CHAPTER NO.
1 INTRODUCTION TO THE STUDY
1.1 INTRODUCTION :
Brand loyalty is defined as positive feelings towards a brand and dedication to
purchase the same product or service repeatedly now and in the future from the same
brand, regardless of a competitor’s actions or changes in the environment. It can also
be demonstrated with other behaviors such as positive word of mouth advocacy. Brand
loyalty is where an individual buys products from the same manufacturer repeatedly
rather than from other suppliers. Businesses whose value rests in a large part on their
brand loyalty are said to use the loyalty business model.
Brand loyalty is a good measure for managers to use when trying to predict brand
performance outcomes. It also highlights the importance of marketing communication
when trying to promote a certain product that's not doing as well as other succeeding
products. Marketers are able to look at the patterns of brand loyalty and pick out
characteristics that make that product thrive.
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or
continue to use the brand. It can be demonstrated by repeated buying of a product,
service, or other positive behaviors such as word of mouth advocacy. This concept of a
brand displays imagery and symbolism for a product or range of products. Brands can
have the power to engage consumers and make them feel emotionally attached
1.2 MANAGEMENT PROBLEM
-The management wants to know about brand loyalty of amul milk.
-The secret for success is to focus on all of the factors that affect profit and strive
towards the balanced approach, including quality of life style.
1.3 STATEMENT OF RESEARCH PROBLEM
A study on brand loyalty of amul milk in PCMC region
Brand loyalty is a pattern of consumer behavior where consumers become committed
to brands and make repeat purchases from the same brands over time.
1.4 OBJECTIVE OF THE STUDY
Objective: A Study on brand loyalty of Amul milk in PCMC Region
Sub-Objectives:
1) To check the Association with Brand
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2) To check the consistency usage of Amul Milk
3) To study the level of Recommendation about Brand
1.5 SCOPE OF THE STUDY
1.5.1 Geographical Scope
The geographical scope is limited to sonai milk in indapur.
1.5.2 Conceptual Scope
Conceptual scope is limited to concept of customer satisfaction.
1.5.3 Analytical Scope
Use of simple statistical tools like percentage, mean and standard deviation.
• The project undertaken was related to understanding the marketing
strategy of amul.
• The project was undertaken for the PCMC region covering the area of
pune.
1.6 IMPORTANCE OF THE STUDY
The study is carried out understand the brand loyalty amul milk users in PCMC region
the study makes an attempt to know the awareness level of customers about the service.
So the study can be useful to know more about the amul milk products and various
services provide by it. The The information gathered through the study could be useful
to the company the formulated future practices and strategies to attract customers.
1.7 RESEARCH METHODOLOGY:
It is the specification of the methods and procedures used for acquiring the information
needed. In short, it is the plan for conducting the research study. It should be noted that
a Research Methodology is unique to a Research Design.
1.7.1 Research Design:
The research methodology used is of Descriptive type.
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Descriptive Research involves the description of the characteristics of the variable,
description of the extent of association between variables and it allows the researcher
to infer about the variables.
1.7.2 DATA REQUIRED
The data required for the study is of two types.
1. Primary Data
Primary data required is information regarding customers’ details and customers’
opinion towards product, price, quality and availability, marketing mix.
2. Secondary Data
Secondary Data is collected from organization records, reports.
1.7.3 DATA SOURCES
Primary sources
The primary data was collected from the amul milk users through structured
questionnaires and discussion with the amul milk users.
Secondary sources
The secondary data is being collected through text book, journals, previous reports
and websites.
1.7.4 INSTRUMENT
A structured questionnaire is used, and the type of questionnaire is the target
questions.
1.7.5 SAMPLING METHOD
Sample Size: For the questionnaire filling I took a sample of 100 customers. Due to
time constraint and availability of customers this were the number of sample size I
surveyed.
Sampling technique:
- The sampling technique used stratified random sampling.
- The sampling technique was used because of the availability of customer and for the
quickness with which data can be gathered.
