AMUL

The taste of India

EXECUTIVE SUMMARY
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The AMUL model is based on strong economic logic for the existence of each tier , meaning
each higher tier must generate sufficient value to the satisfaction of its immediate lower tier.
Interlocking system of control and ownership ensure that this topic is never lost of sight the
owner of AMUL namely, the farmers have ensured that the organization never looses its
independence and autonomy, and that no internal or external stakeholder can take me system for
a ride. In order to promote the farmers interest, AMUL has been always engaged in lobbying
activities. Its initiatives in countering the evil effects of WTO, in the passing of parallel
cooperatives act in several states, in bringing out the co-operative companys Act at the center
are only some of the recent examples. by setting standards in the market place in terms of
product quality and its price, AMUL has become the natural market leader in its areas of
functioning and won the hearts of all Indians. By its organizational design and strategies, AMUL
has rediscovered the model of a new-generation producer cooperative in India, which is different
from its traditional form in assigning the right kind of incentives to the shareholders. In terms of
forward linkages, however , AMUL approximates a Japanese keiretsu, wherein the different
stakeholders join hands with each other to maximize the value of the enterprise.
By its pricing and quality strategies, AMUL is always striking a balance between the interests of
the consumer with those of its producers. Because of its larger appeal, AMUL has truly
symbolized the real Taste of India. Its innovation advertisement has further reinforced its
competitive power and appeal. Professional management of AMUL, which is always accountable
to the members, has ensured excellent economic and financial management of its federation, the
GCMMF.
Probably the most important component of AMULs success is its visionary and dedicated
leadership, which has spent its private resources not only to solve free riders problem at every
stage of collective action but also to protect the organization from predatory attacks from the
external environment.

