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A PROJECT REPORT
ON
“CUSTOMER BONDING TOWARDS AMUL MILK
&
MILK PRODUCTS IN UDAIPUR CITY”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
PACIFIC INSTITUTE OF MANAGEMENT, UDAIPUR
2008-2010
Submitted By- Under the guidance of
PUSHKAR KUMAR TAILOR SHEELA DASHORA
M.B.A.PART-II ASSOCIATE PROFESSOR
1
PACIFIC INSTITUTE OF MANAGEMENT,
UDAIPUR
CERTIFICATE BY THE GUIDE
This is to certify that Mr. PUSHKAR KUMAR TAILOR a bonafied
student of IV Sem project Report entitled A STUDY ON
“CUSTOMER BONDING TOWARDS AMUL MILK & MILK
PRODUCTS IN UDAIPUR CITY” under my supervision &
guidance. The project report prepared by him/her is original to the best of
my knowledge.
Signature of the Guide,
Lecturer,
2
Contents
Chapter no. Title Page no.
1. General Introduction
• Introduction to the Topic 8
• Profile of the Industry 10
• Company Profile 16
• Product Profile 31
2. Theoritical Discussion 35
3. Theoretical Background of the Study 47
4. Analysis & Interpretation 53
5. Findings, & Suggestions 72
6. Conclusions 75
Annexure:
a) Bibliography 76
b) Questionnaire 77
3
List of Tables:
Table
No.
Title Page NO.
4.1 Analysis of Occupation of the Respondents 54
4.2 Analysis of Monthly Income of the
Respondents
56
4.3 Analysis of Factors to Buy AMUL Milk and
Milk Products
60
4.4 Opinion of the Respondents Regarding
Quality
62
4.5 Analysis of Rating Towards AMUL
Milk & Milk products
64
4.6 Analysis of problems in Amul Milk Products 66
4.7 Analysis of Availability of Product from
Dealers
68
4.8 Analysis of Recommendations 70
4
List of Graph:
Table
No.
Title Page NO.
4.1 Analysis of Occupation of the Respondents 55
4.2 Analysis of Monthly Income of the
Respondents
57
4.3 Analysis of Factors to Buy AMUL Milk and
Milk Products
61
4.4 Opinion of the Respondents Regarding
Quality
63
4.5 Analysis of Rating Towards AMUL
Milk & Milk products
65
4.6 Analysis of problems in Amul Milk Products 67
4.7 Analysis of Availability of Product from
Dealers
69
4.8 Analysis of Recommendations 71
5
DECLARATION
I hereby declare that this dissertation entitled A STUDY ON
“CUSTOMER BONDING TOWARDS AMUL MILK &
MILK PRODUCTS IN UDAIPUR CITY” in partial fulfillment
for the Award of Master of Business Administration to
Rajasthan Technical University,Kota is a record of independent
research work carried out by me.
I also declare that this dissertation is a result of my own efforts
and has not been submitted earlier for the award of any degree/
diploma or any other University.
Place: UDAIPUR
SARLAVIJAYVARGIYA
Date :
6
ACKNOWLEDGMENT
I would like to take this opportunity to express my since gratitude to
all those who guide me in right direction to complete this report
I express my deep sincere gratitude to B.P. Sharma Director of Pacific
Institute of Management. for his encouragement throughout the course
of this study
I also take this opportunity to thank Mrs. Sheela Dashora Lecturer
for their constant guidance and assistance throughout this studyThe
Taste of India
I would like to thank my respondents for sparing their
precious time to answer my questionnaire and giving me the valuable
information I needed. Finally my sincere thanks to my parents
and to my entire friend to their support and motivation
throughout the project.
Sarlavijayvargiya
7
Chapter-1
INTRODUCTION:
1. Discovering and translating consumer needs and desires
into
the products services (planning and producing the planned
products).
2. Creating demand for this product and services (through promotion
and pricing)
3. Serving the consumer demand through planned and
physical distriSbution) with the help of marketing channels and
then I turn
4. Expanding the market even in the place of keen competition.”
The modern marketer is called upon to set the marketing
objectives, develop the marketing plan, organize the ,marketing
function, implement the marketing plan or programme
( marketing mix) and control the marketing programme to ensure
the accomplishment of the set marketing objectives. The marketing
programme covers producer planning or merchandising, price,
promotion and distribution.
8
In short, modern marketing begins with the customer, not
with production cost, sales, technological landmarks and it ends
with the customer satisfaction and social well-being.
Under the market- driven economy buyer or customer is
the boss.
Marketing has been viewed as an ongoing or dynamic process
involving set of interacting activities dealing with a market
offering by producers to consumers on the basis of reliable
marketing anticipation.
Marketing is a matching process by which a process by which a
producer provides a marketing mix that meets consumer demands
of a target markets within the limits of society.
The process is based on corporate goals and corporate
capabilities. Marketing process brings together producers and
consumers the two main participants in exchange. Each producer
or seller has certain goals and capabilities in making and marketing
his products. He uses marketing research as a tool to anticipate
market demand. Then he provides a marketing mix in order to
capitalize marketing opportunity. An exchange or a transaction
takes when market
offering is acceptable to the customer who is prepared to give 9
something value I return against the product so bought
INDUSTRY PROFILE:
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.
The dairy sector in the India has shown remarkable development in the
past decade and India has now become one of the largest producers of
milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of
the State. During 1997-98, the State had 60 milk processing plants with
an aggregate processing capacity of 5.8 million litres per day. In
addition to these processing plants, 123 Government and 33 co-
operatives milk chilling centers operate in the State.
