Desertation Project

A STUDY ON

CONSUMER BUYING PATTERN TOWARDS AMUL MILK

Dissertation Submitted towards

Partial fulfilment of

POST GRADUATE DIPLOMA IN MANAGEMENT

ACADEMIC SESSION

2014 - 2016

Submitted by:

ADIL KHAN

(BM-014012)

Faculty Guide:

Prof. Vijendra Dhyani

1

DECLARATION

I, Adil Khan , PGDM student of Institute of Management Studies, Ghaziabad declare that the

project entitled “CONSUMER BUYING PATTERN TOWARDS AMUL MILK”, is the

original work done by me and the information provided in the study is authentic to the best of

my knowledge.

Place: ADIL KHAN

Date:

Signature

ACKNOWLEDGEMENTS2

In the first place, I thank IMS GHAZIABAD for giving me an opportunity to work on this

project. I would also like to thank Mr. VIJENDRA DHYANI, Professor Marketing, IMS

GHAZIABAD for giving me his valuable guidance for the project. Without his help it would

have been impossible for me to complete the project.

I would be failing in my duty if I do not acknowledge with a deep sense of gratitude the

sacrifices made by my parents and thus have helped me in completing the project work

successfully.

Place: Ghaziabad

Date: ADILKHAN

Signature of the student (BM 014012)

2014-2016

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PREFACE

Today the business environment is rapidly changing in this competitive environment the popular

trend is also striving for maintaining its positions therefore it become essential for the companies

that they should know about their preference & taste. Regarding a particular product it is of

almost necessary to know the consumers satisfaction to the value offered by the company in case

of dissatisfactory result it is essential to ascertain whether the dissatisfaction is for entire product

or part of it is and what value do the consumers expect from it?

The research will provide the relevant information to the organization about consumer’s

attitude towards their products & services.

The research work is sincere effort to find out the ultimate requirement of consumers for the

betterment of research as well as the organization.

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TABLE OF CONTENT

S.NO Contents Page No.

1 Executive Synopsis 7

2 Introduction 8

3 Industry scenario 27

4 Objective of the study 35

5 Literature review 36

6 Research Methodology 43

7 Analysis 44

8 Findings 66

9 Recommendations 67

11 Conclusion 68

12 References 69

13 Annexure 70

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LIST OF TABLE & GRAPHS

S.NO TABLES AND GRAPHS PAGE .NO

1 gender 44

2 Satisfaction 45

3 Factor of liking 46

4 Daily consumption 47

5 Brand preference 48

6 Consumption period 49

7 Variant of amul 50

8 crosstab between gender & the

factor they like.

54

9 Crosstab b/w satisfaction & brand

preference

56

10 Crosstab b/w satisfaction & variant

of amul milk.

58

11 One sample T-test 64

12 One way annova 65

EXECUTIVE SYNOPSIS

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This final project was undertaken with the objective of “CONSUMER BUYING PATTERN

TOWARS AMUL MILK”

In the year 1946 the first milk union was established. This union was started with 250 litre 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”).

I worked with questionnaire ,a sample size of 50 respondents was taken for the study whose

responses were studied and interpreted .The sampling design was used convenience sampling.

The process of analysis was done through excel work sheets, frequency table, percentage

analysis, cross-tabulation, t-test, Annova test.

During the preparation of questionnaire I faced difficulties regarding the selection of questions

and in collection of the data I found some difficulties like the customers had no time to give.

INTRODUCTION

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

word amul (अमूल) is derived from the Sanskrit word amulya (अमूल्य), meaning rare,

valuable. The co-operative was initially referred to as Anand Milk Federation Union Limited

hence the name AMUL.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk

producers in Gujarat.

Amul spurred India's White Revolution, which made the country the world's largest producer of

milk and milk products. In the process Amul became the largest food brand in India and has

ventured into markets overseas.

Dr. Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is

credited with the success of Amul.

The birth of amul

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It all began when milk became a symbol of protest

Founded in 1946 to stop the exploitation by middlemen

Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the

state of Gujarat in western India. The exploitative trade practices followed by the local trade

cartel triggered off the cooperative movement. Angered by unfair and manipulative practices

followed by the trade, the farmers of the district approached the great Indian patriot Sardar

Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own

co-operative, which would have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel.

Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and

Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just

two village dairy co-operative societies and 247 litres of milk and is today better known as Amul

Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas

Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was

entrusted the task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should

become the basis of a National Dairy Development policy. He understood that the success of

Amul could be attributed to four important factors. The farmers owned the dairy, their elected

representatives managed the village societies and the district union, they employed professionals

to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive

to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic

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objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its

Chairman and asked to replicate this model throughout the country.