CHAPTER-1
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INTRODUCTION

OVERVIEW OF CHOCOLATE INDUSTRY

The vital statistics of the confectionery segment seem more promising than the conventional
FMCG categories such as toilet soap or detergents. While toilet soaps and detergents already
reach over 90 per cent of the households, both chocolate and sugar confectioneries have
abysmally low penetration levels.
ORG-MARG estimates suggest that chocolate penetrated just five per cent of the Indian
households in 2000. On the other hand, sugar-boiled confectionery reaches 15 percent of the
households, leaving ample room for growth. Even considering the urban market alone, the
category reaches just 22 percent of the urban consumers.
This category, a therefore has considerable potential to grow before it reaches saturation point
as have traditional FMCG product such soaps and detergent. Chocolates and sugar-boiled
confectionery boast of even lower penetration levels than biscuits, which reach 56 percent of the
households.
The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates, mints
and chewing gums. Sugar-boiled confectionery, consisting of hard-boiled candy, toffees and
other sugar-based candies, is the largest of the segments and valued at around Rs 2,000 crore.
Nutrient confectionery dominates the organized segment, apart from the Indian arms of MNCs
such as perfecta India and Warner Lambert.
Cadbury India and Nestle India also made a foray into this segment five years ago and have a
small presence. Chocolates make up 22,500- tone market, which is valued at Rs 400 crore and
dominated mainly by listed players Cadbury India and Nestle India. But slipping volumes
however, despite its unmistakable potential, the major players in the confectionery industry have
not fared too well in recent times in terms of sales growth. Take the chocolate segment. Cadbury
India, which derives nearly 76 percent of its revenue from chocolate and sugar confectionery, has
seen its top line growth wind down from 19 percent in 1999 to 12 percent in 2000 and further to
7 percent in the firt six months of 2001. Nestle India has managed to report healthier sales and
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Profit growth, but this is more an account of the contribution from milk, coffee and culinary
products rather than sugar or chocolate confectionery
The only listed player in sugar-boiled confectionery has not done too well either. Parrys
confectionery, a leader player in sugar-boiled confectionery, has reported shrinking sales
volumes in 1998-99 and 1999-2000, after robust financial performance in earlier year.
Screeching to a halt these top line numbers only reflect the ground realities. Industry sources
estimates that the 22,500-tonne chocolates market, which grew at a robust 12 percent per annum
until 2000, grew by just three percent in that year.
Several factors appear to behind this slowdown. As with all other FMCG products, the demand
for confectionery product appears to have been hit by economic slowdown and the consequent
shrinkage in consumer spending. Confectionery products are impulse foods and thus
Appear to have borne the brunt of a cutback in consumer spending over the past couple of years,
while staple foods have continued to exhibit healthy growth rates.
This is evident from ORG-MARG figures, which suggest that the annual per capital consumption
of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that for sugar
boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG Milestone papers:
the growth inertia). Branded staples such as Atta and salt registered a healthy increase in per
capital consumption over this period.
No price hikes
Despite fairly aggressive promotional efforts by marketers, the overall penetration level for
chocolates registered no increase between 1999 and 2000.
Consumption of chocolates could have been impacted by the selling price increases the
marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate
brands were pegged up by 5-15 percent, partly reflecting a spike in cocoa prices in that period.
The probably contributed to the sales growth for the year.
However with cocoa price falling sharply in the second half of 2000, marketers were forced to
maintain selling price of most product, holding back value growth in sales. Cadbury India, the
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market leader in the chocolate segment (market share 71.9 percent) saw the growth in its
chocolate portfolio show to 6 percent in the April 2000 to April 2001 period, from nine percent
the previous year. This was mainly due to the healthy double-digit growth rates in its flagships
brand- Cadbury dairy milk. Brands such as 5 star and perk stagnated in 2000-01.
Nestle Indias chocolate portfolio (comprising of kit Kat, Munch and charge commanding a total
market share of 24.7 per cent) slowed even more dramatically. Registering less than one percent
growth between April 2000 and April 2001. Though Nestls recent launch, Munch, has been a
success, the low-priced brand has moderated the value growth in Nestls portfolio. Wooing
adults now the avenue for growth appears to lie in taking advantage of the low penetration level
for chocolates by roping in new customers. The chocolate majors attempted to do this by
repositioning chocolate, earlier targeted at children, as a snake food for adults. Cadburys
chocolate-coated wafer perk and Nestls charge and Munch were essentially sold on this
platform.
Though products such as Perk did succeed initially (Cadbury India claims to have added eight
million new consumers in 2000), growth in this segment appears to be petering out. Both park
and kit kat (the chocolate-coated wafer which is central to Nestles chocolate portfolio), have
shown signs of stagnation in 2001, actually reporting negative growth rates for a few of the
months.
Banking on smaller editions of late, the chocolates majors have been rejigging their products to
launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other FMCG
Products, the chocolates brands in smaller unit packs, hoping that this will prompt more frequent
purchases and pep up volume growth.
It is early days yet to judge if this has indeed pepped up value growth in the segment. However,
the chocolates majors do not have much to lose. Unlike the low unit pack versions of product
such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis than their
normal versions.
In most cases, the gram age offered under the low priced packs, has been brought down in the
same proportion as the price, leaving realization for the chocolate majors untouched.
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CHAPTER -2

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PROFILE OF THE COMPANY

Thirty years ago the milk producers of Gujarat had come together and decided to create their
own organization to enhance the marketing capacity of the dairy co-operative milk marketing
federation limited (GCMMF Ltd). Mr. V. Kurten was the founder of this co-operative society and
this society has been formed in a small village of Gujarat named Anand.
Gujarat cooperative milk marketing federation (GCMMF Ltd) is a Indias largest food product
marketing organization. It is a state level apex body of milk cooperative in Gujarat, which aims
to provide remunerative return to the farmers and also serve the interest of consumer by
providing quality products, which are good value for money.