- Consumer survey is done at the convenient location such as outside Retail Shop.
- Hence sample technique used for consumer survey is convenience sampling.
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1.7.6 TOOLS UTILIZED
• Percentage Analysis
• Graph Chart.
1.7.7 DATA ANALYSIS PLAN:
For analysing the data, tools were used. Simple average was used for calculations. Pie
chart and bar diagrams have been used to represent the tables in graphical form.
Limitations:
1. Lack of proper experience.
2. The time factor acted as a big constraint.
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CHAPTER NO. 2
CONCEPTUAL BACKGROUND
2.1 INTRODUCTION:
Brand loyalty is the ultimate goal a company sets for a branded product. The definition
and importance of branded were discussed, as well as necessary steps needed to brand
a product. This focuses on brand loyalty, its importance to a company, and steps
necessary to convert to and maintain brand loyalty.
2.2 BRAND LOYALTY
What is Brand Loyalty?
Brand loyalty is a consumer’s preference to buy a particular brand in a product category.
It occurs because consumers perceive that the brand offers the right product features,
images, or level of quality at the right price. This perception becomes the foundation
for a new buying habit. Basically, consumers initially will make a trial purchase of the
brand and, after satisfaction, tend to form habits and continue purchasing the same
brand because the product is safe and familiar.
Brand loyalists have the following mind set:
I am committed to this brand. I am willing to pay a higher price for this brand over
other brands. I will recommend this brand to others
Title: - Consumer brand loyalty- “A study with special reference to ‘Lakshya milk’
Author: - Sunil Kumar
“Loyalty is a deep devotion which is created for the purpose of purchase of the preferred
good or service in the future and which may not change despite changing effect and
marketing effort (Oliver, 1999)”. In this regard the characteristics of loyal customers
that they require lower cost, are less sensitive toward price, pass more time with the
company and transfer positive views on favorite brands (Reichheld and Teal, 1996), the
cost to keep them at hand is much lower than the cost of gaining new customer (Szwarc,
2005), they tend to purchase more and pay more (Wallace et al.,
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2004; Wright and Sparks, 1999; Zeithaml, (1996) which are significant for enterprises
provides that the subject of loyalty preserves actuality and increases its significance
gradually everyday because loyalty is a significant element in developing a sustainable
competition advantage and since this advantage may be created through marketing
efforts (Dick and Basu, 1994), many producers try to achieve loyalty (Jansson-Boyd,
2010).
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CHAPTER NO.3
ORGANIZATIONAL PROFILE
3.1 INTRODUCTION TO THE DAIRY INDUSTRY IN INDIA
Dairy activities have traditionally been integral to India’s rural economy. India is the
world’s largest producer of dairy products and also their largest consumer. Almost its
entire produce is consumed in the domestic market and the country is neither an
importer nor an exporter, except in a marginal sense.
Despite being the world’s largest producer, the dairy sector is by and large in the
primitive stage of development and modernization. Though India may boast of a 200
million cattle population, the average output of an Indian cow is only one seventh of its
American counterpart. Moreover, the sector is plagued with various other impediments
like shortage of fodder, its poor quality, dismal transportation facilities and a poorly
developed cold chain infrastructure. As a result, the supply side lacks in elasticity that
is expected of it.
On the demand side, the situation is buoyant. With the sustained growth of the Indian
economy and a consequent rise in the purchasing power during the last two decades,
more and more people today are able to afford milk and various other dairy products.
This trend is expected to continue with the sector experiencing a robust growth in
demand in the short and medium run. If the impediments in the way of growth and
development are left unaddressed, India is likely to face a serious supply – demand
mismatch and it may gradually turn into a substantial importer of milk and milk
products.