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GCMMF

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

product marketing organisation with annual turnover (2014-15) US$ 3.4 billion. Its daily milk

procurement is approx 14.85 million lit per day from 18,536 village milk cooperative

societies, 17 member unions covering 31 districts, and 3.37 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known

as'AMUL',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. Its success has not

only been emulated in India but serves as a model for rest of the World. It is exclusive marketing

organisation of 'Amul' and 'Sagar' branded products. It operates through 56 Sales Offices and

has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in

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India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese,

Pizza cheese,Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading

House"status. Many of our products are available in USA, Gulf Countries,Singapore, The

Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from

Government of India for Excellence in Dairy Product Exports for the last 16 years. For the year

2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export performance

and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant strides in

expanding its presence in International markets. Amul’s presence on Global Dairy Trade (GDT)

platform in which only the top six dairy players of the world sell their products, has earned

respect and recognition across the world. By selling milk powders on GDT, GCMMF could not

only realize better prices as per market demand but it also firmly established Amul in the league

of top dairy players in world trade.

For its consistent adherence to quality, customer focus and dependability, GCMMF has received

numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality

Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected

Company Award instituted by Business World.

In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 -

certificate of merit- for adopting noteworthy quality management practices for logistics and

procurement. GCMMF is the first and only Indian organisation to win topmost International

Dairy Federation Marketing Award for probiotic ice cream launch in 2007. For the innovations,

GCMMF has received AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN

Innovating for better tomorrow award in 2014.

World Dairy Innovation Awards- 2014 for Best Marketing Campaign - "Eat Milk with Every

Meal". For the tree plantation activity GCMMF has received seven consecutive Good Green

Governance award from Srishti during 2007 to 2013.

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The Amul brand is not only a product, but also a movement. It is in one way, the representation

of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

GCMMF - An Overview

Year of Establishment 1973

Members 17 District Cooperative Milk Producers' Unions

No. of Producer Members 3.37 Million

No. of Village Societies 18,536

Total Milk handling capacity per day 24 Million litres per day

Milk Collection (Total - 2014-15) 5.42 billion litres

Milk collection (Daily Average 2014-15) 14.85 million litres

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Cattlefeed manufacturing Capacity 6340 Mts. per day

Sales Turnover -(2014-15) Rs. 20733 Crores (US $ 3.4 Billion)

AMUL Member Unions

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana

3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar

4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur

5. Surat District Cooperative Milk Producers' Union Ltd., Surat

6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara

7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra

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8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad

9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch

10. Ahmedabad District Cooperative Milk Producers' Union Ltd.,Ahmedabad

11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot

12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar

13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar

14. Amreli District Cooperative Milk Producers Union Ltd., Amreli

15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar

16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar

17. Junagadh District Cooperative Milk Producers' Union Limited,Junagadh

SALES TURNOVER

Sales Turnover Rs (million) US$ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

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2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

2013-14 181434 3024

2014-15 207330 3410

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.

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Establishment of a direct linkage between milk

producers and consumers by eliminating

middlemen

Milk Producers (farmers) control procurement,

processing and marketing

Professional management

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The Amul model has helped India to emerge as the largest milk producer in the world. More than

15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across the

country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State

Marketing Federations, ensuring a better life for millions.

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AWARDS

GCMMF received Bronze Trophy at the Indian Marketing Awards – 2014

GCMMF – Finalist in World Beverage Innovation Awards - 2014

GCMMF received APEDA Awards for 16 years continuously

Amul wins World Dairy Innovation Awards - 2014

Amul receives Srishti Good Green Governance award for the year 2013

GCMMF Receives Prestigious CNN-IBN Innovating for a Better Tomorrow Award

Amul wins AIMA High Performance Brand Award-2013 for brand Amul

Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD STANDARD

Quality Award 2013

GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the

category of "Best Run Award in Finance"

ET-Corporate Citizen Award of the Year 2010-11 to GCMMF

Amul receives Green Globe Foundation Award

Dr. V.Kurien honoured with Life Time Achievement Award

GCMMF receives Srishti's G-Cube Award - 2010

Amul Bags International Dairy Federation Award

Amul Bags Srishti G-cube Award For Good Green Governance - 2009

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

Ramkrishna Bajaj National Quality Award - 2003

Qimpro Gold Standard Award - 2003

Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award For

Resourcefulness

Rajiv Gandhi National Quality Award - 1999

Mascot:

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The Amul baby

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby butter

girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with

the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for

Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has

also been used for other product like ghee and milk.

Currently Amul is in the process of getting the Amul Girl registered as the oldest ad campaign in

the Guinness Book Of World Records. Although there seems to be no competition for this

mascot, Amul Corporation is still doing further research to confirm their claim.

List of Products Marketed:

Breadspreads:

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• Amul Butter

• Amul Lite 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

• Amul Emmental Cheese

• Amul Gouda Cheese

• Amul Malai Paneer (cottage cheese)

• Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

• Amul Amrakhand

• Amul Mithaee Gulabjamuns

• Amul Mithaee Gulabjamun Mix

• Amul Mithaee Kulfi Mix

• Avsar Ladoos

UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk

• Amul Gold 4.5% fat Milk

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• Amul Lite Slim-n-Trim Milk 0% fat milk

• Amul Shakti Toned Milk

• Amul Fresh Cream

• Amul Snowcap Softy Mix

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:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat

• Amul Shakti Standardised Milk 4.5% fat

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• Amul Slim & Trim Double Toned Milk 1.5% fat