Also India today is the lowest cost producer of per litre of milk in the
world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8
dollars. Also to take advantage of this lowest cost of milk production
and increasing production in the country multinational companies10
are planning to expand their activities here. Some of these milk
producers have already obtained quality standard certificates from
the authorities. This will help them in marketing their
products in foreign countries in processed form. The urban market for
milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs.43,500 crores by year 2005.
This growth is going to come from the greater emphasis on the
processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is
expected to be Rs 10,00,000 million. Presently the market is valued
at around Rs7,00,000 mn
11
Milk Production from 1950 to 2020
1950 – 17 million tones
1996 – 70.8 million tones
1997 – 74.3 million tonnes
2010 – 240 million tones (Projected)
Expected to reach- 220 to 250 mt – 2020
India contributes to world milk production rise from 12-15 % & it
will Increase up to 30-35% (year 2020)
Research and Development in Dairy Industry
The research and development need to the dairy industry to develop
and survives for long time with better status. The various institute
and milk dairy companies R&D results provide base for today’s
industry growth and development. The research and development
of products of dairy, like yogurt and cheese market research and
company reports provides insights into product and market trends,
analysis opportunities, sales and marketing strategies will help local
milk unions to develop and spread world wide through obtaining this
knowledge. Specific on market share, segmentation, size and growth
in the US and global markets are also helps industry to expand its
market worldwide even small union also.12
The food processing industry sector in India is one of
the
largest in terms of production, consumption, export and growth
prospects. The government of accorded it is a high priority,
with a number of fiscal relieves and incentives, to encourage
commercialization and value addition to agriculture produce, for
minimizing harvest wastage, generating employment and export
growth. Food processing industry is providing backbone support
to the milk industry. The development food products by using
milk can give good market opportunities to produces milk.
Products and Industry Status:
Among the products manufactured by organized sector are Ghee,
Butter, Cheese, Ice-Creames, Milk powders, Melted milk food, Infant
food, condensed milk etc.. some milk products like Casein and
Lactose are also being manufactured lately. Therefore, there is
good scope for manufacturing these products locally.
13
Development of Food Processing Industry
Liberalization of the economy has led to a flood of new entrants,
including MNCs due to good prospects and abundant supply.
Investment Potential in Milk Products :
At the present rate of growth, India is expected to overtake the US in
milk production by the year 2010, when demand is expected to be over
125.69 ml.tn.
Being largely imported, manufacture of casein and lactose has
good scope in the country. Exports of milk products have been
decentralized and export in 2005- 2010 is estimated at 71.875 cr.
Production of Milk in India:
The facts and figures here shown are calculated on the basis of
percentage increases pear year.
14
Year Production in million
YEAR MT
1997-98 68.0
1998-99 71.0
1999-00 74.5
2000-01 78.0
2001-02 81.51
2002-03 85.17
2003-04 89.0
2004-05 93.0
2005-06 97.65
2006-07 102.45
2007-08 107.58
2008-09 110
2009-10 112
15
Company profile
Company Profile of Amul:
AMUL means "priceless" in Sanskrit. The brand name "Amul," from
the Sanskrit "Amoolya," was suggested by a quality control expert in
Anand. Variants, all meaning "priceless", are found in several Indian
languages. 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. (Turnover: Rs. 52.55 billion in 2007-08).
Today Amul is a symbol of many things. Of high-
quality products sold atreasonable prices. 50 years after it was first
launched, Amul's sale figures have jumped from 1000 tonnes a year in
1966 to over 25,000 tonnes a year in 1997. No other brand comes even
close to it. All because a thumb-sized girl climbed on to the hoardings
and put a magical spell on the masses
16
AMUL stands for,
A = Anand
M = Milk
U = Union
L = Limited.
Milestone of Amul:
Name Karia district co-operative milk producer’s ltd, widely known as
“Amul” From Co-operative sector registered under the co-
operative society act
17
Location
Amul dairy, nr, railway station, Amul dairy road, Anand
Gujarat , India
Registration-14 December, 1946 th
Registered- Kaira district co-operative milk producer’s ltd, Anand –
388 001. Gujarat
Size- Production of different products on large scale, collecting 9 to 15
Lakh liters milk everyday & producing milk products.
Plant- There are 4 plants
(1)Amul Plant (2) Kanjari Plant 1)
(3) Mogar Plant (4) Khatraj Plant
Banker- The Kaire District Center Co-Operative Bank Ltd.
1.UTI bank 2.Bank of Baroda
3.SBI 4. Corporation bank
5. Bank of Maharashtra
Working- 10:45 am to 5:45 pm
Founders-Shri Tribhuvandas K. Patel
Shri Sadar Vallabhbhi Patel
Shri Morarji Desai
Shri Verghese Kurien
Shri Harichand M. Dalaya 18
Amul (Anand milk union ltd.) is based on four hands, which are
coordinated with each other. The actual meaning of this symbol is co-
ordination of four hands of different people by whom this union is at
the top position in Asia.
First hand-is of farmers, without whom the organization would not
have existed.
Second hand- is of processors, who process the row material (milk)
into finished goods.
Third hand- is of marketer, without whom the product would have
not reached the customers
Fourth hand-is of customers, without whom the products would have
not carried on.