Segments covered: Milk, UHT Milk, Flavored Milk, Curd, Flavored & Frozen
Yoghurts, Probiotic Products, Lassi, Buttermilk, Butter, Ghee, Paneer, Cheese, Khoya,
Skimmed Milk Powder, Dairy Whiteners, Ice Cream and Dairy Sweets
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3.2 COMPANY PROFILE:
About GCMMF
The GCMMF is the largest food products marketing organization of India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing
organization for products under the brand name of Amul and Sagar. Over the last five
and a half decades, dairy cooperatives in Gujarat have created an economic network
that links more than 3.1 million village milk products with millions of consumers in
India. The daily milk procurement of GCMMF is around 13 million litres per day. It
collects milk from about 16914 village milk cooperative societies, 17 member unions
and 24 districts covering about 3.18 million milk producer members. More than 70%
of the members are small or marginal farmers and landless labourers including a
sizeable population of tribal folk and people belonging to the scheduled castes.
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5000 wholesale dealers
and more than 700000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available
today in over 40 countries of the world. AMUL is exporting a wide variety of products
which include whole and skimmed milk powder, cottage cheese (Paneer), UHT milk,
clarified butter (Ghee) and indigenous sweets.
GCMMF - An Overview
Year of Establishment 1973
17 District Cooperative Milk Producers'
Members
Unions
No. of Producer Members 3.23 Million
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No. of Village Societies 17,025
Total Milk Handling Capacity 23.2 Million Litters Per Day
Per Day
Milk Collection ( Total 2015-16) 4.79 Billion Litters
Milk Collection (Daily Average 13.18 Million Litters
2015-16)
Cattle feed Manufacturing 6190 Mts. Per Day
capacity
Rs.181434 Crores (US $ 3.0 Billion)
Sales Turnover (2015-16)
Table 1.1 – GCMMF Overview
About Amul
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
The word amul is derived from the Sanskrit word amulya, meaning rare, valuable
.The co-operative was initially referred to as Anand Milk Federation Union Limited
hence the name AMUL.
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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 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.
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 [Link] 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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Figure 1.1 – Amul Model
(Source - [Link])
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3.3 FUTURE PLAN:
VISION:
“Liberate our farmers from economic oppression and lead them to prosperity”
MISSION 2020:-
“Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020”
-To satisfy the taste and nutritional requirements of the consumers and increasing
numbers of these consumers today are to be found only at the large format stores.
Hence, in order to reach these consumers, we need to form equitable alliances with
organized retail chains wherever possible.
Amul Preferred Outlets
Amul has justified its undisputed leadership in foods business by creating 6000 Amul
preferred outlets in a record time which exclusively sell wide range of Amul products.
This has been possible due to strong brand equity and immense consumer support.
Amul are now having ambitious plans of creating 10,000 Amul parlours by 2018.
Amul Parlours are successfully operating in more than 1400 towns at high streets,
residential areas, Railway Stations, Bus Stations, Educational Institutions and a whole
lot of Centres of Excellence. Here is a list of the few of the Amul parlours operating
across the various parts the country.
Figure1.2– Amul’s Outlet(Source - [Link])
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3.4 Amul’s Achievements
Amul: Asia’s largest dairy co-operative was created way back in 1946 to make the
milk producer self-reliant and conduct milk business with pride.
Amul has always been the trend setter in bringing and adapting the most modern
technology to door step to rural farmers.
Amul created history in following areas:
a) First self motivated and autonomous farmers organization comprising of more than
5000000 marginal milk producers of Kaira District.
b) Created dairy co-operative at village level functioning with milk collection centre
owned by them.
c) Computerized milk collection system with electronic scale and computerized
accounting system
d) The First and only organization in word to get ISO 9000 standard for its farmers co-
operative.
e) first to produce milk from powder from surplus a amul milk is the live example of
how co-operation amongst the poor marginal farmers can provide means for the socio-
economic development of the under privileged marginal farmers
Figure 1.3 – Amul Sales Turn Over
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CHAPTER NO.4
DATA ANALYSIS AND INTERPRETATION
4.1 INTRODUCTION:
Keeping in view of the objectives, the data so collected were analysed with the help of
appropriate techniques. The results of the study are presented in this chapter.
