATE
5
ii.
ACKNOWLEDGEMENT
6
iii.
EXECUTIVE SUMMARY
7
1.

INTRODUCTION

BACKGROUND
OBJECTIVE
METHODOLOGY
SCOPE AND LIMITATIONS

11
2.
ECONOMY INDUSTRY ANALYSIS

21
3.
COMPANY ANALYSIS

76
4.
PROJECT SPECIFIC ANALYSIS

122
5.
CONCLUSION AND RECOMMENDATION
207
6.
OUTCOME/CONTRIBUTION
214
7.
LEARNING FROM SIP

220
8.
REFERENCES
222
TABLE OF CONTENTS
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INTERNSHIP CERTIFICATE


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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all those who gave me the
possibility to complete this Project. I take this opportunity to express my sincere
thanks to GCMMF Ltd, Hyderabad for giving me permission and opportunity to
commence this project, do the necessary research work and to use official data. I
would like to thank my company guide Mr. S. V. R Chary, Branch Head who
gave me permission and encouraged me to go ahead with my project.

It has been an enriching experience for me to undergo my summer training at
AMUL, which would not have possible without the goodwill of ICFAI Business
School.

Words are insufficient to express my gratitude to the faculty guide
Mr. G SURESH, IBS HYDERABAD who helped me at each and every step and
for having spared his valuable time and for all the guidance given in executing the
project as per requirements.

I would also take this opportunity to thank Mr. M. S PRASAD, IBS
HYDERABAD for providing me the opportunity to work with AMUL, Mr. ATUL
MISHRA, Executive (Sales [Vizag]) and Mr. SURESH REDDY, (Field Sales
Representative) for their tremendous support and encouragement.




ABHISHEK BHATIA



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EXECUTIVE SUMMARY

The project focuses on the current scenario of ready to drink milk beverages
market in Hyderabad and Secunderabad. It lays emphasis on how Amul has
managed to reach the mass of the city having faced fierce competition from the
other major market players. This project will measure the effectiveness of the
company in tapping the beverage market in the Hyderabad city. This in turn, will
give us a brief overview of how the company is performing in maintaining the
brand image and retailers and consumers perception in this segment. It reflects the
mass appeal for the brand on various parameters.

Description of the project in brief: The focus of the project is to conduct an
extensive market research in order to study the retail penetration of Amul Milk
beverages .The area of study is Hyderabad and Secunderabad. The product line
under study for retail penetration includes Amul Masti Butter Milk, Amul Lassee,
Amul Kool Flavoured Milk, Amul Milk Shakes, Amul Kool Caf, Amul Kool
Koko and tetra family packs (1 litre for Amul Buttermilk and Lassee). The survey
will give a glimpse of the penetration percentage of Amul milk beverages in retail
outlets and the performance of its distribution network. The survey report will help
the company in identifying the areas of distribution where the availability of the
product line is less and also the retailers reasons for dissatisfaction. The survey
will also help in identifying potential retailers who wish to stock Amul products.
This study will also help us in identifying potential competitors for Amul in the
milk beverages market and analyzes competitors` activities in terms of factors such
as pricing, product variants, packaging and profit margins to retailers.
My project will deal with the following factors stated below -

To find out the penetration level of Amul beverages at Hyderabad and
Secunderabad.
To find out various factors influencing the buying decision of retailers.
To find out the problems faced by retailers in selling and stocking.
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To recommend the suitable market strategies to be adopted by AMUL to
increase its market share in Hyderabad and Secunderabad.
To study the consumer perception regarding Amul Beverages.
Designing brochures, hoardings, cans and bottles with respect to
consumer perception.
To carry out a detailed analysis of Amul milk Beverages with its
competitors

In brief, we will be evaluating the extent to which the image of the company,
quality of the product, variants that it offers and value for money that it provides to
the customers affects the purchasing decision of the buyers. This project helped us
get an insight about the perception that a consumer holds while purchasing milk
beverages. The various factors which determined the buying behavior of a
customer includes the location of the store, ambience of the store, variety offered
by the company and the most important factor being the quality offered. This
clearly shows that a consumer gives proper thought before deciding on the brand of
product to be bought.

To make it more simply and easy to attain the desired objectives, I have classified
my project into three segments

1. Retail penetration In this segment, I will be dealing with the APOs
where I will

o Understand retailers perspective with reference to factors influencing
them to keep ready to drink milk beverages.



o Keep a check on the which SKU is moving fast which in turn, will
ensure meeting the potential demand requirements.

o Study on the APOs planning to shut down.

For the study of penetration of RTD Amul milk beverages in retail outlets,
survey method is used. The sampling technique used for selecting the sample
space is Random sampling. The Sample space consists of the following retail
outlets like general stores, eateries and Amul preferred outlets. A sample size
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of 60 is taken. The Questionnaire aims at capturing data regarding the
availability of RTD (ready to drink) Amul milk beverages in retail outlet,
availability of competitors RTD milk beverages, reasons for not stocking Amul
products by retailers. The Questionnaire also helps in rating Amul`s
replacement policy, distribution efficiency, credit policies, etc and also helps
in analyzing the factors influencing the retailers pertaining to ready to drink
milk beverages.
I have used the following tools to get an appropriate analysis of the data
collected

Data Analysis:
Factor analysis with reference to identifying the factors influencing the
retailers pertaining to ready to drink milk beverages.

Percentage and graphical analysis on the retailers reasons for not
stocking Amul products and at the same time , analyzing which SKU is
moving fast.


2. Consumer perception - In this segment, I will be dealing with consumers
where I will study the consumer perception regarding Amul Beverages and
at the same time, find factors influencing their decision with reference to
buying the ready to milk drink beverages. This will help in carrying out a
detailed analysis of Amul milk Beverages with its competitors on account of
factors making them switch to other brands.

I have used the following tools to get an appropriate analysis of the data
collected

Data Analysis:
Factor analysis with reference to identifying the factors influencing the
consumers pertaining to ready to drink milk beverages.


Percentage and graphical analysis on the consumers response with
reference to Amul product range in this segment reflecting the product
which the consumers demand the most.
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Weighted mean calculation with reference to competitive analysis on
various parameters reflecting that the company (AMUL) should work upon,
keeping the consumer insights into consideration.




3. Designing (promotional activity) This segment relates the above
discussed consumer perception segment, where all the designing part
(promotional activity) is done taking consumer perception into account. As
we all know, product attributes, packaging, labelling, mascot, jingles,
advertisement, etc all are essential tools to enhance brand equity. Here, we
use the historical data from which we can state our hypothesis which is an
unproven proposition or possible solution to a problem. Hypothetical
statements assert probable answers, at empirical level a theory may be
developed with inductive reasoning. Inductive reasoning is the logical
process of establishing a general proposition on the basis of observation
of particular facts. In this segment, I have used several examples such ask
MICKEY MOUSE MASCOT OF WALT DISNEY, MAHARAJA
MASCOT OF AIR INDIA, etc to justify my null hypothesis - AMUL GIRL
(mascot) in beverage segment would enhance the overall visibility and will
have a positive impact on sales.




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INTRODUCTION
BACKGROUND
HISTORY
The Kaira District Cooperative Milk Producers Union Limited was registered on
December 14, 1946 in response to exploitation of marginal milk producers by
traders or agents of existing dairies in the small town ,named Anand (in Kaira
District of Gujarat). Government had given monopoly rights to Polson Dairy
(around that time Polson was the most well known butter brand in the country) to
collect milk from Anand and supply it to Bombay city in turn. Indian ranked
nowhere amongst milk producing countries in the world in 1946.

The farmers of Kaira District, angered by unfair and manipulative trade practices,
approached Sardar Vallabhbhai Patel under the leadership of the local farmer
leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative
and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson
(who did the same but gave low prices to the producers). He sent Morarji Desai
(who later became the Prime Minister of India) to organize the farmers. In 1946,
the farmers of the area went on a milk strike refusing to be further oppressed. Thus,
the Kaira District Cooperative was established to collect and process milk in the
District of Kaira in 1946. Milk collection was also decentralized as most producers
were marginal farmers who were in a position to deliver about 1-2 liters of milk
per day. Village level cooperatives were established in order to organize the
marginal milk producers in each of these villages.

The Cooperative was further developed & managed by Dr. V Kurien alongwith
Shri H M Dalaya. The first modern dairy of the Kaira Union was established at
Anand (which popularly came to be known as AMUL dairy after its brand name).
Indigenous R&D and technology development at the Cooperative led to the
successful production of skimmed milk powder from buffalo milk the first time
on a commercial scale anywhere in the world. The foundations of a modern
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dairy industry in India were thus laid since. The fact being that India has one of the
largest buffalo populations in the world.


COMPANY PROFILE

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 farmers and
also serve the interests of consumers by providing quality products which have
good value for money. Over the last five and a half decades, Dairy Cooperatives in
Gujarat has created an economic network that links more than 3.03 million village
milk producers with millions of consumers in India and Abroad through a
cooperative system that includes 15,712 Village Dairy Cooperative Societies
(VDCS) at the village level, affiliated to 17 District Cooperative Milk Producers
Unions at the District level and GCMMF at the State level. These cooperatives
collect an average of 9.20 million liters of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless
laborers. Moreover, it also includes a sizeable population of tribal folk and people
belonging to the Scheduled castes( SCs). The company was able to achieve a
growth of 20% in 2011-12(April).

The turnover of GCMMF (AMUL) during 2011-12( April) was at $.4 billion.
Amul has 85% share in the butter category, 65% each in cheese and milk powder,
40% share in ice cream and 20% in ghee. It markets the products produced by the
district milk unions in 30 dairy plants, under the renowned brand name of AMUL.
The combined milk handling capacity of these plants is 13.67 million liters per
day, with four dairy plants having processing capacity in excess of 1 million liters
per day. During the last year, 3.45 billion liters of milk was collected by Member
Union of GCMMF. Huge capacities have been installed for milk drying, product
manufacture and cattle-feed manufacture. All its products are manufactured under
the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000,
ISO 22000 and HACCP certified. GCMMF (AMUL)s Total Quality Management
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ensures the right quality of products right from the starting point (milk producer)
through the value chain until it reaches the end consumers.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply
as a business enterprise, it has more to offer. It is an institution created by the milk
producers themselves to primarily safeguard their interest economically, socially
and democratically. Business houses create profits in order to distribute it to the
shareholders. In the case of GCMMF, the surplus is ploughed back to farmers
through District Unions as well as village societies. This circulation of capital
alongwith value addition within the structure, not only benefits the final
beneficiary the farmer, but also eventually contributes to the development of the
village community. This is the most significant contribution made by Amul Model
cooperatives towards Nation building.

Some facts and figure are given below:
Members.
17 District Cooperative Milk Producers' Unions (15 Members &
2 Nominal Members).
No. of Producer Members. 3.03 Million.
No. of Village Societies. 15,712.
Total Milk handling capacity per
day.
13.67 Million litres per day..
Milk Collection (Total - 2010-11) 3.45 billion litres.
Milk collection (Daily Average
2010-11).
9.2 million litres (peak 12 million).
Milk Drying Capacity. 647 Mts. per day.
Cattle feed manufacturing
Capacity.
3690 Mts. per day.
Sales Turnover -(2010-11). Rs. 9774 Crores (US $2.2 Billion).

Reference: http://www.amul.com/organisation.html


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Some essential key points :
Amul - Symbol of many things:-
Of high-quality products sold at reasonable prices.
Of developing and co-coordinating a vast co-operative network.
Of making a strong business proposition out of serving a large number of
small and marginal suppliers.
Of the triumph of indigenous technology.
Of the marketing savvy of a farmers' organization.


Vision: Liberate our farmers from economic oppression and
lead them towards prosperity.

Mission 2020: Dairy cooperatives of Gujarat to achieve
turnover of Rs. 27000 crores by the year 2020.

Objective: To ensure that the maximum share of the
consumers rupee goes back to the milk producers.





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Twin objectives :




INDUSTRY PROFILE
The Flavored milk industry in Hyderabad is highly competitive not only because of
the existence of National and International brands, but also because the Local
brands are also prominent. AMUL definitely has the advantage of being an
early mover however, others are also picking up quickly. There are a rapidly
increasing number of competitors in Hyderabad for AMUL making it a matter of
concern.

All the competitors given below are of great prominence currently in Hyderabad.
Local brands like Vijaya, Visakha and Dodla are getting more margins on dairy
products compared to AMUL. This is because they have an advantage of close
vicinity presence.
long-term,
sustainable growth
to its member
farmers
value proposition to a large
customer base by providing
milk and other dairy
products at a low price
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There are many products under Amul in different categories. These are:

Amul kool milk
Shake .
Amul Kool Chocolate Milk.
Amul Kool . Amul Kool Flavored Milk.
Amul Kool Caf . Amul Kool Flavored Tetra
Pack.
Kool koko. Amul Masti Spiced
Buttermilk.
Nutramul Energy
Drink.
Amul Lassee.
Amul Kool Thandai Amul Shakti .
















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OBJECTIVE

To study the penetration of Ready To Drink Amul milk beverages in Retail
outlets in Hyderabad and Secunderabad.

To find out various factors influencing the buying decision of retailers.

To find out the problems faced by retailers in selling and stocking.

Identify the reasons for reluctance of retailers to stock Amul products and
suggest corrective measures to improve penetration in the retail market.

Understanding, learning and interpreting the Consumer behavior, attitude
and perception towards consumption of beverages in general.

To recommend the suitable market strategies to be adopted by AMUL in
order to increase its market share in Hyderabad and Secunderabad.
To carry out a competitive analysis of Ready To Drink Amul Milk
Beverages vis--vis competitor brands in the same segment available in
Hyderabad and Secunderabad .

To perform a SWOT Analysis for Ready To Drink Milk Beverage Industry
in India.

To figure out a BCG growth share Matrix for the Ready to Drink Amul
Milk Beverage product line.

Research on statistical methods to be used in order to accomplish the study.

A thorough research has been undertaken to understand the various statistical
techniques that would be used to study and analyze the data collection through
questionnaires. Based on the findings, recommendations would be made to the
management to take necessary steps and promote profitability.

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METHODOLOGY

Data source: Primary and secondary data .

Methodology: The survey research method is the basic research design.
This study includes two types of marketing research method:-
Exploratory research.

Descriptive research.

Research Instruments: Questionnaires focus group discussions and direct
interviews.

Research Approach: Surveys.

Other details: This is an analytical study based mainly on primary and secondary
data collected through various channels such as questionnaires, previous AMUL
studies, focus group discussion and personal interviews. The questionnaire will be
administered on general people or common mass from all age-groups and also
among the employees, partners and clients of various AMUL franchises and
regional offices. The questionnaire has been designed on the basis of interviews
and guidance provided by various qualified personnel and using appropriate
literature.

As I have segregated my project into three segments, I have used various tools to
reach to conclusion which would enhance my learning standards and at the same
time, help the company to frame certain policies in a better way.







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SCOPE AND LIMITATIONS

SCOPE

The research project helps in formulating an analysis on availability of the Ready
To Drink Amul milk beverage product line in retail outlets. A detailed area wise
survey report with retailers comments is provided to the GCMMF sales office at
Hyderabad. The survey report will help the company in identifying the areas of
distribution where the availability of product line is less and also the retailers `
reasons for dissatisfaction. The survey will also help in identifying potential
retailers who wish to stock Amul products. The study also helps in identifying
competitors for Amul in the milk beverages market and analyzing competitors`
activities in terms of factors such as pricing, product variants, packaging, profit
margins to retailers. The project analyzes the Strength, Weakness, Opportunities &
Threats (SWOT Analysis) prevailing in the Ready To Drink milk beverage market.
It also helps in figuring a BCG (Boston Consulting Group) growth share matrix for
ready to drink product line of Amul. Adding to the above facts, this project will
deal with consumer perception where the scope in this segment will be to get an
insight of the customers with reference to milk beverages as to what are the
primary consumer demands and which factor influences the most while buying a
product. Another segment is designing (promotional activity) which is based on
inductive reasoning and consumer perception. This segment will highlight the
essence of mascots with reference to sub brands.

Key points:
o The area of study of this project will be in the twin city of Hyderabad and
Secunderabad.
o The study will mainly concentrate on customers, retailers perception and
preference of particular products (milk beverages).
o The project will also give insights about the essence of mascots - as a
promotion medium for brand recalling value.

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The sample will include all the buyers of AMUL irrespective of age, sex and
profession. The basic aim behind my study is to find out the key elements
towards making this brand the most preferred brand by studying the needs and
preferences of customers and retailers


LIMITATIONS OF THE STUDY:

1) Sampling error- The sample is taken randomly from the population of
Hyderabad and Secunderabad because the survey is limited to APOs ,
eateries and grocery stores which might not provide a complete picture of
the sales of Amul beverage market in Hyderabad. Hence, there is always a
probability of sampling error in the procedure.

2) Response error-Since responses will be solicited from retailers and
consumers, information collected from the retailers as well as consumers is
considered to be true, interviewee being the only source of primary
information and there is no method of verifying the information given by
them.Hence, the research will be done on whatever data has been shared.
Also, the respondents might not understand certain questions which could
result in response error.

3) Time Factor - Since the study is done during summer season, the results
of the analysis would be applicable only under such condition. Also, the
tastes and preferences of consumers might change in due course of time.
Hence, this research will be valid only for a particular period of time.

4) Factors taken into considerations-The factors that are considered for a
research work may vary from researcher to researcher. Hence, the factors
for this study are very subjective.

5) Secondary data accuracy -The secondary data collected from Internet
Journals, Online News Articles, Research Papers and Online Blogs are
assumed to be accurate and efficient.
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ECONOMY INDUSTRY ANALYSIS
OF
INDIAN DAIRY INDUSTRY

India is the worlds largest producer of dairy products and has the worlds
largest dairy herd. India accounts for more than 13% of worlds total milk
production and is also the worlds largest consumer of dairy products, consuming
almost all of its milk production. Dairying has been regarded as one of the
activities contributes to alleviating poverty and unemployment especially, in the
droughtprone and rainfed areas. In India, almost threefourths of the population
live in rural areas and about 38% of them are poor.

In India, the dairy sector plays an important role in the its socio-economic
development, and constitutes an important segment of the rural economy. Dairy
industry provides livelihood to millions of homes in villages, thereby, ensuring
supply of quality milk and milk products to people in urban as well as rural areas.
The industry has been growing rapidly to keeping pace with the countrys
increasing demand for milk and milk products.

India is 'The Oyster' of the global dairy industry. It offers wide opportunities to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and
fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the
international dairy processors in India. The Indian dairy industry is growing
rapidly and trying to keep pace with the galloping progress around the world. As
MNCs expands its overseas operations to India, many profitable options have
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come up such as transferring technology, signing of joint ventures or using India as
a sourcing center for regional exports. The liberalization of the Indian economy
beckons to MNC's and foreign investors in the same manner.

Prior to the year 2000, India was not noticed by most international dairy
companies, as it was neither an active importer nor an exporter of dairy products.
Exports from India were insignificantly small and it was not until 2000 onwards,
when Indian dairy products started having more and more presence in global
markets.

Milk production in India has developed significantly in the past few decades. The
Indian dairy market is growing at an annual rate of 7%. Demand- supply gap has
become imminent in the dairy industry due to the changing consumption habits,
dynamic demographic patterns, and the rapid urbanization of rural India, despite an
increase in production. Hence, there is an urgent need for the growth rate of the
dairy sector to match the rapidly growing Indian economy.

Here are some key statistics for Indias dairy industry:-

Key Statistics:- Annual Milk Production
(20082009) .
108.5 Million Tonnes.
Annual Export Volume (20082009) . 70,790 Tonnes.
Share of world dairy production (2010). 15%.
Share of world trade in dairy products
(2003) .
0.3%.
Milking herd size . 115.5 million.
Number of milk producers cooperative
unions .
170.
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Number of local dairy cooperatives . 96,000.
Number of state cooperatives . 15.
Per capita consumption (Drinking milk). 250g/day.
Estimated percentage of dairy farmers in
the organised sector .
4050%.
% of dairy produce consumed by the
unorganised sector .
65%.
Dairy industry workforce . 75 million women/ 15 million men

Indian dairy sector is expected to triple its production in the next 10 years
with respect to expanding potential for export to Europe and the West.
Moreover, with WTO regulations expected to come into force in coming years all
the developed countries which are among big exporters today, will have to
withdraw their support and subsidy to the domestic milk products sector.
The emergence of India as a premier dairy nation of the world can be attributed
mainly to the intensive crossbreeding programmes implemented over the last
few decades. The population pressure and emerging global opportunities
further necessitate that efforts for enhancing animal productivity are increased.
Technologies for raising male buffalo calves economically should be developed as
this potential source of income of farmers is going waste. The government is also
taking several initiatives and running plans and programs like National Diary
Plan and Intensive Dairy Development Program to meet the growing demand
requirements for milk in the country.


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Overall Dimensions
Of
The Indian Dairy Industry
Dairying is considered as an important part of the Indian agricultural economy.
About 17% of the total value of output from agriculture is derived from the dairy
sector at the national level. India has now become the largest producer of milk
in the world, with estimated production of about 81 million tons in 2001. In India,
dairying is dominated by smallholder production systems; almost 70% of milk
producers in India are landless, small and marginal farmers who own one or two
animals. The Indian dairy sector has developed in a highly regulated and
protectionist economy. However, India initiated major macro-economic reforms in
the early 1990s that encouraged the liberalization of all sectors of the economy,
alongwith the dairy sector. This was further reinforced with the signing of the
Uruguay Round Agreement on Agriculture (URAA) in 1994. This exposed the
Indian dairy sector to world dairy markets that have been highly disturbed by
policies of high tariffs, domestic support, and export subsidies in developed
countries. There is likely to be a restructuring of the dairy sector around the world,
and changes for the Indian dairy sector as well under the new economic
environment of trade liberalization and globalization.