19
Brief History of Amul:
Amul (Anand Milk Union Limited), formed in 1946,
is a dairy cooperative movement in India. It is a brand
name managed by an apex cooperative
organization, Gujarat Co-operative Milk Marketing Federation
Ltd.The (GCMMF), which today is jointly owned by some 2.6 million
milk producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been a
sterling example of a co-operative organization's success in the long
term. It is one of the best examples of co-operative achievement in
the developing world. "Anyone who has seen ... the dairy cooperatives
in the state of Gujarat, especially the highly successful one known as
AMUL, will naturally wonder what combination of influences and
incentives is needed to multiply such a model a thousand times over in
developing regions everywhere. ”The Amul Pattern has established
itself as a uniquely appropriate model for rural development. Amul has
spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest
Pouched Milk Brand with an annual turnover of US $1050 million
(2006-07). Currently Amul has 2.6million producer members with 20
milk collection average of 10.16 million litres per day. Besides India,
Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South
African countries. Its bid to enter Japanese market in 1994 had not
succeeded, but now it has fresh plans of flooding the Japanese markets.
Other potential markets being considered include Sri Lanka. Dr
Verghese Kurien , former chairman of the GCMMF, is recognized as
the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol ,
chairman of the Banaskantha Union, was elected chairman of GCMMF
AMUL: The origin
The mighty Ganges at its origin is but a tiny stream in the Gangotri
ranges of the Himalayas. Similar is the story of Amul which inspired
Operation Flood and heralded the 'White Revolution' in India. It began
with two village cooperatives and 250 liters of milk per day, nothing
but a trickle compared to the flood it has become today. Today Amul
collects processes and distributes over a million liters of milk and milk
products per day, during the peak, on behalf of more than a thousand
village cooperatives owned by half a million farmer members.
Further, as Ganga-ma carries the aspirations of generations for moksha,
Amul too has become a symbol of the aspirations of millions of
farmers.Creating a pattern of liberation and self-reliance for every
farmer to follow.
21
The Start of a Revolution
The revolution started as awareness among the farmers that grew and
matured into a protest movement and the determination to liberate
them. Over four decades ago, the life of a farmer in Kaira District was
very much like that of his counterpart anywhere else in India. His
income was derived almost entirely
from seasonal crops. The income from milch buffaloes was
undependable. The marketing and distribution system for the milk was
controlled by private traders and middlemen. As milk is perishable,
farmers were compelled to sell it for whatever they were offered.
Often, they had to sell cream and ghee at
throwaway prices. In this situation, the one who gained was the private
trader. Gradually, the realization dawned on the farmers that the
exploitation by the trader could be checked only if marketed their milk
themselves. In order to do that they needed to form some sort of an
organization. This realization is what led to the establishment of the
Kaira District Cooperative Milk Producers' Union Limited (popularly
known as Amul) which was formally registered on December 14, 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk
Scheme in June 1948. An assured market proved a great incentive to
the milk producers of the district. By the end of 1948, more than 400
22
farmers joined in more village societies, and the quantity of milk
handled by one Union increased from 250 to 5,000 liters a day.
Amul's Secret of Success
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:
* Provide a support system to the milk producers without disturbing
their agro-economic systems
* 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.
23
* Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment
* Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles
and limitations
* 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
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, veterinary care, better feeds and the
like - all through the village societies.
The village society also facilitates the
implementation of various production enhancement and member
education programs undertaken by the Union. The staff of the village
societies has been trained to undertake the veterinary first-aid and the
artificial insemination activities on their own.
24
Gujarat Cooperative Milk Marketing Federation
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.
13 district cooperative milk Members:
producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million liters per day
Milk collection (Total - 2007-08): 2.69 billion liters
Milk collection (Daily Average 2007-08): 7.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3090 Mts per day
25
Sales turn over from 1997 to 2010 :
Sales Turnover Rs (million)
1997-98 18840
1998-99 22192
1999-00 22185
2000-01 22588
2001-02 23365
2002-03 27457
2003-04 28941
2004-05 29225
2005-06 37736
2006-07 42778
2007-08 52554
2008-09 67000
2009-10 8002026
Ownership Pattern of Amul:
Amul is a co-operative sector & it is having 22 total numbers in
societies. In addition to this there is total 1800 manpower in
organization. Gujarat co-operative milk marketing federation ltd.
widely known as GCMMF faces through competition in the
Indian market by different companies. So that by advertising and
promoting its product GCMMF has become one of the leading dairies
in India. In western of India, GCMMF shares most of the market while
in other parts of India it is next so. But slowly and surely GCMMF is
growing in sharing the market with other competitors industries.
Now there is machinery around Rs. 1500 lakh which
is to be in expansion with higher advanced machinery to Rs. 1600
lakhs. Accumulated members share capital in union is Rs.
553,935,000 this share capital is deposited in Amul bank account in the
name respective member dairy co-operative societies
.
27
Information About Competitors :
The Indian market is dominated by a large number of small
local manufacture and regional players.
There are an estimated 150 manufactures in the organized segment
which account for 30-40% of sales and about 1000 units in the
unorganized segment of the market.
They have also competitor in the market. They felt very tuff
competition in our country and outing countries.
According to Product Categories
For Liquid Milk: For Ice-Cream Product
Gayatri Milk Gokul Ice-Cream
Super Milk Dairy –Den Ice-Cream
Payal Milk Quality Walls Ice-Cream
Sardar Milk Havmor Ice-Cream
28
Samrrudhi Milk Max
Sagar Milk Vadilal Ice-Cream
For Ghee Product For Chocolate
Gopi Ghee Cadbury
Gayatri Ghee Max
Krishna Ghee Dairy Milk
A’bad Ghee Five Star
Butter Cheese
Nature butter Britannia
Achievements \ awards:
Amul a co-operative society and its co-operation has led many
different awards in its favor.
