1.

INTRODUCTION

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. Formed in

1950, 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. The white revolution was spearheaded by Tribhuvandas Patel under the guidance of

Sardar Patel and VergheseKurien. As a result, Kaira District Milk Union Limited was born in

1946. Tribhuvandas became the founding chairman of the organization which he led till his

last day of his life. He hired Dr.Kurien three years after the white revolution. He convinced

Dr.Kurien to stay and help with the mission rest was history in the dairying industry.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. Amul products are now available in more than 60

countries in the world.

Amul began the dairy cooperative movement in India and formed an apex cooperative

organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today

is jointly owned by some 2.2 million milk producers in Gujarat, India. Amul was formally

registered on December 14, 1946. The brand name 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 Union Limited).The Amul revolution was started as
awareness among the farmers. It grew and matured into a protest movement that was

channelled towards economic prosperity.

GCMMF - An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food

products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest

Organization in FMCG industry engaged in marketing of milk & dairy products under
the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000
Crores.

GCMMF is a unique organization. It's a body created by Farmers, managed by

competent professionals serving a very competitive and challenging consumer
market. It is a true testimony of synergistic national development through the practice
of modern management methods.

Vision:

GCMMF will be an outstanding marketing organization, with specialization in

marketing of food and dairy products both fresh and long life with customer focus and
IT integrated. The network would consist of over 100 offices, 7500 stockiest covering
at least every Taluka. Headquarter is servicing nearly ten lakhs outlets with a turnover
of Rs.10, 000 Cr and serving several co-operatives. GCMMF shall also create markets
for its products in neighboring countries
 Mission:

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer
of the world through excellence in the marketing by our committed team. Through co-
operative networking, we are determined to offer the quality product that provides the
best value for money.
Year of Establishment 1973

18 District Cooperative Milk Producers'

Members
Unions

No. of Producer Members 3.6 Million

No. of Village Societies 18,549

Total Milk handling capacity per

30 Million liters per day
Day

Milk Collection (Total - 2016-17) 6.44 billion liters

Milk collection (Daily Average

17.65 million liters
2016-17)

Cattle feed manufacturing

7800 Mts. per day
Capacity

Sales Turnover -(2016-17) Rs. 27043 Crores (US $ 4.1 Billion)

HISTORY.

The Amul revolution was started as awareness among the farmers. It grew and matured into a
protest movement that was channeled towards economic prosperity.TheKiara District Co-
operative Milk Producers' Union Limited (KDCMPUL) began pasteurizing milk for the Bombay
Milk Scheme in June 1948.By the end of 1948, more than 400 farmers joined in more Village
Society, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a
day.Meanwhile, Dr. Verghese Kurien, fed up being at the government creamery in Anand,
Gujarat, which held no challenge, volunteered to help Shri Tribhovandas Patel, the Chairman of
KDCMPUL, in setting up a processing plant. This marked the birth of AMUL in 1946.

The success of Amul was instrumental in launching the White Revolution that resulted in
increased milk production in India. It is officially termed as Operation Flood by Amul. The
breakthrough technology of spray-drying and processing buffalo milk, developed by Mr. H.M.
Dalaya, was one of the key factors that contributed to the Revolution.Over six decades ago the
life of a farmer in Kaira was very much like that of farmers anywhere else in India. His income
was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off-
seasons. Their income from milch buffaloes was undependable. The milk marketing system was
controlled by contractors and middlemen. As milk is perishable, farmers were compelled to sell
their milk for whatever they were offered. Often they had to sell cream and ghee at a throwaway
price.

They were in general illiterate. But they could see that the system under which contractors could
buy their produce at a low price and arrange to sell it at huge profits was just not fair. This
became more noticeable when the Government of Bombay started the Bombay Milk Scheme in
1945. Milk had to be transported 427 kilometers, from Anand to Bombay.
The Government found it profitable; Polson’s kept a good margin. Milk contractors
took the biggest cut. No one had taken the trouble to fix the price of milk to be paid to
the producers. Thus, under the Bombay Milk Scheme the farmers of Kaira District
were no better off ever before. They were still a t the mercy of milk contractors. They
had to sell their milk at a price the contractors fixed. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated farmers’ co-
operatives as early as 1942.

