Introduction

& history

1

In the year 1946 the first milk union was established. This union was started

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

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

word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul

Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in

2005). Today Amul is a symbol of many things like of the high-quality products sold at

reasonable prices, of the genesis of a vast co-operative network, of the triumph of

indigenous technology, of the marketing savvy of a farmers' organization. And have a

proven model for dairy development (Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district

were farming and selling of milk. That time there was high demand for milk in Bombay.

The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to

accept it without uttering a single word.

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However, when the exploitation became intolerable, the farmers were

frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on

their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th

January 1946. He advised the farmers to form a society for collection of the milk.

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These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the

milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action

of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was

severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers

demand.

Thus their cooperative unions were forced at the village and district level to

collect and sell milk on a cooperative basis, without the intervention of Government.

Mr. Verghese Kurien showed main interest in establishing union who was supported

by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in

ANAND and was registered formally on 14th December 1946. Since farmers sold all the

milk in Anand through a co-operative union, it was commonly resolved to sell the milk

under the brand name AMUL.

4

At the initial stage only 250 liters of milk was collected every day. But with the

growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides

when the milk was to be collected from the far places, there was a fear of spoiling of

milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it

for a longer period. Thus, today Amul has more than 150 chilling centers in various

villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand

under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder

and butter was planned. Dr.Rajendra Prasad, the president of India laid the

foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister

of India declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

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The system succeeded mainly because it provides an assured market at remunerative

prices for producers' milk besides acting as a channel to market the production

enhancement package. What's more, it does not disturb the agro-system of the

farmers. It also enables the consumer an access to high quality milk and milk products.

Contrary to the traditional system, when the profit of the business was cornered by

the middlemen, the system ensured that the profit goes to the participants for their

socio-economic upliftment and common good. Looking back on the path traversed by

Amul, the following features make it a pattern and model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its rotes and

limitations,

Bring at the command of the rural milk producers the best of the technology

and harness its fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-

economic systems,

Plough back the profits, by prudent use of men, material and machines, in the

rural sector for the common good and betterment of the member producers

and

Even though, growing with time and on scale, it has remained with the smallest

producer members. In that sense. Amul is an example par excellence, of an

intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk, provision

of technical inputs to enhance milk yield of animals, the artificial insemination service,

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veterinary care, better feeds and the like - all through the village societies. Basically

the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK

UNION LIMITED), a name which suggest THE TASTE OF INDIA.

ACHIEVEMENT:

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

Amul in abroad:

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

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Product profile of AMUL

8

LIST OF AMUL PRODUCTS SURVEYED

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Bread spread

Amul masti dahi

10

Amul paneer

Liquid milk

11

Amul ghee

12

Amul ice-cream

Amul cool and coco

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RESEARCH METHODOLOGY

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TITLE OF THE STUDY

Analytical study of Survey for AMUL products questionnaires for retailers.

RESEARCH DESIGN

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

SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability sampling method. The convenience factors were the availability and approachability of the respondents.

POPULATION

Pune Wards 144

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

Super market:

Bakeries

Tea and snacks shops

Sample size

The size of the sample is –

Ward 11Retailers 142

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Sample techniques

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

OBJECTIVE OF THE RESEARCH

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

PROBLEM STATEMENT

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

SCOPE OF THE STUDY

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

SOURCES OF DATA

Primary data

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

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The following are the method of collecting primary data:

Collection directly by personal investigation.

Collection indirectly by oral investigation.

Collection by questionnaires and schedules.

Collection from statistical reports of correspondents and from local sources.

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

Field work

The field work for research was conducted during 1st June 2009 to July 11th, 2009 nearly spread all over the Pune area. Total 144 ward/location were divided among the group of 22 people.

The prime job was to cover 144 wards of Pune city. We were given questionnaires to fill them by retailer. There was target given to us for one day that we have to get at list 15 retailer’s data and also we have to get the best possible information from the retailer about Amul products.

I have covered the following places for the survey of Amul products and its retailer’s view on Amul products quality and distribution channel.