Magsaysay award for community leadership presented in
manila,
29
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V.
Kurien
1964: “Padmabhusan” award given to Shri T.K. Patel
1965: “Padmshri awarded was given to V. Kurien, general manager,
by the president of India
1987: “Best Productivity” awarded by national productivity council
for the year 1985-86 awarded to Amul dairy.
1988: “Best Productivity” awarded for the second successive year
1986-87 by the president of India, Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self sustaining co-
operative worldwide ICA regional office for Asia and pacific, New
Delhi, 1996.
1999: G.B.Birla award.
Moreover the Amul union has achieved the prestigious ISO 9001-
2000 and HACCP Certificate and effects are got to obtain ISO
14000.
30
List of The Product Marketed
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
CHAPTER – 2
THEORITICAL DISCUSSION
INTRODUCTION:
The term “market” is derived from the Latin word ‘Marcatus’ which
means to trade or place of business. So in the literal sense and in the
ordinary language, the term ‘Market’ refers to a certain place, where
buyers and sellers personally meet each other and make their purchase
and sales. In short, it means a certain place where goods are bought and
sold. However in commerce the term ‘Market’ is used in the economic
sense. In the economic sense the term ‘Market’ does not refer to any
particular place where buyers and sellers meet face to face and make
their purchase and sales, but covers the whole of any region, where the
buyers and sellers are in such free intercourse, that is contract or
communication with one another that a single price prevails for a
certain commodity at a certain point of time through the region.
In short, it means the getting together of buyers and sellers in person or
any by mail telephone, telegraph of through any other means of
communication.
46
Marketing:
The meaning of the term ‘marketing’ can be studied under two heads.
They are,
1. Traditional or old view of marketing
2. Modern of customer oriented marketing.
Definition:
According to the American Marketing Association, “Marketing is the
performances of business activities that direct the flow of goods and
services from producer to customer or user”
Five Stages of Customer Bonding
This bond results from effective one-on-one communication,
mutually- beneficial interaction, the company's genuine interest and
involvement in the customer's life and lifestyle, a combination of
customer allegiance and company advocacy, and a shared sense of
purpose. Customer loyalty develops from personal relationships and
trust between the company and the customer over time. This includes
keeping customers involved throughout the product lifecycle as well as
developing products and/or services to meet changing customer needs
and desires.
47
AWARENESS
• The art of earning customer "share-of-mind" involves
creating an impression of personal identification with the company's
products and/or services.
• This first stage, awareness, represents the weakest aspect of a
relationship because it is non-interactive and depends entirely on
the customer's perception
IDENTITY
• The identification stage occurs when a potential customer asks
the question, "What's in it for me?"
• A customer identifies a product of service as meeting one or
more important personal needs, such as self-fulfillment, status, or
belonging.
• A customer may perceive the company as having values and
preferences similar to his own and begin to form a relationship with the
company.
RELATIONSHIP
48
• At this stage, the customer receives the benefit of products
and/or services tailored specifically to his individual needs (at least as
nearly as the company can provide).
• Once a customer interacts with the company, repeated experiences of
individual customer satisfaction take on significant importance.
• Customers expect that products will work and that they will receive
good service. Customer delight results largely from how a product is
sold and is serviced as well as how the company responds to inquiries
and solves problems.
COMMUNITY
• Customer bonding requires high levels of effective interaction. When
the company integrates its products and services into the life and
lifestyle of its customers, communal bonding occurs.
• The community relationship stage achieves an integration of
values, preferences and priorities between customer and company
where each derives mutual benefit. Companies that achieve this
type of loyalty consistently delight their customers. The term
consumer behavior refers to the behavior that consumer
displays in reach for purchasing using, evaluating & disposing of
products & services that they except will satisfy their needs.
49
ADVOCACY
• At this advanced level of customer bonding, the company services as
an advocate for the customer, and the customer shows an allegiance to
the company; word-of-mouth advertising flourishes. Because the
company now can encourage buyer-get-a-buyer programs
through appropriate incentives, it must be prepared to follow through
professionally to make new recruits feel as valued as the advocates
who recommended them.
Market Segmentation:
The process of talking the total heterogeneous market for a product &
dividing it in to several sub markets each which tend to be
homogeneous in all significances.
There are few bases for segmentation markets,
• Customer characteristics
• Consumer responses
The major segmentation variables for consumers markets are,
• Geographic segmentation (nation, state, country, city)
• Demographic segmentation (age, family, religion, generation,
nationality, social class)
• Psychographic (life style, personality & status class)
• Behavioral (occupation, benefits, users, loyalty, )
50
These variables can be used singly or in combination, business
marketer use all these variable as along with operating
variables, purchasing approaches, substantial, accessible,
differentiable, & actionable.
Customer Behavior:
The term consumer behavior refers to the behavior that
consumer displays in reach for purchasing using, evaluating &
disposing of products & services that they except will satisfy their
needs.
Consumer Research:
Consumer research is the methodology used to study consumer
behavior research offer set diverse to identify consumer needs it is used
to identify both felt & unfelt needs, to learn how consumers. Perceive
product & brand & stores. What their attitudes are before and after
promotional campaigns & how & why they make their consumption
decision.