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Contribution to the National Economy (income and
employment)
Dairy enterprise is considered to be the "treasure" of the Indian economy,
particularly for rural systems. It provides nutrition, draft animal power, organic
manure, supplementary employment, cash income, and 'cushion' for 'drought
proofing' in India .The dairy sector involves millions of resource-poor farmers, for
whom animal ownership ensures basic livelihood, sustainable farming, and
economic stability. Dairying is considered to be a vital component in the
diversification of Indian agriculture, where crop farming is characterized by
stagnating growth and low absorption of unskilled agricultural laborers.
At the macro-level, gross domestic product (GDP) from livestock is estimated to
be about Rs. 98,421 crore (current prices), contributing to about 22% to the
agricultural gross domestic product (GDP) and about 5.5% to the national GDP
(CSO, 2001).Milk constitutes the major share (67%) in value of outputs from the
livestock sector and is the single largest commodity contributing to the value of
output from agriculture.
Socioeconomic Profile of Dairy Farmers.
Indian dairy farming is mainly a smallholder production system, characterized by
milk production by the masses rather than mass production of milk. More than
80 million households (about 73% of rural households) keep some or the other type
of livestock. Although dairying is becoming more and more commercialized in
certain areas, it basically, remains subsistence farming catapulting a
complementary/supplementary enterprise to crop farming, with continuous sales of
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surplus production. Dairy farmers in India are illiterate, resource-poor, and low
risk-bearers. In the majority of the cases, they are either non-adapters or late
adopters of modern technologies.
On marginal farms, it was estimated that introduction of dairy enterprise increases
the average farm income from Rs. 12,801 to Rs. 18,163 denoting an increase of
42% per annum. On small farms, a similar trend was observed, with average farm
increasing from Rs. 33,301 to Rs. 70,664 (an increase of 112%) resulting from
introduction of dairy. Owing to poor financial condition and poor networks of
organized financial institutions, farmers approach private money lenders for credit
and enter into marketing contracts for selling milk.

Demand for Milk and Milk Products.
The demand for livestock products, especially milk and meat, in India has
increased considerably, and has a strong potential for further growth. The per
capita consumption of milk in many parts of the country is low compared to the
minimum nutritional standards and to that of developed and developing countries.
The demand for milk and dairy products is income-elastic, and the growth in per
capita income is expected to increase the demand for milk and milk products.
Other socioeconomic and demographic factors such as urbanization, changing food
habits, and better lifestyle also reinforce the growth in demand for dairy products.

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Marketing Channels for Milk and the Role of Informal
Sector.
India has co-existing "organized" and "unorganized" sectors for marketing of milk
and dairy products. The organized or formal sector is relatively new in historical
terms, and consists of Western-style dairy processing based on pasteurization,
though it may be adapted to the Indian market in terms of products. In certain
cases, the traditional sector is quite well organized, with a complex network of
market agents, and shows variation in the number and roles of market
intermediaries. It may also be relatively formal.In such a case, market agents may
pay municipal fees and have vendor licenses. The reasons underlying the existence
of a large informal or traditional sector are the same as found in other countries-
consumers are unwilling to pay the additional costs of pasteurization and
packaging, which can raise retail prices. The Indian government has adopted a
laissez-faire approach to the informal sector, which has allowed it to expand with
the growth in demand, and serve both the small farmers and resource-poor
consumers.
Milk procurement channels for private sector plants.
With the recent changes in domestic policy (the repealing of licensing
requirements under the MMPO) and trade policy, the share of the private sector in
milk procurement is expected to increase. This could lead to some structural
changes in production sector, whereby the private processors will try to reduce the
transaction costs and may promote large commercial dairy farms.
Dairy farms located within the city or in its periphery (peri-urban and urban dairy
farms) still have a major sway over their traditional customers. Customers often
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have a long association with the farm owner, and the quality and purity of milk is
perceived to be the major advantage of these farms. Private vendors are dominant
in the periphery of the cities and typically serve low and middle-income
consumers. They are not particularly known for good quality of milk and also offer
the lowest retail prices to consumers. In contrast to these operators in the
unorganized sector, the cooperatives and some private units sell through the
network of retailers. The commission offered by the cooperatives to these
retailers is lower than what is offered to them by private sector units.Morepver, the
penetration of packaged branded liquid milk is expected to increase due to
increased awareness.
Stakeholder Groups in Indian Dairy Policy and their
Interests.
The dairy sector can be represented by three separate segments/activities.
The first activity, farm production, consists of milk production and transportation
to milk plants. In the formal sector, processing is the second activity, with raw
milk as the input and pasteurized milk and dairy products as outputs.
Transportation of products to wholesale market and marketing (domestic and
export markets) is the third activity.
The major stakeholders in the Indian dairy policy are milk producers, processors
(cooperatives, private enterprises, government, etc.), traders, wholesalers,
retailers, informal sector processors and sellers, middlemen/contractors,
consumers, the non-dairy industries, the government (Central and State),
veterinary drug manufacturing and marketing companies, as well as
households without dairy .
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KEY POINTS:-
The following characterizes Indias dairy farming and its relevance to inclusive
growth:-
Small and marginal farmers own 33 percent of land and about 60 percent of
female cattle and buffaloes.
75 percent of rural households own, on an average, two to four animals.
Dairying is a part of the farming system, not a separate enterprise.
Dairying provides a source of regular income, whereas income from
agriculture is seasonal. This regular source of income has a huge impact on
minimizing risks to income. There is some indication that areas where dairy
is well developed have less incidence of farmer suicide.
About one-third of rural income is dependent upon dairying.
Livestock is a security asset to be sold in times of crisis.





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SWOT ANALYSIS
OF
INDIAN DAIRY INDUSTRY
Strengths:-
A large number of small and marginal farmers are involved in dairying.
An effective marketing channel helps to meet the needs and demands of the
urban consumers.
Presence of a very large number of animals and huge scope to enhance
productivity.
Self-sufficiency in medicine production and do not have to rely on exports
hence self-reliable.

How to build on them:-
Strengthen the economic viability of dairy farms by interventions on the
input side as well as ensuring more and fairer farmer prices.
Increasing the link between rural production areas and urban markets.
Focus on strengthening the indigenous breed in order to help in significantly
enhancing productivity.
Ensure availability of quality medicines by strengthening regulatory
framework for enhancing quality.


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Weaknesses:-
A large share of milk (7085%) of marketable surplus goes through informal
channels where quality is a big concern.
Sometimes, quality comes across as a big issue in the formal channels as
well.
Very little competition to cooperatives because private sector was not
allowed to participate in until recently
Farmers do not share in the benefits of high demand because of the poor
governance of cooperatives.
Milk production is scattered over a large number of farmers producing
miniscule quantities of milk.
Milk distribution is limited to urban and peri-urban areas.
Low milk prices because of lower prices declared by the cooperatives results
in low prices of milk paid by all players.
Ad hoc export policies and ban on exports.
Quality of milk and milk products are a barrier to entry to the export market,
especially in the EU and the USA.
Lack of policy focus on strengthening the indigenous breeds.
Non-existent extension facilities.
Farmers prices are not based on fat measurements, which in turn affects
their profitability
Because of low access to credit and risk-taking ability, farmers cannot
increase their herd size.




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How to correct them:-
Focus on quality issues even in the informal channels by training traders and
by enforcing food quality regulations.
Developing requisite infrastructure and training for clean milk production.
Supporting a fair playing field for the private sector.
Bring about changes in the cooperatives to make them true representatives of
farmers instead of functioning just as parastatals.
Support to dairying as an enterprise in order to encourage commercial dairy
farming and encourage production and productivity by extension and breed
development.
Enhance packaged milk distribution in more and more areas.
Strengthen dairy farmer cooperatives in order to enable farmers to get a
higher price for milk.
Create rational export policy in order to enable farmers to take advantage of
higher prices.
Strictly implement quality regulations and improve the infrastructure and
training for quality.
Strengthening the breed development programmes.
Strengthening the extension facilities.
Create policy regulations to make mandatory testing, a basis for setting milk
price.
Increase access to credit through dairy farmer organizations and other such
agencies.

Opportunities:-
Increased farmer income by exploiting high demands.
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Increased consumer sophistication and awareness of quality reception of
quality packaged products (though slowly).
Entry of large corporations in retailing, which can lead to more and more
investment.
Immense scope to enhance governance of dairy farmer organizations and
thus enable dairy farmers to demand higher prices.
Potential for exports due to the low cost of production.
Overall a very positive growth environment, which is triggering the
Government to enhance infrastructure.

How to pursue them:-
Create policies and activities geared towards enhancing dairy farming
activity by increasing production, productivity and ensuring fair farmer
prices of milk.
Establish an enabling policy environment to enhance investment.
Create policy support to enhance governance of producer companies.
Focus on quality issues that are act as barrier to exports.
Encourage private sector to increase investments in dairying.
Threats:-
A large portion of the population does not care about quality issues in milk.
Because of reasons of high price sensitivity for dairy products, people are
not willing to pay for quality.
Significant increase in maize prices can lead to increase in feed prices.
Large informal markets that extend credit are constraining farmers.
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Low productivity and scattered production leading to high transportation
cost.
Emphasis on milk fat and not on SNF content, thereby, maintaining
relatively lower prices of milk.

How to avert them:-
Initiate consumer education about the negative health impacts of unpackaged
products.
Develop packaging in smaller quantities to meet the needs of the poor.
Increase milk prices in accordance with feed prices.
Support expansion of dairy farmer organizations.
Enhance productivity by breed improvement and extension.
Enforce price setting of milk based on fat and SNF content to encourage
production of cow milk.








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MAJOR MICRO AND MACRO
IMPLICATIONS
ON THE
INDIAN DAIRY INDUSTRY

INDUSTRY STRUCTURE AND DEVELOPMENT:-
The dairy industry plays an important role in the socio-economic
development of India .India is the largest producer and consumer of milk
accounting for about 15% worlds total milk production. The annual milk
production is growing at the rate of about 4% pa. Currently, dairy products
constitute about 19% of the total packaged food industry in India. About
37% of all the milk produced is utilized for processing in India both at the
organized and unorganized sectors. The share of organized sector is just
about 15%. With the projected growth rate of 15 to 20% for dairy products
over the next 5 years, the processed dairy industry is catching the fancy of
organized players. While it is estimated that around 40 to 50 percent of
Indian dairy farmers are employed by the organised sector, approximately 65
percent of milk in India is consumed (in fluid or processed forms) on farm or
by the unorganised sector including local milk vendors, wholesalers,
retailers, and the producers themselves. The co-operatives usually follow a 3
tier model (popularly known as Anand Model, after the successful Anand
based co-operative). The village co-operative societies collect and cool milk
from villagers. The district unions consolidate society shipment and operate
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manufacturing plants to handle fluid surpluses. Marketing and coordination
is handled by the state federations. It includes the following under its wings:-

Market for dairy products .
India is the largest dairy products consumer in the world, and milk constitutes a
part of daily diet of people. Growing population coupled with increasing affluence
has resulted in a rise of demand for milk products, with majority of consumers
shifting their diet from basic foods to value-added ones.There are ample
opportunities for export of value-added products in neighboring & milk-deficit
markets of the Middle East, Far East & South East Asia. Moreover, changes in
consumer preferences are driving the growth of food chains like Pizza Hut,
Dominos, McDonalds, etc, which use dairy products, thus becoming the main
destinations of consumers.

Changing trends.
There has been a shift from packaged to branded foods. There is also a shift from
artificial ingredients to natural ones in dairy products. Besides, consumers, these
days prefer traditional beverages like butter milk, lassi, etc as compared to
carbonated beverages. Today, consumers are slowly and gradually shifting from
high fat products like butter to healthier options like cheese.

Issues to be addressed.
Low productivity of dairy cattle, lack of availability of modern milk production
technologies to dairy farmers, and inadequate cold-chain infrastructure are some of
the challenges faced by the dairy industry. Moreover, there is also a growing
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demand for value-addition and R&D for product innovations as well as process
development, which is not up to the mark presently. Also, there is need for
appropriate distribution infrastructure to cover the entire length and breadth of
India. The frequent changes in government policies also pose a challenge to the
industry.
Future demand scenario.
The demand for dairy products in India is growing by more than 5 per cent every
year due to rapid urbanization, increasing income levels and rising preferences for
value-added foods. The key growth drivers of dairy business are availability of
large quantities of milk and its good accessibility among consumers, as India has
more than one billion consumers, who demand healthy and nutritious food. This
demand is expected to increase at a fast pace in the next two decades.\

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DEMAND DRIVERS
The major growth drivers in milk and dairy products market are- increase in
health consciousness among consumers, increase in disposable incomes, increasing
urbanization, and rise in popularity of consumer foods and standards of living.
Demand for dairy products in India is likely to grow in the coming years, as a
result of more consumers, higher incomes and greater interest in nutrition.
Consumption of processed and packaged dairy products is increasing in
urban areas. Because of increasing competition from the private sector,
several national and international brands have entered the market and
expanded consumers expectations of quality
Through implementing various incentive schemes, Indian policy makers are
aiming to increase the countrys dairy output. Examples of these schemes include
the Ministry of Agricultures research programs, imports of bovine semen and
embryos, the National Project for Cattle and Buffalo Breeding, which focuses
on improving Indian indigenous breeds with an allocation of USD 255 million. On
the other hand, support is also offered by the private sector through activities such
as artificial insemination services, training for veterinary care and other
livestock management skills.
In 2010, the government and the National Dairy Development Board have drawn
up a National Dairy Plan (NDP) that proposed an expenditure of around USD
378 millions in order to nearly double Indias milk production by 2020. This plan
will aim to increase the countrys milk productivity, improve access to quality
feeds and improve farmer access to the organised market through increasing
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cooperative membership and growing the network of milk collection facilities
throughout India.
In addition, the new Food Safety and Standards Authority of India has
consolidated various previous policies that set sanitary requirements for food
safety, machinery, premises, quality control, certification, packing, marking and
labelling standards for all food products, including milk and milk products and
aims at regulating food safety in India through one overarching regulation. The
forthcoming regulation is named The Food Safety and Standards Regulation
and was implemented in 2011.
EMERGING DAIRY MARKETS-
Defense market:- An important growing market for quality products at
reasonable prices.
Ingredients market:- A boom is forecast in the market of dairy products
used as raw materials in pharmaceutical and allied industries.
Parlour market:- The increasing away-from-home consumption trend
opens new vistas for ready-to-serve dairy products which would ride
piggyback on the fast food revolution sweeping the urban India.
.
Demand conditions
Market size and growth. Market growth is due to the high per capita consumption,
increasing population and health consciousness.
Consumption patterns. Consumption of processed and packaged dairy products is
increasing in urban areas.
Consumption patterns. Unpackaged milk is still preferred because of the taste and
price.
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Sophistication of consumers. Consumer awareness on product quality is increasing but
in a very small portion of population.
Receptivity to new products. Mainly urban consumers have a very low but increasing
interest in new products.
Price elasticity. Price elasticity is high.
Impact of market opening on
demand.
Consumers now have a variety of quality products.









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CRITICAL SUCCESS FACTORS
The reasons for the success of dairy cooperatives are very simple in its own way. It
is empowerment. These cooperatives are not controlled by the government.

The biggest strength of dairy cooperatives is its labour intensiveness. Cost
effectiveness being another important factor. Dairy cooperatives have effectively
used the toil of farmers to develop self-reliance which is quite unique in making
the future indeed bright for dairy cooperatives. The other critical success factors
accruing to the Indian dairy industry can be elaborated as follows:-
Price Mechanism (Low Cost Of Production) :- Milk production is economies of
scale sensitive and labour intensive. Due to the low labour cost, cost of
production of milk is significantly lower in India. Thereby serving as a very
significant advantage and has a huge role to play in the growth and success of the
industry in a country like India where consumers are mainly price-sensitive.
The more efficient the cost structure, the more efficiently can the value be
distributed among the various actors of the value chain.
Moreover, the basic infrastructural elements for a successful industry are in place:-
Key elements of free market system,
Raw material (milk) availability and accessibility,
An established infrastructure of the latest technology, and
Supporting and abundant manpower.
An entrepreneur's active participation is likely to provide attractive returns on the
investment in a fast growing market such as India, as well as high export potential
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in the Middle East, Singapore, Malaysia, Indonesia, Korea, Thailand, Hong Kong
and other countries in the region. Other factors includes the presence of-
Biotechnology:-
Dairy cattle breeding of the finest buffaloes and hybrid cows.
Milk yield increase as a result of recombinant somatotropin
Recombinant chymosis is used which is acceptable to vegetarian consumers
Dairy cultures, probiotics, dairy biologics, enzymes and coloring materials
for food processing are used.
Fermentation derived foods and industrial products alcohol, citric acid,
lysine, flavor preparations, etc.
Biopreservative ingredients based on dairy fermentation, viz., Nisin,
pediococcin, acidophilin, bulgarican contained in dairy powders are used.
(a) Dairy processing equipment:-
Dairy processing machinery of world-class quality is used for the purpose of
manufacturing and marketing of milk and milk related products.
(b) Packaging equipments:-
Packaging materials and equipments used have the potential to develop brand
loyalty and provide a clear edge in the marketing of dairy foods.
(c) Distribution channels:-
For products that require refrigeration and frozen food distribution system, a world
class cold chain system helps in providing quality assurance to the consumers
around the world.
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(d) Product development opportunity:-
Dairy products can be manufactured and packaged for export to
countries where Indian food enjoys basic acceptance. Various
opportunities can be explored such as-
The manufacturing may be carried out in contract plants in India. An option
to market the products in collaboration with local establishments or
entrepreneurs can also be explored. Products exhibiting potential include
typical indigenous dairy foods either not available in foreign countries or
products whose authenticity may be questionable.
(e) Ingredient manufacture:-
Export markets for commodities like dry milk, condensed milk, ghee and certain
cheese varieties are well established. These items are utilized as ingredients in
foreign countries. These markets can be expanded to include value-added
ingredients like aseptically packaged cheese sauce and dehydrated cheese powders.
Examples include-
Cheese sauce: Canned cheese sauce is made from real cheese to which milk,
whey, modified food starch, vegetable oil, colorings and spices may be
added. Cheese sauce is useful in kitchens for the preparation of omelet,
sandwiches, entrees, and soups. Additionally, cheese sauce is used as a
topping on potatoes and vegetables and may be incorporated in pasta dishes.

Cheese powders: Cheese powders are formulated for dusting or smearing of
popular snacks like potato chips, crackers, etc. They impart flavor and may
be blended with spices.
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(f) Technology-driven manufacturing units:-
Potential state-of-the-art contract-pack units are used specializing in
cheese slicing, or dicing line, cheese packaging, butter printing, and aseptic
packaged fluid products. These plants fulfill an essential need by providing a
centralized and specialized facility for hire by the units which cannot justify
capital investment but do need such services .















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DOMESTIC ECONOMIC CONDITIONS
Agriculture along with animal husbandry has been and will continue to be the
lifeline of Indian economy. India is the largest and one of the most economical
milk producers of the world (estimated production of 105 MT). It is the most
important sector particularly in poverty alleviation and employment generation.
This sector contributes close to one-fourth of Indias National income and total
work force engaged in agriculture is about 60 per cent.
About 70 million dairy farmers produce more than 50 per cent of the milk in the
country. Milk and milk products are one of the important components of the Indian
food industry. Consumption of milk and milk products is deeply rooted in our
tradition and it is an essential item during rituals, festivals and other auspicious
events.
Dairy market in India is very huge and according to an estimate, the unorganized
milk and milk product market is about Rs 470 billion while the market for
processed organized dairy segment is only Rs 10000 crores. The market is
currently growing at around 5% pa in terms of volume.
India with its population of more than 1 billion and diverse food habits, cultures,
tradition and religions, offers great market for milk and milk products. Milk
products with well defined quality characteristics and packaging in attractive
containers can be marketed at different places. Most dairy food delicacies are value
added products thereby,generating high profits. The market for traditional dairy
products in India is estimated to be US $ 10 billion, being the largest and fastest
growing segment of the Indian dairy industry.
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FISCAL, MONETARY AND TRADE
POLICY

FISCAL CONSOLIDATION.
The government is trying to impose fiscal consolidation so that monetary policy
can be more accommodative. Lower debts, deficits and interest rates are useful
traits for a more open economy to have. But rather than raising tax rates that push
up prices costs, a better approach to fiscal consolidation is to reduce wasteful
government expenditure. Plugging leakages and cutting allocations in areas
where budgets have not been spent would create better incentives to spend.The
Government has a poor record in spending effectively. Tax revenues have started
rising again with growth, but this boom should not be wasted like last one.

MONETARY POLICY.
A sharp rise in interest rates has severe consequences. The policy should
follow a path of gradual rise in interest rates conditional to inflation. The
knowledge of future rise will reduce inflationary expectations, if combined
with action to reduce costs.A short-term nominal exchange rate appreciation
reduces costs. This can be very useful to contain temporary spike in oil or food
prices and will become more with respect to inflation rates, which in turn will
reduce the real value of government debt and compensate for current higher
interest rates.

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TRADE POLICY.


Almost all of Indias dairy exports are meant for Asian and African countries. In
Asia, neighboring countries of South Asia and Middle East are the main buyers.
Around half of Indias exported dairy products are shipped to Bangladesh, the
United States, U.A.E, and Singapore .Despite many efforts, India has not been able
to reach the European markets, while the market in South America remains
untapped. Export figures clearly illustrate that the Indian dairy export is still
developing and the surpluses are neither systemic nor consistent. However, future
outlook for export of Indian dairy products is rather positive, as indigenous milk
products and desserts are becoming popular with the ethnic population, spread all
across the world and there is a strong likelihood that the export demand for these
products will grow.
Indian Dairy Exports by Product Types (2008/9)

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GLOBAL ECONOMIC ENVIRONMENT

Globalization is a key force in driving Indian economy and Indias dairy industry
products acknowledge the demands and preferences around the world by the end
consumers. New imperatives includes production systems issues such as animal
welfare , environmental footprint, and also product quality attributes such as
traceability and product safety. Dairy farmers need immediate solutions in order to
retain their competitiveness and access to global markets and for this innovation is
important so that the industry maintains a unified approach and adapts to the
changing nature of the people involved.