Sardar Patel reiterated his advice that they should market their milk through a co-
operative society of their own. This co-operative should have its own pasteurization
plant. His advice was that the farmers should demand permission to set up such a co-
operative. If their demand was rejected, they should refuse to sell their milk to
middlemen.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighborhood in Gujarat. Within a short span, five unions in other
districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To
combine forces and expand the market while saving on advertising and avoid
competing against each other, the GCMMF, an apex marketing body of these district
cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul
with it since 1955, transferred it to GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

In June 2013, it was reported that the Kaira District Cooperative Milk Producers
Union Limited, better known as Amul Dairy, had signed a tripartite agreement to start
a dairy plant in Waterloo village in upstate New York. The plant will initially
manufacture paneer and ghee. Amul will use an existing dairy plant owned by New
Jersey-based NRI Piyush Patel for manufacturing. The plant is strategically located,
as it close to supply centres from where raw ma terial is procured, and is near New
Jersey, which has a large Indian population.
The Utterly Butterly Delicious Story Of Amul

Over the years, Amul, one of the most beloved brands of our country, has become the taste of

India, just as its tagline claims. Every Indian millennial has grown up listening to the jingles of

its many dairy products, and the Amul girl, the brand’s mascot in the polka-dotted dress, has

become a nostalgia-evoking symbol. Amul has truly come a long way since its founding in 1946.

The Butter Girl

Amul did not always have the round-eyed moppet as its mascot.

The Butter Girl was born in 1966 when Sylvester daCunha, the

then MD of the advertising agency handling Amul butter’s

account, created her for its campaign.

It was a pleasant change from the dull, corporate ads that the previous

agency had come up with. Being a seasoned marketer himself,

Dr Kurien gave daCunha complete creative freedom to create and release the ads without taking

the company’s permission. 30 years later, the Utterly Butterly Girl still wins hearts wherever she

is, whether on a billboard or on the packet of butter.

 Chapter 2

 Company Profile

Co operative is generally operated not for profit but for the betterment of consumers and products.
Their main objective is to serve people of the society with good quality of products with as much as low
price.

‘AMUL’ is the successful co operative sector. The brand name itself indicates how AMUL is separated
over the country and the world. AMUL gets so many awards for

THE AMUL MODEL

The Amul Model of dairy development is a

three-tiered structure with the dairy

cooperative societies at the village level

federated under a milk union at the district

level and a federation of member unions at

the state level.

 Establishment of a direct linkage

between milk producers and consumers

by eliminating middlemen

 Milk Producers (farmers) control

procurement, processing and marketing

 Professional management
ORGANISATION STRUCTURE

It all started in December 1946 with a group of farmers keen to free themselves from

intermediaries, gain access to markets and thereby ensure maximum returns for their

efforts.Based in the village of Anand, the Kaira District Milk Cooperative Union (better known

as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat

network now covers 2.12 million farmers, 10,411 village level milk collection centres and

fourteen district level plants (unions) under the overall supervision of GCMMF. There are

similar federations in other states. Right from the beginning, there was recognition that this

initiative would directly benefit and transform small farmers and contribute to the development

of society.Markets, then and even today, are primitive and poor in infrastructure.Amul and

GCMMF acknowledged that development and growth could not be left to market forces and that

proactive intervention was required. Two key requirements were identified. The first, that

sustained growth for the long term would depend on matching supply and demand. It would need

heavy investment in the simultaneous development of suppliers and consumers.Second, that

effective management of the network and commercial viability would require professional

managers and technocrats.To implement their vision while retaining their focus on farmers, a

hierarchical network of cooperatives was developed, which today forms the robust supply chain

behind GCMMF's endeavours. The vast and complex supply chain stretches from small suppliers

to largefragmented markets.Management of this network is made more complex by the fact that

GCMMF is directly responsible only for a small part of the chain, with a number of third party

players (distributors, retailers and logistics support providers) playing large roles.

Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by

low consumer prices supported by a low-cost system.

 LIST OF PRODUCTS MARKETED

Breadspreads:

 Amul Butter

 AmulLite Low Fat Breadspread

 Amul Cooking Butter

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 AmulEmmental Cheese

 Amul Gouda Cheese

 AmulMalai Paneer (cottage cheese) Frozen and Tinned

 Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

 AmulShrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

 AmulAmrakhand

 AmulMithaeeGulabjamuns

 AmulMithaeeGulabjamun Mix

 AmulMithaee Kulfi Mix

UHT Milk Range:

 AmulTaaza 3% fat Milk

 Amul Gold 4.5% fat Milk

 Amul Slim-n-Trim 0% fat milk

 Amul Chocolate Milk

 Amul Fresh Cream

 AmulSnowcap Softy Mix

 AmulTaaza Double Toned Milk

Pure Ghee:

 Amul Pure Ghee

 Sagar Pure Ghee

 Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

 Amulspray Infant Milk Food

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

  Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

 AmulMithaimate Sweetened Condensed Milk

Fresh Milk:

 AmulTaaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat

 Amul Shakti Standardised Milk 3% fat

 Amul Smart Double Toned Milk 1.5% fat

Curd Products:

 AmulMastiDahi (fresh curd)

 Amul Butter Milk

 AmulLassee

Amul Ice creams:

 Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, TuttiFrutti)

 Nut-o-Mania Range (KajuDrakshi, KesarPista, Roasted Almond, Kesar Carnival,

BadshahiBadam Kulfi, ShistaPista Kulfi)

 Utsav Range (Anjir, Roasted Almond)

 Chocolate & Confectionery

Marketing Mix & SWOT Analysis

The Gujarat Cooperative Milk Marketing Federation (GCMMF), the country's largest milk

marketing federation. The largest milk brand in Asia, today Amul is the largest exporter of dairy

products in the country. Amul is today available in over 40 countries. It is exporting a wide

variety of products. The major markets are the US, West Indies, countries in Africa, the Gulf

region, the Saarc neighbours, Singapore, the Philippines, Thailand, Japan and China, according

to B M Vyas, managing director, GCMMF.

From conventional milk products like paneer and cheese, the brand has evolved over over time

and now caters to the wellness market as well with its sugar-free and probiotic milk products.

According to Vyas, the company is continuously introducing innovative products that meet the
aspirational needs of the consumers. Amul has introduced a range of milk-based products such as

flavoured milk, buttermilk, yoghurt, probiotic products and energy drinks.

Price in the marketing mix of Amul

Their pricing and promotion strategy together have made it available at food hawkers and stalls

on Indian roads only to gain maximum visibility across all consumer groups.

Product in the marketing mix of Amul

Amul has a very strong product portfolio. Amul product portfolio is comprised mainly of Dairy

products. Amul butter, Amul cheese and Amul ice cream are cash cows for Amul as they have

the major market share in their product category. Amul ice cream is amongst the top 10 ice

cream brands of India.

Amul milk, AmulPaneer and AmulDahi consumption is on the rise. In fact Amul milk has 26%

of market share in the packaged milk segment. The only disappointing performance is seen in

Amul Chocolates which are a burden for Amul and lot of push is required for the sales of the

same. This is because the chocolate market has established players like Parle, Dairy milk and

others.