Consumer Satisfaction:
51
All business firms have realized that marketing is a core element of
management philosophy & the key to its success lies in focusing more
& more on the customers. That is, it will be the customer who will
decide where the firm is heading. Thus the challenge before the
marketer is to ensure that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage.
Satisfaction refers to the buyers state of being adequately rewarded in a
buying situation for the sacrifices he has made one the customer
purchase & use the product they may then become either satisfy or
dissatisfied. The result of satisfaction to customer form the purchase of
the product or services is that more favorable post-purchase attitude,
higher purchase intention & brand loyalty to be exhibited that the same
behavior is likely to be exhibited in a similar purchasing situation. The
term ‘consumer’ is a typically used to refer to someone who regularly
purchase from a particular store or company. Customers are people
who are happy with the product & services & are willing to come back
& pay for it again.
Today the firms aim to give satisfaction to the customer
through marketing concepts. The firm try to help the buyers in the
solving the problem then competitors. The marketers must see that
consumers with purchasing power constitute a potentials buyers
are identified. It is essential for the marketer to carry out the
business in such a way that they give satisfaction to
52
consumers needed. When a firm markets a product or service it should
aim to enjoy consumer’s satisfaction & profit maximization.
Concept & Need for Studying Consumer Behavior:
Consumer behavior can be said to be the study of how individual make
decision on how to spend their available resources (time, money,
effort) on various consumption related items. This simple definition of
consumer behavior tells the markets to resolve every activity around
the ultimate consumers & gauge their behavior by specially focusing
on:
Who buys products or services?
How do they buy products or services?
Where do they buy them?
How often they buy them?
Why do they buy them?
How often they use them?
These questions will help in understanding better what factors
influences the decision making process of the customers. The decision
making process identifies the number of people who are involve in this
process & describes a
53
role to them like users, decides, influences & buyers.o Expectations at
the general level like are quality, durability, reliability, style,
etc.
It is believed that consumers or customers make purchase decision on
the basis of receipt of a small number of selectivity chosen pieces of
information. Thus it will be very important to understand what & how
mush them to evaluate the goods & services offerings.
Customer Expectation:
Customer expectation through look realistic is very often build upon on
a very high platform. Then the quality of the product or services may
not match the expectation. This again will affect the consumer
satisfaction level. So as to reduce the level of dissatisfaction among the
customers, the marketing decision maker could adopt approaches
wherein he can classify market in relation to the degree of
opportunity to deliver customer satisfaction. He could establish
itself common factors & them evaluate each market
opportunity against these. The most probable factors which
influence consumer’s behaviors are:
Market size
Rate of growth of the market
54
Stability or demand
The due importance attached to price by the consumers before
making a purchase decision
Consumer emphasis & the due importance given to the quality aspect
The consumers desire for product innovation
The level of competition (inclusive of both existing & potential
competitors)
The firm’s competitive strengths in terms of price & product
Feedback:
Many of the companies are entrusting their customers to give a
feedback & use this as a means of maintaining regular contact &
dialogue, having realized the importance of obtaining a feedback the
consumers. Rather than avoiding comment, companies are
encouraging their customers to talk, as mention above, feedback
helps them, market firm to get on idea of the customers view
point on their product or services & more important is that this
information will help them to take action & deal with any problem
immediately.
55
Brands:
Brands were originally developed as labels of own ship: Name Term
Design and Symbol. However, they today it is what they for people
that Matters much more, powerful brands can drive success in
competitive and Financial markets, and indeed become the
organization’s most valuable assets
Brand Loyalty:
It has been proclaimed by some to be the ultimate goal of marketing.
Inmarketing, brand loyalty consist of a consumer’s commitment to
repurchase the brand and can be demonstrated by repeated buying of a
product or service or other positive behaviors such as word of mouth
advocacy. True brand loyalty implies that the consumer is willing, st
least on occasion, to put aside their own desires in the interest of the
brand
56
Customer Focus:
Many companies today have a customer focus (or customer
orientation).This implies that the company focuses its activities and
products on consumer demands. Generally there are three ways of
doing this: the customer driven approach, the sense of identifying
market changes and the product innovation approach. In the consumer
driven approach, consumer wants are the drivers of all strategic
marketing decision. No strategy is pursued until it passes the test of
consumer research. Every aspect of a market offering, including the
nature of the product itself, is driven by the needs of potential
customers. The starting point is always consumer. The rationale for this
approach is that there is no point spending R&D funds developing
products that people will not buy. History attested to many
products that were commercial failure in spite of being technological
breakthroughs
.
Customer Loyalty:
“It takes a lot less money to increase your retention of current than to
findnew ones sbut I know I don’t give it as much effort as I should
because it does take a lot of energy and effort”Analysis And
Interpretation Of The Data
57
Chapter -3
Theoretical Background of This Study
A- STATEMENT OF THE PROBLEM
Many companies are aiming for high satisfaction because customers
who are just satisfied still it find it easy to switch when better offer
comes along. Those who are highly satisfied are much less ready to
switch. High satisfaction creates an emotional bind with the brand not
just a rational preference. The result is highly customer loyalty.
Hence an attempt has been made to identify the customer attitude
and satisfaction on Amul Milk Products
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B-OBJECTIVES OF THE STUDY
This project is based on consumer satisfaction towards Amul Milk and
Milk products in Udaipur. Objectives of study are ;
1.-To understand the most important factor that matters while customer
purchase Amul product.
2-To know the mode of the advertisement by which Customer know
about the Amul product.