Despite having the worlds largest milk production, India is a very small player in
the international market. Prior to 1970s, India was an import dependent country
and anhydrous milk fat, butter and dry milk powders were imported to meet the
needs of urban consumers. However, with the implementation of Operation Flood
Programme in 1971, the situation changed significantly and imports of dairy
products reduced to very small quantities. After 2003, Indias dairy import has
dipped while exports have increased at a fast rate, yet Indias share in global dairy
trade still remains at minor levels of 0.3 and 0.4 percent for exports and imports
respectively. This is due to the direct consumption of liquid milk by the producer
households as well as the demand for processed dairy products that has increased
with the growth of income levels, and hence have left little dairy surpluses for
export.

While the decade of 200010 had seen positive level of dairy exports from India,
the next decade is predicted to be different and signs of change are already visible.
Due to low global dairy prices and high domestic costs, India is finding it
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difficult to sustain the exports of dairy products. On the other hand, factors
such as the reintroduction of subsidies by European Union, devaluation of
currency of New Zealand (a major dairy exporting country), combined with
continuing global economic downturn, have made dairy imports into India
attractive. It is predicted that dairy commodities will be the first largescale
imports and will be used by Indian dairy cooperatives and companies to make
reconstituted milk and other branded dairy products. This may be followed by
imports of branded dairy products.
In the past, India was not permitting free import of dairy products. As the
countrys dairy sector employs 90 million people, India has advocated that milk
and cheese be excluded from the scope of free trade agreement under
negotiations with the European Union. India is now facing strong pressure to open
up its market to dairy products from Europe. There are arguments suggesting that
removing such tariff would leave Indias farmers unable to withstand competition
from European imports. Often these imports have been highly subsidized and can
be sold at lower prices rather than domestically produced goods.

Other than the strong pressure from EU to open up its market, Indias dairy sector
may also become jeopardized by the proposed free trade agreement with
Australia and New Zealand. Currently, the plan is also to reduce the tariff rate for
New Zealand and Australia in order to encourage trade. It is feared that entering
into a free trade agreement with Australia and New Zealand would bring adverse
effects to the dairy sector in India, as the cost of milk production in Australia and
New Zealand is far lower than that of India due to their pastoral system. In
contrast, in India dairy animals are raised by concentrate feed and fodder, therefore
the cost of production is much higher.
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MAJOR PLAYERS
KEY PLAYERS AND OWNERSHIP
The dairy industry is dominated by the co-operative sector. About 60% of the
installed processing capacity is in the co-operative sector.Major players in the
dairy sector with dairy products include Gujarat Co-operative Milk Marketing
Federation (GCMMF) and Nestle .Others include Milkfood Limited, SmithKline
Beecham Limited, Indodan Industries Limited, H.J. Heinz Limited, Britannia,
Cadbury, etc.
All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana
in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh,
Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage
Foods, Indiana Dairy, Dairy Specialties, etc.
The major brands in milk and dairy products are:
GCMMF (Amul)
Nestl (Everyday)
Mother Dairy(Kream Kountry)
Britannia (Milk Man Dairy Whitener)
The major players in the dairy products market are:
National Dairy Development Board (NDDB)
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SmithKline Beecham Consumer Healthcare
Nestl India
Heinz India
Other players include:

Indiana Dairy Specialties
Jagatjit Industries Ltd.
Milk Powder/Dairy Whiteners :-
Major skimmed milk brands are-Sagar (GCMMF) and Nandini (Karnataka
Milk Federation).Amul Full Cream milk powder is a whole milk powder
brand.
Major dairy products manufacturers
Some of the major dairy products manufacturers in the country are as
follows:-
Company Brands Major Products
Nestle India
Limited
Milkmaid,Cerelac,
Lactogen, Milo,
Everyday
Sweetened condensed milk, malted foods, milk
powder and Dairy whitener.
Milk food
Limited
Milkfood Ghee, ice cream, and other milk products.
Smith Kline
Beecham
Horlicks, Maltova,
Viva
Malted Milkfood, ghee, butter, powdered milk,
milk fluid and other milk based baby foods.
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Limited
Indodan
Industries
Limited
Indana Condensed milk, skimmed milk powder, whole
milk powder, dairy milk whitener, chilled and
processed milk
Gujarat Co-
operative milk
Marketing
Federation
Limited
Amul Butter, cheese and other milk products



H.J. Heinz
Limited
Farex, Complan,
Glactose,
Bonniemix,
Vitamilk
Infant Milkfood, malted Milkfood
Britannia Milkman Flavoured milk, cheese, Milk Powder, Ghee
Cadbury Bournvita Malted food







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REGULATORY ISSUES
Government and the enabling environment
The dairy sector in India has traditionally been highly regulated. The government
projects and programmes for enhancing dairy development includes subsidies for
developing infrastructure for the purpose of milk processing and testing. The
Clean Milk Production Programme is a centrally sponsored scheme that is being
implemented by the State Department of Animal Husbandry, Dairying and
Fisheries with several objectives:-
i) The creation and strengthening of necessary infrastructure for the
production of quality milk and milk products at the farm level up
to the points of consumption

ii) Improvement of milking technique


iii) Training in order to enhance awareness on the importance of
hygienic milk production.
Several other rural development initiatives support dairying includes District
Rural Development Agency and womens self-help groups.
Policy and regulatory issues.
Agriculture is a State responsibility in India, and the State Department of Animal
Husbandry, Dairying and Fisheries, within the Ministry of Agriculture, is
responsible for all dairy activities. Consequently, the focus of the activities as well
as the budgetary allocation is biased towards agriculture rather than livestock.
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Enabling environment
National sector regulation
Key regulatory actors (ministries) Department of Animal Husbandry is under the
Ministry of Agriculture; hence the focus on
livestock is underemphasized, particularly in the
light of high value of the sector.
Price regulation Rice setting by the cooperatives.
Food safety Regulated through Milk and Milk Products
Order.
Informal regulations Very difficult to control quality in traditional
channels.
Huge premium on fat content of milk as
compared to formal regulations; thus buffalo
milk fetches much higher price.
Formal sector support
Domestic sector (national) Approaches being taken to modernize the
sector.
Subsidy support Various subsidies are available for milk
processing and testing infrastructure.
Inward investment promotion Very little investment is made for the promotion
of health or quality of milk.
Provincial/local
Key regulatory actors (ministries) State Department of Animal Husbandry,
Dairying and Fisheries is the implementing
agency at the state level.
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Informal regulation & transparency Lack of milk testing equipment and thus low
transparency, leading to low payments
Formal sector support Availability of veterinary services; paravets are
working with the Department of Animal
Husbandry. Dairying and Fisheries
Formal sector support Availability of services in remote areas through
the government support.
Donor/NGO roles Donor agencies are very actively involved in
livestock sector development







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Government Policy towards Dairy Development in India
Despite the importance of dairying in the Indian economy, government policy
towards this sector has suffered from lack of a clear and strong focus. Agriculture
including animal husbandry is a State subject under the Indian Constitution, and
the responsibility for the development of the sector lies with the state governments,
with the exception of specific tasks being assigned to the Central government. The
Royal Commission on Agriculture (1928) first recognized the role of draft animals,
the problem of excessive numbers of cattle, and the scarcity of feed and fodder in
the Indian agriculture. Government policies can be divided into three distinct
phases- pre-Operation Flood, post-Operation Flood, and post-reform period
and three distinct-areas -animal husbandry policy, policy on dairy processing
and marketing, and policy towards cooperatives.

Regulatory Framework.
The dairy industry was de-licensed in 1991 in order to encourage private
investment and flow of capital and new technology. Although de-licensing
attracted a large number of major players, concerns on issues like excess capacity,
sale of contaminated/ substandard quality of milk etc, it also induced the
Government to promulgate the MMPO (Milk and Milk Products Order) in
1992. Milk and Milk Products Order (MMPO) regulates milk and milk products
production in India. The order requires no prior permission for units handling less
than 10,000 litres of liquid milk per day or milk solids up to 500 tpa. The stringent
regulations, government control and licensing requirements for new capacities
have restricted large Indian and MNC players from making significant investments
in this product category. Most of the private sector players have restricted
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themselves to the manufacture of value added milk products like baby food, dairy
whiteners, condensed milk etc.
All milk products with the sole exception of malted foods are covered in the
category of industries for which foreign equity participation up to 51% is
automatically allowed..
Subsequent to de-canalization, exports of some milk based products are freely
allowed, provided these units comply with the mandatory inspection requirements
of concerned agencies like: National Dairy Development Board, Export Inspection
Council etc. The Bureau of Indian standards has prescribed the necessary standards
for almost all milk-based products, which are to be adhered to by the industry.
Pre-Operation Flood Period.
The budget allocation under five-year plans to the animal husbandry sector is an
indication of the prioritization of the sector. However, in most states, the bulk of
these allocations are eaten up by wages, salaries, and other administrative costs of
the government animal husbandry departments. The plan outlay (at current prices)
of central and centrally sponsored schemes under animal husbandry and dairying
has increased from Rs. 22 crore in the First Plan to Rs. 1,545.64 crore in the Ninth
Plan. The outlay for dairying increased from Rs. 781 crore in the First Plan to Rs.
900 crore in the Eighth Plan, and then declined in the Ninth Plan to Rs. 469.5
crore, which is substantially lower than the previous plan period.Moreover, these
figures are at current prices. The allocation of animal husbandry and dairying as a
percentage of total plan outlay varied from 0.98% during the Fourth plan to about
0.18% during the Ninth plan . In case of animal husbandry, a jump in plan outlay
was seen in the Fourth Plan, when it almost doubled compared to the previous plan
59 | P a g e



outlay. During this plan period, the efforts of crossbreeding programs and the
establishment of veterinary health care facilities were increased. The percentage
expenditure on the dairy sector compared to expenditure on animal husbandry and
dairying varied from about 23.2% in the Fifth Plan to 88.4% in the Sixth Plan .The
plan allocation for dairying declined to about 30% in the Ninth plan (one of the
lowest in all plans). The declining trend of expenditure for dairying during the
Ninth Plan was mainly due to the completion of OPERATION FLOOD. Although
dairy sector occupies a pivotal position and its contribution to Indian agriculture is
the largest, the planned investment made so far does not appear appropriate with
respect to its contribution and future potential for growth and development.
Outlay and expenditure of central and centrally sponsored schemes under
animal husbandry and dairying in India: First to Ninth Plan
(Rs. in crore)
Plan Total Plan
Outlay
Animal
Husbandry
Dairying Total
Outlay Exp. Outlay Exp. Outlay Exp.
First 1960 14.19 8.22 7.81 7.78 22.00 16.00
Second 4600 38.50 21.42 17.44 12.05 55.94 33.47
Third 8575.6 54.44 43.40 36.08 33.60 90.52 77.00
Annual Plan
1966-67
6625.4 41.33 34.00 26.14 25.70 67.47 59.70
Fourth 15778.8 94.10 75.51 139.0 78.75 233.10 154.26
Fifth 39426.2 - 178.43 - 54.03 437.54 232.46
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Sixth 97500.0 60.46
*
39.08 336.10 298.34 396.56
*
337.42
Seventh 180000.0 165.19
*
102.35 302.75
*
374.43 467.94
*
476.78
Annual Plan
1990-91
- 43.71 36.18 79.67 41.43 123.38 77.61
Annual Plan
1991-92
- 57.97 43.28 97.49 77.99 155.46 121.27
Eighth 434100.0 400.00 305.43 900.00 818.05 1300.00 1125.60
Ninth 859200.0 1076.12 - 469.52 - 1545.64 -
*
: Outlay recommended by the Planning Commission and it includes works
components








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AMULs Journey towards Excellence

AMULs journey towards excellence is marked by critical understanding of the
business environment in large emerging economies like, India, where markets have
to be developed by combining efficiency related initiatives with increasing
marginal base of suppliers and consumers. The basic essence of AMULs
remarkable progress is as follows:-

It combined market and social development in an emerging economy. It
recognized the inter-linkages between the various facets that governed the lives
of marginal milk farmers and the unmet needs of consumers. It changed the
supply chain paradigm in order to reduce costs for the consumers and at the
same time, increased returns for the suppliers.

It realized the fact that in order to achieve their organisation objectives, it
had to provide benefit to a large section of people both suppliers and
consumers. Large scale economy had the danger of failure due to poor control
and usage of a large amount of resources; however, it also had the advantage of
creating a momentum that would be necessary to bring more and more people
into the fold and thereby help in increasing number of suppliers and consumers.

It realized that its goals and objectives could be achieved only in the long run
and in order to fulfill this, it required developing of values in people and
processes that were robust, replicable and transparent by nature.

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It also realized the fact that cooperatives would not be independent and
viable in order to face competition if it were not financially sound. This
implied that AMUL had to develop distinct capabilities that would be capable
of delivering competitive advantage to its operations. This would include long
term cost containment, world-class deployment of technological resources and
R&D, and better leveraging of scarce resources.

The following are the characteristics of the unique movement that has helped
AMUL in building a culture of excellence and reaching pinnacle of success.
The salient features of this approach also termed as ANAND PATTERN are
as follows:-

Leadership.

The FORERUNNER of this movement was Tribhuvandas Patel

who had led the
movement for the formation of cooperatives of small and marginal farmers in order
to compete against investor owned enterprises, and keep bureaucracy away.
Tribhuvandas was the first Chairman of the cooperative..An important aspect
of his remarkable management style was his gentleness and ability to repose trust
in people he gave complete autonomy to managers of the union and earned
complete commitment from them. Verghese Kurien

was one such manager who
first shaped the destiny of the Union and then that of the milk movement
throughout the country.
Kurien emerged as the father of the dairy movement in India. He managed to
keep the government and bureaucrats away from the cooperative

and gave shape to
the modern structure of cooperatives, worked tirelessly to establish the values of
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modern economics, technology and concern for farmers within the cooperative. He
interfaced with global financing agencies to build new projects at AMUL. He
worked with the Unions to bring the best of technology to the plants. In short,
Kurien shaped the destiny of the milk movement in India through NDDB (as its
Chairman) and particularly at GCMMF and cooperatives in Gujarat. He helped
build a modern organization with professional management systems that would
support the aspirations of farmers and customers and help in fulfilling the dream
of making India the milk capital of the world. Kurien created a cadre of highly
capable managers to whom he had delegated both management as well as
commitment.
Tribhuvandas knew that his fledgling cooperative needed a technocrat manager
who shared his concern for the farmers and also had the tenacity to organize
marginal producers. Verghese Kurien had the requisite skills and also had strong
linkages with the government. He was charismatic in his communication and
committed in his effort. He would travel through the villages and work out the
details of how the milk collection cooperative would work, how trucks would
pickup milk from village societies, how the cattle would have to be taken care of
and how all of this would help the poor milk farmer come out of poverty and the
clutches of the middleman.
Tribhuvandas and Kurien were able to convince the government of the value of
their efforts and secured funding for several projects of the cooperative. They were
slowly laying the foundation of a modern dairy industry in India. Membership
of the cooperative started to increase, professional managers started to join AMUL
and production capacity at AMUL started to expand .
Kurien had transformed AMUL from a dream into a major industrial entity
a network of plants, cooperative societies, research centers, an institute for training
future managers in rural management, secondary services like veterinary/artificial
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insemination expertise/feed factory etc. Subsequently, he could convince the
government to replicate the AMUL model in almost all states of the country.

Strategy.

AMULs business strategy is driven by its twin objectives of
(i) Long-term, sustainable growth to its member (farmers), and
(ii) Value proposition to a large customer base by providing milk and other
dairy products a low price.

Its strategy, which has evolved over time, comprises of the elements described
below:-

Simultaneous Development of Suppliers and Customers:- Since the early stages
of foundation of AMUL, the cooperatives realized that long-term sustained growth
was contingent for matching supply and demand. Further, given the primitive state
of the market and of the suppliers of milk, their development in a coordinated
manner was critical for the continued growth and development of the industry. The
organization also recognized that because of the poor infrastructure in India, such
development could not be left to market forces and certain proactive interventions
were required.AMUL and GCMMF adopted a number of strategies to achieve high
growth. For example, when AMUL was formed, majority of consumers had
limited purchasing power and were value conscious, undertaking very low levels
of consumption of milk and other dairy products. Thus, AMUL adopted a low
price strategy to make their products affordable and guarantee value to the
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consumers. The success of this strategy is well recognized and remains the main
crux of AMUL's strategy even today.
On the supply side, the member-suppliers were typically small and the marginal-
farmers had severe liquidity problems, were illiterate and had no prior training in
dairy farming. AMUL and other cooperative Unions adopted a number of
strategies to develop the milk supply and assure steady growth.

Firstly, in the short term, the procurement prices were set in such a manner to
provide fair and reasonable returns.
Secondly, because of liquidity problems, cash payments for milk supply was
made with minimum of delay. For the long-term, the Unions followed a multi-
prolonged strategy of education and support.

The dual strategy of simultaneous development of the market and member farmers
has resulted in parallel growth of demand and supply at a steady pace and in turn
assured the growth of the industry over an extended period of time.

Cost Leadership:- AMULs objective of providing a value proposition to a large
customer naturally led to a choice of cost leadership position. Given the low
purchasing power of the Indian consumers and the marginal discretionary spending
power, the only viable option for AMUL was to price its products as low as
possible. This in turn led to focus on costs and had important implications for
managing its operations and supply chain practices.

Focus on Core Activities: - AMUL was initially not in a position to be an
integrated player starting from milk production to delivery to the consumers.
Accordingly, it chose a strategy to focus on core dairy activities and rely on
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third parties for other complementary needs. This philosophy is reflected in
almost all phases of AMUL network spanning across R&D, production, collection,
processing, marketing, distribution, retailing etc.
For example, AMUL focused on processing of liquid milk and its conversion to
variety of dairy products and the associated research and
development.Paradoxically, logistics of milk collection and distribution of
products to customers was managed through third parties.
However, it played a proactive role in making support services available to its
members wherever it found that markets for such services were not developed.
For example, in the initial stages, its small and marginal member farmers did not
have access to finance, veterinary service, knowledge of basic animal husbandry
etc. Thus to guarantee continued growth in milk production and supply, AMUL
actively sought and worked with partners to provide these required services
Managing Third Party Service Providers:- It was recognized by GCMMF and
AMUL that the core activity for the Unions lay in processing of milk and
production of dairy products. The Unions focused efforts on marketing activities,
and related technology development. All other activities were entrusted to third
party service providers. These include logistics of milk collection, distribution of
dairy products, sale of products through dealers and retail stores, some veterinary
services etc.The Unions and GCMMF have developed a number of mechanisms to
retain control and assure quality and timely deliveries. This is particularly
important for perishable products like liquid milk.

Financial Strategy:- AMULs financial strategy is driven primarily by its desire to
become self-reliant and thus it depends on internally generated resources for
funding its growth and development. AMULs financial strategy may thus be
characterized by two elements:-
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(a) Retention of surplus to fund growth and development, and
(b) Limited or no credit transactions, i.e., all transactions are essentially cash
only.

For example, payment for milk procured by village societies is to be made in cash
and within 12 hours of procurement (most, however, pay at the same time as the
receipt of milk). Similarly, no dispatches of finished products are made without
advance payment from distributors etc. This was particularly important, given the
limited liquidity position of farmer/suppliers and the absence of banking facilities
in rural India. This strategy strongly helped AMUL implement its vision of growth
and development.

Organization

AMUL is organized as cooperative of cooperatives (i.e., in each village society, a
cooperative in itself, is a member of the AMUL cooperative) thereby deriving the
advantage of economies of scale and uniformity in decision making. The founders
of Kaira Union realized that in order to fulfill their objectives, a large number of
marginal farmers had to benefit from the cooperative for which a network of
stakeholders had to be built. And once built, it had to expand so as to draw more
rural poor to undertake dairy farming as a means of livelihood. The network had to
have several layers organizational network where the voice of the owners
governed all decisions, physical network of support services and product delivery
process and a network of small farmers that could deliver the benefit of a large
corporation in the market place. Moreover, a process had to be put in place to build
these networks.
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A loose confederation was developed with GCMMF representing the voice of
the customers, the Unions representing the milk processors and the village
societies representing the farmers. Competition in these markets ensured that the
entire network was responding to the requirements of the customers at prices that
were competitive. The task of ensuring that returns to the farmers was in
accordance with the objectives with which the cooperatives were setup and was
achieved through representation of farmers at different levels of decision making
throughout the network. In order to ensure that most returns from sales went to the
producers, the intermediaries had to operate very effectively and on razor thin
margins. This turned out to be a blessing in disguise the operations remained
very lean and started to provide cost based advantage to the entire network.
AMUL established a group to standardize the process of organizing farmers into
village societies. The group had to train the VS to run the cooperative
democratically, profitably and with concern for its members alongwith
establishing the criteria for selecting members This included establishing
procedures for milk collection, testing, payment for milk purchased from member
farmers and its subsequent sale to the union, accounting, ensuring timely collection
and dispatch of milk on milk routes established by the union, etc. The Village
Societies Division at AMUL acts as the internal representative of village
societies in their dealings with the Union. Cooperative development programmes
at the village level for educating & training its members have become a significant
part of the strategy to build this extensive network.
The organization structure of AMUL allows effective utilization of resources
without losing the democratic aspiration of individual members. Such a system
needs charismatic leadership to achieve consensus across issues which is a process
that has long-term benefits for any organization.
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Marketing .
GCMMF is the marketing arm of the network and manages the physical
delivery and distribution of milk and dairy products from all the Unions to the end
customers. GCMMF is also responsible for all decisions related to market
development and customer management.
Introduction of new products and choice of product mix and markets should be
consistent with the growth strategy. GCMMFs demand growth strategy is
characterized by two key elements:-

(i) Developing markets for its high value products by graduating customer
segments from low value products, and
(ii) Maintaining a healthy level of customer base for its base products.
This strategy requires GCMMF to allocate sufficient quantity of milk supply to
low value products, thereby sacrificing additional profits that could be generated
by converting low value products to high value products.
It is worthwhile noting that advertisement & promotion was not considered to
be enough of value addition and hence the budget was kept relatively small.
Instead, GCMMF preferred a lower price with emphasis on efficiency in
advertising. In this context, GCMMF provides umbrella branding to all the
products of the network.