Promotions in the marketing mix of Amul

Amul is responsible for one of the most unique and longest running outdoor campaign as well as
one of the most known outdoor advertising characters The Amul girl. We would like to take this
opportunity to specially thank Mr Eustace fernandes, the creative brain behind the sweet girl. But
we should know by now that the Amul girl is hardly sweet or cute. She is known to be the
naughtiest advertising girl ever. Amul hoardings mainly feature the current news and are used to
take a tongue in cheek viewpoint at current happenings. However, each advertisement hits the
nail on the head.
The promotions of Amul are mainly for butter but for all the other products there is hardly any
promotions. During the launch of products, Amul is known to go ATL and advertise milk, butter
etc. The SmitaPatil ad wherein Smitapatil is shown as a village milk collector is one of the most
famous ads for Amul. But overall, the main advertisement is BTL through outdoor, trade
promotions, discount schemes and sales promotions.

Place in the marketing mix of Amul

Amul has a massive distribution network because its ice creams, milk, butter and cheese is found
practically everywhere. As it is a FMCG product, Amul follows the methodology of breaking the
bulk. The initial factory output is in bulk. Later on, this bulk becomes smaller and smaller and
finally one individual slab of butter or scoop of ice cream is sold at the retail place.

There are two different channels through which Distribution happens in Amul. One is the
procurement channel which is responsible for collection of Milk through dairy co-operatives.
The other is the distribution channel which is responsible for distributing the finalized product to
the end customers.

In the procurement channel, the milk is individually delivered from farmers to the co-operatives.
The co-operatives then collect all this milk and send the bulk to the manufacturing facility. At
the manufacturing facility, the milk is used to manufacture the finalised products
SWOT ANALYSIS

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh

‘weaknesses’ and ‘threats’. The strengths and opportunities are fundamental and weaknesses and

threats are transitory.

STRENGTHS:

Demand profile: Absolutely optimistic.

Margins: Quite reasonable.

Flexibility of product mix: Tremendous. With balancing equipment, you can keep on

adding to your product line.

Availability of raw material: Abundant. Presently, more than 80 per cent of chocolate

produced is flowing into the unorganized sector, which requires proper channelization.

Technical manpower: Professionally-trained, technical human resource pool, built over

last 30 years.

WEAKNESSES:

Perishability: Pasteurization has overcome this weakness partially. Which gives

chocolate long life. Surely, many new processes will follow to improve chocolate quality

and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over chocolate yield.

However, increased awareness of developments like embryo transplant, artificial

insemination and properly managed animal husbandry practices, coupled with higher

income to rural milk producers should automatically lead to improvement in chocolate.

Logistics of procurement: Woes of bad roads and inadequate transportation facility

make milk procurement problematic. But with the overall economic improvement in

India, these problems would also get solved.

Problematic distribution: Yes, all is not well with distribution. But then if ice creams

can be sold virtually at every nook and corner, why can’t we sell other dairy products

too? Moreover, it is only a matter of time before we see the emergence of a cold chain

linking the producer to the refrigerator at the consumer’s home!

Competition: With so many newcomers entering this industry, competition is becoming

tougher day by day. But then competition has to be faced as a ground reality. The market

is large enough for many to carve out their niche.

OPPORTUNITIES:

Value addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Given below are potential areas of value addition:

Steps should be taken to introduce value-added products like shrikhand, ice creams,

paneer, khoa, flavored milk, dairy sweets, chocolates etc. This will lead to a greater

presence and flexibility in the market place along with opportunities in the field of brand

building.

Addition of cultured products like yoghurt and cheese lend further strength - both in

terms of utilization of resources and presence in the market place.

A lateral view opens up opportunities in milk proteins through casein, caseinates and

other dietary proteins, further opening up export opportunities.

Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to

Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new treaty,

opportunities will increase tremendously for the export of agricultural products in general

and dairy products in particular.

Rise in purchasing power of Indian people.

THREATS:

Milk vendors, the un-organized sector: Today chocolate vendors are occupying the

pride of place in the industry. Organized dissemination of information about the harm

that they are doing to producers and consumers should see a steady decline in their

importance.

New companies’ entering in Indian market like Fantasia fine poses lot problems for amul

Strong competition from international players.