• Amul Saathi Skimmed Milk 0% fat

• Amul Cow Milk

Curd Products:

• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul Masti Dahi (fresh curd)

• Amul Masti Spiced Butter Milk

• Amul Lassee

Amul Icecreams:

Royal Treat Range

• Butterscotch, Rajbhog, Malai Kulfi

Nut-o-Mania Range

• Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond

Nature's Treat

• Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple

Sundae Range

• Mango, Black Currant, Sundae Magic, Double Sundae

Assorted Treat

• Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta

Utterly Delicious

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• Vanila, Strawberry, Chocolate, Chocochips, Cake Magic

Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)

• Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

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PRODUCT SHOWCASE:

Amul Gold

Product Details

Product Name Amul Gold

DescriptionPasteurised milk Amul milk meets the PFA standards for the respective type of milk.

PackingPoly Pack - 500ml, 1000ml, 5 Ltr ** In Selected markets only

Amul Taaza

Product Name Amul Taaza

DescriptionPasteurised Milk Amul milk meets the PFA standards for the respective type of milk.

PackingPoly Pack - 500ml, 1000ml, 200ml, 5 Ltr ** In selected markets only

Product Details

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Amul Slim and Trim Milk

Product Details

Product Name Amul Slim and Trim Milk

DescriptionPasteurised Milk Amul milk meets the PFA standards for the respective type of milk.

PackingPoly Pack– 6 L*, 5 L*, 1 L*, 500ml, 350ml*, 300ml*,200ml** In selected markets only

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SWOT ANALYSIS OF AMUL MILK:-

STRENGTH:-

Very efficient distribution channel.

Brand name.

Trust of the end users.

Shelf life of the products.

Quality of the product.

Relationship with the distributor.

WEAKNESS:-

No supply as per demand.

THREATS:-

From National & Local players:-

Mother dairy parag madhusudhan gopalji

OPPORTUNITY:-

Capture the market where supply of milk is nil.

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Indian dairy Industry - a profile

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. 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 companies 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 Rs7,00,000mn

Background

India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world. Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India and most of these are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently there are around 70,000 village dairy cooperatives across the country. The co-operative societies are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy federation. Milk production gives employment to more than 72mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by USA. The milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.

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This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five milk producing nations in the world are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

Lack of use of scientific practices in milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.

Milk Yield comparison:

Country Milk Yield (Kgs per year)

USA 7002

UK 5417

Canada 5348

New Zealand 2976

Pakistan 1052

India 795

World (Average) 2021

Source: Export prospects for agro-based industries, World Trade Centre, Mumbai.

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Production of milk in India

YearProduction in million MT

1988-89 48.4

1989-90 51.4

1990-91 53.7

1991-92 56.3

1992-93 58.6

1993-94 61.2

1994-95 63.5

1995-96 65

1996-97 68.5

1997-98 70.8

1998-99 74.7

1999-00(E) 78.1

2000-01(T) 81.0

E= estimatedT= target / expected

Source: DFPI, Annual Report-1999-2000

World's major milk producers

(Million MTs)

Country 1997-981998-99 ( Approx.)

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India 71 74.5

USA 71 71

Russia 34 33

Germany 27 27

France 24 24

Pakistan 21 22

Brazil 21 27

UK 14 14

Ukraine 15 14

Poland 12 12

New Zealand

11 12

Netherlands 11 11

Italy 10 10

Australia 9 10

Operation Flood

The transition of the Indian milk industry from a situation of net import to that of surplus has been led by the efforts of National Dairy Development Board's Operation Flood. programme under the aegis of the former Chairman of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and created a strong network for procurement processing and distribution of milk by the co-operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over 220 gm

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per day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the milkshed areas of the village, and to link them to the four Metro cities, which are the main markets for milk. The efforts undertaken by NDDB have not only led to enhanced production, improvement in methods of processing and development of a strong marketing network, but have also led to the emergence of dairying as an important source of employment and income generation in the rural areas. It has also led to an improvement in yields, longer lactation periods, shorter calving intervals, etc through the use of modern breeding techniques. Establishment of milk collection centers, and chilling centers has enhanced life of raw milk and enabled minimization of wastage due to spoilage of milk. Operation Flood has been one of the world's largest dairy development programme and looking at the success achieved in India by adopting the co-operative route, a few other countries have also replicated the model of India's White Revolution.

Per Capita availability of milk

Year gm/day

1950 132

1960 127

1968 113

1973 111

1980* 128

1990 178

1992 192

1996 198

1997 200

1998 202

1999 203

2000 212

2001E 225

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2002P 250

E= EstimatedP= Provisional

* Operation flood was launched in 1970

Fresh Milk

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5% protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT. Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely available in India.

Packaged milk can be divided according to fat content as follows,

Whole (full cream) milk - 6% fatStandardized (toned) milk - 4.5% fatDoubled toned (low fat) milk - 3% fatAnother category of milk, which has a small market is flavoured milk.

The Indian Market - A Pyramid

Consumer Habits And Practices

Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 1999-00. However a large part of the population cannot afford milk. At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research.

There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have a high food value for milch animals.