4.2 DATA ANALYSIS & INTERPRETATION
Q.1 Which Brand do you used?
Milk Brand Customers
Chitale 20
Amul 60
Katraj 10
Others 10
Table 4.1: The table shows the number of Amul customers.
Customers
Chitale Amul Katraj Other
10 % 20%
10%
60%
From the above Pie Chart:
Brand loyalty is related to brand. So for checking brand
loyalty I survey only the Amul milk buyers or consumers.
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Q.2 What is the first thing that comes to your mind when you heard about Amul?
Responses
Delicious product 5
Amul girl 23
Taste of India 30
Taste and Delicacy 10
Trusted brand 32
Table 4.2: Represent the mind set about amul.
From the above Pie Chart:
From response customers give their opinion on Trust as well
as tag line Test of India because they trust on brand and company also maintain position
it self as a trusted brand , therefore the perception of customer created like that.
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Q.3 For how long have you been using the Amul milk?
Duration Responses
Less than a year 18
One year 23
Two year 26
Above two year 33
Table 4.3: Represent the period of using amul milk.
Period of Using Amul Milk
Less than a year
One year
Two year 18%
Above two year 33%
23%
26%
From the above pie chart:
From the above responses we can interpret that customers
are loyal to amul milk as it is clear that customer using milk over two year.
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Q.4 What do you think is the main reason for your use of Amul milk?
Parameter Responses
Quality 80
Availability 19
Price 01
Other 00
Table 4.4: The above table represent the reasons to use amul milk.
From the above chart:
The highest rating is given for quality by the respondents. Because
the main reasons is quality of product, from long duration they experience continuous
quality of milk.
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Q.5 If Amul milk is not available?
Decision Responses
Buy other milk 40
Go to other shop 60
Table 4.5: Represent the buying behavior.
Buying Behaviour
Buy other milk Go to other shop
40%
60%
From the above bar chart:
It is prove that customers are loyal upon amul. If they didn’t
found product in shop, they meagerly not buying milk, because they didn’t compromise
with the quality of product, brand etc.
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Q.6 Would you like to use amul products other than milk?
Responses
Yes 83
No 17
Table 4.6: Represent the use of amul products other than milk.
Use of Amul other products
Yes No
17%
83%
From the above chart:
From responses the customers would like to use the Amul other
product because, they trust on brand and other things also effect of their decision like
quality, availability, price and also durability of product.
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Q.7 Rate how well the milk performs in each area below:
Rating Scale:
1 – Extremely Poor 2 –Poor 3 – Average 4 –Good 5 –Extremely Good
Attributes 1 2 3 4 5 Average
Quality and Packaging: 0 0 16 63 21 4.05
Availability 0 0 19 60 21 4.02
Promotion 0 0 23 61 16 3.93
Price 0 0 21 61 18 3.97
Table 4.7: Represents how the milk performs on different attribute.
The above table represents the ratings given by all the respondents on various
attributes. For eg. For quality, 63 respondents have given 4 rating and respectively it is
followed for all the attributes. The calculations are done by multiplying the number of
respondents with the given rating scale, for eg. Quality: 63*4=252. Similarly each
rating of every attribute is calculated and added, and then the average is taken by
dividing with the number of respondents.
From the above chart:
The highest rating is given for quality by the respondents. The
milk is unadulterated and 100% pure, and that’s why customers are liking the quality
of the milk. The cold supply chain preserves the freshness and quality of milk. The least
rating was for price and is rated average.
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Q.8 Have you recommended to other?
No. of customers recommending
Yes 79
No 21
Table 4.8: Represents the number of customer recommend the milk to others.
No. of customers recommending
Yes No
21%
79%
From the above Pie Chart:
The response got over here customer are recommend to other
and lees number of customers are not interested to recommended. The customer are
happy with the milk and would like to recommend the milk to others. This is a positive
feedback as the loyal customers will increase the awareness through reference and
positive word of mouth.
