Index

Sr. no Content name Page no

Chapter no:1 1.1 Introduction 6&7

1.2 historical background 8

1.3 Brief history of amul 9

1.4 Introduction of Brand 10 to 16

1.5 Market share of ice-cream brand 17 to 19

1.6 The 4 P’s of Marketing 20 & 21

1.7 objective 22

Chapter no:2 Research and methodology

Sampling design and Sources of Data 23

Data analysis 24

Swot Analysis Of Amul Ice Cream 25 & 26

Existing stp and Swot of Amul Ice Cream 27 & 28

Findings and analyasis of the survey 29 to 47

Chapter no:3 Literature Review 48 to 52
Chapter no:4 Major Finding 53

Suggestions 54

Limitation 55

Recommendations 57

Chapter no:5 Findings and conclusion 58

Bibliography 59

5
 CHAPTER 1

1.1 INTRODUCTION
Abbreviation/ Full Form
AMUL
A- Ananad
M- Milk
U- Union
L- Limited
Hence,
(ANAND MILK UNION LIMITED)

a) Aim & Establishment of the company:

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
6
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, Â 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 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.

7
1.2. Background of the organization

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on
December 1, 1946 as a response to the exploitation of marginal milk producers by
traders or agents of the only existing dairy, the Polson (brand) dairy, in the small
town of Anand (in Kaira District of Gujarat).

Milk Producers had to travel long distances to deliver milk, which often went
sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily
determined. Moreover, the government at that time had given monopoly rights to
Polson to collect milk from Anand and supply it to Bombay city.

Angered by the unfair and manipulative trade practices, the farmers of Kaira
approached Sardar Vallabhbhai Patel under the leadership of local farmer
leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk
directly to the Bombay Milk Scheme instead of Polson (who did the same but gave
them low prices). He sent Morarji Desai to organise the farmers.

In 1946, the milk farmers of the area went on a strike which led to the setting up
of the cooperative to collect and process milk. Milk collection was also
decentralized, as most producers were marginal farmers who could deliver atmost 1–
2 litres of milk per day. Cooperatives were formed for each village too.

The Cooperative was further developed and managed by [Link] Kurien

along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from
buffalo milk for the first time anywhere in the world and a little later, along with
Kurien's help, making it on a commercial scale,[12] led to the first modern dairy of
the cooperative at Anand, which would successfully compete against established
players in the market.

zThe trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in
other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.

8
1.3. 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 Lt. (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 2.6
million producer members with 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.

9
1.4. Introduction to Brand

10
 Introduction on Ice Cream Industry

The ice cream market growth picked up after de-reservation of the sector in 1997. Of
the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued
at Rs 4.9bn, rest all is with the unorganized sector. Among the major players in this
industry Hindustan Lever has a market share of around 50%, represented mainly by
Kwality Walls brand. Amul with an
estimated market share of 41% is rapidly gaining market share and lastly Vadilal is the
player in the national market with 8-9% of the market share.

Production area:-

In rural areas, kulfi / ice creams made by small / cottage industry are popular. The
market for
organized sector is restricted to large metropolitan cities. In small towns and villages,
there are thousands of small players who produce ice- creams / kulfis in their home
backyard and cater to the local market.

Almost 40% of the ice creams sold in the country are consumed in the western region
with Mumbai being the main market, followed by 30% in the north and 20% inthe south.

Growth promotional activities:-

The Indian government adopted the policy of liberalization regarding the ice cream
industry
also and it is since then that this sector has shown an annual growth ranging from 15-
20% per annum for last 1- 2 years.

Types:-

Indian Ice Cream market can be segmented in three different ways, namely on the
basis of
flavours; on the basis of stock keeping units / packaging and on the basis of
consumer segments.

On the basis of flavours the market today has a number of flavours like vanilla,
strawberry, chocolate, mango, butterscotch and a number of fruit flavours, dry fruit
flavours traditional flavours like Kesar Pista, Kaju Draksh etc.

The market is totally dominated by Vanilla Strawberry and chocolate, which together
account for more than 70% of the market followed by butterscotch and other fruit
flavours.