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Area covered by me:

Ward No Ward Name Admn Ward Population57 Shankar Rao More School Karve Road 1710358 Rambaug Colony Karve Road 1539459 Kishkindha Nagar Karve Road 15861

60Ram Krishna Paramhans Nagar Karve Road 14887

61 Ved Bhavan Karve Road 1772362 Mahatma Society-Kothrud Karve Road 1646863 Vanaz Company Karve Road 18008

64Yashwant Rao Chavan Natyagrah Karve Road 16386

65 Ideal Colony Karve Road 15234

66Deena Nath Mangehskar Hospital

Warje-Karve Nagar 16848

67 Deccan Gymkhana Ghole Road 1684486 Lohiya Nagar Bhavani Peth 17923

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Data analysis

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1) Fresh milk

Total milk consumption: 11406 liter per day

Total no brand: 10

Most preferred brand Chitle

amul21%

chitleSales52%

katraz13%

gokul1%

rajhansh5%

mahanand4%

thote1%

navnath2%

govardhan1%

Sales

amulchitlekatrazgokulrajhanshmahanandthotenavnathgovardhan

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

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2) Curd

Total no of brand: 4

Most preferred: Sphruiti

sphruity52%

amul37%

nestle3%

govardhan8%

Sales

sphruity amulnestlegovardhan

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

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3) Butter

Total no of brand: 4

Most preferred brand: AMUL

BRITANIA6%

AMUL88%

NESTLE5%

Sales

BRITANIAAMULNESTLEGOVIND

By analyzing the data of butter category we are able to know that in butter category consumers’ first strike is done toward after Amul with having market share of 89% and after that Britannia brand comes with having market share of 6% and then Nestle comes on no. 3rd with having market share of 5%.

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4) Ghee

Total no of brand: 10

Most preferred brand: AMUL

warna 4%

gangangiri 2%govardhan

7%

chitle17%

sunflower2%

krishna6%

urja 2%

amul57%

katraz2%

sphruity2%

Sales

warna gangangiri govardhanchitlesunflowerkrishna urja amulkatrazsphruity

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

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5) ICE-CREAM

TOTAL NO OF BRAND: 5

MOST PREFERRED: AMUL

AMUL73%

KWALITY WALLS16%

VADILAL2%

PYRIMID6%

MOTHER DAIRY2%

Sales

AMULKWALITY WALLSVADILALPYRIMIDMOTHER DAIRY

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

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2. Are these products delivered at your doorstep?

YES NO

7%

93%

WADR-57

YES NO

36%

64%

WARD-58

YES NO

88%

12%

WARD-59

YES NO

100%

WARD-60

YES NO

80%

20%

WARD-61

YES NO

100%

WARD-62

YES NO

42%

58%

WARD-63

YES NO

86%

14%

WARD-64

YES NO

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100%

WARD-65

YES NO

73%

27%

WARD-66

YES NO

60%

40%

WARD-67

YES NO

69%

31%

WARD-87

YES NO

70%

30%

FOR ALL WARDSYES NO

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If yes, who delivers the products?

Company Directly Distributor Whole-seller Buying on own from market

1%

70%

29%

CHANNELCompany Directly DISTRIBUTORWHOLE-SELLER BUYING ONOWN FROM MARKET

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

Yes No

86%

14%

WARD-57

YES NO

94%

6%

WARD-58

YES NO

94%

6%

WARD-59

YES NO

67%

33%

WARD-60

YES NO

90%

10%

WARD-61

YES NO

82%

18%

WARD-62

YES NO

71%

29%

WARD-63

YES NO

89%

11%

WARD-64

YES NO

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100%

WARD-65

YES NO

92%

8%

WARD-66

YES NO

78%

22%

WARD-67

YES NO

85%

15%

WARD-87

YES NO

86%

14%

FOR ALL WARDSYES NO

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

Yes no

100%

WARD-57

YES NO

100%

WARD-58

YES NO

100%

WARD-59

YES NO

100%

WARD-60

YES NO

100%

WARD-61

YES NO

90%

10%

WARD-62

YES NO

92%

8%

WARD-63

YES NO

100%

WARD-64

YES NO

30

100%

WARD-65

YES NO

100%

WARD-66

YES NO

78%

22%

WARD-67

YES NO

86%

14%

WARD-87

YES NO

96%

5%

FOR ALL WARDSYES NO

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

Yes No

86%

14%

WARD-57

YES NO

89%

11%

WARD-58

YES NO

80%

20%

WARD-59

YES NO

67%

33%

WARD-60

YES NO

77%

23%

WARD-61

YES NO

75%

25%

WARD-62

YES NO

38%

63%

WARD-63

YES NO

82%

18%

WARD-64

YES NO

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76%

24%

WARD-65

YES NO

20%

80%

WARD-66

YES NO

82%

18%

WARD-67

YES NO

76%

24%

WARD-87

YES NO

76%

24%

FOR ALL WARDSYES NO

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

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

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

- In this question we are taking suggestions through retailer for improvements in AMUL products. If retailers have bad experience with AMUL product they use to give there open suggestions to us, because AMUL is such a big brand in dairy products which giving the best quality product to the consumer with affordable price.