Table 1: Profile of the company

Member

12 district cooperative milk producers union

No. of producer Member:

2.36 million

No. of village societies:

11.333

Total milk handling capacity

6.9 million liters per day

Milk collections (total 2009-2010)

1.81 billion liters

Milk collection (Daily Average 2009-2010)

4.97 million liters

Milk drying capacity:

511 metric tons per day

Cattle feed manufacturing capacity:

2340 mitts per day

AMUL HISTORY

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Amuls birth is indelibly linked to the freedom movement in India. It was Sardar vallabhbhai
Patel who said that if the farmers of India are to get economic freedom then they must get out of
the clutches of the middlemen. The first Amul cooperative was the result of a farmers meeting
in samarkha (kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice
from Sardar Vallabhai Patel, to fight rapacious milk contracts. It was sardars vision to organize
farmers, to have them gain control over production, procurement and marketing by entrusting the
task of managing these to qualified professionals, thereby eliminating the middlemen, the bane in
farmers prosperity.
The decision was taken that day in January 1946. Milk producers cooperatives in villages,
federated into a distinct union, and should alone handle the sale of milk from kaira the
government run Bombay milk scheme. This was the origin of the Anand pattern of cooperatives,
the colonial government refused to deal with the cooperative. The farmers called a milk strike.
After fifteen days the government capitulated. This was the beginning if kaira district
cooperative milk producers Union Ltd., anand registered on 14 December 1946. Mr. V. Kurien
was the founder of this cooperative society. This society has been formed in a small village of
Gujarat named Anand.
Originally the Anand pattern included dairy cooperatives societies at the level, inspired by the
kaira union, similar milk unions came up in the other districts too. In 1973, in order to market
their product more effectively and economically, they formed the GCMMF Ltd. GCMMF
become the sole marketer of the original range of Amul product including milk powder and
butter. That range has since grown to include ice cream, ghee, cheese, chocolate, shrikhand,
paneer, and so on. These products have made Amul a leading food brand of India.
The brand name Amul has taken from the Sanskrit Amoolya, meaning priceless, was suggested
by a quality control expert in Anand. The first products with the Amul brand name was launched
in 1955. Since then, they have been in use in millions of home in all parts of India and beyond.
Today Amul is a symbol of many things of high quality product sold at reasonable price,
availability, and services. Amul is the brand name of two million farmers, members of 10,000
villages diary cooperatives socities throughout Gujarat. This is the heart of Amul, it vis what is
so special about the amul saga. Amul in 1946 was really an effort to curve out a really Indian

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company that would have the involvement of millions of Indians and place direct control in the
hands of the farmers.
It was a mandate for producing, owing and marketing and above all, building your own truly
Indian brand. Amuls birth was thus a harbinger of the economic independence of our farmer
brethren. Today, 173 milk producers cooperative Union and 22 federations play a major role in
meeting the demand for packed milk products. Quality packed milk is now available is more than
1000 cities throughout the length and breadth of India. Amul therefore, is a brand with a
difference. That difference manifests itself in a larger than life pupose . the purpose- freedom to
farmers by giving total control over procurement, production and marketing
RANGE OF THE PRODUCT
Bread spreads:
Amul butter
Amul lite low fat bread spread
Amul cooking butter
Cheese range:
Amul pasteurized processed cheddar cheese
Amul processed cheese spread
Amul pizza (Mozzarella) cheese
Amul shredded pizza cheese
Amul Emmental cheese
Amul gouda cheese
Amul malai paneer (cottage cheese), frozen, refrigerated and tinned
Utterly delicious pizza

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Curd product:
Yogi sweetened flavored Delhi (Dessert)
Amul masti dahi (fresh cured)
Amul butter milk
Amul lassi
Milk drink:
Amul cool flavored milk
Amul Cool Elachi
Amul Cool Coffee
Amul Cool Rose
Amul Cool Strawberry
Amul Cool Mango
Healthy Beverages:
Amul shakti white food
Mithaee range (Ethnic Sweets):
Amul Shrikhand (Mango, Saffron, Almond pistachio, Cardamom)
Amul Amrakhand
Amul mithaee Gulabjamuns
Amul mithaee Gulabjamuns mix
Amul mithaee kulfi mix
Avsar Ladoos