11
Amul Ice-Creams Variants:-

1) Prolife Ice-cream – Vanilla with chocolate sauce, Shahi anjir

2) Sundae – Sundae, Sundae magic ,Double sundae

3) Sticks – Frostik, Dollies, Candies

4) Cones – Butter Scotch, Choco crunch

5) Novelties – Cassata, Hum Tum, Cake magic

6) Malai Kulfi – Masti kulfi, Shahi pista

7) Kids – Sundae fundoo, fundoo chocobar, Fundoo balls (vanilla & mango)

8) Utterly Delicious Take away (Available in 500ml, 1.25L, 1.5L & 2.2L)
Vanilla Royale, Two in One, Butter Scotch, Chocolate Passion, Fruit
n Nut
Fantasy,Alphonso Marvel.

9) Utterly Delicious Cups - Alphonso Mango, Vanilla, Strawberry, Chocolate,

Kaju Draksh, Butter Scotch, Kesar Pista Royale, Kis Mis Kaju

12
AMUL….
• Type – co-operative
• Founded in – 1946
• Headquarters – Anand ,India
• Industry – dairy
• Key people - Gujarat Cooperative Milk Marketing Federation Ltd.
(GCMMF)
• Products - milk and related product
• Revenue - $ 1 billion
• Employee – 2.41 million milk producer
• Slogan – The Taste of India.

COMPANY PROFILE

• Amul Ice Cream was launched on 10th March, 1996 in Gujarat.

• In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998
and Kolkata and Delhi in 2002. Nationally it was rolled out across the
country in 1999.
• In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic
Wellness Ice Cream, which was a first in India.

VISION AND MISSION OF AMUL

VISION

Amul ‟s vision is to provide more and more satisfaction to the farmers,

employees and distributers

MISSION

We at GCMMF (Gujarat Co-operative milk Marketing Federation)

endeavor to satisfy the tasteand nutritional requirements of the customers of
the world, through excellence in marketing byour committed team. Through
co-operative networking, we are committed to offering quality products that
provide best value for money.”

DIVERSE PRODUCT MIX

• Amul Butter,
• Milk Powder,
• Ghee,
• Amulspray,
• Cheese,
• Chocolates,

13
• Shrikhand,
• Ice cream,
• Nutramul,
• Milk and Amulya

14
 VARIOUS OTHER BRAND OF AMUL
AMUL SOFFERINGS
Breadspreads:
▪ Amul Butter
▪ Amul Lite Low Fat Breadspread

Cheese Range:
▪ Amul Pasteurized Processed Cheddar Cheese
▪ Amul Processed Cheese Spread
▪ Amul Mozzarella 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

UHT Milk Range:

▪ Amul Taaza 3% fat Milk
▪ Amul Gold 4.5% fat Milk
▪ Amul Slim-n-Trim 0% fat milk
▪ Amul Chocolate Milk
▪ Amul Fresh Cream
▪ Amul Snow-cap Softy Mix

Pure Ghee:
▪ Amul Pure Ghee
▪ Sagar Pure Ghee

Infant Milk Range:

▪ Amul Infant Milk Formula 1 (0-6 months)
▪ Amul Infant Milk Formula 2 ( 6 months above)
▪ Amulspray Infant Milk Food

15
Milk Powders:
▪ Amul Full Cream Milk Powder
▪ Amulya Dairy Whitener
▪ Sagar Skimmed Milk Powder
▪ Sagar Tea and Coffee Whitener

Fresh Milk:
▪ Amul Taaza Toned Milk 3% fat
▪ Amul Gold Full Cream Milk 6% fat
▪ Amul Shakti Standardised Milk 3% fat
▪ Amul Smart Double Toned Milk 1.5% fat

Curd Products:
▪ Amul Masti Dahi (fresh curd)
▪ Amul Butter Milk

Chocolate & Confectionery:

▪ Amul Milk Chocolate
▪ Amul Fruit & Nut Chocolate
▪ Amul Éclairs

Brown Beverage:
▪ Nutramul Malted Milk Food

16
1.5. Market Share of Ice-Cream Brands

17
COMPETITORS
Competitors are the once who produce and sell the same product as producer by
the unit competitors affect the business with several caused. The main rivals are
following.