For example, liquid milk as well as various milk products produced by different
Unions is sold under the same brand name of AMUL. Interestingly, the advertising
has been centered on building a common identity (e.g, a happy & healthy cartoon
AMUL girl) and evoking national emotions (e.g., the key advertising slogan says
AMUL - The Taste of India).

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GCMMF also plays a key role in working with Unions to coordinate the supply of
milk and dairy products. It procures it from multiple production plants , which in
turn procures it from the Village Societies registered with each Union. GCMMF
distributes its products through third party distribution depots that are managed by
distributors who are exclusive to GCMMF. These distributors are also responsible
for servicing retail outlets all over the country. GCMMF sales staff manages this
process.

Operations & Supply Chain Management.

The strategies, designs and practices in AMULs network are strongly driven by
the objective of establishing and operating an efficient supply chain starting from
milk production and procurement to product delivery to the end customers.
Management of this network is built around two key elements

(a) Coordination of the diverse elements of the network and,
(b) Use of appropriate technology that includes product, process, information
technology and managerial practices and systems.

The various features of these elements that have contributed to the evolution of an
efficient supply chain are-

Coordination for Competitiveness

Robust coordination is one of the main reasons for the success of operations
involving such an extensive network of producers and distributors at GCMMF.
Some interesting mechanisms exist for coordinating the supply chain at GCMMF.
These range from ensuring fair allocation of benefits to various stakeholders to
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coordinated planning of production and distribution. More importantly, the reasons
for setting up of this cooperative is available to everyone in this large network
organization. Employees, third part service providers, and distributors are
constantly reminded that they work for the farmers and the entire network strives
to provide the best returns to the farmers who are the real owners of the
cooperatives. There appears to be two critical mechanisms of coordination that
ensures that decision making is coherent and that farmers gain the most from this
effort. These mechanisms are:


Inter-locking Control

Coordination Agency: Unique Role of Federation

Inter-locking Control

Each Village Society elects a chairperson and a secretary from its member farmers
of good standing to manage the administration of VS. 9 of these chairpersons are
elected to form the Board of Directors of the Union. The Managing Director of the
Union, reports to the chairperson and the board. All chairpersons of all the Unions
form the Board of Directors of GCMMF. Each individual organization, the Union
or GCMMF, is run by professional managers and highly trained staff
A key reason for developing such an inter-locking control mechanism is to
ensure that the interests of the farmer is always kept at the top of the agenda
through its representatives who constitute the Boards of different entities that
comprise the supply chain. This form of direct representation also ensures that
professional managers and farmers work together as a team to strengthen the
cooperative. This helps in coordinating and speeding decisions and
information across different entities.
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Coordination Agency- Unique role of Federation.

GCMMF along with being the marketing and distribution arm of the Unions also
plays the role of a coordinator to the entire network within the State coordinating
procurement requirements with other Federations , determining the best production
allocation for its product mix from amongst its Unions, managing inter-dairy
movements, etc. It works with two very clear objectives:-
i) to ensure that all milk that farmers produce gets sold in the market either as
milk or as value added products, and,
ii) to ensure that milk is made available to an increasingly larger section of the
society at affordable prices.
Different Unions has to plan its production in such a way that market requirement
matches with unique strengths of each Union and that each of them also gets a fair
return on its capacity. GCMMF decides on the product mix at each Union location.
Some considerations that govern this choice are the strengths of each Union,
demand for various products in its region as well as the country, long term strategy
of each Union, procurement volumes at different Unions, distribution costs from
various locations, etc. Demand for daily products and supply of milk vary with
seasons. Further, demand and supply seasons run counter to each other making the
planning problem more and more complicated. GCMMF is guided by two main
objectives in making allocations to Unions
(i) Maximizing the network surplus, and
(ii) Maintaining equity for the surplus realized among unions.


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Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), owner of
Amul brand, is planning to increase milk prices in the range of 5-7 per cent as a
result of inflation for different categories of milk anytime this month .
Due to inflation the costs have gone up for the farmers. In order to keep farmers
interested in dairy industry, AMUL had to revise prices. However, the price rise
will not be as high as it was one and a half years back. The milk prices are
expected to increase in the range of 5-7 per cent anytime this month
The impact of the price rise would lead to an increase of around Rs 2 per litre
in different varieties of milk.. Currently, GCMMF pays an aggregate Rs 32 per
litre Rs 21-22 per litre for buffalo milk (7 per cent fat) and cow milk respectively.
Amul pays maximum procurement price in the entire country and that is the
reason, the number of member farmers with GCMMF has increased close to 3.1
million. GCMMF's turnover for the year stood at around Rs 11,660 crore, having
about Rs 100 crore worth of exports. The turnover has since then grown by about
20 per cent on a year-on-year basis.

AMUL
ALL SET
TO RISE
PRICES
!!!!!!!

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The turnover for Amul brand, is expected to be more than Rs 16,000 crore. Next
year AMUL is looking at better growth of about 25 per cent with focus on some
new launches and increased sales of milk.




















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Amul chalks out investment plan of Rs 3000 cr for the next five years
GCMMF has chalked out the investment plan for the next five years. The
federation is planning to invest Rs 3,000 crore over the next five years towards
new product development and capacity enhancement.
Amul is planning to set up at least six new milk processing all over India. The
plants in Delhi, Mumbai and Saurashtra are likely to start by this year end while
plants in Kolkata are also being planned.
GCMMF has a combined milk processing capacity of around 14.5 million litres per
day, which it plans to increase to about 18 million litres per day over the next five
years.
AMUL is all set to the launch its whey protein malt beverage - Amul PRO.With
this, Amul is set to compete with some of the chocolate-flavoured milk additive
brands such as Boost, Complan, Bournvita and Horlicks in the Rs 2500-crore to Rs
3000-crore milk additives market. Amul aims to achieve the target Rs 300 crore
sales or 10 per cent of market share in the first year of its launch. It is superior as
compared to other brown health drinks brands in nutrition value and cost. This
makes nutrition affordable to consumers. Amul PRO is aimed to cater to children
between age group of 2 years to 15 years.
Amul has achieved a total turnover of Rs 11,660 crore for the year 2011-12 and
holds commanding market share in branded butter market in India with 85 percent
share, while the federation is exploring milk additive market through its latest
launch.

AMUL- THE ROAD AHEAD
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COMPANY ANALYSIS

INTRODUCTION

AMUL means priceless in Sanskrit. The brand name Amul, has come from
the Sanskrit word Amoolya.
Amul products have been in used by millions since 1946. Today, Amul is the
leading brand of INDIA. It is a brand name that is managed by an apex cooperative
organization named Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), jointly owned by some 3.03 million producers of milk in Gujarat,
India.

BRIEF HISTORY OF AMUL COMPANY:

Formed in 1946 by Dr. Verghese Kurien.
It was founded in Gujarat.
Full name Anand milk Producers Union Ltd.
Managed by GCMMF (Gujarat Cooperative Milk Marketing Federation).
Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and its products in the world.




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The Amul Model refers to a three-tier cooperative structure. This structure consists
of the following - a Dairy Cooperative Society placed at the village level, affiliated
to a Milk Union at the District level which in turn is further affiliated into a Milk
Federation at the State level. The above three-tier structure was designed or set-up
in order to delegate authorities and the various functions like milk collection which
is done at the Village Dairy Society, whereas Milk Procurement & Processing is
done at the District Milk Union and Milk & Milk Products Marketing at the State
Milk Federation. This not only helps in eliminating internal competition, but also
ensures that economies of scale are achieved. The above structure was first evolved
at Amul in Gujarat and thereafter it was replicated all over the country under the
Operation Flood Programme. It is also known as the Amul Model or Anand
Pattern of Dairy Cooperatives.
THE THREE-TIER AMUL MODEL HAS PLAYED A VITAL ROLE IN SPURRING OUT THE
WHITE REVOLUTION IN THE COUNTRY.

KEY POINTS:
Inspiring Leadership and Consuming Values.
Building Networks.
Coordination for Competitiveness.
Technology for Effectiveness.
THE MANAGEMENT PARADIGM:
ANAND PATTERN
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Distribution model of Amul
There are essentially 2 methods of distribution used by Amul, namely, the
downstream channel and the direct distribution channel. The Downstream
Channel is the distribution part of the supply chain, starting from manufacturing to
the retailing. The direct distribution channel comprise of Amul Preferred Outlets
(APOs), which sell Amul products directly to the consumer. These are shown in
the flowchart below:


DOWNSTREAM CHANNEL

First leg of transport is from the manufacturing unit to the company depots.
Second leg is from the depot to the WDs (wholesale dealer), and
Third leg is the flow of goods from WDs to retailers.
Manufacturing
Depot 1
Depot 2
Depot 'n'
APO1
APO2
APO 'n' Customers
WD1
WD2
WD 'n'
Retailer 1
Retailer 2
Retailer 'n' Customers
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DIRECT DISTRIBUTION CHANNEL
With the products being highly perishable, the supply chain ought to have
maintained correct temperature, humidity, etc, and the chain should move faster.
To reach out to its consumers more directly and let them enjoy the total brand
experience, Amul has come up with Amul parlours. These are called Amul
preferred Outlets. These parlors are set at prominent locations such as offices,
college campuses, temples, and metros.
Amul has a franchisee plan for Amul parlours. The interested party needs to pay a
deposit of Rs.1.5 lakh to GCMMF in order to get this franchisee. Amul provides it
with the necessary equipment and products, and a distributor is assigned through
which the transactions can be carried out on a regular basis. These Franchisees get
a higher margin as compared to the other retailers, as there is no wholesaler
involved in this channel.











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Amul today needs no further introduction; it is a brand which has spurred the white
revolution in India. It is a brand which not only speaks about the essence of the
members in the company, but also tells the need for grooming and providing the
requisite knowledge to its members in a specified field. It is the organisational
structure, policies and strategies framed and implemented that have helped evolve
AMUL as a giant in the Indian dairy industry.
People in India are emotionally attached to this brand which evolved in 1946.
They have framed certain perception about the brand with respect to various
parameters. They are as follows:-
o Personality : INDIAN.
o Relationship : SOCIABLE.
o Culture : COOPEARATIVE , SHARING.
o Physique : TASTE AND QUALITY.
o Reflection : VALUE ORIENTED.
Amu has formulated certain strategies for uplifting its brand value. They are as
follows:-
It combined market and social development Amul has very well
realized the essence of its suppliers and consumers. The dual strategy of
market and the concerned farmers members of the Amul family has
resulted in parallel growth of demand and supply at a steady pace. They
realized the potential of the untapped portion in this market arena and
focused on world class deployment of technological resources, scarce
resources and multi prolonged strategy of education.


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Market Penetration Strategy:

Amul is all set to come up with 10,000 `Amul Parlours' all across the
country.
Amuls next strategy is to acquire a shelf in the Wal-Mart (yet to come).

Market Development Strategy:
Amul has shifted its focus to rural markets and smaller towns.
Amul has captured the market of diabetic and health conscious people
through sugar free ice-creams.
Amul has also increased its market base for milk through a new version
the Amul Tazaa. Tazaa milk has a longer shelf life when compared to
normal fresh milk.



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AMULs Best Practices :-
Umbrella Brand Strategy.
The GCMMF skillfully avoids inter-union conflicts through this strategy by
giving every union and sub-brand the opportunity to contribute in the
development of products.

BUSINESS MODEL:-
o Follows a unique business model.
o Protect the interest of milk-producing farmers.

ORGANISATIONAL STRUCTURE:-

o The cooperative came to be known as the "Anand pattern" cooperative
system.
o It has a three-tier structure.
o Each tier is economically independent.

PRODUCT DEVELOPMENT:-
o Cooperative system.
o Profitability.
o Commitment towards farmers.


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IMPROVEMENT PROGRAMS:-
o Employees of the GCMMF meet every Friday between 10 to 11 am to
discuss quality issues at a depot.
o Every meeting has a Purpose, Agenda and Limit (PAL).

CONSTANT INNOVATION:-
o Cooperatives ensure that the sequence and product mix of high value brands
is consistent with Amuls philosophy of low pricing and affordability.

COORDINATION:-
o GCMMF ensures the distribution of final products by coordinating with
retailers and dealers.
o Unions take care of the supply side which includes- monitoring milk
collection, supplying animal feed, educational activities, etc, all ensuring
that the product reaches the consumer on time.









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The term brand reflects different things to the different roles of buyers and sellers,
with buyers generally associating brand with a product or service, and
merchants associating brand with identity. Brand can also help in identifying
the company behind the specific product. For example- that's not just a biscuit,
that's Britannia biscuit. This use of brand puts a "face" behind the name, so as to
speak. For the typical merchant, branding is a way of talking everything that is
good about the company - positive shopping experience, professionalism, superior
services, product knowledge, whatever the company decides is important for a
customer to believe about the company - and wrapping these characteristics into a
package that can be evoked by the brand as signifier.

BRAND ELEMENTS:-


Keller Brand Elements Model

ALL ABOUT BRANDING

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Brand Name: Amul is the acronym of Anand Milk Union Limited.
The Logo:
The Tagline / Slogan: The taste of India.
The Jingle: Utterly, butterly, delicious..Amul.
The Character / Mascot: The Amul moppet has been the
mascot of Amul since 1967, sporting a young girl in red
polka dotted frock with 'utterly butterly delicious jingle.
The URL: www.amul.com.
Mental Map to Brand Mantra:-
Mental Map:- A mental map is generally a visual depiction of the core
brand association. From this mental map, brand Mantra can be defined .
Brand mantra for Amul butter is given here:-



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BRAND VALUES & BRAND EQUITY:-
Brand Values: The core values of the company are-
To provide remunerative returns to farmers, give the best quality product
to consumers, and at the best possible price.

SOURCES OF BRAND EQUITY:-
The Core team and the core values associated with the brand is still the
same that has helped them to maintain consistency in communication.
Strategy of Umbrella branding has also helped established the brand
firmly.
Amuls utterly butterly campaign has the track-record of being the longest
running campaign.
Playing the role of a social observer through its weekly comments on Amul
girl.
Taste of India tagline is in line with their positing strategy.

BRAND HOUSE AND HOUSE OF BRAND:-

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BRAND ARCHITECTURE:-








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BRAND PORTFOLIO:-





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PRODUCTS




THE PRODUCT RANGE:-
UHT milk.
Milk powders.
Fresh milk.
Chocolates.
Liquid Milk (nine varieties).
Milk Powders (five varieties).
Butter.
Ghee (two varieties).
Bread Spread.
Cheese (three varieties).
Cocoa Products (two varieties).
Sweets (three varieties).
Ice Cream (several varieties).
Condensed Milk.
Edible Oil (nine varieties).
Mineral Water.
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Fruit Drinks.
It can further be enumerated as:-
Bread Spreads.
Amul Butter, Amul Lite, Delicious Table Margarine (Or Butter substitute).

Milk Drinks .
Amul Kool Milk shake, Amul Kool, Amul Kool Caf, Kool Koko, Nutramul
Energy Drink, Amul Kool chocolate milk, Amul Kool flavoured Bottled Milk,
Amul Kool Flavoured Tetra Pack, Amul Masti Spiced Buttermilk, Amul Lasee,
Amul Kool Thandai .
Powder Milk .
Amul Spray Infant milk Food, Amul Instant Full Cream Milk Powder, Sagar
Skimmed Milk Powder, Sagar tea Coffee whitener.
Amul Fresh Milk, Amul Gold Milk, Amul Taaza Double toned Milk, Amul lite
slim and trimmed milk, Amul Fresh Cream, Amul Shakti Toned Milk, Amul
Calci+, Amul butter Milk.
Cheese .
Amul Pasteurised Processed Cheese, Amul cheese Spread, Amul Emmental
Cheese, Amul Pizza Mozzarella Cheese, Gouda Cheese.
For Cooking .
Amul Sagar Pure Ghee, Cooking Butter, Amul Malai Paneer, Utterly
Delicious Pizza, Mithai Mate, Masti Dahi, Pro Biotic Dahi.
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Desserts .
Amul Ice Creams, Amul Shrikhand, Amul Mithaee Gulab Jamuns, Gulab
Chocolates, Amul Basundi, Amul Yogi Yoghurt.
Health Drinks.
Nutramul, Amul Shakti Health Food Drink.
The diagrammatic representation is as follows:-






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INDUSTRY BASED MARKET SEGMENTATION:-



SEGMENTATION
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CUSTOMER BASED MARKET SEGMENTATION:-


KIDS:-
Amul Kool .
Chocolate Milk.
Nutramul Energy Drink.
Milk Shake.

WOMEN:-
Amul calci

YOUTH:-
UtterlyDelicious Pizza.
For Kids
For
women
For youth
For calorie
conscious
For Health
conscious
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Amul Emmental Cheese.
Amul Cheese Spreads.

HEALTH CONSCIOUS:-
Nutramul .
Amul Shakti Health Food Drink .

SEGMENTATION OF MILK DRINKS:-

Wide range of product categories cater to consumers across all market
segments. For example, Amul Kool is targeted at children, while teenagers
prefer Kool Caf, as it has a cool image associated with it.
Segmentation is not an easy task in case of curd and low fat products, due to
mixed audience, various culinary applications , eg. ghee, butter and cheese.

Segmentation is done keeping a number of factors into consideration like:-
Youth.
Children.
Urban Family.
Interests and preferences.

TARGETING OF MILK DRINKS:-

Amul has targeted its milk products to various segments of the market.
Products Like Nutramul Energy Drink, Amul Kool chocolate milk, Amul Kool
flavoured Bottled Milk are targeted for kids aged 4-16 years especially, school
going kids.
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Products such as Amul Kool Milk shake, Amul Kool, Amul Kool Caf, Kool
Koko, Nutramul Energy Drink are mainly targeted for college going young
people.
Products such as Amul Masti Spiced Buttermilk, Amul Lassee, Amul Kool
Thandai are targeted in specific seasons.
The steps involved in targeting are as follows:-.



MARKET POSITIONING:-

A mass market player, no premium offerings .
USP Quality alongwith affordability .
Up against niche players value addition to customers.
Sheer size and scale of operations.
New offerings for health conscious and vibrant India Health and energy
drinks , Stamina, Chocolates , Ice-cream,sugar-free brand called Choco-Mini
to target diabetic persons.

Define The
Segments
Define Targeting Of
Milk Drinks
Target audience
description
List the benefits of
the product
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AMUL:-

Amul Milk has positioned itself as a healthy substitute for Soft Drinks
(Carbonated Drinks).
Ready to serve Milk Products (Amul Kool) have been positioned.
Position in the beverages market with the introduction of milk shakes.
Brings goodness of Coca (Chocolate and Coffee) all year around.
Different packaging is meant to attract generation Y.
















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FOUR PS OF AMUL (PRODUCT, PRICE, PLACE AND PROMOTION)




Product specification:- Meets AGMARK standards, and
BIS specification .no IS. 13690.1992.

Product personality:- It is a UNISEX product.
Unique USP (unique selling point):- USP of Amul is its TASTE.
Amul butter is made from fresh cream by continuous butter making modern
machines (Purely vegetarian).





4 Ps
PRODUCT
ANALYSIS
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The factors involved in pricing the product are as follows:-
Cost of milk,
Processing cost,
Labour cost,
Transportation,
Sales promotion cost ,
Taxes etc.





o Amul products are generally found in: - Retail shops, Modern format stores,
Amul Preferred outlets( APOs), Scooping Parlours, online sales through
company website.
PRICE
PLACE
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PROMOTIONAL ACTIVITY:-

Given this wide product portfolio, Amuls approach is to promote its brands
in a rotational cycle of two to three years.
After ice-creams were launched in 1996, the category was re-visited in 1999
in order to improve availability of the products and make it affordable.
The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of
Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the
focus is on Amul Koko cold chocolate drink .
Amul uses a variety of media to communicate .
The most famous is the billboard campaign.
The endearing polka dressed girl and the added pun at various issues
increased brands fan following.
Below-the-line activity has grown too such as the Amul food festival,
which is being held for the last four years between October and December in
about 50,000 retail outlets.
The Chef Of India promo invites hotel chefs to come up with recipes using
as many Amul products as possible, and is conducted at city, state and
national level.


PROMOTIONAL
ACTIVITIES
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PROMOTION IS CARRIED OUT THROUGH THE FOLLOWING
MEANS OF MEDIA:-

Media Platform: Amul has used following media platform for creating a high
brand equity:-
1. Broadcast Media: Television.
2. Non Broadcast Media: Cinema-
amul.tv.com.
3. Print Media: Newspapers, General interest
Magazines.
4. Internet or Social Media: Independent
websites, Portals, CSR activities.
Outdoor Media: Hoarding / Billboards.












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is carried out through:-

Word of mouth
Adverisements on Aakashwani
Posters
Hoardings
Road shows









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CUSTOMER RELATION:-

Amul has adopted Integrated Marketing Communication.

Communication Strategies:- Amul mainly uses indirect action advertising in
order to create a long term relationship with the consumers & has never adopted
aggressive selling practices.
Mainly two type of communication strategy was adopted by Amul:-
1. Consumer Advertising, and
2. Institutional Advertising.

People in India are emotionally attached to this brand which was evolved in 1946.
They have framed certain perceptions about this the brand with respect to various
parameters. They are as follows:-
o Personality : INDIAN.
o Relationship : SOCIABLE.
o Culture : COOPEARATIVE , SHARING.
o Physique : TASTE AND QUALITY.
o Reflection : VALUE ORIENTED.

