2) Introduction

In todays time there is serve competition in every field and the milk industry is also facing a lot of
competition a we know competitor can pause some threats to the organization as well as they provide us
some opportunities. An organization can store over its competition either by enhancing the quality of the
products, reducing the price, heavily spending promotional activities or having a effective distribution
network. The project is concerned with study of competitive marketing strategies followed by Amul and
Verka in Punjab. This project was concerned to find out effect of marketing strategies on retailers and are
they satisfied with the companies strategy. How many retailer sale the products of verka and amul?
Which type of the improvement was required by the retailer and what were the reasons behind the use and
no use of the companies product?
The retailers having awareness regarding the marketing strategies of verka and amul . How much
margin was offered by the others companies to the retailers? How much they were satisfied by sale of the
verka and amul.? Finding the reasons why they were not selling the products of the verka or amul? Or
they were having any complaint.

Indian Dairy Industry

Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been defined as
that branch of dairy science, which deals with the processing of milk and the manufacture of
milk products on an industrial scale.
In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing line
between farm and factory-scale production. Various factors contributed to this change in these
countries, viz. concentration of population in cities where jobs were plentiful, rapid
industrialization, improvement of transportation facilities, development of machines, etc.
whereas the rural areas were identified for milk production, the urban centers were selected for
the location of milk processing plants and product manufacturing factories. In India, dairying has
been practiced as a rural cottage industry since the remote past. Semi-commercial dairying
started with the establishment of military dairy farms and co-operative milk unions throughout
the country towards the end of the nineteenth century.

Gradually farmers within easy driving distance began delivering milk over regular routes
in the cities. This was the beginning of the fluid milk-sheds which surround the large cities of
today. Prior to the 1850s most milk was necessarily produced within a short distance of the place
of consumption because of lack of suitable means of transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number of
modern milk plants and product factories have since been established. These organized dairies
have been successfully engaged in the routine commercial production of pasteurized bottled milk
and various Western and Indian dairy products. With modern knowledge of the protection of
milk during transportation, it became possible to locate dairies where land was less expensive
and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950, with the
functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956
with the establishment of AMUL Dairy, Anand. The industry is still in its infancy and barely 10%
of our total milk production under goes organized handling.

In India dairy co-operatives were formed after 1912 but the real beginning was made only after
the Second World War. The Khaira District Co-operative Milk Union which is popularly known as AMUL
was the first producer oriented union organized in 1946. in India more than 1, 01,427 primary milk cooperatives with 10 million milk producers are covered under the dairy co-operative and 176 milk unions
are collecting daily about 1.58 corers of liters of milk, which give income to the rural community (Koli
2003). AMUL meant priceless in Sanskrit (Manikutty 2002). Gujarat Co-operative Milk Marketing
Federation Ltd (GCMME) play vital role for milk marketing in Gujarat. Khaira District CooperativeMilk
Producers Union Limited is the foundation of GCMME.
th
Since the turn of 19 century, Cooperatives have existed as dominant forms of organization in the
dairy industry around the world. Sometimes they have played the role of developing infant industry while
at other times they have been used to strengthen weak production bases in an environment where market
failures tend to be higher for marginal producers. In some other cases, a network of small producers have
organized themselves to better market their products. Management of these cooperatives have also led to
some interesting managerial insights for managers in emerging as well as developed economies.
A cooperative is an autonomous association of persons united voluntarily to meet their
common economic, social and cultural needs and aspirations through a jointly owned and democratically
controlled enterprise. A cooperative is based on certain values and principles of its own, which distinguish

it from other forms of organizations. Cooperation has three dimensions, that is, economic, social and
moral, which are equally crucial for its success. The very motto of cooperation, 'each for all and all for
each', signifies loyalty, trust, faith and fellowship. A cooperative is a perfect democratic institution of the
members, for the members, and by the members, and is based on the 'one member, one vote' system of
decision making.

HISTORY OF INDIAN MARKET MILK INDUSTRY

Beginning in organized milk handling was made in India with the establishment of Military
Dairy Farms.

Handling of milk in Co-operative Milk Unions established all over the country on a small
scale in the early stages.

Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945

Pasteurization and bottling of milk on a large scale for organized distribution was started
at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963)
etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over
India. These were taken up with the dual object of increasing the national level of milk
consumption and ensuing better returns to the primary milk producer. Their main aim was
to produce more, better and cheaper milk.
Production in India
Year

Production (Million Tones)

Per Capita Availability

1993-94

55.7

(gms/day)
178

1994-95

58.0

182

1995-96

60.6

187

1996-97

63.8

194

1997-98

66.2

197

1998-99

69.1

202

1999-00

72.1

207

2000-01

75.4

213

2001-02

78.3

217

2002-03

80.6

220

2003-04

84.4

225

2004-05

86.2

230

2005-06

88.1

231

2006-07

90.7

229

2007-08

94.6

220

2008-09

96.2

224

Source: State/UT Animal Husbandry Departments, 2008-09

*Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2007-2008

MAJOR CO-OPERATIVES OF PUNJAB

Amul
Amul was formally registered on December 14, 1946. The brand Amul, sourced from the Sanskrit
word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the
origin as an acronym to (Anand Milk Producers Union Limited).The Amul revolution was started as
awareness among the farmers. It grew and matured into a protest movement that was channeled towards
economic prosperity.
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The cooperative was initially referred to as Anand Milk Federation Union Limited hence the name
AMUL.Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in
Gujarat.Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products. In the process Amul became the largest food brand in India and has ventured into
markets overseas.Dr.VergheseKurien, founder-chairman of the GCMMF for more than 30 years (1973
2006), is credited with the success of Amul.

Gujarat Cooperative Milk Marketing Federation

In 1954, Kaira District Co-operative Milk Producers Union built a plant to convert surplus milk produced
in the cold seasons into milk powder and butter3. In 1958, a plant to manufacture cheese and one to
produce baby food were added. Subsequent years saw the addition of more plants to produce different
products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market
their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was
registered as a co-operative society on 9 July 1973.
The Khaira District Cooperative Milk Producers Union Limited was established on December
14, 1946 as a response to exploitation of marginal milk producers in the city of Anand (in Kaira district of
the western state of Gujarat in India) by traders or agents of existing dairies. Producers had to travel long
distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in
the summer season, as producers had to physically carry milk in individual containers. These agents
decided the prices and the off-take from the farmers by the season. Milk is a commodity that has to be
collected twice a day from each cow/buffalo. In winter, the producer was either left with surplus unsold
milk or had to sell it at very low prices.

1.5 MILK FED

Historical background
The Punjab State Cooperative Milk Producers Federation Limited popularly known as
MILKFED Punjab, came into existence in 1973 with a twin objective of
1. Providing remunerative milk market to the Milk Producers in the State by value addition
and marketing of produce on one hand
2.

To provide technical inputs to the milk producers for enhancement of milk production
on the other hand.

MILKFED is operating 11 milk unions and 10 milk plants where all milk products and milk
is manufactured, processed and packed at milk plants. The products of MILKFED are sold in
the market under the brand name Verka
Although the federation was registered much earlier, but it came to real self in the year
1983 when all the milk plants of the erstwhile Punjab Dairy Development Corporation Limited
were handed over to Cooperative sector and the entire State was covered under Operation Flood
to give the farmers a better deal and our valued customers better products. Today, when we look

back, we think we have fulfilled the promise to some extent. The setup of the organization is a
three-tier system,

Milk Producers Cooperative Societies at the village level

Milk Unions at District level

Federation as an Apex Body at State level.