1. Nestle
2. Kwality Walls
3. Vadilal
4. Mother Dairy

1. Nestle India is a subsidiary of Nestle.S.A. Of Switzerland. With seven factories

and a large number of co-packers, Nestle India is a vibrant Company that provides
consumer in India with products of global standards and is committed to long-term
sustainable growth and shareholder satisfaction

2. Kwality Walls Was previously known as Kwality owned by Pishorilal Lamba

Kwality Wall's is a major producer and distributor of ice cream and other
dessert products in India, Pakistan, Sri Lanka,Malaysia and Singapore. It is a
company of Hindustan Unilever, the arm of Unilever in India, and is an extension
of the Wall's ice cream brand of Great Britain.

Kwality, the original Indian company, was founded in 1956, and was the first in the
region to import machinery for the mass production and sale of ice cream on a
commercial scale. In 1995, in view of the growth potential of the frozen confections
market, Kwality entered into an agreement with Lever, and has since been known by
its current umbrella name.

18
3. Vadilal (Vadilal Industries Limited) From a small outlet in Ahmedabad over 80 years
back, Vadilal Industries Ltd has today emerged as India‟s second largest ice cream
player. The company is also one of the largest processed food players in India with
significant exports of frozen vegetables and ready to eat snacks, curries and breads.
Vadilal‟s aim is to become an Indian MNC in Ice creams and frozen foods and to
provide products and services at an affordable price without compromising on quality.

4. Mother Dairy, set up in 1974, is a wholly owned subsidiary of National

Dairy Development Board (NDDB) of India
Mother Dairy's range of products includes the brands Mother Dairy (milk, milk
products, curd, ice cream, butter, etc.), Dhara (range of edible oils) and Safal
(range of fresh fruits and vegetables, frozen vegetables, fruit juices).

19
1.6. THE 4 P’S OF MARKETING
Description:-
Utterly delicious ice cream made from fresh milk available in a wide range of
flavours and packs.
PRODUCT FEATURES:-
▪ Best Ingredients: Fresh milk, superior fruits & nuts.
▪ No Differentiation in Quality Standards of Consumer & Catering/ Institutional Packs
▪ Prolife & SUGAR FREE Probiotic:
▪ Made from Fresh Milk (Real Milk, Real Ice cream)
MIX…. PRODUCT FOR EVERY ONE:-
▪ Amul never forgot its “primary customer:- Amul collects 447,000 ltrs of milk from
2.12 million farmers (many illiterate)
▪ Product for youth: – Amul launched Chocolate milk under brand name of ‘Amul
Kool Koko’ targeting the youth
▪ Product for diabetic people: - India’s First Pro-Biotic Wellness Ice cream & Sugar
Free Delights For Diabetics [Link]
MIX… PRODUCT FOR EVERY ONE
▪ Product for the health conscious: - Amul Launched “low fat, low cholesterol bread
spreads”
▪ Product for the price sensitive India: - Low Priced Amul Ice Creams and affordable
‘sagar’ whitener
▪ Product for the urban class: - Amul launched emmental, gouda and pizza mozzarella
cheese [Link]
PRICE
▪ Penetration pricing
▪ value pricing
▪ Vanilla 100gm ice cream – Rs.20
▪ Competitor: Mother Diary, vadilal , cream bell.
▪ Low-cost price strategy core philosophy of providing ice cream at a basic, affordable
price to appeal the common masses
PLACE: A GLOBAL DISTRIBUTIOR
▪ GCMMF is India's largest exporter of Dairy Products
▪ APEDA Award
▪ Excellence in Dairy Product Exports for the last 9 years

PROMOTION
▪ ADVERTISING
▪ Fresh and innovative".
▪ The clean, emotion-based ads.
▪ Amul ads -creative, apt for the current situation.
▪ The Amul ads are one of the longest running ads based on same theme

20
▪ Vying for the Guinness records
▪ 1% of its turnover on promotions.

21
1.7. OBJECTIVE

▪ To have a clear understanding of the ice cream industry and Amul‟s

position in market

▪ To find out the problems and issues faced by the wholesalers

▪ To understand the distribution channel of the Amul Ice Cream

▪ To study consumer perception and competitive

▪ To increase sales of Amul ice-creams

▪ To brand existing outlets and convert new outlets for Amul

▪ To conduct an exhaustive market research on introduction of new “low

calories” flavours.