CUSTOMER
RELATION
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Image portrayed:-

Amul has portrayed its image as a symbol of dairy products. Amul is one of
the leading food brands of INDIA and also a proven model for dairy
development. The strong communication mix has helped Amul achieve its
pinnacle of success by creating a strong linkage between the different actors
in the following way:-







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BCG (BOSTON CONSULTING GROUP) GROWTH SHARE MATRIX
FOR READY TO DRINK AMUL MILK BEVERAGES:-

The BCG model is a well-known portfolio management tool used in product life
cycle theory. BCG matrix is generally used to prioritize as in which products
within company product mix are getting more funding and attention. This BCG
matrix model is a - portfolio planning model developed by Bruce Henderson of the
Boston Consulting Group in the early 1970's. The BCG model is based on the
classification of products (and implicitly also company business units) into four
categories based on combinations of market growth and market share relative
to the largest competitor.
Each product has its own (product) life cycle, and each stage in the life-cycle
represents a different profile of risk and return. A company should maintain a
balanced portfolio of products, having a balanced product portfolio includes both
high-growth products and low-growth products. A high-growth product is - for
example, a new product for which we are trying to obtain share of the market. It
takes some effort and resources to market the product, to build distribution
channels, and sales infrastructure, but it is the product that is expected to bring
gold in the future. A low-growth product is- for example, a well known established
product known by the market. Characteristics of this product do not change much,
customers know what they are getting, and the price do not change much either.
This product has only limited budget that can be used for marketing. It is the
milking cow that brings in the constant flow of cash.
BCG MATRIX
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Placing products in the BCG matrix results in 4 categories in a portfolio of the
company:

BCG STARS (high growth, high market share):-
o Stars are defined as having high market share in a growing market.
o Stars are the leaders in the business but they still need a lot of support for
promotion and placement.

BCG QUESTION MARKS (high growth, low market share):-
o These products are in growing markets but have low market share.
o Question marks are essentially new products where buyers are yet to
discover them.
o The marketing strategy is to get markets to adopt these products.
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o Question marks have high demands and low returns due to low market share.
o These products need to increase their market share quickly or in due course
of time they become dogs.
o The best way to handle Question marks is to either invest heavily in them
to gain market share or to sell them.

BCG CASH COWS (low growth, high market share):-
o Cash cows are in a position of high market share in a mature market.
o If competitive advantage has been achieved, cash cows have high profit
margins and generate a lot of cash flow.
o Because of the low growth, promotion and placement investments are low.
o Investments in supporting infrastructure can improve efficiency and increase
cash flow.
o Cash cows are the products that businesses strive for.

BCG DOGS (low growth, low market share) :-
o Dogs are in low growth markets and have low market share.
o Dogs should be avoided and minimized.
o Expensive turn-around plans usually do not help.


Some limitations of the BCG matrix model include:-
o The first problem is how to define markets and get data about the market
share.
o A high market share does not necessarily lead to profitability at all times.
o The model employs only two dimensions market share and product or
service growth rate.
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o Low share or niche businesses can be profitable too. (some Dogs can be
more profitable than cash Cows.
o The model does not reflect growth rates of the overall market.
o The model neglects the effects of synergy between business units.
o Market growth is not the only indicator for attractiveness of a market.

An analysis of annual sales figures for the Amul RTD product line has helped in
figuring out the BCG matrix for the RTD milk beverage product line which
signifies that Amul Kool Milk Shaake and Amul Lassee have the highest sales
growth than other products in this product line. Amul ButterMilk and Kool Koko
chocolate milk dispaly the next highest sales performance.

PRODUCT
LINE
DISTRUBUTION
SALES (in lakhs)
GROWTH
RATE(%)
2010 2009
Kool Caf . 24 21 14%
Butter Milk . 106.24 86.64 23%
Kool Milk
Glass Bottle .
78.63 66.25 19%
Chocolate Milk
.
24.62 20.16 22%
Amul Lassee . 57.1 41.3 38%
Kool
Milkshake.
31.47 22.23 42%
TOTAL . 322.06 257.58 25%



The product line of Ready to Drink Amul milk beverages can be categorized as
follows:-
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BCG Stars: Amul Masti ButterMilk, Amul Lassee.
BCG Question Marks: Amul Kool Caf, Amul Kool Milk Shake.
BCG Cash Cow: Amul Kool Flavoured Milk, Amul Kool Koko.
BCG Dog: Not Applicable.





















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SWOT ANALYSIS:


S W


O T
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Butter-
Britannia.
Nestle.
Cheese-
Britannia.
Baby Food-
Nestle.
Heinz.
Dairy Whitener Segment-
Nestle.
Britannia.
Ice creams-
HLL .


Britannia Flavored Milk in tetra packs is popular. Other products in the milk
range include products like Sweet Lassi (buttermilk) and Cold Coffee in 200
ml tetra packs. The firm also has in its portfolio Daily Fresh Dahi (curd) and
had also launched Low fat Dahi in 2008.
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Nestl India is a subsidiary of Nestle S.A., world's biggest food company
and a leading Swiss giant. Nestle India's business can be broadly classified
into four categories -milk products and nutrition (infant mixes, yoghurt,
milk), prepared dishes and cooking aids, beverages (coffee and malted
drinks) and chocolate and confectionary. The company is focused on
growing its market share through renovation and innovation of its existing
brands in India.
COMPETITOR ANALYSIS:-
Competitor identification is a key task for managers interested in scanning their
competitive terrain, shoring up their defenses against likely competitive incursions,
and planning competitive attack and response strategies. It is necessary precursor
to the task of competitor analysis, and the starting point for analyzing the
dynamics of competitive strategy. One must first identify the competitive set and
develop an accurate sense of the domain in which strategic interactions are likely
to occur before one can assess the relative strengths and weaknesses of rivals, or
track competitive moves and countermoves. Competitor analysis is an evaluative
task that goes beyond mere classification to compare rivals on the basis of relevant
dimensions. A two stage framework is adopted in this study which is as follows:-

COMPETITOR SET IDENTIFICATION:-

Competitor identification is essentially a categorization task that involves
classifying firms on the basis of relevant similarities. This involves classifying
competitors into Direct Competitors, Indirect Competitors (substitutes) and
Potential Competitors. The scope of the project permits identifying only direct
and potential competitors.
The survey of retail outlets in the target market of Hyderabad and Secunderabad
has helped in identification of the following major direct competitors. They are as
follows:-
Britannia .
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Heritage .
Creamline Jersey.
Vijaya.
MTR.
Danette .

COMPETITOR ANALYSIS BASED ON THE
MARKETING MIX MODEL: -

The second stage of the Competitor Analysis defines resource equivalence as the
extent to which a given a competitor possesses strategic endowments capable
of satisfying the same customer needs as the focal firm. This will be done by
analyzing the marketing mix model (4 P`s) adopted by competitors as compared to
Amul. Elements of the marketing mix are often referred to as the "Four P's":

Product - It is a tangible object or an intangible service that is mass
produced or manufactured on a large scale with a specific volume of units.

Price The price is the amount a customer pays for the product. The
business may increase or decrease the price of product if other stores have
the same product.

Place Place represents the physical location where a product can be
purchased. It is often referred to as the distribution channel. It can include
any physical store as well as virtual stores on the internet.

Promotion Promotion represents all the communication tools that a
marketer may use in the marketplace. Promotion has four distinct elements:-
advertising, public relations, personal selling and sales promotion.
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AMUL RTD PRODUCT MIX ANALYSIS VIS A VIS
COMPETITOR BRANDS:-

Conducting a market survey has helped in studying the two P`s (Product and Price)
for the competitor brands which is as follows:-
Brand RTD Milk Product Product Mix Depth Packaging Price
Britannia. TigerZor Choco
milk.
150ml
hdpe
bottle.
Rs.17/-
Actimind milk
based health drink.

Mango / strawberry.
150ml
hdpe
bottle.
Rs.15/-
Heritage . Flavored milk. Badam. Tetra pack
200ml.
Rs.14/-
Pista/ strawberry/ chocolate Glass
bottle
200ml.
Rs.15/-
Pineapple/vanilla/chocolate/
badam/ pista.
Glass
bottle
200ml.
Rs.15/-
Butter milk. 200 ml
sachet.
Rs.6 /-
Lassi. Strawberry/sweet lassi/
mango.
200ml
plastic
container.
Rs.17/-
Jersey . Flavored milk. Badam strawberry/
chocolate/ banana.
Glass
bottle
200ml.
Rs.15/-
Butter milk. Plain. 200 ml
sachet.
Rs.10/-
Jeera. 200 ml
sachet..
Rs.12/-
Lassi. 200ml
plastic
container.
Rs.15/-
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Vijaya. Flavored milk. Glass
bottle
200 ml.
Rs.13/-
Danone . Danone smoothie. Vanilla/ chocolate . Tetra pack
200 ml.
Rs.15/-
MTR. Flavored milk. Badam . 180 mil tin
can.
Rs.25/-


Competitive positioning:

o Britannia Actimind : Positioned as a milk-based health drink for children.
o Danette Smoothie : Positioned as a smoothie rather than a flavoured milk
product.


Place:

o Heritage : Retail shops, Modern format stores, Heritage Parlours , Heritage
Fresh stores.
o Jersey : Retail shops, Modern format stores, Jersey Parlours.
o Vijaya : Retail shops , Modern format stores, Vijaya outlets.
o MTR : Modern format stores only.
o Britannia : Retail shops , Modern format stores.
o Danone : Retail shops , Modern format stores.


Promotion:-

o Heritage: Print Media, bill boards.
o Jersey: Print Media, bill boards.
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o Britannia: Advertising is done mainly through electronic media, bill boards
and print media and events(company sponsored).
o Vijaya : Print Media, bill boards.




















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AMUL'S SECRET OF SUCCESS:-
OPTIMUM UTILIZATION OF MANPOWER.
PLOUGHING BACK OF PROFITS.
GREATER ACCESSIBILITY AND AVAILABILITY.
BEST OF TECHNOLOGY.
VARIETY OF PRODUCTS.
SOCIO-ECONOMIC UPLIFTMENT AND COMMON GOOD.
ESTABLISHING BEST PRACTICES.
TRUST AND BRAND VALUE.
PRICING STRATEGY.
These factors have enabled Amul reach new hieghts and spurred White Revolution
in India.





SUCCESS

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FUTURE ROAD MAP:-

Continuing promoting sub-branding within the AMUL brand in
order to target high-end customers.
The shift in focus on youth is to be continued.
To go for product development using premium products.
Gain greater control over the distribution channels in major
markets in order to counter threats from upcoming retail formats.
Emphasize on Brand Management.
Creation of Strategic Business Units (SBUs) based on distribution
channels.
Increase capacity to (triple) in order to drive down the prices.
Focus on inbound logistics and outbound logistics in order to
improve the margins.
Increase dealers from 5000 to 10,000 and retailers from 10 lakhs to
12.5 lakhs in order to ensure an uniform increase.
Focus on Flavored milk and yogurt market, target being 40+%
market shares.
Increase the organized market share from 15% to 40% (5% every
year).
FUTURE ROAD
MAP
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Increase the number of parlours from 6000 to 12,000, cafes to 400
and stalls at railway stations from 177 to 350.
Product development Introduce diabetic products. Exit the
Chocolate market.
Revenue growth from $2.2 bn. To $ 5 bn. in the next five years.

FUTURE PLANS:-

Expansion of distribution networks, creative marketing, consumer
education and product innovation will leverage effectively on
rising income levels and growing affluence among Indian
consumers.
Tapping the rising demand for new value-added products.
Milk shed area will increase to 231 lakh kg per day (23.1 million
kg per day), at an annual growth rate of 4%.
Installing Bulk Milk Chillers and Automatic Milk Collection
Systems in all village cooperative societies.
Collect about 195 lakh kg per day (19.5 million kg per day) of milk
in the peak flush season.
Satellite dairies with combined processing and liquid milk
packaging capacity of 50 LKPD will be established in major metro
markets.
There are plans to double to processing capacity of dairy plants to
20.7 million kg per day, by 2020.
Milk drying capacity will also be enhanced by 200 MTs per day.
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There are plans to expand cattle feed manufacturing capacity,
more than four times to 12,000 MTs per day, by 2020.
Total investments envisaged for creating all the required
infrastructure would be Rs. 2,600 crores (Rs. 26 billion) till the
year 2020.





















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PROJECT ANALYSIS
The project focuses on the current scenario of ready to drink milk beverages
market in Hyderabad and Secunderabad. It lays emphasis on how Amul has
managed to reach the mass of the city having faced fierce competition from the
other major market players. This project will measure the effectiveness of the
company in tapping the beverage market in the Hyderabad city. This in turn, will
give us a brief overview of how the company is performing in maintaining the
brand image and retailers and consumers perception in this segment. It reflects the
mass appeal for the brand on various parameters.
To make it more simply and easy to attain the desired objectives, I have classified
my project into three segments

1. Retail penetration In this segment, I will be dealing with the
APOs where I will

o Understand retailers perspective with reference to factors influencing
them to keep ready to drink milk beverages.



o Keep a check on the which SKU is moving fast which in turn, will
ensure meeting the potential demand requirements.

o Study on the APOs planning to shut down.


2. Consumer perception - In this segment, I will be dealing with
consumers where I will study the consumer perception regarding
Amul Beverages and at the same time, find the factors influencing
their decision with reference to buying ready to milk drink beverages.
This will help in carrying out a detailed analysis of Amul milk
Beverages with its competitors on account to factors making them
switch to other brands.

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3. Designing (promotional activity) This segment relates the above
discussed consumer perception segment, where all the designing part
(promotional activity) is done taking consumer perception into account. As
we all know product attributes, packaging, labeling, mascot, jingles,
advertisement, etc all are essential tools to enhance brand equity. In this
segment I have used several examples such ask MICKEY MOUSE
MASCOT OF WALT DISNEY, MAHARAJA MASCOT OF AIR INDIA,
etc to justify my null hypothesis - AMUL GIRL (mascot) in beverage
segment would enhance the overall visibility and will have a positive impact
on sales.
















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PENETRATION OF READY TO DRINK
AMUL MILK BEVERAGES IN RETAIL
OUTLETS

For the study of penetration of Ready To Drink (RTD) Amul milk beverages in
retail outlets, survey method is used. The sampling technique used for
selecting the sample space is Random sampling. The Sample space consists
of the following retail outlets like general stores, eateries and Amul preferred
outlets. A sample size of 60 is taken. The Questionnaire (Annexure I) aims at
capturing data regarding the availability of RTD (ready to drink) Amul milk
beverages in retail outlets, data about availability of competitor RTD milk
beverages, reasons for not stocking Amul products by retailers, etc. The
Questionnaire also helps in rating Amul`s replacement policy, distribution
efficiency, credit policies, etc and also in analyzing the factors influencing the
retailers decision pertaining to ready to drink milk beverages


Retail penetration In this segment, I will be dealing with the APOs
where I will

o Understand retailers perspective with reference to factors influencing
them to keep ready to drink milk beverages.



o Keep a check on the SKU which is moving faster which will ensure
meeting the potential demands.

o Study on the APOs plan to shut down.





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SURVEY:

In the survey conducted, 60 retail outlets have been covered across
Hyderabad and Secunderabad.

List of areas covered:

Ameerpet .
Yousufguda .
SriNagar Colony .
Punjagutta .
Mehdipatnam .
Gandipet.

Minister Road .

Krishna Nagar .

Phenderghast Road .

Sindhi Colony .

New Bowenpally .
Tarnaka.
Sultan Bazaar.
Himayat Nagar.
.
Dilkush Nagar.
Musheerabad.
Marredpally .
Necklace Road
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Product mix under study:-

Amul Spiced buttermilk .

Amul Kool Milkshake .

Amul lassee .

Amul Kool Caf .

Amul Kool Koko .

Amul Kool Flavoured Milk.

Amul Shakti.

Amul kool thandai.

Nutramul.








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METHODOLOGY

The research method used in the study is the survey method. A questionnaire with
questions pertaining to the study is prepared and the independent variables which
affect monthly sales and stocking decisions are identified (replacement of expired
products, low margins, distribution efficiency, credit policy, etc).

Sampling technique: Random sampling.
Sample selection: Retail outlets like general stores, eateries and Amul Preferred
Outlets.

Sample Size: A sample size of 60 retail outlets in various parts of Hyderabad and
Secunderabad.

Data collection:
o Primary Sources Data is collected through primary sources like direct
interview with retailers through questionnaire and direct interaction with
company officials.

o Secondary Sources Data is collected from online journals, websites,
articles and research papers pertaining to e dairy market and growth of milk
beverage market in India.


Data Analysis:
Factor analysis with reference to identifying the factors influencing the
retailers decisions pertaining to ready to drink milk beverages.

Percentage and graphical analysis on the retailers reason for not stocking
Amul products and, at the same time, analyzing the SKU which is moving
fast.

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Research Instruments:
Direct interviews.
Focus group discussion of distributers. (During new product launch).
Questionnaires.
Research Approach: Surveys

Types of Questions

A questionnaire consists of a number of questions that the respondent has to
answer in a set format. A distinction is made between open-ended and closed-
ended questions.

Open Ended Questions - Open ended questions are those questions which
provide an opportunity to the respondents to express their opinions.

Closed Ended Questions - Multiple choice questions fall under the category
of closed format questions. By including closed format questions in our
questionnaire design, we can easily calculate statistical data and percentages.
Three different types of closed ended questions have been used in the
questionnaire. They are as follows:

Dichotomous Questions - In this case, only two options are given to the
respondent and the respondent has to select only one from the same. For e.g.
the options can be Yes/No; True/False, etc.

Multiple Choice Questions - In this case, number of options is given but
the respondent is required to select only one response out of it.

Likerts

Questions - A Likert scale is a psychometric scale commonly used
in questionnaires, and is the most widely used scale in survey research.While
responding to a Likert questionnaire item, respondents specify their level of
agreement to a particular statement.
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Meeting with the Distributors

Direct interview.

The discussion with the distributor dealt with following topics:-
Duration of business with Amul.
Deals in multi / single brand.
Types of Amul products he supplies.
Supply in particular region.
Frequency of order placements.
Profit margin that he receives.
Products that are demanded the most.
Storage and Transportation issues.
Supply from companys end.
Competitors in the ready to drink milk beverage segment.
Any grievances from retailers end.
NAME OF THE ENTERPRISE

o One world.
o Sunil traders.
o VSR enterprise.
o Gayatri.
o A&H.
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Minute details of the Meeting.

Venue: Respective offices.
Meeting participants:
o Mr. Venkat.
o Mr. Maqsood.
o Mr. K Venu.
o Mr. G Veeresham.
o Mr. Hanumanth Rao.
KEY POINTS
.
Market analysis from distributors point of view:-
Advertising done by Amul is shown on channels that are not watched by
people in Hyderabad. More and more local channels should be targeted for
the Advertisements.
Demand for butter milk and flavored milk is maximum
Major competitors are Vijaya, Britannia , Heritage , Jersey , etc.

Existing Issues/ Problems of the Distributors:-
3% margin that the distributor earns is less when compared to that of Amuls
competitors.
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Britannias distributors earn a margin of around 5% on net sales.
Transportation cost has to be incurred by the distributor himself.
Shelf -life of the product is very less, keeping the date of receipt into
consideration.
Less supply of tetra packs.
Retailers grievances is the same - they too have an issue with the
availability, margin and shelf-life of products.

Suggestions by the distributors-
Amul should increase the profit margin of distributors from current level of
3% to 4-5%.
It should provide motivating incentive schemes.
It should improve their promotional strategies to make the local people more
and more aware of its entire range of products.
The company should emphasize more on other segments rather than only
butter with reference to advertising.




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FGD REPORT
(FOCUS GROUP DISCUSSION)


Objective: To derive the factors that influences the retailers decision to
buy ready to drink milk beverages.

Venue: Hotel Marriot.

Duration: 10.00 min.

No. of Males/ Females: Male: 6.

Moderator : Abhishek Bhatia.

Minutes:

The FGD was conducted on 25
th
April at 10:30 hrs. The respondents were
randomly selected students. The objective was to find out the various factors
that influence the retailers decision to stock ready to drink beverages. The
FGD was driven by various questions based on secondary data variables-
promotional activities, margins, incentives, variety of products, age (target
segment), awareness and various other factors that influence retailers
decision. The various factors observed during the FGD are given below:-

Factors Observed:

The respondents expressed their views on various factors during the
discussion. According to the participants, one of the reasons they would
prefer doing business with the company is its margin and the brand value
associated with it. Few distributors are running their own APOs so they
enlightened up with their experience as owners of the shop. As the
discussion moved ahead, few variables that were come across was the
supply and the price of the product.


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DATA ANALYSIS

I have used factor analysis to determine the factors influencing the
buying decision of retailers with reference to ready to drink milk
beverages.
FACTOR ANALYSIS:
KMO Test:
The factor analysis was carried out and the following results were obtained-
KMO and Bartlett's Test:

Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.511
Bartlett's Test of
Sphericity
Approx. Chi-Square
76.980
df
55


Sig.
.027
The KMO measures the sampling adequacy, which should be greater than
0.5 for a satisfactory factor analysis to be done. Here, the sample adequacy
is satisfactory, it being more than 0.5.

Similarly Bartletts test of Sphericity gives us an additional confidence to go
ahead with factor analysis. In this, the criterion to go ahead with the factor
analysis depends on the significance value, where the significance value
should be less than 0.05. Here, the data analysis gives us a positive nod to go
ahead with the factor analysis with the significance value being 0.027.




134 | P a g e



Communalities

Initial Extraction
range of products
1.000 .526
Price
1.000 .705
Margin
1.000 .711
replacement policy
1.000 .548
credit policy
1.000 .801
incentives
1.000 .795
shelf life
1.000 .565
availability/supply
1.000 .618
packaging
1.000 .837
brand value
1.000 .719
promotional activities
1.000 .444
Extraction Method: Principal Component Analysis.

Communalities provide values of communalities, both Initial and
Extraction. The Initial communalities of 1.0 for each variable suggest that
all the variable are fully involved in the factor analysis solution. The
Extraction communalities, on the other hand, provides the final
communalities which are usually less than the Initial communalities of 1.0
and indicates the proportion of variable that is accounted for by the factors
whose eigenvalues are greater than 1.0.

We will then remove the variable from factor analysis whose extraction
communality is low, especially less than .4.

Basically, such variables whose extraction value is low has nothing much to
contribute to the development of factor analysis. The removal of such low
extraction communality variable will greatly improve the factor analysis.

In the above table, we do not find variables for removal from the analysis as
the amount of variance explained in each of the variable across all the
factors is more than 0.4.