3.-To know the customer behavior and to identify the level of customer
satisfaction towards Amul
4.- To know pragmatic suggestion for growth and development of
Amul products.
5.-To know the various marketing mix that influence the
customer behavior.
6.-To know that customer face any problem in availability or not while
purchasing
7.-To know the Opinion of the Customer Regarding Quality which
the customer decision
8.- To know the relation between the income of the respondent and
purchasing decision
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C-SCOPE OF THE STUDY
Customer satisfaction is an important element in the marketing activity.
This customer satisfaction decides the fate of the product and
organization There are various factors influence to the customer
satisfaction. These factors are,
1.Post purchase behavior
2. Reputation
3. Product availability
4. Branding, and
5. Convenient
D-METHODOLOGY
The study is mainly concerned with behaviors of the
customers’ satisfaction towards AMUL products and Milk products.
Hence various data and methodology is considered in my report
preparation. The main data sources are:
60
PRIMARY DATA
The primary data refers to original information gathered for a
specificpurpose and provides up to date, accurate and relevant
information and it is gathered in an investigation according to the needs
of the problem.The primary data is collected on the basis of survey
method with the help of questionnaires, and interviews, personal
observation, direct consultation with consumers and dealers. Both
open and closed end questions are used in the questionnaire. The
survey method is used to collect the primary data with the help of
questionnaire based on explorative and conclusive research. It refers to
the individuals who are to be surveyed in the study and it is the
customer who is consuming or using or who has bought AMUL milk
and milk products are surveyed.
TOOLS USED TO COLLECT THE PRIMARY DATA
The primary data is collected on the basis of survey method
with the help of questionnaires, and interviews, personal
observation, direct consultation with consumers and dealers Both open
and closed end questions are used in the questionnaire
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METHODS:
The survey method is used to collect the primary data
with the help of questionnaire based on explorative and conclusive
research.
SAMPLING UNIT:
It refers to the individuals who are to be surveyed in the study
and it is the customer who is consuming or using or who has bought
AMUL milk and milk products are surveyed.
SAMPLE SIZE:
It refers to the number of people surveyed for this topic, in the study
100 people were surveyed and responses drawn.
SECONDARY DATA:
The secondary data can be defined as data collected by son\me one else
for purposes other than solving problem being investigation
and previously meant for another purpose. A secondary data is
collected from the books, periodical journals, magazines, papers,
company records, internet and other publication.
62
E-LIMITATION OF THE STUDY
1. Total coverage of the study is limited to the few customers
for collecting AMUL milk and milk products at Udaipur ,near
udaipur & at some small village.
2. Sample size of the study is restricted to 100 customers only.
3. Most of the respondents hesitate to give information but how ever an
attempt is made to collect the data systematically.
4. Time is the one constraint of the survey.
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Chapter-4
Analysis And Interpretation Of The Data
The collected data were not easily understandable, so I like to analyze
the collected data in a systematic manner and interpreted with simple
method.The analysis and interpretation of the data involves the
analyzing of the collected data and interpretation it with pictorial
representation such as bar charts, pie charts and others.
Occupation:
Occupation is also influences a person’s consumption pattern. A
blue collar worker will buy work cloths, work shoes and lunch boxes.
Similarly the Amul Milk and Milk products are purchased by
various occupants. The following occupants of the respondents are
classifies for the data collection.
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Analysis of Occupation of the Respondents
Occupation No. of.
respondent
Percentage
Business 20 20
Employee 10 10
House wife 65 65
Others 05 05
Total 100 100
Sources: Primary Data
Table no.4.1
65
ANALYSIS OF OCCUPATION OF TH E RESPONDENTS
Graph No. 4.1
Interpretation:
20% of the respondents are business, 10% of the
respondents are employees, and 65% of the respondents are
house wives, 05% of the respondents are others group.
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Income:
Income decided the purchasing power of the customer. If the income is
high then, they go for high quality irrespective of price of the product.
Hence in this research I like to collect the data how income is influence
to purchase Amul Milk and Milk products.
Analysis of Monthly Income of the Respondents
Income No. of.
respondent
Percentage
Bellow
5000
38 38
5000-
10000
30 30
10000-
15000
21 21
15000 &
above
11 11
Total 100 100
Sources: Primary Data
Table no.4.2
67
ANALYSIS OF MONTHLY INCOME OF RESPENDENTS
Income Of the Respondent
Graph 4.2
68
CHI-Square test
ToAnalyze whether difference in Income effect the decion of
Customer
Hypothisis:-Null hypothisis-There is effect of income on decision of
customer
Respo. (E) Average(O) O-E (O-E)2 (O-E)2/E
38 25 -13 169 6.76
30 25 -5 25 1
21 25 4 16 0.64
11 25 14 196 7.84
100 100 0 16.24
At the 5% significant level the table value is 5.99 which is less then
answering value so we should reject the null hypothesis that there is a
effect of difference in income on purchasing decision.
This prove that loyalty of customer towards Amul
play major role then difference in Income.
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Interpretation:
As per the data 38% of the respondents earn per month below 5000,
30% of the respondents earn 5001 to 10000, 21% of the respondents
earn above 10001 to 15000. 11% of the respondents earn 15000 &
above. From the above table we can conclude that majority of the
respondents’ monthly income group of below 5000 and more than
5000 to 10000.
Purchasing Facter
Identification of various factors plays a vital role in consumer behavior
study. The various factors such as quality, price easy available etc. is
influencing lot and influences positively. The following data
reveals how various factors are influencing to buying of Amul Milk
and Milk products.