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In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western products like milk powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc. Of these ghee alone accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is consumed at producer-household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc.

Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk.

The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is inconsistent and so is the price across the season in local areas. Also these vendors add water and caustic soda, which makes the milk unhygienic.

India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual requirement is small, maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major cities lies an immense growth potential for the modern sector. Presently, barely 778 out of 3,700 cities and towns are served by its milk distribution network, dispensing hygienically packed wholesome, quality pasteurized milk. According to one estimate, the packed milk segment would double in the next five years, giving both strength and volume to the modern sector. The narrow tip at the top is a small but affluent market for western type milk products.

34

Growing Volumes

The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. By the end of the twentieth century, the urban population is expected to increase by more than 100 million to touch 364 million in 2000 a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying. Presently, the organized sector both cooperative and private and the traditional sector cater to this market.

The consumer access has become easier with the information revolution. The number of households with TV has increased from 23 million in 1989 to 45 million in 1995. About 34 per cent of these households in urban India have access to satellite television channel.

Potential for further growth

Of the three A's of marketing - availability, acceptability and affordability, Indian dairying is already endowed with the first two. People in India love to drink milk. Hence no efforts are needed to make it acceptable. Its availability is not a limitation either, because of the ample scope for increasing milk production, given the prevailing low yields from dairy cattle. It leaves the third vital marketing factor affordability. How to make milk affordable for the large majority with limited purchasing power? That is essence of the challenge. One practical way is to pack milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk has given way to single-use sachets which are more economical. Another viable alternative is to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee.

35

OBJECTIVES OF THE STUDY

To know awareness of people towards Amul products

To know the preference of Amul products with comparison to other competitive brands.

To know the factors which affects consumer’s buying behaviour while purchase milk.

To study various factors such as quality, price, easy available etc.

Ideas about to increase the sale of the “Amul”

36

Literature review

In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has

developed a successful model for doing business in large emerging economy. It has been

primarily responsible, through its innovative practices, for India to become world’s largest

producer of milk. This paper draws various lessons from the experiences of AMUL that would

be useful to cooperatives globally as well as firms that are interested in doing business in large

emerging markets like India and China.

Many of these economies have underdeveloped markets and fragmented supply bases. Market

failures for many of these small producers are high. On the other hand, the size of both, markets

and the suppliers is large. As a result, firms that identify appropriate business strategies that take

into account these characteristics are more likely to succeed in these markets. The following are

some key message from AMUL’s success: firms in these environments need to simultaneously

develop markets and suppliers to synchronize demand and supply planning, develop or become a

part of network of producers (i.e., cooperatives in this case) to obtain scale economies, focus on

operational effectiveness to achieve cost leadership to enable low price strategy. In addition, a

central focus to bring the diverse element together and a long-term approach are required.

In emerging economies different industrial sectors may be at different stages of development. In

some of the sectors all of the above environmental characteristics faced may not hold. However,

a subset of strategies followed by AMUL would still be very useful. Thus, firms that are

contemplating addressing large undeveloped markets or have an intention of taking advantage of

extensive but marginal supplier base would still benefit.

37

AMUL’s Journey towards Excellence

AMUL’s journey towards excellence is marked by some critical understanding of the business

environment in large emerging economies like India where markets have to be developed by

combining efficiency related initiatives with increasing the base of marginal suppliers and

consumers. The essence of AMUL’s efforts were as follows:

• It combined market and social development in an emerging economy. It recognized the

inter-linkages between various environments that governed the lives of marginal milk

farmers and the unmet needs of consumers. It also changed the supply chain paradigm in

order to reduce the cost to the consumer while increasing the return to the supplier.

• It realized that in order to achieve their objectives, it had to benefit a large number of

people – both suppliers and consumers. While large scale had the danger of failure due to

poor control and required more resources, it also had the advantage of creating a

momentum that would be necessary to bring more people into the fold and thereby help

more suppliers and consumers.

• It also realized that its goal could only be achieved in the long run and this required

developing values in people and processes that were robust, replicable and transparent.

It also realized that the cooperative would not be independent and viable in the face of

competition if it were not financially sound. This implied that AMUL had to develop distinct

capabilities that would deliver competitive advantage to its operations.

38

Leadership

While Kaira Union (or AMUL) had the support of national leaders who were at the forefront of

the Indian independence movement, its local leaders were trained in Gandhian simplicity17 and

had their feet rooted firmly amongst people whom they had mobilized – the poor farmers of

Anand. The foremost amongst them was Tribhuvandas Patel18 who had led the movement for the

formation of cooperatives of small and marginal farmers in order to compete against investor

owned enterprises on one hand, and keep bureaucracy away on the other hand. Tribhuvandas was

the first Chairman of the cooperative. His skills lay in organizing the village producers, in

making them believe in the power of cooperation and their rights towards improvement of

human condition. He is remembered as fair and honest person whose highest sense of

accountability to the members of the union laid the foundation of trust between network

members19. Another important aspect of his remarkable management style was his gentleness and

ability to repose trust in people – he gave complete autonomy to managers of the union and

earned complete commitment from them20. Verghese Kurien21 was one such manager who

would, first, shape the destiny of the Union and then the milk movement throughout the country.