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UHT Milk Range:

Amul shakti 3% fat milk
Amul taaza 1.5% fat milk
Amul gold 4.5% fat milk
Amul lite slim & trim milk 0% fat milk
Amul shakti toned milk
Amul fresh cream
Amul snowcap softy milk
Chocolate & confectionary:
Amul milk chocolate
Almond bar
Choco zoo
Milk powder:
Amul full cream Milk powder
Amulya dairy whitener
Sagar skimmed Milk powder
Fresh milk:
Amul Taaza toned Milk 3% Fat
Amul Gold full cream Milk 6% Fat
Amul Shakti standardized Milk 4.5% Fat
Amul slim & trim Double toned milk 1.5% Fat

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Amul saathi skimmed milk 0% Fat

Product specialization
Composition:
Milk fat 2%
Sugar 55%
Total fat 32.33%
(Milk fat + Cocoa fat)
Cocoa solids 7.5%
Milk solids 20%

COMPETITORS INFORMATION (CADBURY, NESTLE)

CADBURY

Cadbury is a British multinational confectionary company owned by mondelez international. It is

the second largest confectionary brand in the world after Wrigleys. Cadbury is head quartered in
uxbridge, London, and operates in more than fifty countries worldwide. Its best known product
include dairy milk, 5star, and the gems selection box.
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In 1824, john Cadbury began to sell tea, coffee and drinking chocolate from his premises in
Benjamin, and later his sons richer and George. George developed Bourneville estate, a model
village designed to improve the living conditions of company employees. Dairy milk chocolate,
introduced in 1905, used a higher proportion of milk within the recipe compared with rival
products, by 1914; the chocolate was the companys best-selling product.
Cadbury merged with j.s. fry & sons in 1919 and Schweppes in 1969. Cadbury was a constant
constituent of the FTSE 100 from the indexs 1984 inception until the company was bought by
Kraft foods in 2010. Cadbury dominates the Indian chocolate market with a 65% market share.
Besides, it has a 10% market share in the organized sugar confectionary market and a 25%
market share in milk/ malted foods segment.

NESTLE INDIA

Nestle India is a subsidiary of Nestle S.A. of switzeland headed by Mr. Martial G.Rolland,
Chairman and Managing director. With six factories and a large number of co-packers. Nestle
India is a variant company that provides consumers in India with products of global standards
and is committed to long term sustainable growth and shareholders satisfaction. The company
emplyes over 4500 people and for the full year 2005 Nestle India recorded net sales of Rs. 20477
mio.
Nestle has been a partner in Indias growth for the past nine decades and has built a very special
relationship of trust and commitment with the peoples of India.

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The culture of innovation and reinnovation within the company and access to the Nestle groups
proprietary technology/ brands, expertise and the extensive centralized research and development
facilities help the company to create value that can be sustained over a long term.

CHAPTER 3
RESEARCH METHODOLOGY

SCOPE OF THE STUDY

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The present study is the study on GUJRAT COOPERATIVE MILK MARKETING FEDERATION
LIMITED, one of the Indias largest food production marketing organization , which is a state level apex
body of milk cooperative in Gujarat. From the study one can easily infer the present market position of
Amul chocolate with its leading competitors.
The study is designed and focused preliminary on identifying the present market position of the Amul
chocolate. It also includes identification of its core competitors and enhancing efforts towards brand
positioning in present and in future.

OBJECTIVE OF THE STUDY

The primary objective would be:

To conduct a comparative analysis of Amul chocolate vis--vis its competitors.

The other objective would be:

To compare Amul chocolate with its competitors in terms of sales figure.

To make an analysis of the shortcoming of Amul chocolate compared to its competitors.

Finally to conclude the findings and suggest the necessary corrective measures and
recommendation for improving the market position of Amul chocolate.

METHODOLOGY

The study is primary in nature. For this purpose 105 responses have been collected from
customers. The selection of customers was based on convenience sampling approach.

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For collecting data, well structured pre-tested questionnaire has been designed. The question
include:

Most popular kind of chocolate.