135 | P a g e



Total Variance Explained

Extraction Method: Principal Component Analysis.
The Total Variance table gives the amount of variance explained by each
component after the Initial and the extraction part of analysis. In the Initial
Eigenvalues column, 11 rows represent the total number of variables included in
the model. Since there are 11 variables, we have generated 11 components. The
total variance explained by all the components amount to 100% of the
variance.The first component has highest percentage of the total variance in the
factor solution. This is confirmed by the Extraction sum of Squared Loadings with
only first 5 component appearing in it with 66.083% of the total variance
explained. The process of rotation simply aims at equally spreading the obtained
value of 1.921across the components without changing the total percentage of the
variance explained.
The total eigenvalue of 1.921for the first component is obtained by summing up
the squared factor loadings of all the variables. The component matrix displays the
factor loadings (note: loadings are nothing but correlation between the variables
and the components).
The eigenvalues are helpful in determining the number of factors that emerge
through factor analysis. If the size of the eigenvalue is greater than 1.0 for any
component, then it would be considered in counting the number of factors
produced by the factor solution. The eigen value of the first component is always
the highest. Also, the eigenvalues of the successive components or factors is
lower than the eigenvalues of the preceding components.
Compone
nt
Initial Eigenvalues
Extraction Sums of Squared
Loadings Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 1.921 17.465 17.465 1.921 17.465 17.465 1.686 15.326 15.326
2 1.671 15.192 32.657 1.671 15.192 32.657 1.614 14.670 29.996
3 1.576 14.331 46.988 1.576 14.331 46.988 1.559 14.177 44.173
4 1.100 9.997 56.985 1.100 9.997 56.985 1.243 11.296 55.469
5 1.001 9.098 66.083 1.001 9.098 66.083 1.168 10.614 66.083
6 .883 8.026 74.109
7 .819 7.446 81.555
8 .630 5.729 87.284
9 .595 5.412 92.696
10 .416 3.780 96.476
11 .388 3.524 100.000
136 | P a g e



There are five components whose value is more than 1.So we will take these five
component for our consideration.

Component Matrix(a)


Component
1 2 3 4 5
range of products
-.027 -.468 .149 -.530 .060
Price
.482 .646 -.097 .215 -.004
Margin
.637 -.127 .312 -.110 .424
replacement policy
.635 .207 .287 .096 -.104
credit policy
-.425 -.124 -.106 .670 .382
incentives
.223 -.310 .711 .274 .261
shelf life
.314 -.237 -.559 .265 .169
availability/supply
.444 -.240 -.579 -.002 -.170
packaging
-.274 .284 -.283 -.351 .692
brand value
-.107 .819 .148 -.115 .052
promotional activities
-.518 .024 .316 .148 -.233
Extraction Method: Principal Component Analysis.
a 5 components extracted.

The component Matrix table exhibits the simple correlation between each variable
and the component generated. Often, the component Matrix is known as Unrotated
Factor Matrix. Therefore, it is followed by another table called Rotated
component Matrix.


Rotated Component Matrix(a)


Component
1 2 3 4 5
range of products
-.025 -.625 .147 -.320 .101
Price
.159 .804 .122 -.130 .029
Margin
.190 .018 .791 -.186 .118
replacement policy
.076 .416 .467 -.283 -.266
credit policy
-.020 -.011 -.049 .890 .074
incentives
-.261 -.148 .769 .226 -.251
shelf life
.713 .031 .005 .237 .016
availability/supply
.746 -.007 -.118 -.161 -.149
packaging
-.005 -.007 -.074 .078 .908
brand value
-.438 .607 -.116 -.182 .334
promotional activities
-.542 -.105 -.228 .209 -.209
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 7 iterations.
137 | P a g e



This table contains the rotated factor loadings, which are correlations between the
variable and the factor. Possible values range from -1 to +1because these are
correlations.
When a variable is uncorrelated with a factor, (i.e,the loading is near zero,or less
than .3 in magnitude) we can dismiss the variable as not being useful in
interpreting the factor. Conversely, when a variable is highly correlated (the
loading is nearer 1, or, say greater than .5),we rely on the variable that helps us in
interpreting and understanding the factor.

The questions were reduced to fall under three factors which have been explained
below.

Factor I
The items included in the Factor I are -
Item 1 Availability of the stock.
Item 2 Shelf life of the stock.
Since all these factor belong to different variables which would be generally
about stock, the factors have been loaded together as INVENTORY.

Factor II

The items included in factor II are-
Item 1 Brand value.
Item 2 Price.
Since all these factor belong to different variables which would be generally
about brand equity, the factors have been loaded together as BRAND
EQUITY.

138 | P a g e




Factor III

The item included in factor III are-
Item 1 Incentives.
Item 2 Margin.
Since all these factor belong to different variables which would be generally
about profit, the factors have been loaded together as PROFITABILITY.

Factor IV
The item included in the Factor IV is-
Item 1 Credit policy.
Since there is only one variable in this factor , the name of the given factor is
CREDIT POLICY.

Factor V
The item included in the Factor IV is-
Item 1 Packaging,
Since there is only one variable in this factor, the name of the given factor is
PACKAGING.

From the factor analysis, we have narrowed down the variables on which we were
trying to understand the perception of respondents to five major factors, i.e.
Inventory, Brand equity, Profitability, Credit policy and Packaging. From the
responses received and analysed, we can conclude that these factors influence the
behaviour of the retailers perception pertaining to ready to drink milk products.

139 | P a g e



DATA ANALYSIS

I have used percentage and graphical analysis to determine the retailers
reason for not stocking Amul products, and, at the same time, analyzing the
SKU that is moving faster. This analysis is done on the basis of the data
collected through respondents with reference to the Questionnaire framed
(Annexure I).



Figure 1:


Percentage Analysis of retailers reasons for not stocking AMUL
READY TO DRINK (RTD) MILK PRODUCTS.

Key points:
42% of the retailers do not stock Amul RTD because of low margins
given by the company.
42%
15%
9%
7%
23%
4%
REASON FOR NOT STOCKING
low margin
distribution unsatisfactory
credit policy
less consumer preference
distributer did not
approached
other
140 | P a g e



23% of the retailers wanted to stock Amul RTD but no
distributorapproached them.
9% of the retailers do not stock Amul RTD because of the credit
policy framed by the company.
According to 7% of the retailers they do not stock Amul RTD due to
low consumer preference .
Figure 2:


Percentage Analysis on stocking RTD milk products of competitive
brands.

Key point:

Amul had 29% availability (highest) as compared to other brands.
Vijaya is a close competitor, followed by Jersey and Heritage.

29%
11%
20%
16%
9%
15%
STOCK
AMUL
HERITAGE
VIJAYA
JERSEY
BRITANIA
ANY OTHER
141 | P a g e




Figure 3:


Percentage analysis on which SKU is moving fast


Key point:

According to 39% of the retailers, flavoured milk is the most preferred
product range of all, followed by butter milk and milk shakes.









22%
14%
39%
3%
16%
6%
SKU MOVING FAST
BUTTER MILK
LASSEE
FLAVORED MILK
HEALTH BEVERAGE
MILK SHAKES
CHOCLATE BEVERAGE
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Annexure I
QUESTIONNAIRE

RETAIL PENETRATION
Dear Sir/Maam,

I, Abhishek Bhatia, student of IBS Hyderabad, currently in my final year, am
conducting an extensive study as a part of my Summer Internship Project on the
Penetration and Marketing Strategies adopted by Amul with reference to beverages
in Hyderabad & Secunderabad.
I would be very grateful if you could spare a few minutes and help me completing
the project holistically to obtain profound insights to the project.
The confidentiality of the information provided is assured and will not be used for
any other purpose.

1. Name of the outlet: ___________________________

2. Location of the outlet: ___________________________

3. Type of outlet: Eateries . Grocery. Amul preferred outlets .

4. Are Amul milk beverages available in your retail outlet?
Yes . No .
5. If no, reasons for not keeping Amul beverages products?

Low margins.
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Unsatisfactory Distribution .
Credit policy.
Distributer did not approach.
Less Consumer preference .
Any other reason _____________________

6. Which companys milk beverage products do you stock?
Amul . Heritage. Vijaya. Jersey. Britannia.
Any other ___________



7. What are the average monthly units sold of the following products?
Amul. Heritage. Vijaya. Jersey. Britannia. Any
other.
Butter Milk.


Lassee.


Flavoured
Milk.

Health
beverage.

Milk Shakes.


Kool Caf/
koko/chocolate
Beverage.






144 | P a g e



8. Rate the following factors (influencing the retailer) pertaining to Ready to
Drink Milk products sold in Stores.

Please tick your preference for the questions below

PARAMETERS RATINGS



Satisfactory Range of Products.
Price .
Margins.
Replacement policy.
Credit policy.
Incentives.
Shelf life .
Availability of products / supply.


Packaging.
Brand value.
Promotional activities .





Strongly
disagree
disagree neutral agree Strongly
agree
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Annexure II
SHOP NAME

o Iksha enterprise.
o Sweta enterprise.
o Creams and shakes.
o Earnest.
o S. Suman enterprise.
o Jai bhavani store.
o Shri Siddhivinayak store.
o Shri Shardha store.
o Pallavi Bakery.
o Sudha Store.
o Soft Bite Bakers .
o Suman enterprise.
o Sri Rajarajesari Grocery Store.
o Baker`s Point .
o Bakers and Cakes .
o Mataji store.
o Shri siddhivinayak tiffin store.
o Saba Cake Bakery .
o Madhu Dairy.
o Jersey parlour.
o Mahaveer store.
o Mahesh Kirana.
o Sai Lakshmi .
o Sri Gayatri products and snacks.
o Raja Rajeshwari General store .
o Amul preferred outlet ( Srinagar colony).
o Amul preferred outlet (Begumpet).
o Nilgiris Sweets & Namkeen .
146 | P a g e



o Amul preferred outlet ( Phenderghast Road).
o Bajrang store.
o Radhakrishna general store.
o Dilip traders.
o Baker`s King .
o Parneeth agencies.
o Amul preferred outlet (Krishna nagar).
o Pallavi bakery.
o Yousufguda .
o Amul preferred out (Bowenpally).
o Mahaveer Dry Fruits & Kirana.
o Amul preferred outlet (Bowenpally).
o Amul preferred outlet (Tarnaka).
o Amul prefferd outlet (A s rao nagar).
o Jersey Diary Parlour And Genaral Stores.
o Amul preferred outlet.
o Super Diary Products .
o Panchratan Diary Confectionery .
o Amul preferred outlet (Srinagar colony).
o Oxider General Store .
o Vanita general store.
o Amul preferred outlet .
o Amul preferred outlet.
o Sri Balaji Dairy Products .
o Amar Bakery & Dairy Products.
o Amul preferred outlet ( R k nagar).
o Sai Krishna store.
o Sri Venkat sai store.
o Dairy outlet (Necklace road).
o Vijaya dairy outlet (Laser show area).
o Amul preferred outlet (Gandipet).
o Amul preferred outlet.(karkhana)
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REPORT ON OUTLETS.



(PLANNING TO SHUT DOWN)


SHOP NAME (IKSHA) ENTERPRISE




OWNER DR. KAVITA.
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AREA- MERRADPALLY.

DEALER NAME:-

A&H (DAIRY).
SUDERSHAN ENTERPRISE ( ICE CREAM).



PROBLEMS FROM THEIR END-

Dealers not meeting the demand ( shortage of supply).

Limited supply of Amul bottles ( majority in cans).

The fresh stock has a manufacturing date 7/12/2011 (Amul kool caf can).

No supply of Dolly ice cream which is easily available in amul van ( close
to her shop)

No supply of CHECKERS - (ice cream) vanilla with orange, black
current.

Sugar free ice creams are generally outdated.




POINTS RAISED BY THE OWNER :-

FOOD WORLD and AMUL VAN is provided with proper stock which is
very near to her shop

A&H and SUDERSHAN ENTERPRIES are not meeting their requirements.

One should conduct meeting in every 3 months, whereby all the dealers and
retailers should state their issues.
149 | P a g e



She has to bear the cost of food license, electricity bills and payment to staff
with no incentives from the company.

She claims that the company is bearing an electricity bill of the shop at
DANDIGAL. However, she is not provided with any kind of incentives
even after 1 year 6 months.

Company has not made the transfer of Ownership with her, being the second
owner.


MY INPUTS The only problem she is facing is from the supply side. If we
focus on her shop and match the demand and supply it would enhance her sales.
Sales are not a concern for her as she has a tie up with HSBC and also with the
nearby SCHOOL and HOSPITAL.


I WOULD SUGGEST :-

Keep a check on the supply side.

Place a display board inside stating all the beverages and milk shakes.

Bring the fridge containing the beverages forward as the products are
hardly visible.

There is a need to put some sign boards stating the way to amul outlet
with some eye- catchy lines (example- for school children, we can
emphasize on sports, for people near to hospital, we can use the Amul
Logo(Amul girl) as a nurse and also feature sugar free ice cream which
will especially attract old people having diabetes).

It is important is to ensure that the owner gets the product on demand.



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CONSUMER PERCEPTION OF
READY TO DRINK AMUL MILK
BEVERAGES

For the study of penetration of Ready to drink (RTD) Amul milk beverages in
retail outlets, survey method is used. The sampling technique used for
selecting the sample space is Random sampling. The Sample space consists
of the following retail outlets like general stores, eateries and Amul preferred
outlets. A sample size of 60 is taken. The Questionnaire (Annexure III) aims
at capturing data regarding consumers perception in this segment. The
Questionnaire also helps in rating Amul`s product range, packaging, value for
money, etc.


Consumer perception - In this segment, I will be dealing with consumers
where I will
o Study the consumers perception regarding Amul Beverages and at the
same time find the factors influencing their decisions with reference
to purchasing ready to drink milk beverages.

o Carrying out a detailed analysis of Amul milk Beverages with its
competitors on account of factors making them switch to other
brands.


o Percentage and graphical analysis of consumers response with
reference to Amul product range in this segment, reflecting the
product for which the consumers demand is the maximum. At the
same time, get an insight into the medium of promotion which is the
most appealing and the factors in an advertisement which influence
them.

151 | P a g e



o Weighted mean calculation with reference to competitive analysis of
various parameters, reflecting that the company (AMUL) should work
on keeping consumer insights into consideration.


SURVEY:

In the survey conducted,data of around 70 consumers perception
has been recorded all across Hyderabad and Secunderabad.


Product mix under study:-

Amul Spiced buttermilk.

Amul Kool Milkshake.

Amul lassee.

Amul Kool Caf.

Amul Kool Koko.

Amul Kool Flavoured Milk.
Amul Kool Thandai.

Amul Shakti.

Nutramul.



152 | P a g e



METHODOLOGY

The research method used in the study is the survey method. A questionnaire
with questions pertaining to the study is prepared and the independent variables
which affect demand are identified (price, variety, packaging, location and
ambience of stores, promotional activities, etc.).

Sampling technique:- Random sampling

Sample Size:- In the survey conducted,data of around 70 consumers
perception has been recorded all across Hyderabad and Secunderabad.
Data collection:-
o Primary Sources Data is collected through primary sources like direct
interview with retailers through questionnaires and direct interaction with
company officials and final end consumers

o Secondary Sources Data is collected through online journals, websites,
articles and research papers pertaining to dairy market and growth of milk
beverage market in India.


Data Analysis:-
Factor analysis with reference to identifying the factors influencing the
retailers pertaining to ready to drink milk beverages.

Percentage analysis and Graphical analysis of consumers response with
reference to Amul product range in this segment, reflecting the product
which the consumers demand the most. At the same time, get an insight into
the medium of promotion which is the most appealing and the factor in an
advertisement which influences them.

Weighted mean calculation with reference to competitive analysis of
various parameters, reflecting that the company (AMUL) should work on
keeping the consumer insights into consideration.
153 | P a g e



Research Instruments:-
Direct Interviews.
Focus Group Discussion (FGD).
Questionnaires.
Research Approach:- Surveys

Types of Questions:-

A questionnaire consists of a number of questions that the respondent has to
answer in a set format. A distinction is made between open-ended and closed-
ended questions.

Open Ended Questions Open ended questions are those questions which
provide an opportunity to the respondent to express their opinions.

Closed Ended Questions - Multiple choice questions fall under the category
of closed format questions. By including closed format questions in our
questionnaire design, we can easily calculate statistical data and percentages.
Three different types of closed ended questions have been used in the
questionnaire. They are as follows:

o Dichotomous Questions-
In this case, only two options are given to the respondent and the respondent
has to select only one from the same. For e.g. the options can be Yes/No;
True/False, etc.

o Multiple Choice Questions-
In this case,a number of options are given but the respondent is required to
select only one responseout of it.


154 | P a g e



o Likerts

Questions-
A Likert scale is a psychometric scale commonly used in questionnaires, and
is the most widely used scale in survey research. While responding to a
Likert questionnaire item, respondents specify their level of agreement to a
particular statement.























155 | P a g e



Meeting with the Customers
Direct interview-

The discussion with the customer dealt with the following topics:-
Brand value.
Range of products.
Pricing and promotional strategy .
Most preferred product.
Overall Satisfaction level.
Major factors influencing their decisions.
Competitors (brand preferred other than Amul).
Any grievances from customers end.






156 | P a g e



Minute details of the Meeting

Venue: Iksha parlor (Amul preferred outlet).
Meeting participants:
o Mr. Srinu.
o Mrs. Jain.
KEY POINTS:-
.
Market analysis from customers point of view:-
Demand for flavored milk is maximum.
Major competitors are Vijaya, Britannia , Heritage , Jersey ,etc.

Existing Issues/ Problems of customers:-
The shelf life of the product is very less, keeping the date of receipt into
consideration.
Lack of availability of the product.
Lack of awareness of any schemes.

Suggestions by customers:-
It should frame better schemes.
It should improve its promotional strategies in order to make the local
people more and more aware of its entire range of its products.
157 | P a g e



FGD REPORT
(FOCUS GROUP DISCUSSION)


Objective: To derive the factors influencing customers decision to buy
ready to drink milk beverages.

Venue:

Hotel Ohris.
Dance class- Step up.

Duration: 10.00 min.

No. of Males/ Females:

Female: 6 (at Ohris).
Male: 4 and Female: 2 (at Step up).

Moderator : Abhishek Bhatia.

Minutes:

The FGD was conducted on 4
th
and 5
th
April. The respondents were
randomly selected students. The objective was to find out the various factors
that influence the customers decision to purchase ready to drink milk
beverages. The FGD was driven by various questions based on secondary
data variables like variety of products, price, promotional activities, services,
brand value and the various factors which influence the retailers decision.

Factors Observed:

The respondents gave their views on various factors during the discussion.
According to he participants, one of the reasons they prefer doing business
with the company is its taste, quality and schemes. As the discussion
158 | P a g e



moved ahead few variables that came across were availability of the
product, visibility of the product, storage location and conditions.
159 | P a g e


















160 | P a g e



DATA ANALYSIS

I have used factor analysis to determine the factors influencing the
buying decision of retailers with reference to ready to drink milk
beverages.
FACTOR ANALYSIS:
KMO Test:
The factor analysis was done and the following results were obtained-
KMO and Bartlett's Test:

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.508
Bartlett's Test of
Sphericity
Approx. Chi-Square
79.369
df
55
Sig.
.017

The KMO measures the sampling adequacy which should be greater than 0.5
for a satisfactory factor analysis to be done. Here, the sample adequacy is
satisfactory , it being more than 0.5.

Similarly, Bartletts test of Sphericity gives us an additional confidence to
go ahead with factor analysis. According to it, the criteria to go ahead with
the factor analysis depends on the significance value, where the significance
value should be less than 0.05. Here, the data analysis gives us a positive
nod to go ahead with the factor analysis with the significance value being
0.017.


161 | P a g e



Communalities
Initial Extraction
Range of products.
1.000 .634
Availability.
1.000 .797
Quality and taste.
1.000 .816
Price..
1.000 .757
Promotional activities.
1.000 .694
Special offers.
1.000 .577
Packaging .
1.000 .670
Desirable storage
Location.
1.000 .507
Visibility.
1.000 .523
Easy to locate..
1.000 .628
Service.
1.000 .559

Extraction Method: Principal Component Analysis.

Communalities provide values of communalities, both Initial and Extraction.
The Initial communalities of 1.0 for each variable suggests that all the
variable are fully involved in the factor analysis solution. The Extraction
communalities, on the other hand, provides the final communalities which
are usually less than the Initial communalities of 1.0 and indicates the
proportion of variable that is accounted for by the factors whose eigenvalues
are greater than 1.0.

We will remove that variable from factor analysis whose extraction
communality is low, especially less than .4.

Basically such variable whose extraction value is low has nothing much to
contribute to the development of factor analysis. The removal of such low
extraction communality variable will greatly improve the factor analysis.

In the above table, we do not find variables for removal from the analysis as
the amount of variance explained in each of the variable across all the
factors is more than 0.4.





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Total Variance Explained

Extraction Method: Principal Component Analysis.
The Total Variance table gives the amount of variance explained by each
component after the Initial and the extraction part of analysis. In the Initial
Eigenvalues column, 11 rows represent the total number of variables included in
the model. Since there are 11 variables, we have generated 11 components. The
total variance explained by all the components amount to 100% of the variance.
The first component has the highest percentage of the total variance in the factor
solution. This is confirmed by the Extraction sum of Squared Loadings with only
first 5 component appearing in it , with 65.114% of the total variance explained.
The process of rotation simply aims at equally spreading the obtained value of
1.991 across the components without changing the total percentage of the variance
explained.
The total eigenvalue of 1.991for the first component is obtained by summing up
the squared factor loadings of all the variables. The component matrix displays the
factor loadings (note: loadings are nothing but correlation between the variables
and the components).
The eigenvalues are helpful in determining the number of factors that emerge
through factor analysis. If the size of the eigenvalue is greater than 1.0 for any
component, then it would be considered in counting the number of factors
produced by factor solution. The eigen value of the first component is always
Compon
ent
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e %
1
1.991 18.101 18.101 1.991 18.101 18.101 1.686 15.325 15.325
2
1.525 13.863 31.963 1.525 13.863 31.963 1.561 14.187 29.512
3
1.380 12.542 44.505 1.380 12.542 44.505 1.398 12.709 42.221
4
1.235 11.231 55.736 1.235 11.231 55.736 1.303 11.843 54.064
5
1.032 9.378 65.114 1.032 9.378 65.114 1.215 11.050 65.114
6
.875 7.951 73.065
7
.785 7.141 80.206
8
.712 6.469 86.675
9
.591 5.377 92.052
10
.480 4.363 96.415
11
.394 3.585 100.000
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the highest. Also, the eigenvalues of the successive components or factors
would be lower than the eigenvalues of the preceding components.
There are five components whose value is more than 1.So we take these five
component for our consideration.