Kurien emerged as the father of the dairy movement in India. He managed to keep the

government and bureaucrats away from the cooperative22 and gave shape to the modern structure

of the cooperative, worked tirelessly to establish the values of modern economics, technology

and concern for farmers within the cooperative. He interfaced with global financing agencies to

build new projects at AMUL. He worked with the Unions to bring the best of technology to the

plants. He worked with marginal village farmers to create systems that would increase milk

yields. He understood that without meeting the needs of customers he would not be able to

satisfy his obligations to the farmers. In short, Kurien shaped the destiny of the milk movement

in India through NDDB (as its Chairman) and particularly at GCMMF and cooperatives in

Gujarat. He helped build a modern organization with professional management systems that

would support the aspirations of farmers and customers.

39

Several young people left better paying jobs to help create a dream of making India the milk

capital of the world. Kurien had learnt the persuasive charm of Tribhuvandas through plain

speaking and had soon created a cadre of highly capable managers to whom he had delegated

both management as well as commitment. These leaders were created at the village, district and

state levels in different organizations of the network.

He was charismatic in his communication and committed in his effort. Over a period of time, he

developed a very close link with the poor farmers who, as he always says, “were his employers”

at the cooperative. He would travel through the villages along with Tribhuvandas and work out

the details of how the milk collection cooperative would work, how trucks would pickup milk

from village societies, how the cattle would have to be taken care of and how all of this would

help the poor milk farmer come out of poverty and the clutches of the middleman. Operational

details were meticulously planned and executed. And then, he along with two of his close

associates would work on the design of the dairy plant including conducting experiments to

create powder out of buffalo milk – a task that was ridiculed by all who heard of it including the

international aid agencies in the dairy industry. Tribhuvandas and Kurien were able to convince

the government also of the value of his efforts and secured funding for several projects of the

cooperative. He was slowly laying the foundation of a modern dairy industry in India.

Membership of the cooperative started to increase, professional managers started to join AMUL

and production capacity at AMUL started to expand (and this expansion was done through

innovative changes to processes at the plant and through equipment designed and fabricated in-

house). Kurien had transformed AMUL from a dream into a major industrial entity – a network

of plants, cooperative societies, research centers, an institute for training future managers in rural

management, secondary services like veterinary/artificial insemination expertise/feed factory etc.

Kurien’s biggest strength lay in his ability to convince people that the cause of rural farmers was

important thus establishing an important shared value. Subsequently, he could convince the

government to replicate the AMUL model in almost all states of the country.

40

Strategy

AMUL’s business strategy is driven by its twin objectives of (i) long-term, sustainable growth to

its member farmers, and (ii) value proposition to a large customer base by providing milk and

other dairy products a low price. Its strategy, which evolved over time, comprises of elements

described below.

Simultaneous Development of Suppliers and Customers: From the very early stages of the

formation of AMUL, the cooperative realized that sustained growth for the long-term was

contingent on matching supply and demand. Further, given the primitive state of the market and

the suppliers of milk, their development in a synchronous manner was critical for the continued

growth of the industry. The organization also recognized that in view of the poor infrastructure in

India, such development could not be left to market forces and proactive interventions were

required. Accordingly, AMUL and GCMMF adopted a number of strategies to assure such

growth. For example, at the time AMUL was formed, the vast majority of consumers had limited

purchasing power and was value conscious with very low levels of consumption of milk and

other dairy products. Thus, AMUL adopted a low price strategy to make their products

affordable and guarantee value to the consumer. The success of this strategy is well recognized

and remains the main plank of AMUL's strategy even today. The choice of product mix and the

sequence in which AMUL introduced its products is consistent with this philosophy. Beginning

with liquid milk, the product mix was enhanced slowly by progressive addition of higher value

products while maintaining desired growth in existing products. Even today, while competing in

the market for high value dairy products, GCMMF ensures that adequate supplies of low value

products are maintained.

On the supply side, as mentioned earlier, the member-suppliers were typically small and

marginal- farmers had severe liquidity problems, were illiterate and had no prior training in dairy

farming. AMUL and other cooperative Unions adopted a number of strategies to develop the

supply of milk and assure steady growth. First, for the short term, the procurement prices were

set so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash

payments for milk supply was made with minimum of delay. For the long-term, the Unions

followed a multi-pronged strategy of education and support. For example, only part of the

surplus generated by the Unions is paid to the members in the form of dividends. A substantial

41

part of this surplus is used for activities that promote growth of milk supply and improve yields.

These include provision of veterinary services, support for cold storage facilities at the village

societies etc. In parallel, the Unions have put in place a number of initiatives to help educate the

members.

To summarize, the dual strategy of simultaneous development of the market and member farmers

has resulted in parallel growth of demand and supply at a steady pace and in turn assured the

growth of the industry over an extended period of time.

Cost Leadership: AMUL’s objective of providing a value proposition to a large customer base

led naturally to a choice of cost leadership position. Given the low purchasing power of the

Indian consumer and the marginal discretionary spending power, the only viable option for

AMUL was to price its products as low as possible. This in turn led to a focus on costs and had

significant implications for managing its operations and supply chain practices (described later).