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Q.9 If yes/no, why?
No. of customers recommending
Good Quality 49
Trusted brand 23
Suggested by 3
Doctor
Availability 12
Not Interested 14
Table 4.9: Table shows the number of customers recommend.
No. of customers recommending
Good Quality Trusted brand Suggested by Doctor
Availability Not Interested
14%
12% 48%
3%
23%
From the above Pie Chart:
Major of respondent want to recommend Amul milk the
reason behind it is good quality which provide continuously and if also kept maintain.
so they trust of brand and recommend the product.
Q.10 Feedback about the milk and specify any suggestions
➢ Customers are not compromise with the quality of milk with other brand.
➢ Customers don’t want to take to risk while they satisfied in existing brand. So they
don’t want to switched and therefore want to be loyal with Amul.
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CHAPTER NO. 5
FINDINGS, SUGGESTIONS & CONCLUSION
5.1 FINDINGS:
1) Customers are very well known about the Amul because of Brand value, Tag line
of Amul, quality of product.
2) Customers are not compromise with the quality of milk with other brand.
3) Customers don‟t want to take to risk while they satisfied in existing brand. So they
don’t want to switched and therefore want to be loyal with Amul.
4) The quality of milk offered is unadulterated and high in nutritional value.
5) Marketing and sales department are doing well by keeping the display proper.
6) In case of consumers most of them where aware about the product and almost all of
them came to know about the product through TV advertisements.
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5.2 SUGGESTIONS:
1) For business development or increase sale of milk company can arrange Campaign,
Kiosk activity.
2) Service has to be improved extensively. Due to poor service many retailers have
stopped or keeping low stocks of the products.
3) Company should select its distributors properly as their behaviour portrays either a
negative image or positive image of the company in the market.
4) Brand-engagement campaigns can help you:
a) Increase interactions with your brand.
b) Build more positive brand associations.
c) Increase brand loyalty by connecting with your target audience.
d) Motivate customers to engage with your brand and its associated products.
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5.3 CONCLUSION:
Through the project i conclude company succeed to kept its brand and maintain it, hence
customer satisfaction level is good enough upon amul. From the survey conducted it is
observed that Amul milk has a good market. The factors considered by the Consumer
before purchasing milk are freshness, taste, thickness and availability.
Finally I conclude that, majority of the consumer are satisfied with the
Amul milk and Milk products because of its good quality, reputation, easy availabilities.
If slight modification in the marketing programmed such as dealers and outlets,
promotion programmers, product lines etc.
Amul has also to take care of its competitors into consideration and more
importantly its customers before making any move.
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ANNEXURE
QUESTIONNAIRE
Name:
Address:
Contact:
1] Which Brand do you used?
a. Chitale b. Amul Milk
c. Katraj d. Any other
2] What is the first thing that comes to your mind when you heard about amul ?
a. Delicious product b. Amul girl
c. Taste of India d. Taste and Delicacy e. Trusted brand
3] For how long have you been using the Amul milk?
a. Less than a year b. One year
c. Two year d. Above two year
4] What do you think is the main reason for your use of Amul milk?
a. Quality b. Availability
c. Price d. Other
5] If amul milk is not available?
a. Buy other milk b. Go to other shop
6] Would you like to use amul product other than milk?
a. yes b. no
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7] Rate how well the milk performs in each area below:
Rating Scale:
1 – Extremely Poor 2 –Poor 3 – Average 4 –Good 5 –Extremely Good
Attributes 1 2 3 4 5
Quality and Packaging:
Availability
Promotion
Price
8] Have you recommended to other?
a. Yes b. No
9] If yes/no, why?
10] Feedback about the milk and specify any suggestions:
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BIBLIOGRAPHY
1. Ramaswami 10th Edition “ Marketing Management” publish by oxford
2. G.C berry fifth edition “Research Methodology” publish by McGraw hill Education.
3. Marketing Management (Philip Kotler, kelvin)
WEBSITE:
[Link]
[Link]
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