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Analysis of Factors to Buy AMUL Milk and Milk Products
Factor No. of. respondent Percentage
Quality 38 38
Brand
Image
28 28
Price 20 20
Easy
availability
14 14
Total 100 100
Sources: Primary Data
Table no.4.3
71
Analysis of factors to buy Amul Milk products
Factor
Graph No.4.3
Interpretation:
38% of respondents buying AMUL Milk & Milk products for its Good
Quality, 28% of respondents use for its Band Name,20% of
its Price consideration, 14% of its easy availability of respondents
buying AMUL Milk & Milk products
.
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Quality:
Company has two responsibility in a quality centered. First, they must
participate in formulating strategies and policies designed to help the
company win through total quality excellence. Second they must
deliver marketing quality alongside production quality. This helps to
company to attract more
Opinion of the Respondents Regarding Quality
Opinions No. of.
respondent
Percentage
Thickness 35 35
Freshness 45 45
Taste 20 20
Total 100 100
Sources: Primary Data
Table no.4.4
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Opinion of the Respondents Regarding Quality
Quality
Graph No.4.4
Interpretation:
As per the data, 35% of the respondents buy the milk due to Thickness,
45% of the respondents for Freshness, and 20% of respondents for
Taste. Quality takes vital role in every organization. From the above
table we can conclude that majority of the respondents expressed that
AMUL Milk & Milk products have Thickness.
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Opinion towards Products:
The behavior of users after his commitment to a product has
been collected with respect product and terms of satisfaction with
rating scale. The following are the data obtained related to AMUL
Milk & Milk products.
Analysis of Rating towards AMUL Milk & Milk products
Ratings No. of.
respondent
Percentage
Excellent 25 25
Good 48 48
Average 22 22
Poor 05 05
Total 100 100
Sources: Primary Data
Table no.4.5
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Analysis of Rating towards AMUL Milk & Milk products
Rating
Graph No. 4.5
Interpretation:
25% of the respondents rated that AMUL Milk & Milk products are
Excellent. 48% of the respondents rated as good, 22% of the
respondents rated as Average Quality. 05% of the respondents rated
that AMUL Milk & Milk products are Poor. From the above table we
can conclude that majority of the respondents rated AMUL Milk &
Milk products are of Good Quality.
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Common Complaints:
A customer centered organization makes it ways for its customer
to deliver suggestion and complaints. Many firms provide form for
collecting feedback on products and some time customer complaints
and suggestion about products. In this survey, common problems raised
by the customer or not.
Analysis of problems in Amul Milk Products
Ratings No. of.
Respondent
Percentage
Yes 10 10
No 90 90
Total 100 100
Sources: Primary Data
Table no: 4.6
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Analysis of problems in Amul Milk Products
Rating
Graph No 4.6
Interpretation:
Only 10% of the respondents said that that there is no problem is
AMUL Milk & Milk products. 90% of the respondents are said that no
problems in AMUL Milk & Milk products. From the above table we
can conclude that majority that the respondents are not having any
problems in AMUL Milk & Milk products.
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Purchasing Place:
Purchase place is also important to know where users choose
their purchase point. This helps to marketer to design various
promotion and distribution programmes. The data is collected to
know the various purchase place and availability.
Analysis of Availability of Products from Dealers
Easily
Available
No. of.
Respondent
Percentage
Yes 95 95
No 05 05
Total 100 100
Sources: Primary Data
Table no: 4.7
79
Analysis of availability of Amul Milk
Easy availability
Graph 4.7
Interpretation:
95% of the respondents said that they are getting AMUL Milk & Milk
products easily. Only 05% of the respondents disagree with the easy
available of AMUL Milk & Milk products. From the above table we
can conclude that majority of the respondents getting the AMUL Milk
& Milk products easily from the dealers or retailers.
80
Influence to Others to Buy Products:
Post experience & benefits will help organization in obtaining
the additional sale. In this connection feedback its act as an influence to
others to adopt the product the user survey has conducted to identify
what an extent user recommends to others. The data has been extracted
& it is as follows.
Analysis of Recommendations
Recommended No. of.
Respondent
Percentage
Yes 95 95
No 05 05
Total 100 100
Sources: Primary Data
Table no: 4.8
Analysis of Recommendations
81
Recommendations
Graph No.4.8
Interpretation:
95% of the respondents were recommended verka milk and
milk products, 05% of the respondents were not recommended
verka milk and products to others. From the above table we can
conclude that majority of the respondents were recommended verka
milk and milk products. 95% of the respondents were satisfies with the
AMUL Milk & Milk
products. 05% of the respondents were not satisfies with the AMUL
Milk & Milk products. From the above table we can conclude that
majority of the respondents were satisfied with the AMUL Milk &
Milk products.
Chapter-5
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FINDINGS, SUGGESTIONS AND CONCLUSIONS :
FINDINGS :
This chapter is including in my survey findings, suggestions
and conclusions of my study. First I would like to present my survey
findings. The main findings of my survey are as follows:
1. It is findings in the survey that females are the main decision maker
for the milk and milk products.
2. Based on the occupation of the customer, it is found in the survey
that 65% are the housewives and 25% are from various occupations
such as a businessman, 10% are employee and 5% are drom other
likefarmers, etc for the Amul Milk & Milk products.
3. Incomes less than 10000 are more attracted to Amul Milk & Milk
products. As per the data, 68% of the respondents’ income is under this
group.