Component Matrix(a)


Component
1 2 3 4 5
Range of products.
-.309 -.547 .278 .034 .401
Availability.
.290 -.150 .717 .416 .056
Quality and taste.
-.002 -.406 -.404 -.572 .401
Price.
.172 .096 .134 -.554 -.627
Promotional activities.
-.618 -.124 -.325 .326 -.291
Special offers.
.448 .155 -.431 .404 -.056
Packaging .
.627 .422 .052 -.141 .276
Desirable storage
Location.
-.005 .573 -.229 .176 .309
Visibility.
-.278 .354 .505 -.253 .036
Easy to locate.
-.727 .304 .028 .085 -.004
Service.
.449 -.516 -.061 .189 -.229
Extraction Method: Principal Component Analysis.
a 5 components extracted.

The component Matrix table exhibits the simple correlation between each variable
and the component generated. Often, the component Matrix is known as Unrotated
Factor Matrix. Therefore, it is followed by another table called Rotated component
Matrix.
















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Rotated Component Matrix(a)

Component
1 2 3 4 5
Range of products.
-.087 .163 -.354 -.081 .684
Availability.
.315 -.007 -.261 .723 .326
Quality and taste.
.160 -.059 -.173 -.844 .212
Price..
.133 .170 -.406 -.056 -.737
Promotional activities.
-.828 -.067 .049 -.014 .026
Special offers.
.076 -.623 .387 .112 -.142
Packaging.
.723 -.060 .343 .034 -.157
Desirable storage
Location.
.068 .063 .706 .002 .001
Visibility.
.095 .692 .006 .174 -.072
Easy to locate.
-.545 .505 .269 .037 .053
Service.
.102 -.606 -.411 .111 .017

Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 8 iterations.

This table contains the rotated factor loadings, which exhibit the correlation
between the variables and factosr. Possible values range from -1 to +1 because
these are correlations.
When a variable is uncorrelated with a factor, (that is,the loading is near zero,or
less than .3 in magnitude) we can dismiss the variable as not being useful in
interpreting the factor. Conversely , when a variable is highly correlated (the
loading is nearer 1, or say greater than .5),we rely on the variable that helps us to
interpret and understand the factor.

The questions were reduced to fall under three factors which have been explained
as below:-
Factor I
The item included in the Factor I is-
Item 1 Packaging.
Since there is only one variable in this factor, the name of the given factor is
PACKAGING.


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Factor II

The items included in factor II are-
Item 1 Visibility.
Item 2 Easy to locate.
Since all these factor belong to different variables which is generally about
accessibility, the factors have been loaded together as ACCESSIBILITY.

Factor III

The item included in the Factor III is-
Item 1 Desirable storage location
Since there is only one variable in this factor , the name of the given factor is
STORE AMBIENCE.

Factor IV
The item included in the Factor IV is-
Item 1 Availability of the products.
Since there is only one variable in this factor, the name of the given factor is
AVAILABILITY.

Factor V
The item included in the Factor IV is-
Item 1 Range of products
Since there is only one variable in this factor, the name of the given factor is
PRODUCT RANGE.

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From factor analysis, we have narrowed down the variables on which we were
trying to understand the perception of respondents to five major factors, i.e.
Packaging, Accessibility, Store ambience, Availability and Product range. From
the responses received and analysed , we can conclude that these factors influence
the behaviour of the consumers pertaining to ready to drink milk products.














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DATA ANALYSIS

I have used percentage analysis and graphical analysis to determine the
consumers response in this segment, with reference to Amul product range
reflecting the product which consumers demand the most. This analysis is
done on the basis of the data collected through respondents with reference to
the Questionnaire framed (Annexure III).

PERCENTAGE ANALYSIS:

Figure 4


Percentage analysis on the demand of Amul products in beverages segment.
Key point:

According to 32% of the consumers, flavoured milk is the most
preferred product range of all, followed by butter milk and milk
shakes.
23%
32%
14%
8%
3%
12%
1%
3%
4%
DEMAND
BUTTER MILK
FLAVOURED MILK
MILK SHAKE
KOOL CAF
KOOL KOKO
LASSEE
NUTRAMUL
AMUL SHAKTI
THANDAI
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Figure 5

Percentage analysis on most preferred package of Amul products in beverages
segment.
Key point:
According to 43% of the consumers , tetra pack is the most preferred
product package of all ,followed by can.






43%
36%
21%
PREFERRED PACKAGE
TETRA PACK
CAN
GLASS BOTTLES
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Figure 6


Percentage analysis on factor in an advertisement that is most appealing
according to consumers.
Key point:
According to 38% of the consumers , information about the product is
the most appealing factor in an advertisement of all , followed by
packaging and labeling.




17%
14%
38%
31%
FACTOR IN AN ADVERTISEMENT
BRAND AMBASSADOR
TAGLINES/ JINGLES
INFORMATION ABOUT
PRODUCT FEATURES
PACKAGING AND
LABELING
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Figure 7:

Percentage analysis on medium of promotion that is most appealing according
to consumers.
Key point:
According to 37% of the consumers, social networking site is the most
appealing medium of promotion followed by hoardings and television.














18%
15%
23%
2%
5%
37%
PREFERRED MEDIUM OF PROMOTION
TV
NEWSPAPER
HOARDING
MAGZINES
RADIO
SOCIAL NETWORKING SITE
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DATA ANALYSIS



With reference to competitive analysis on various parameters reflecting that
the company (AMUL) should work on keeping consumer insights into
consideration, I have used weighted mean calculation. This analysis is done
on the basis of the data collected through respondents with reference to the
Questionnaire framed (Annexure III).
Precisely this analysis is done on the basis of the data collected through
respondents to the questions stated below:

Please rate your perception about the below mentioned Brands as per
the given key:-
1. EXCELLENT.
2. GOOD.
3. SATISFACTORY.
4. NEUTRAL.
5. UNSATISFACTORY.

Brand

Amul Jersey

Vijaya Heritage Britannia
Any
other

Price (Value for Money).
Taste and quality.
Variety of Products.
Packaging.
The brand delivers what it
promises.

My Commitment towards
the Brand .


Overall Satisfaction Level.


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Here 1 to 5 represents weights. With the use of weighted mean calculation, I can
get an insight of the consumers as to which company stands towards the
unsatisfactory level and on what parameters. This will help the company in
analyzing and working on the prospects in which the company is lacking with
reference to other major players in the market and formulate strategies to combat
the same.

RESPONSE FREQUENCIES:

PRICE (VALUE FOR MONEY).

BRAND. 1 2 3 4 5
AMUL. 17 24 27 2
JERSEY. 17 46 7
VIJAYA. 23 38 9
HERITAGE. 9 2 15 44
BRITANNIA. 4 7 36 23
ANY
OTHER(DANONE).
2
ANY OTHER
(MTR).
1

WEIGHTED MEAN CALCULATION:

(g)
BRAND
(h)
WEIGHETD
MEAN (approx)
AMUL 2.20
JERSEY 3.86
VIJAYA 1.80
HERITAGE 3.34
BRITANIA 4.11
DANONE 2.00
MTR 3.00

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The weighted mean of Amul for price is 2.20, i.e. weighed more towards the
satisfactory side whereas Vijaya scores the lowest score 1.80, followed by Danone.
TASTE AND QUALITY.

BRAND. 1 2 3 4 5
AMUL. 23 28 17 1 1
JERSEY. 37 16 8
VIJAYA. 33 32 8
HERITAGE. 8 3 35 24
BRITANNIA. 4 27 26 13
ANY
OTHER
( DANONE)
2
ANY
OTHER
( MTR)
1

WEIGHTED MEAN CALCULATION:


(i)
BRAND
(j)
WEIGHETD
MEAN (approx)

AMUL 1.98
JERSEY 3.07
VIJAYA 1.73
HERITAGE 3.07
BRITANNIA 3.69
DANONE 1.00
MTR 2.00
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The weighted mean of Amul for Taste and quality is 1.98, i.e. weighed more
towards the good side.


VARIETY OF PRODUCTS.

BRAND. 1 2 3 4 5
AMUL. 39 19 11 1
JERSEY. 19 23 38
VIJAYA. 21 32 14 7 2
HERITAGE. 29 13 23 5
BRITANNIA. 3 5 29 33
ANY
OTHER
( DANONE).
1 1
ANY
OTHER
( MTR)
1

WEIGHTED MEAN CALCULATION:

(k)
BRAND
(l)
WEIGHETD MEAN (approx)

AMUL 1.63
JERSEY 4.84
VIJAYA 2.36
HERITAGE 2.06
BRITANNIA 4.31
DANONE 4.50
MTR 5

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The weighted mean of Amul for Variety of products is 1.63, i.e. weighed more
towards the good side followed by Heritage and Vijaya.

PACKAGING

BRAND. 1 2 3 4 5
AMUL. 4 39 16 11
JERSEY. 12 27 23 8
VIJAYA. 11 32 16 9 2
HERITAGE. 6 27 21 16
BRITANNIA. 41 13 5 8 3
ANY
OTHER
( DANONE).
1 1
ANY
OTHER
( MTR).
1

WEIGHTED MEAN CALCULATION:

(m)
BRAND
(n)
WEIGHETD MEAN
(approx)

AMUL 3.49
JERSEY 3.39
VIJAYA 2.41
HERITAGE 2.67
BRITANIA 1.76
DANONE 2.50
MTR 2.00

The weighted mean of Amul for packaging is 3.39 (highest), i.e. weighed more
towards the neutral side whereas Britannia scores the lowest score 1.76, followed
by MTR.
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BRAND DELIVERS WHAT IT PROMISES.

BRAND. 1 2 3 4 5
AMUL. 23 36 7 4
JERSEY. 2 7 33 28
VIJAYA. 26 31 9 6 1
HERITAGE. 28 17 21 4
BRITANNIA. 1 13 18 29 9
ANY
OTHER
( DANONE).
2
ANY
OTHER
( MTR)
1

WEIGHTED MEAN CALCULATION:

(o)
BRAND
(p)
WEIGHETD MEAN
(approx)
AMUL 1.89
JERSEY 4.24
VIJAYA 2.06
HERITAGE 2.01
BRITANNIA 3.46
DANONE 3.00
MTR 1.00

The weighted mean of Amul for Brand delivers what it promises is 1.89, i.e.
weighed more towards the good side.

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MY COMMITMENT TOWARDS THE BRAND.

BRAND. 1 2 3 4 5
AMUL. 26 32 10 2
JERSEY. 2 7 43 18
VIJAYA. 29 31 9 1
HERITAGE. 26 21 7 12 4
BRITANNIA. 4 11 5 28 22
ANY
OTHER
( DANONE).
1 1
ANY
OTHER
( MTR).
1

WEIGHTED MEAN CALCULATION:

(q)
BRAND
(r)
WEIGHETD MEAN
(approx)

AMUL 1.83
JERSEY 4.10
VIJAYA 1.74
HERITAGE 2.24
BRITANNIA 3.76
DANONE 3.50
MTR 4.00

The weighted mean of Amul for my commitment towards brand is 1.83, i.e.
weighed more towards the good side whereas Vijaya scores the lowest score 1.74,
followed by Amul.
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OVERALL SATISFACTION

BRAND. 1 2 3 4 5
AMUL. 24 34 7 3 2
JERSEY. 1 9 32 28
VIJAYA. 26 28 15 1
HERITAGE. 19 29 8 12 3
BRITANNIA 2 9 15 21 23
ANY
OTHER
( DANONE)
1 1
ANY
OTHER
( MTR)
1
WEIGHTED MEAN CALCULATION:

(s)
BRAND
(t)
WEIGHETD MEAN
(approx)

AMUL 1.93
JERSEY 4.24
VIJAYA 1.87
HERITAGE 2.34
BRITANNIA 4.00
DANONE 3.50
MTR 4.00

The weighted mean of Amul for overall satisfaction is 1.93, i.e. weighed more
towards the good side whereas Vijaya scores the lowest score 1.87, followed by
Amul.

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Annexure III
QUESTIONNAIRE

Consumer Perception and Competitive Analysis:-

Dear Sir/Maam,

I, Abhishek Bhatia, student of IBS Hyderabad, currently in my final year, am
conducting an extensive study as a part of my Summer Internship Project( SIP) on
the Penetration and Marketing Strategies adopted by Amul with reference to
beverages in Hyderabad & Secunderabad.
I would be very grateful if you could spare a few minutes and help me completing
the project holistically to obtain profound insights to the project.
The confidentiality of the information provided is assured and will not be used for
any other purpose.

1. Name: ________________________________


2. Gender:

Male Female

3. Age:


0-10 Years .

10-20 Years.

20-30 Years.

30-40 Years.

40-50 Years.

50-60 Years.

>60 Years.


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4. Occupation\ Profession: ____________________


5. Physical Location:


Hyderabad.


Secunderabad.

6. Marital Status:

Single.


Married.


7. Educational Qualification : :
Under Graduate. Graduate. Post Graduate.

8. Annual Income:


> Rs 10000.

Rs 10000 - Rs 50000.

Rs 50000- Rs 100000,
< Rs 100000.


9. How frequently do you purchase Amul milk beverages?
(Put a tick against your choice)
Daily.

Twice or thrice a week.

Weekly Basis.

Every Fortnight.

Monthly basis.

Occasionally.




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10. How desirable are these flavors according to you? (Amul Milk Drinks).
(Rank the given options according to your preference, 1 being most likeable)

Amul milk drinks 1 2 3 4 5
Amul Kool milk
shake.


Amul Kool koko.
Amul Cool Caf.


Amul Kool Flavored
Bottle Milk.

Nutramul Energy
Drink.

Amul Masti Spice
Butter Milk.

Amul Lassee.
Amul Shakti.
Amul Thandai.

11. In which of the following way is the packing of Amul milk beverages
desirable?

Glass bottle.
Can .
Tetra pack.

12. Which factor in an advertisement is the most appealing according to you?

(Put a tick against your choice).


Presence of a popular Brand ambassador.

Introduction of attractive Jingles/ taglines.

Detailed information about Product features and characteristics.

Requisite Packaging and labeling.



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13. In which of the following medium is the advertisement or promotion of
products desirable?
(Rate the following mediums as per your desirability on a scale of 1 to 10).
TV.
Newspaper.
Hoardings.
Magazines.
Radio.
Social networking sites.

14. Rate the following factors pertaining to Ready to drink milk products sold.
Please tick your preference for the questions below.
PARAMETERS RATINGS



1. Variety of Products.
2. Availability
3. Quality and taste.
4. Price.
5. Packaging.
6. Regular / special offers.
7. Promotional activities.
8. Desirable storage conditions.
Strongly
disagree
disagree neutral agree Strongly
agree
183 | P a g e



9. Visibility in stores.
10. Purchasing becomes easier due to
the fact that


(a)The stores are easy to locate.

(b)Speedy services are provided in
these stores.



15. Please rate your perception about the below mentioned Brands as per the
given key:-
1 EXCELLENT
2 GOOD
3 SATISFACTORY
4 NEUTRAL
5 UNSATISFACTORY

Brand

Amul Jersey

Vijaya Heritage Britannia
Any
other

Price (Value for Money).
Taste and quality.
Variety of Products.
Packaging.
The brand delivers what it
promises.

My Commitment towards
the Brand .


Overall Satisfaction.



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FACE OFF !!!! WITH BRAND MASCOTS

The whole idea of using the mascots started with the ancient times where people
during sporting events used to dress up in the attire of animals. It is evident that in
the ancient times the origin of mascots tries to portray oneself in a particular image
in order to build the curiosity and at the same time build up a brand value by
enhancing its visibility.
In this competitive world we are surrounded by brands that have a story to narrate
and their respective mascots play a pivotal role in it. A brand mascot personifies
the brand very effectively.
Few examples stating the essence of mascot it refers to how easily recall the name
of the mascot at the same time recalling the brand.





I have stated the mascot of that product which falls under the main umbrella brand
or have collaborated with other firm of the same industry.
185 | P a g e



DESIGNING
This segment relates the earlier discussed consumer perception segment, where all
the designing part (promotional activity) is done taking consumer perception into
account. As we all know product attributes, packaging, labeling, mascot, jingles,
advertisement, etc all are essential tools to enhance brand equity. Here, we use the
historical data from which we can state our hypothesis which is an unproven
proposition or possible solution to a problem. Hypothetical statements assert
probable answers, at empirical level a theory may be developed with inductive
reasoning. Inductive reasoning is the logical process of establishing a general
proposition on the basis of observation of particular facts. In this segment I have
used several examples such ask MICKEY MOUSE MASCOT OF WALT
DISNEY, MAHARAJA MASCOT OF AIR INDIA and CHEETAH OF
CHEETOS to justify my null hypothesis - AMUL GIRL (mascot) in beverage
segment would enhance the overall visibility and will have a positive impact on
sales.

NULL HYPOTHESIS - H0: AMUL GIRL (mascot) in beverage
segment would enhance the overall visibility and will have a positive
impact on sales.

ALTERNATIVE HYPOTHESIS H1: AMUL GIRL (mascot) in
beverage segment would neither enhance the overall visibility nor will
have a positive impact on sales.








186 | P a g e



AMUL GIRL


GEARS UP TO ENTER GUINNESS
BOOK

The Amul butter girl campaign launched in 1967 is believed to be worlds oldest
outdoor advertising campaign. The company follows the practice of spending only
one percent of its previous year's revenues on advertising during the current year.
Interestingly, the annual budget for the campaign is just about Rs 2 crore that
brings in revenue of about Rs 500 crore for GCMMF through the sale of butter.




This mascot was created by, Eustace Fernandes.
The Amul girl is a hand-drawn cartoon of a young,
chubby Indian girl dressed in a polka dotted frock with
blue hair and a half pony tied up .The Amul advertising
have often been described as one of the best Indian
Advertising concepts because of their humor.



187 | P a g e




CUSTOMER BASED MARKET SEGMENTATION



Amul has used his utterly butterly delicious girl mascot especially in butter
segment, in recent past they have used them promoting ghee, ice-cream, amul
shakti and milk. Amul girl besides being on the hoardings making a pun out of the
day to day issues is found on the package of milk, butter and hoardings in APOs.
Amul advertisement using the Mascot in various forms have been significant and
an eye catcher.
For Kids
For
women
For youth
For calorie
conscious
For Health
conscious
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BEVERAGE SEGMENT MASCOT
(designed by me)

"It takes a big idea to attract the attention of consumersUnless your
advertising contains a big idea; it will pass like a ship in the night.
- DAVID OGILVY

FACTORS BEHIND USING THIS
MASCOT IN BEVERAGE
SEGMENT

o Mass appeal

o People easily relate to Amul girl (mascot)


o The federation generally put in only 1 % of its
revenue earned last year on advertisement in the following
year.

o The highlighted part of the promotion is the hoardings they use to make pun
on day to day issues.

o This segment could be highlighted in the same way as it is being used in ice
cream, milk and butter segment.
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o After being the most highlighted mascot of all times, there is no point having
a separate mascot in this segment (keeping the advertisement amount the
federation put in into consideration).

o No one can doubt the overall impact it had on sales and visibility of brand.

o We have witnessed the failure of Nutramul mascot where it lacked the
presence and brand recall. Moreover, later Amul girl mascot was used in this
brown beverage segment giving the product more visibility.



o Amul girl has become iconic in Indian advertisement. The brand recall for
the Amul girl is phenomenal across India today.

o The Amul girl mascot is already being used in some products in this
beverage segment like Amul Shakti and Nutramul.

o The most vital part is that the Amul in beverage segment is meant to target
mainly youth and kids with its milk shake , kool caf and koko. Keeping the
target audience in mind Amul should preferably use the mascot in this
segment where the audience targeted is kids and youth majorly.

191 | P a g e



o In order to prove my null hypothesis correct I have used certain companys
mascot like Fido of 7UP, Maharaja of AIR INDIA and Cheetah of
CHEETOS to justify my statement on the basis of past records.

















192 | P a g e







A picture is worth a thousand words. Eyes are increasingly subjected to more and
more graphics, a picture can also have a recall value which can easily be over a
thousand days. Graphics are the most powerful medium to convey a message.

Mascot Name: Cheetah
Representing: Cheetos
Created By: Hawley Pratt

FEATURES
o In 1986, Cheetos ads started featuring Chestar Cheetah in all forms of
Cheetos pack.
o The brand enjoyed phenomenal market place success in terms of double
o Cheetah was primarily used to target kids with its cool cat avatar.
193 | P a g e



o With the change in perception of audience the brand again repositioned itself
with the help of this mascot.
o Year 2007
Google search of Cheetos = 132,000 hits.
YouTube videos = 1,900
o Year 2008
Google search of Cheetos = 1,121,000 hits.
YouTube videos = 4,550
o The above facts easily portray the enhancement of brand visibility due to
the Mascot CHEETAH. He was the highlighted part of all forms of
advertisement where his actions, body language gave an insight about the
flavor.
o The repositioning and communication strategy proved to be a success as the
iconic Cheetah advertised in the campaign posted an unprecedented 14.4%
increase in sales.