Time for chocolate.
Consumer perception while purchasing chocolate.

The data has been analyzed using descriptive statistics.

LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the survey
had the following constraints.

Customer are not willing to give answer of the questions due to their busy schedules.
Customer hide the facts especially in the sale figure.
Few customer were not cooperating during the project survey. It was quite difficult to

collect necessary data.

Due to the time constraints and other imperative workload during the training period it
could not be made possible to explore more areas of concern pertaining to project study.

CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA

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Fig 1. Most popular kind of chocolate

Interpretation:The purple color segment in the pie chart indicated the most popular bar, which is consumed by
the consumer with 66%. The blue color segment shows that toffee is the second most popular
chocolate, which is consumed with 17% with the consumer. The green color segment indicates
candy, which is liked by people with 08%. The last red segment indicates that only 09% people
like all the chocolates.

Fig 2. Consumer perception while purchasing

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Interpretation:The customer while purchasing the chocolates have different preferences, as shown in the pie
chart the green segment shows that 66% of the customers purchase chocolates with their
preferred flavor. The red segment shows that only 4% of the customer prefer gift as chocolates.
The blue segment shows that 30% of the customers prefer both the flavor and gift while
purchasing chocolates.

Fig 3. Time for chocolate

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Interpretation:There are various time periods where the demand changes for the chocolates. The green segment
of the chart with 88% shows that the customer prefer chocolates at any time. The red segment
shows that 08% of the customer like chocolate during parties and birthdays. The blue segment
indicates that only 04% of the customer like chocolate after their meal.

Fig 4. Flavor preferences

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Interpretation:This analysis shows the demand of the chocolates with the preferred flavors. According to the
survey 22% of the customer prefer milky flavor, 26% of the customer prefer coffee flavor, 22%
of the customer like like fruit n nut flavor, 2% of the customers like milky and coffee flavor, 12%
of the customer like milky and fruit n nut flavor, 8% prefer coffee and fruit n nut flavor. 2% of
the customers like all the flavors, and only 6% of the customers prefer other flavors.

Fig 5. First preferences of chocolate

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Interpretation:The customers have different first preference of chocolate. The red shows the 67% of the
customer prefer Cadbury as their first preference, The blue shows that 15% of the customers
prefer Amul as the first preference, the green shows that 13% like nestle as their first preference,
and only 6% customer prefer other as their first preference.

Fig 6. Second preference of chocolate

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Interpretation:This survey shows that 38% of the customers prefer Cadbury as their second preferences, 28%
customer prefer Nestle as their second preference, 20% of the customers prefer Amul as their
second preference, and 14% of the customers prefer others as a second preference.

Fig 7. Weekly purchase in Rs

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Interpretation:This analysis shows the purchasing power of customers in a week. This shows that 70%
customers spend Rs. 50 on chocolate, 20% customers spend Rs 50-100 on chocolate, 10% of the
customers spend above Rs. 50 on chocolate.

Fig 8. Awareness of Amul chocolate in customers

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Interpretation:This analysis shows that 58% of the customer are all well aware about the amul milk chocolates.
23% customers are well aware about the almond bar. 10% customers are well aware about the
chocozoo. 5% customers are well aware about the fundoo, 4% customers are aware about the
bindaz.

CHAPTER-5
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FINDING, RECOMMENDATION & CONCLUSION

FINDINGS
Majority of people prefer bar chocolate.
Majority of people perception is gift or flavor while purchasing chocolate.
Majority of people eat chocolate any time.
Majority of people prefer coffee flavor of chocolate.
Majority of people has first preference is Cadbury.
Majority of people has second preference is Cadbury.
Majority of people is aware about Amul chocolate.

RECOMMENDATIONS

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On the basis of research and analysis of the study conducted in DELHI market, which was divided into
five areas viz. south, north, east, west and central Delhi for the AMUL chocolate. I would like to suggest
the following key point to the company.