From this question we can easily identifying the rotten products if it’s delivered to retailer, then company can get help to rectify these errors.

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Problem statements of retailers

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

These are the question which denotes the Amul’s whole and sole picture about its product and its quality as well as services provided by Amul and its distributors.

1) Here for the question no 1 , according to my findings in Karve area there are 95% of retailer are fully satisfied with the quality of products and remaining 5% retailers are not satisfied with the quality of the product.

The remaining 5% retailers were facing problems that:

Sometimes there is come bad smell from the Amul butter. Amul milk is not having good durability after some day it becomes stale earlier

compare to the other company’s milk.

2)Here for the question no 2 , there are 76% retailer who are satisfied with the quality services provided by the distributors but there are 24% of the retailer who are not satisfied with the services provided by the distributors

The remaining 24% retailers were facing problems are as follows:

delay in delivery of product customer are demanding Amul product but there are no distributor provided to

some shop,so they have to sale other brand. sometimes distributor dilevers product when exp date comes to close. this retailer wants to sale amul product but there is no distributor them. distributor is not coming regularly. replacement is not done if product rotten.

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3) The Amul Company is providing such scheme as buy 24qty Amul cool and get 1qty free and buy 10qty butter milk and get 1qty free , but this kind of services are not provided to the retailers by distributors.

99% of the retailer are not provided any scheme from the distributor.

4)Here for this question no 4 , according to my findings in karve area there are 86% retailers who are satisfied with the way the product are being delivered by distributors but there are 14% retailer who are not satisfied with the way the product are delivered to them.

The remaining 14% retailers facing the problems as follows:

There are no distributor allotted to the retailers in some backward area Ice-cream delivery is not done in time and not done in enough quantity.

5) There are many suggestion given by retailers are as follows.

Quality of Amul is very good. Increase number of distributors for catering good service. Provide ice-cream delivery in time and in enough quantity Provide replacement if product is rotten before expired date. Increase some margin in profit.

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Suggestions

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Suggestions:-

Amul is not providing good margin compare to the other brand in spite of retailer have to sale Amul products because customers are very brand loyal.

Provide replacement if product is being rotten before expired date. Amul should concentrate on pause area as well as backward area too Amul should provide some scheme as other company is providing.

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Conclusion

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Conclusion:-

I concluded that Amul has a very good image in the eye of its customer, has a very good brand name. But one thing I come to know that its distribution channels in not good in some wards nd because of which retailers has to face many problem.

I also saw that the price of Amul product is high as compare to its competitor product and hence Amul competitors are able to attract consumer towards their product.

Another thing is that Amul don’t give the replacement offers to the retailers and because of which retailers are very much dissatisfied.

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Bibliography

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

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Appendixes

43

Style of questionnaires:

SURVEY FOR AMUL PRODUCTS QUESTIONNAIRE FOR RETAILERS

1. What Kind of milk & milk products do you sell?

Product

Avg. Sale per

week

Whether Packaged or Loose?

If Packaged BRAND

1

Rate (Rs./Pack

) & Margin (in Rs)

If Packaged BRAND

2

Rate (Rs./Pack) & Margin

(in Rs)

If Packaged BRAND

3

Rate (Rs./Pack) & Margin

( in Rs)

Liquid Milk

Curd / Dahi

Paneer

Milk Powder

Butter

Ghee

Cheese

Condensed Milk

Milk Sweets (Shrikhand,

Gulab Jamun etc. )

Flavoured Milk

Buttermilk / Lassi

Ice-Cream

Other (pl. specify)

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2. Are these products delivered at your doorstep?

Yes No

If yes, who delivers the products?

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

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

Yes No

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

_____________________________________________________________________________

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

Yes No

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

_____________________________________________________________________________

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

Yes No

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

_____________________________________________________________________________

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

_____________________________________________________________________________

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

Retailer Information:

Name of the Establishment: ___________________

Type of Establishment: ___________________

Contact Person: ___________________

Address & Phone No.: ______________________________________________________

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