194 | P a g e





Mascot Name: Maharaja
Representing: Air India
Created By: J Walter Thompson

AIR INDIA BRINGS BACK MAHARJA OUT OF HOME
This now lovable figure made its first appearance in 1946.
The Maharaja was designed with all the aspects of a rich Indian potentate,
symbolizing graciousness and high living. And somewhere along the line his
creators gave him a distinctive personality.
Initially it was designed for an in-flight memo pad to take Air Indias sale
and message across the world.
this Maharaja is one of the longest lived & most recalled mascots till date
After all the upset and merger of Air India and Indian Airlines , they have
decided to continue Maharaja as its mascot because of its mass appeal
The Maharaja, which has been a name synonymous with Air India, has
always been an inevitable part of every Indian.
After all the ups and down the management is hoping that this campaign
with Maharaja (Mascot) will help Air India get better brand recall.
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Mascot Name: Mickey Mouse
Representing: Walt Disney
Created By: Walt Disney and UbIwerks

Mickey Mouse
- A Truly Public
Character

Mickey Mouse was created in 1928
Mickey Mouse is a comic animal cartoon character and an icon for The Walt
Disney Company.
It is one of the most recognized symbols in the world.
Mickey Mouse reflects brand visibility.
Moreover, few other cartoon characters are even stated as MICKEYS
FRIENDS.
Mickey Mouse has influenced our world for many decades, creating
relationships with all ages and races.
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Mickey Mouse earned a star on the Hollywood Walk of Fame.
Mickey Mouse brings about the best in families through places like Disney
world where he tries to create a vacation where many people can go and
have an enjoyable experience with their families.
His impact on the Disney Company has turned a little mouse into a huge
American icon which has spread internationally with various theme parks
throughout Europe.
His profitable cartoons, movies, and merchandise have made Mickey Mouse
a household name.
He appeals not only to children across the world, but all ages including teen,
adults, and seniors.
It reflects the dream to grow up to be successful, maintain a marriage, and
live happily with children.













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HYPOTHESIS

To make my null hypothesis correct I have considered all the parameters and
factors stated above in the examples. In order to make my null hypothesis correct I
have used inductive reasoning which is based on how the people and industry react
when we undertake any step to build up a brand.
The following factors encouraged me to go for the same Amul Mascot (amul girl)
in the beverage segment
Generally these are the factors we look for when we go for a mascot
Greater customer interaction
Create brand awareness of the product
Sustaining the brand image
Stimulating and reviving brands
Product association
Higher recall value

Amul girl mascot fits in all the parameters stated above and after being one of the
oldest mascots in the history, one would not suggest to create a separate mascot for
a product under the same umbrella brand.
Nutramul a sub- brand under the same umbrella brand introduced a separate
mascot for the same. This mascot did not catch up among the audience and
they introduced Amul Girl in association with Nutramul mascot to revive the
brand.

A health food drink branded as Amul Shakti a part of this beverage segment
is already been endorsed using the Amul Girl mascot.
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Moreover, in the beverages segment AMUL KOOL, KOOL KAFE, KOOL
KOKO , NUTRAMUL are basically targeting youth and kids. By taking a
general perception we can say that mascot, cartoons are majorly popular in
this targeted segment. There lies the chance to introduce this Amul Girl
mascot in this segment and make this section of product range more visible.

Cheetah one of the oldest and popular mascot of cheetos is used in every
single product range of the cheetos. The mascot provides a visibility of the
product range at the same time gives a brand recall stating the product
associated with parent brand. Similarly we can use the Amul girl mascot in
each segment stating the association with the brand at the same time
providing the product visibility.

Maharaja the mascot of Air India now lovable figure made its first
appearance in 1946.This Maharaja is one of the longest lived & most
recalled mascots till date.After all the upset and merger of Air India and
Indian Airlines , they have decided to continue Maharaja as its mascot
because of its mass appeal. The Maharaja, which has been a name
synonymous with Air India, has always been an inevitable part of every
Indian. Similarly, Amul Girl (mascot) is connected with people it is
emotionally attached to them. Bringing up a new mascot or a brand
ambassador will not enhance the brand image and it can dilute the brand
visibility.

Mickey Mouse is a comic animal cartoon character and an icon for The Walt
Disney Company. It is one of the most recognized symbols in the world.
Moreover, few other cartoon characters are even stated as MICKEYS
FRIENDS. Mickey Mouse has influenced our world for many decades,
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creating relationships with all ages and races. Similarly Amul Girl mascot
has won many hearts and is very much associated with the audience. The
prime thing Amul needs to target is their association with their sub brand
and their product range. This will ensure enhancement of visibility,
awareness and demand.

After being the most highlighted mascot of all times, there is no point having
a separate mascot or going for a brand ambassador in this segment (keeping
the advertisement amount the federation put in into consideration).Amul
federation spends only one percent of last year revenue on advertisement for
the current year.

With all the factors stated above and taking inductive reasoning as a
methodology to prove my intention and the null hypothesis correct.
This (below) is the ideal mascot I have thought of keeping beverage segment
into consideration.

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AMUL BOTTLE MODELS
(Designed by me)



"AMUL KOOL KAFE" of 250ml
The bottle has been designed keeping in mind the preferences and the
conveniences demanded by the end consumers. The bottle has been structured in
such a way that there is a curvy dimension attached to it at the bottom. This
basically serves 2 purposes. Firstly, it helps the consumers to hold the bottle in a
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much more convenient manner thereby making it user-friendly. Secondly, the
stylized curve provides the bottle with a much more appealing and attractive
outlook and hence making it all the more catchy. I would also like to state that
keeping the cost considerations in mind; almost all the materials to be used for
designing the bottle will be the same as before with the sole exception of its upper
cap. Additionally, I have also used the main logo (AMUL GIRL) of the AMUL
BRAND so that consumers from all age groups, especially the youth can identify
and relate more easily with the brand thereby ensuring BRAND
RECOGNITION" and "BRAND LOYALTY. Thus, the main USP of this
bottle model is its appealing outlook and the convenience factor associated with it.

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"AMUL KOOL KAFE" of 250ml
The shape of the can is similar to that of any other brand like Pepsi
(youngistan).This can is less flattened and has a slim look. Moreover, the
creativity and innovation attached to it makes it all the most appealing to people
from all age groups. The color of the can will change with respect to flavor,
keeping the Amul logo and shape of the can constant.


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"AMUL KOOL KAFE" of 200ml
The costing of the bottle will be the same as earlier as the same material and
components will be used (glass bottle).The designing of the bottle is done keeping
the flavor into consideration. The color of the bottle will change with respect to
flavor keeping the Amul logo and shape of the bottle constant.

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"AMUL KOOL KAFE" of 200ml
This is in the form of a can. This has been designed targeting children up to 10
years. The upper ring is designed in the form of a key chain ring. The main motive
to include that ring was that generally small kids get attracted to things see others
with like door keys, car keys, etc. This will lead to value addition whereby this
bottle can be put up in bags (hung to chain, etc), pants (where we put belt). This
Amul logo will add up to make it all the more catchy and attractive.

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250 ML
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200 ML
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CONCLUSION AND RECOMMENDATIONS

The project basically focuses on the current scenario of ready to drink milk
beverages market in Hyderabad and Secunderabad. It lays emphasis on how Amul
has managed to reach the mass of the city having faced fierce competition from
other players. It measures the effectiveness of the company in tapping the beverage
market in Hyderabad. Hence the conclusion and recommendations basically
revolves around the objectives framed of the project which are as follows:-
Retail penetration In this segment, I will be dealing with the APOs and
my objective was to
o Understand retailers perspective with reference to factors influencing
them to keep ready to drink milk beverages.
o Keep a check on which SKU is moving faster which will in turn,
ensure meeting the potential demand requirements.
o Study on the APOs planning to shut down.

Hence , I have used percentage and graphical analysis in order to determine the
retailers reason for not stocking Amul products, and, at the same time, analyzing
the SKU which is moving faster. Questionnaire method was used for this purpose
and following conclusions were reached upon:-
42% of the retailers do not stock Amul RTD because of low margins
23% of the retailers wanted to stock Amul RTD but no distributor
approached them.
9% of the retailers do not stock Amul RTD because of the credit
policy framed by the company.
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According to 7% of the retailers they do not stock Amul RTD due to
low consumer preference .
Amul had 29% availability (highest) as compared to other brands.
Vijaya is a close competitor, followed by Jersey and Heritage.

According to 39% of the retailers, flavored milk is the most preferred
product range of all, followed by butter milk and milk shakes.

RECOMMENDATION:-
Hence it is highly recommended that it should try to find out retailers
reasons for not stocking Amul Ready to Drink milk beverages and take
corrective actions, analyse the stocking of RTD milk products of competitive
brands, and determine which SKU is moving faster and take steps
accordingly.

Moreover, I have also used factor analysis to determine the factors influencing
the buying decision of retailers with reference to ready to drink milk beverages
whereby the following conclusions were reached:-
The following factors were needed to be focussed upon:-
o INVENTORY:- Availability of the stock and the Shelf life of the
stock,
o BRAND EQUITY:-Brand value and Price.
o PROFITABILITY:-Incentives and Margin
o CREDIT POLICY.
o PACKAGING.


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For enterprises like IKSHA Enterprises planning SHUT- DOWN
because of problems like:-

Dealers not meeting the demand (shortage of supply).

Limited supply of Amul bottles (majority in cans).

The fresh stock has a manufacturing date 7/12/2011 (Amul kool caf can).

No supply of Dolly ice cream which is easily available in amul van ( close
to her shop)

No supply of CHECKERS - (ice cream) vanilla with orange, black
current.

Sugar free ice creams are generally outdated.


In such a scenario,

I WOULD SUGGEST :-

Keep a check on the supply side.

Place a display board inside stating all the beverages and milk shakes.

Bring the fridge containing the beverages forward as the products are
hardly visible.

There is a need to put some sign boards stating the way to amul outlet
with some eye- catchy lines (example- for school children, we can
emphasize on sports, for people near to hospital, we can use the Amul
Logo(Amul girl) as a nurse and also feature sugar free ice cream which
will especially attract old people having diabetes).

It is important is to ensure that the owner gets the product on demand.


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Consumer perception - In this segment, I will be dealing with
consumers where I was to study the consumer perception regarding Amul
Beverages and at the same time, find the factors influencing their
decision with reference to buying the ready to milk drink beverages.
Hence, I had used percentage analysis and graphical analysis to determine
the consumers response in this segment, with reference to Amul product
range reflecting the product which consumers demand the most
Questionnaire method was used for this purpose and following conclusions
were reached upon:-

According to 32% of the consumers, flavoured milk is the most
preferred product range of all, followed by butter milk and milk
shakes.
According to 43% of the consumers , tetra pack is the most preferred
product package of all ,followed by can.
According to 37% of the consumers, social networking site is the most
appealing medium of promotion followed by hoardings and television.

RECOMMENDATIONS:-
Hence, I recommend Amul should focus on meeting demand, work on
preferred package requirements, emphasize on the factors which consumers
look in an advertisement and adopt the preferred medium of promotion.



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Moreover, with reference to competitive analysis on various parameters reflecting
that the company (AMUL) should work on keeping consumer insights into
consideration, I have also used weighted mean calculation, whereby the following
conclusions were reached upon:-
1. The weighted mean of Amul for price is 2.20, i.e. weighed more
towards the satisfactory side whereas Vijaya scores the lowest
score 1.80, followed by Danone.
2. The weighted mean of Amul for Variety of products is 1.63, i.e.
weighed more towards the good side followed by Heritage and
Vijaya.
3. The weighted mean of Amul for packaging is 3.39 (highest), i.e.
weighed more towards the neutral side whereas Britannia scores
the lowest score 1.76, followed by MTR.
4. The weighted mean of Amul for Brand delivers what it promises is
1.89, i.e. weighed more towards the good side.
5. The weighted mean of Amul for my commitment towards brand is
1.83, i.e. weighed more towards the good side whereas Vijaya
scores the lowest score 1.74, followed by Amul.
6. The weighted mean of Amul for overall satisfaction is 1.93, i.e.
weighed more towards the good side whereas Vijaya scores the
lowest score 1.87, followed by Amul.
RECOMMENDATIONS:-
Hence, Amul needs to emphasize more on overall consumer satisfaction and
packaging and take actions accordingly.
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Designing (promotional activity) This segment relates the above
discussed consumer perception segment, where all the designing part
(promotional activity) is done taking consumer perception into account.
As we all know product attributes, packaging, labeling, mascot, jingles,
advertisement, etc all are essential tools to enhance brand equity.
Hence, I have used historical data from which we can state our hypothesis
which is an unproven proposition or possible solution to a problem.
Hypothetical statements assert probable answers, at empirical level a theory
may be developed with inductive reasoning. Inductive reasoning is the
logical process of establishing a general proposition on the basis of
observation of particular facts. In this segment I have used several examples
such as MICKEY MOUSE MASCOT OF WALT DISNEY, MAHARAJA
MASCOT OF AIR INDIA and CHEETAH OF CHEETOS to justify my
null hypothesis - AMUL GIRL (mascot) in beverage segment would
enhance the overall visibility and will have a positive impact on sales.
In order to make my null hypothesis correct I have used inductive reasoning
which is based on how the people and industry react when we undertake any
step to build up a brand.
The following factors encouraged me to go for the same Amul Mascot (amul girl)
in the beverage segment
Generally these are the factors we look for when we go for a mascot:-
Greater customer interaction.
Create brand awareness of the product.
Sustaining the brand image.
Stimulating and reviving brands.
Product association.
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Higher recall value.

RECOMMENDATION:-
Amul girl mascot fits in all the parameters stated above and after being one of the
oldest mascots in the history, one would not suggest to create a separate mascot for
a product under the same umbrella brand.















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OUTCOME AND CONTRIBUTION

OUTCOME:

Retail penetration:-

Hence , I had used percentage and graphical analysis in order to determine the
retailers reason for not stocking Amul products, and, at the same time, analyzing
the SKU which is moving faster.Questionnaire method was used for this purpose
and following outcomes were reached upon:-

42% of the retailers do not stock Amul RTD because of low margins
given by the company.
23% of the retailers wanted to stock Amul RTD but no distributor
approached them.
9% of the retailers do not stock Amul RTD because of the credit
policy framed by the company.
According to 7% of the retailers they do not stock Amul RTD due to
low consumer preference .
According to 39% of the retailers, flavoured milk is the most preferred
product range of all, followed by butter milk and milk shakes.
Amul had 29% availability (highest) as compared to other brands.
Vijaya is a close competitor, followed by Jersey and Heritage

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Moreover, I have also used factor analysis to determine the factors
influencing the buying decision of retailers with reference to ready to
drink milk beverages whereby the following conclusions were
reached:-
The following factors were need to be focussed upon:-
INVENTORY:- Availability of the stock and the Shelf life of the stock,
BRAND EQUITY:-Brand value and Price.
PROFITABILITY:-Incentives and Margin
CREDIT POLICY.
PACKAGING.

Consumer perception:-
I had used percentage analysis and graphical analysis to determine the
consumers response in this segment, with reference to Amul product range
reflecting the product which consumers demand the most Questionnaire
method was used for this purpose and following outcomes were reached
upon:-

According to 32% of the consumers, flavored milk is the most
preferred product range of all, followed by butter milk and milk
shakes.
According to 43% of the consumers, tetra pack is the most preferred
product package of all followed by can.
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According to 37% of the consumers, social networking site is the most
appealing medium of promotion followed by hoardings and television.

Moreover, with reference to competitive analysis on various parameters reflecting
that the company (AMUL) should work on keeping consumer insights into
consideration, I have also used weighted mean calculation, whereby the following
conclusions were reached upon:-
The weighted mean of Amul for price is 2.20, i.e. weighed more
towards the satisfactory side whereas Vijaya scores the lowest score
1.80, followed by Danone.
The weighted mean of Amul for Variety of products is 1.63, i.e.
weighed more towards the good side
The weighted mean of Amul for packaging is 3.39 (highest), i.e.
weighed more towards the neutral side
The weighted mean of Amul for Brand delivers what it promises is
1.89, i.e. weighed more towards the good side.
The weighted mean of Amul for my commitment towards brand is
1.83, i.e. weighed more towards the good side
The weighted mean of Amul for overall satisfaction is 1.93, i.e.
weighed more towards the good side
Designing (promotional activity):-
I have designed various bottle models where all the designing part (promotional
activity) is done taking consumer perception into account. As we all know product
attributes, packaging, labeling, mascot, jingles, advertisement, etc all are essential
tools to enhance brand equity. I have used historical data to state my hypothesis
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which is an unproven proposition or possible solution to a problem. Hypothetical
statements assert probable answers, at empirical level a theory may be developed
with inductive reasoning. Inductive reasoning is the logical process of
establishing a general proposition on the basis of observation of particular facts.
The NULL HYPOTHESIS is AMUL GIRL (mascot) in beverage
segment would enhance the overall visibility and will have a positive
impact on sales.

To make my null hypothesis correct I have considered all the parameters and
factors stated above in the examples. In order to make my null hypothesis correct I
have used inductive reasoning which is based on how the people and industry react
when we undertake any step to build up a brand.
I have designed various bottle models which are designed in such a way that it
meets consumer requirements and is very attractive and appealing for them.
Moreover, I have formulated various marketing and promotional strategies to be
adopted in order to ensure overall consumer satisfaction and capture the market. I
have designed various mascots and through my hypothesis have come to the
conclusion that AMUL GIRL (mascot) in beverage segment would enhance the
overall visibility and will have a positive impact on sales.

CONTRIBUTION:
I have found out the penetration level of Amul beverages at Hyderabad
and Secunderabad.
I have found out various factors influencing the buying decision of
retailers.
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I have found out the problems faced by retailers in selling and stocking.
I have recommended various suitable market strategies to be adopted
by AMUL in order to increase its market share in Hyderabad and
Secunderabad.
I have conducted an extensive study to determine the consumer
perception regarding Amul Beverages.
I have designed various brochures, hoardings, cans and bottles with
respect to consumer perception.
I have carried out detailed analysis of Amul milk Beverages with its
competitors.
I have identified the reasons for reluctance of retailers to stock Amul
products and suggested corrective measures to improve penetration in
the retail market.


I have conducted an extensive study by understanding, learning and
interpreting the Consumer behavior, attitude and perception in
consumption of beverages in general.
I have conducted an extensive study to find out which SKU is moving
faster.
Moreover, I have come up with various recommendations and
suggestions regarding shut-down outlets.
I have designed various mascots to ensure effective promotion and
advertising and it has a strong impact on increased sales and brand
visibility.

I have designed various innovative hoardings for the new product
launch of AMUL PRO. Moreover, I have also come up with the various
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eye- catchy taglines such as yes, this is it and create impressions.
They are as follows:




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LEARNING FROM SIP

The MBA program is a well structured and integrated course of business studies.
The main objective of practical training at MBA level is to develop skills in
student by supplementing to the theoretical study of business management in
general. Industrial training helps to gain real life knowledge about the industrial
environment and business practices. The MBA program provides student with a
fundamental knowledge of business and organizational functions and activities as
well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically
exposed of such subjects when we get the training in the organization. It is only
through training that we come to know what an industry is and how it works.

During this entire training I have got lots of experience and come to know about
the management practices in real that how it differs from those of theoretical
knowledge and the practicality in the real life. Here, I witnessed a new product
launch and at the same time learnt about various departmental operations and
aspects taken into consideration before jumping into any field in the industry. This
experience will surely help me in the future when I will enter the practical field.

In todays globalized world, with such intense competition prevailing in the market,
one should not be limited to theoretical knowledge. It must possess practical
knowledge as well, which would help an individual in his/her carrier activities and
it is true that Experience is the best teacher.


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LESSONS LEARNT:-

1. I have learnt to tackle all kinds of situations and overcoming them in the
best possible manner.

2. The steps to be undertaken when people treat you as normal salesman and
carrying out effective salesmanship.
3. The steps to be carried out when people ignore you and and do not give
much value to your questions, In such a case, the key is MAKING
PEOPLE LISTEN TO YOU .
4. Overcoming language , semantic, and physical barriers,
5. Dealing with shop-owners and maintaining good relations with them
to ensure better performance and productivity.,
6. Getting profound insights about the product through various methods.
7. Determining brand perception and ensuring brand recognition and
brand loyalty,
8. I have developed profound insights about Amuls business strategy and
the need for social development.
9. I have learnt about the various elements of product mix and positioning,
pricing, promotional activities, brand architecture, etc.
10. Last but not the least, I have learnt that hard work and patience always
pays off at the end. I have carried out out my project with utmost
sincerity and dedication.





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REFERENCES

Books-

Pallant, Julie (2007). SPSS Survival Manual, 3rd edition, Open
University Press, The McGraw-Hill Companies.

Malhotra, N. K. (2004). Marketing research: an applied orientation, 4th
edition, Prentice-Hall International, London.

Marketing Research: A south Asian Perspective by Churchill, Iacobucci,
Israel.

Kotler philip, Gary Armstrong, Prafulla Y. Agnihotri, Eshan ul Haque
(2011). Marketing management: a south asian perspective, 13th edition,
new delhi: Dorling Kindersley (India) pvt. Ltd.


Websites-

http://www.amul.com
http://en.wikipedia.org/wiki/Sampling
http://www.emeraldinsight.com/
http://www.indiadairy.com/
http://amulthebrand.blogspot.com/
http://retailindiatv.blogspot.com/2007/04/fmcg-modern-stores.html
http://en.wikipedia.org/wiki/Retailing_in_India
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http://www.bizmove.com/general/m6j.htm
http://profit.ndtv.com/news/show/assessing-the-impact-of-organized-
retail-on-kirana-stores-89419
http://www.indiadairy.com/ind_dairyindustry.html

http://www.docstoc.com/docs/12555510/AMUL-MARKETING-
RESEARCH-REPORT

Indian dairy Industry - a profile.
Available from: http://www.aavinmilk.com/dairyprofile.html

Journals/ Research paper-

Kishore Biyani, (2007)- Future Group Research, Published in It
Happened in India.

Goldman Sachs, Asia Pulse, (February 7, 2005) -Indias Economic
Growth May Beat China by 2015

Raj, Rahul, (2009)- Study on the penetration of Amul kool milk
beverages product in the retail outlets of cochin as well as the factors that
influence the stocking decision of these products.