The company should try to build some feedback mechanism from the retailer to check the
wholesaler intervention in the AMULS distribution area because the wholesaler try to
hamper the goodwill as well as the other benefits of the company and their most
important part of distribution channel.

The company should maintain separate distribution channel for the chocolate because it is
seem mostly during the study that one single distribution deals all products, as it is not a
hidden fact that product line and product depth is very wide. In the other hand other
product most importantly Amul butter is hot item for distributor as well as for retailers.
Therefore they dont pay proper attention on to it.

The company should provide new schemes on the regular basis to the retailer as well as
to the customers to increase its market share

During the project this fact become clear that the customer are not well aware about the
all product item of amul chocolate so through the strong advertisement company should
try to increase awareness of the Amul chocolate.

Replacement is big problem for retailer especially in chocolate segment because all
chocolate products need special kind of care but there some unavoidable factor damage
the chocolate so company should provide revive the policy about the replacement, easy
replacement facility to the retailer so that they could be attracted toward selling the Amul
chocolate.

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The company should start sales promotion campaign at the micro-level by increasing the
visit of companys representatives to the retailers.

The company should work collaboratively with the distributors in effective manner
towards focusing on the area where there is a potential market for AMUL chocolate and
target that area.

CONCLUSION

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Amul chocolate enjoy the trust of the consumer because of its quality and huge brand image.
Currently the stock of Amul chocolate supplied by the company is not of fresh date. As a result
of this situation is making in adverse impact on the market of maul chocolate. There a big
storage problem with Amul chocolate it has needed to keep in certain temperature. There is some
problem with the packaging of the product. As a result the chocolate puffed before its expiry
period. The supply of Amul chocolate is not proper in some specific areas. Which gives wrong
message about company
.

BIBLIOGRAPHY

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BOOKS:KOTLER PHILIP MARKETING MANAGEMENT NEW DELHI PRENTICEHALL OF INDIA. 2011

PANDEY , LM, FINANCIAL MANAGEMENT, VIKAS PUBLICATION, NEW DELHI, 2007

KOTHARI C.R, RESEARCH METHODOLOGY

WEBSITE:-

www.amul.com

MAGAZINES:BUSINESS WORLD(2014)
BUSINESS TODAY(2013)

PREOIDICAL:ECONOMIC TIMES
TIMES OF INDIA (DELHI EDITION)

ANNEXURES
CUSTOMER QUESTIONNAIRE
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Name______________

Occupation___________

Age____________

Monthly income__________

Place____________

(your information will be kept confidentially)

1.Do you eat chocolate?

Yes( )

No( )

2.Which type of chocolate do you like most?

Candy( )

Toffee( )

Bar( )

3.Whats on your mind while purchasing chocolate?

Flavor( )

Gift( )

Both( )

4.At which time do you like to eat chocolate?

After meal( )

Birthday party( )

Any time( )

5.Which type of flavor/taste does you like the most?

Milky( )

Coffee( )

Fruit n nut( )

other( )

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6.Which chocolate do you like the most? Name

a) _______________

b) _______________

7.How much do you spend in chocolate in a week?

Below 50( )

50-100( )

above 100( )

8.Do you aware about?

YES

NO

Amul milk chocolate

------

------

Almond Bar

------

------

Bindaaz

------

------

Fundo

------

------

Chocozoo

------

-------

9.Have you tasted Amul chocolate?

YES

NO

Milk chocolate

-------

-------

Almond Bar

-------

-------

Bindaaz

-------

--------

Fundo

-------

---------

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10.If yes give point (1-10) for each?

Milk chocolate

-------------------------------

Almond Bar

------------------------------

Bindaaz

-------------------------------

Fundo

------------------------------

Chocozoo

--------------------------------

11.How you come to know about Amul chocolate?

By electronic media( )

By print media( )

Buy display( )

any other __________

by retailer( )

12.Give points (1-10) for following chocolate?

Taste

Price

Packaging

Cadbury
Nestle
Amul

13.Any suggestion? ----------------------------------------------------------------

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