4. The main purchasing factors for the Amul Milk & Milk products are
Quality and Brand image. The data reveals that 38% influences
on Quality and 28% influenced for the Brand.
5. Overall opinion of the product performance data reveals that
Amul product satisfies 73% of the respondent and 22% respondent’s
opinion is average.
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6. It is found in the survey that 10% of the total respondents are
dissatisfied. on dealer’s services.
7. It is found in the survey that customer are influencing through Word
of Mouth.
SUGGESTIONS :
1. Milk and milk product purchase decisions are more decided by
women rather than male, because she act as a invigilator, execute her
decision and influence the same to the purchase while ascertaining the
quality, freshness and price. Hence, I suggest Amul co-operative
society to concentrate more on the women and men suggestions for
designing the marketing strategy, because women’s role in the house is
dominant, even in the various decisions.
2. Occupation of the user influences the purchase decisions. The
particular occupation plays a vital role in deciding the product or
services. Women segment are influencing more on milk and milk
products. Therefore, an occupation is the factor influencing the
product.
3. Income of the people decides the purchasing power. By CHI Square
Test we can say that there is a relation between income of respondent
and thr purchasing decision. The high income prefers to purchase
product with the quality, freshness, thickness, etc. and vice versa. So I
suggest Amul to concentrate also on low income segment to capture
market and position themselves in the minds of the customer
with required quality and quality milk and milk products.
84
4. Quality and Brand Image plays a dominant role. Milk and milk
products move in the market due to its quality and brand. Therefore it
should maintain the same.
5. Since Amul is having loyal customer it should concentrate more on
this factor through various potential programmes such as campaign,
premium packs, offers etc., this helps to increase the loyalty towards
the Amul products.
6. Milk and milk product are having high demand and it is considered
as a very essential products. In present practice, purchase of milk and
milk products is through dealers. In this connection dealers approach
towards he product.
7. Customer is influential, hence I suggest Amul to look after the
dealers issue with due care.
9. When product possesses quality and other important attributes
naturally they propaganda about product through word of mouth and
vice versa. Therefore if the quality and attributes are fine tuned
according to the needs will help the Amul to get reputation and
addition market.
10. Introduction of various economic products lies may help Amul to
attract the existing and new customers and may attract all income level
groups. Hence I suggest management to introduce new product line
which can satisfy the entire group.
85
Conclusions:
From the survey conducted it is observed that Amul milk and
Milk products has a good market share. From the study conducted the
following conclusions can be drawn. In order the dreams into reality
and for turning liabilities into assets one must have to meet the needs of
the customers. The factors considered by the customer before
purchasing milk are freshness, taste, thickness and easy availability.
Finally I conclude that, majority of the customers are satisfied with the
Amul milk and Milk products because of its good quality, reputation,
easy availabilities. Some customers are not satisfied with the Amul
Milk & Milk products because of high price, lack of dealer services,
spoilage and low shelf life etc. therefore, if slight modification in the
marketing programme such as dealers and outlets, promotion
programmers, product lines etc., definitely company can be as a
monopoly and strong market leader. Amul has also to take care of its
competitors into consideration and more importantly it’s customers
before making any move.
86
BIBLIOGRAPHY
Marketing Management Philip Kotler, The Millennium Edition,
Prentice Hall Private Limited, New Delhi.
Marketing Research: G.C Brek, Tata Mc Graw-Hill Publishing
Company Limited, New Delhi
Periodical: Business Word
DFPI, Annual Report-1999-2000
Research Methodology: C.R.Kothari , 2 edition. nd
S.N Murty and U Bhojanna
Website Address:
www.amul.comThe Taste of India
Customer Response – Questionnaire
Technology, Tumkur, Karnataka, he is doing main project on
“Customer Satisfaction Towards
Customer Response – Questionnaire87
(Custmer Bonding Towards Amul Milk & Milk Product In Udaipur City )
1. personal profile: A: Name:
B: Address:
C: Sex: Male: [ ] Female [ ]
D: Age: [ ]
2. Occupation: A. Business [ ] B. Employee [ ]
C. House wife [ ] D. Other [ ]
3. Monthly Income
A. Bellow 5000 [ ] B. 5000-10000 [ ]
C. 10000-15000 [ ] D. 15000 & Above [ ]
4. Which product you are buying?
5. How did you come to know about the Amul product?
A. By friends/family: [ ] B. Direct mailers: [ ]
88
C. Press Ads: [ ] D. Reference website: [ ]
E. T.V. Ads: [ ]
6. What is the most important factor that matters while buying an
Amul product?
A. Quality: [ ] B. Brand Image [ ]
C. Price [ ] D. Easy Availability [ ]
7. What is your opinion regarding quality of Amul Milk and Milk
product ?
A. Thickness [ ] B. Freshness [ ] C. Taste [ ]
8. How often do you buy this product of Amul?
A. Daily: [ ] B. Monthly: [ ]
C. Weekly: [ ] D. Occasionally: [ ]
9. What is your opinion about the performance of Amul product?
A. excellent [ ] B. Good [ ]
C. Average [ ] D.Poor [ ]
10. Is there any problem in Amul milk and product
89
A. Yes: [ ] B. No: [ ]
11. Is there any problem in availability of Amul milk ?
A. Yes: [ ] B. No: [ ]
12. Do you recommend others to buy Amul product ?
A. Yes: [ ] B. No: [ ]
13. Suggestion (if any):
90