Focus on Core Activities: In view of its small beginnings and limited resources, it became clear

fairly early that AMUL would not be in a position to be an integrated player from milk

production to delivery to the consumer23. Accordingly, it chose a strategy to focus on core dairy

activities and rely on third parties for other complementary needs. This philosophy is reflected in

almost all phases of AMUL network spanning R&D, production, collection, processing,

marketing, distribution, retailing etc. For example, AMUL focused on processing of liquid milk

and conversion to variety of dairy products and associated research and development. On the

other hand, logistics of milk collection and distribution of products to customers was managed

through third parties.

However, it played a proactive role in making support services available to its members

wherever it found that markets for such services were not developed. For example, in the initial

stages, its small and marginal member farmers did not have access to finance, veterinary service,

knowledge of basic animal husbandry etc. Thus to assure continued growth in milk production

and supply, AMUL actively sought and worked with partners to provide these required services.

In cases where such partnerships could not be established, AMUL developed the necessary

capabilities and provided the services. These aspects are elaborated later in this section.

42

These include logistics of milk collection, distribution of dairy products, sale of products through

dealers and retail stores, some veterinary services etc. It is worth noting that a number of these

third parties are not in the organized sector, and many are not professionally managed. Hence,

while third parties perform the activities, the Unions and GCMMF have developed a number of

mechanisms to retain control and assure quality and timely deliveries (see the sub-section on

Coordination for Competitiveness later in the paper for more details). This is particularly critical

for a perishable product such as liquid milk.

Financial Strategy: AMUL’s finance strategy is driven primarily by its desire to be self-reliant

and thus depend on internally generated resources for funding its growth and development. This

choice was motivated by the relatively underdeveloped financial markets with limited access to

funds, and the reluctance to depend on Government support and thus be obliged to cede control

to bureaucracy. AMUL’s financial strategy may thus be characterized by two elements: (a)

retention of surplus to fund growth and development, and (b) limited/ no credit, i.e., all

transactions are essentially cash only. For example, payment for milk procured by village

societies is in cash and within 12 hours of procurement (most, however, pay at the same time as

the receipt of milk). Similarly, no dispatches of finished products are made without advance

payment from distributors etc. This was particularly important, given the limited liquidity

position of farmer/suppliers and the absence of banking facilities in rural India. This strategy

strongly helped AMUL implement its own vision of growth and development. It is important to

mention that many of the above approaches were at variance with industry practices of both

domestic and MNC competitors of AMUL.

43

RESEARCH METHODOLOGY

a. Research Design : Descriptive research

b. Sample Design

i. Sample Unit : People who buy milk available in retail outlets, superstores

etc.

ii. Sample Size : 50

iii. Sampling Technique : convenience sampling

iv. Sampling Area : Ghaziabad.

c. Data Collection

primary data through questionnaire

Secondary data though internet,books,newspaper

and journal.

d. Data Analysis

Statistical Tools/Techniques: cross tabulation , one sampe t-test and

oneway annova.

44

ANALYSIS

Frequencies

1.GENDER

GENDER

Frequency Percent Valid Percent Cumulative Percent

Valid MALE 18 36.0 36.0 36.0

FEMALE 32 64.0 64.0 100.0

Total 50 100.0 100.0

45

GENDER

N Valid 50

Missing 0

2. SATISFACTION

are you satisfied

N Valid 50

Missing 0

are you satisfied


Valid YES 35 70.0 70.0 70.0

NO 15 30.0 30.0 100.0

Total 50 100.0 100.0

46

3. FACTOR YOU LIKE

Statistics

what you like

N Valid 50

Missing 0

what you like


Valid QUALITY 20 40.0 40.0 40.0

TASTE 15 30.0 30.0 70.0

PRICE 10 20.0 20.0 90.0

AVAILABILITY 5 10.0 10.0 100.0

Total 50 100.0 100.0

47

4.CONSUMPTION PER DAY

Statistics

consumption per day

N Valid 50

Missing 0

consumption per day


Valid 1 Ltr 35 70.0 70.0 70.0

2-4 ltr 10 20.0 20.0 90.0

>4 ltr 5 10.0 10.0 100.0

Total 50 100.0 100.0

48

5. BRAND PREFERENCEStatistics

brand prefrnc

N Valid 50

Missing 0

brand prefrnc


Valid amul 30 60.0 60.0 60.0

mother dairy 10 20.0 20.0 80.0

parag 6 12.0 12.0 92.0

others 4 8.0 8.0 100.0

Total 50 100.0 100.0

49

6. FROM HOW LONG YOU ARE CONSUMING AMULStatistics

from how long you are consuming amul

N Valid 50

Missing 0

from how long you are consuming amul


Valid unapplicable 20 40.0 40.0 40.0

6 mnths 2 4.0 4.0 44.0

1 yr 5 10.0 10.0 54.0

2-4 yr 10 20.0 20.0 74.0

>4 yr 13 26.0 26.0 100.0

Total 50 100.0 100.0

50

7. WHICH VARIENT YOU BUY IN AMUL.Statistics

what you buy in amul milk

N Valid 50

Missing 0




gold 17 34.0 34.0 74.0

taaza 6 12.0 12.0 86.0

slim & trim 7 14.0 14.0 100.0

Total 50 100.0 100.0

51

8. Consumer opinion on different factors of amul milk.

Statistics

oinion on price opinion on taste opinion on availability

N Valid 50 50 50

Missing 0 0 0

oinion on price



excellent 3 6.0 6.0 46.0

good 23 46.0 46.0 92.0

average 4 8.0 8.0 100.0

Total 50 100.0 100.0

opinion on availability



excellent 20 40.0 40.0 80.0

good 8 16.0 16.0 96.0

average 2 4.0 4.0 100.0

Total 50 100.0 100.0

52

opinion on taste



excellent 17 34.0 34.0 74.0

good 10 20.0 20.0 94.0

average 3 6.0 6.0 100.0

Total 50 100.0 100.0

53

54

CROSSTAB

1. Relationship between gender & the factor they like.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

GENDER * what you like 50 100.0% 0 .0% 50 100.0%

GENDER * what you like Crosstabulation

what you like

TotalQUALITY TASTE PRICE AVAILABILITY

GENDER MALE 18 0 0 0 18

FEMALE 2 15 10 5 32

Total 20 15 10 5 50

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 42.188a 3 .000

Likelihood Ratio 52.339 3 .000

Linear-by-Linear Association 27.562 1 .000

N of Valid Cases 50

a. 3 cells (37.5%) have expected count less than 5. The minimum expected count is 1.80.

55

INTERPRETATION

Hₒ: no relation exist between gender & factor of liking

H1 : relationship exist between gender & factor of liking.

Chi-square value is 42.188 with d.f =3

p-value = .00 which is less than α so reject Hₒ

There is a relationship between gender & factor of liking.

56

2. Relationship b/w satisfaction & brand preference.


Cases

Valid Missing Total


are you satisfied * brand prefrnc 50 100.0% 0 .0% 50 100.0%

are you satisfied * brand prefrnc Crosstabulation

Count

brand prefrnc

Totalamul mother dairy parag others

are you satisfied YES 22 10 3 0 35

NO 8 0 3 4 15

Total 30 10 6 4 50

Chi-Square Tests





N of Valid Cases 50


57

INTERPRETATION

Hₒ: no relation exist between satisfaction & brand preference.

H1 : relationship exist between satisfaction & brand preference.



There is a relationship between satisfaction & brand preference.

58

3. Relationship b/w satisfaction & variant of amul milk.


Cases

Valid Missing Total


are you satisfied * what you buy in

amul milk50 100.0% 0 .0% 50 100.0%

are you satisfied * what you buy in amul milk Crosstabulation

Count


Totalunapplicable gold taaza slim & trim

are you satisfied YES 13 12 5 5 35

NO 7 5 1 2 15

Total 20 17 6 7 50

Chi-Square Tests


Pearson Chi-Square .756a 3 .860

Likelihood Ratio .809 3 .847

Linear-by-Linear Association .346 1 .557

N of Valid Cases 50


59

INTERPRETATION

Hₒ: no relation exist between satisfaction & variant of amul.

H1 : relationship exist between satisfaction & variant of amul.

Chi-square value is .756 with d.f =3

p-value = .860 which is greater than α so accept Hₒ

There is no relationship between satisfaction & variant of amul.

60

4. Relationship b/w amul variant & opinion on taste.


Cases

Valid Missing Total


what you buy in amul milk * opinion

on taste50 100.0% 0 .0% 50 100.0%

what you buy in amul milk * opinion on taste Crosstabulation

Count

opinion on taste

Totalunapplicable excellent good average

what you buy in amul milk unapplicable 20 0 0 0 20

gold 0 12 3 2 17

taaza 0 0 6 0 6

slim & trim 0 5 1 1 7

Total 20 17 10 3 50

Chi-Square Tests





N of Valid Cases 50

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .36.

61

INTERPRETATION

Hₒ: no relation exist between opinion on taste & variant of amul.

H1 : relationship exist between opinion on taste & variant of amul.



There is a relationship between opinion on taste & variant of amul.

62

5. Relationship b/w brand preference & factor of liking.


Cases

Valid Missing Total


brand prefrnc * what you like 50 100.0% 0 .0% 50 100.0%

brand prefrnc * what you like Crosstabulation

Count

what you like

TotalQUALITY TASTE PRICE AVAILABILITY

brand prefrnc amul 10 15 5 0 30

mother dairy 10 0 0 0 10

parag 0 0 4 2 6

others 0 0 1 3 4

Total 20 15 10 5 50

Chi-Square Tests





N of Valid Cases 50

a. 13 cells (81.3%) have expected count less than 5. The minimum expected count is .40.

63

INTERPRETATION

Hₒ: no relation exist between brand preference & factor of liking.

H1 : relationship exist between brand preference & factor of liking



There is a relationship between brand preference & factor of liking.

64

T- TEST

One sample t-test of opinion on price.One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

oinion on price 50 1.0400 1.12413 .15898

One-Sample Test

Test Value = 3

t df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the Difference

Lower Upper

oinion on price -12.329 49 .000 -1.96000 -2.2795 -1.6405

Hₒ : µ = 3

H1: µ ≠ 3

T-cal= -12.329

Df= 49

p-value = .000 which is less than α so reject hypothesis.

65

ONE-WAY ANNOVA

Descriptives

AGE

N Mean Std. Deviation Std. Error

95% Confidence Interval for Mean

Minimum MaximumLower Bound Upper Bound

amul 30 32.4667 10.43447 1.90506 28.5704 36.3630 18.00 55.00

mother dairy 10 32.2000 9.00370 2.84722 25.7591 38.6409 18.00 44.00

parag 6 34.3333 12.43651 5.07718 21.2820 47.3846 22.00 52.00

others 4 42.0000 15.76917 7.88458 16.9077 67.0923 19.00 54.00

Total 50 33.4000 10.83080 1.53171 30.3219 36.4781 18.00 55.00

ANOVA

AGE

Sum of Squares df Mean Square F Sig.

Between Groups 341.600 3 113.867 .969 .416

Within Groups 5406.400 46 117.530

Total 5748.000 49

INTERPRETATION

Hₒ : No difference in the mean age among different brands of milk.

H1: difference in the mean age among different brands of milk.

P value = 0.416 which is greater than α so accept Hₒ.

Thus there is no difference in the mean age among different brands of milk.

66

FINDINGS

1. It is findings in the survey that females are the main decision maker for the milk. As per the data,

64% of female and 36% of male makes purchase decision.

2. The main purchasing factors for the Amul Milk are Quality and taste. The data reveals that 40%

influences on Quality and 30% influenced for the taste.

3. Out of 60 % amul consumers 46 % are buying since more than 2 years & 10% since one year.

4. 70% buy 1 litre per day 20% buy 2-4 litre & 10% buy more than 4 litre.

5. 60% buy amul milk, 20% buy mother dairy, 12% parag & 8% other.

6. Out of 60% amul consumers 34% buy amul gold, 12% amul taaza & 14% slim and trim.

7. Out of total respondent 70% are satisfied and 30 % are unsatisfied.

8. Out of 60% amul consumers 34% says taste is excellent, 10% says good & 6% average.

9. Out of 60% amul consumers 6% says price is excellent, 46% says good & 8% average.

10. Out of 60% amul consumers 40% says availability is excellent, 16% says good & 4% average.

SUGGESTIONS:

67

1. Milk purchasing 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 GCMMF 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. Since Amul is having loyal customers and therefore 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.

3. Milk is having high demand and it is considered as a very essential products. In present practice,

purchase of milk is through dealers. In this connection dealers approach towards the product.

4. Customer is influential, hence I suggest Amul to look after the dealers issue with due care.

5. 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.

6. 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.

CONCLUSION:-

68

From the survey conducted it is observed that Amul milk has a good market share.

From the study conducted the following conclusions can be drawn. In order the dreams comes

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

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 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 its

customers before making any move.

REFERENCES

69

1 BOOKS.

Marketing management by Philip Kotler

Published by Pearson Education Pvt. Ltd, Indian Branch, 12th edition ,

Hunger J.D &Wheelen T.L ,Essentional of strategic Management ,Prentice-

Hall,3rd edition,2004,pp-81-94

Wheelen T.L & Hunger J.D-Concept in strategic Management & Business

policy,Pearson education,9th edition ,2007,pp-135-145

2 INTERNET.

www.Amul.com

www.google.com

www.indiatimes.com

www. Wikipedia.com

70

http://www.indiatimes.com/

http://www.google.com/

http://www.Amul.com/

QUESTIONNAIRE

I, Adil Khan, student of PGDM of IMS Ghaziabad, is doing a Project on “CONSUMER BUYING PATTERN TOWARDS AMUL MILK” .So I request you to provide the required information for the completion of my Project Report. Any information received will be kept confidential.

71

Name : - ______________________________________________

Age : - _________________ Gender : - _________________

1) Do you consume pouch milk ?a. Yes b. No

2) Are you satisfied with the milk you are consuming? a) Yes b) No

3) What do you like? a) Quality b) Taste

c) Price d) Availability

4) Do you get milk pouch at…………..a) Doorstep b) From retailer

5) Total consumption of milk in a day?a) 1 liter b) 2-4 liter c) >4 liter d) other

6) Your monthly expenditure in milk (in Rs.)?a) 500-1000 b) 1000-1500

c) above 1500

7) In pouch milk which brand do you prefer?a) AMUL b) Mother dairy

c) parag d) other

8) How long you are consuming amul milk ? a) 6 mnths b) 1 yr

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c) 2-4 yr d) >4 yr

9) If you buy AMUL milk pouch which pack you purchase?a) AMUL Gold b) AMUL Taaza c) AMUL Slim & Trim

10) Consumer openion towards amul milk?

ATTRIBUTE EXCELLENT GOOD AVERAGE BAD V.BADPRICETASTEAVAILIBILITY

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