▪ To check awareness, price acceptance, innovation excitement amongst

consumers

▪ To check the awareness as well as level of satisfaction of retailers with

distributors
▪ &the company with regards introduction of new flavours

▪ To develop strategies and come out with suggestions for increasing the sales

▪ To capture the large share of the market.

▪ To provide max. customer satisfaction. Continue product modification and

improvement effort to increase customer beefit and reduce cost.

▪ To meet the highest international standards of quality.

▪ To expand production capacity.

22
 CHAPTER 2

RESEARCH METHODOLGY

RESEARCH DESIGN

The research methodology adopted is of descriptive type. The major purpose of this
research was the description of the affairs as it exists at present. Even though there was
no control over the variables. The cause were tried to be discovered. The facts or
information gathered were analysed to make a critical evaluation of the information.

SAMPLING DESIGN

Sample design is a definite plan of obtaining some items from the whole population.
The sample used in this project is Cluster. In the probability sampling methods, each
items in the sample is chosen one at a time from a complete list of universe
elements. In marketing research practice, it will sometimes be more expedient to select
items individually. Sampling methods in which universe elements are chosen in groups
rather than individually are called cluster-sampling methods. They are widely used
in the sampling of human populations. When no complete universe listing exists, a
type of sampling is called area sampling may be the only practically feasible form of
probability sampling. Sample design is a definite plan of obtaining some items from
the whole population. The sample design used in this cluster sampling.

CLUSTER SAMPLING

Here the whole area is divided into some geographical area and a definite number of
retailers were to be surveyed Cluster sampling are frequently utilized when no list of
sample population is available.

SOURCES DATA

One had to depend mainly on primary data as firsthand knowledge was required about
market position of various brands in the ice cream. So our actual study was conducted
in 3 stages:

First we discussed with our guiding officers on the various parameters of the project.
We also talked informally with some consumers and retailers to have some preliminary
idea.

23
Next format was prepared based on prior discussion. Separate questionnaire was
prepared for established and unexplored markets.

Lastly the final questionnaire was prepared with various modifications to the previous
questionnaire.

People were not willing to answer, when they were contacted between 1:00 pm to
5:00 pm, the time when most of the people take rest during the scorching heat.

SAMPLING TECHNIQUES

The stratified sampling method was followed. The population of all the towns
was not homogeneous. There exist people of different occupation. So stratified
sampling technique had to be applied in order to obtain a representative sample.

SAMPLE SIZE

The sample size varied from town to town for retailers. In Burari, Sant Nagar,
Naharpur, Krishna market the sample size taken was 30. The sample size taken was 30.
The sample size of retailers varied from 7 to 25 according to the size of the market.

DATA ANALYSIS

The data were analysed separately for each area. The findings resulting of the analysis
varied from area to area and the recommendations stated accordingly arrived at after
thorough and recommendation stated accordingly.

24
SWOT ANALYASISI OF AMUL ICE CREAM

Strengths:-

1) Biggest Sourcing base for milk and milk products in India.

2) 38% market share in the national ice cream market.
3) Penetration pricing strategy- Amul is the price warrior in the ice-cream
market and currently has a very wide range to offer for all the price points.
4) Reputation of high quality.
5) E-commerce, new products and process technology.

Weaknesses:-

1) Advertising is low profile, as the results of the survey show. Majority of the
respondents have hardly seen any ad of Amul ice cream. However Kwality
Walls on the other hand is into heavy advertising and consequently, is popular.
2) Shortage of stock during season.
3) Less attractive packaging.
4) Distribution problems.
5) Retailers now demand freezers without having to pay any deposit. This is
especially true of those retailers who already stock one or the other ice cream
brands.
6) Limited international presence as compared to leading global brands

Opportunities:-

1) Internet promotions are a good means of awareness which should be tapped.

2) It is a high growth segment as the population is every increasing with
never- ending demands.
3) Distribution coverage

25
Threats:-

1) Amul is currently facing stiff competition from Kwality Walls and may
face more threat from the local manufactures in the low priced segment
ice creams.
2) The customers have very well received the Kwality Walls product
differentiation strategy and Mother Dairy is also pushing up its advertising
pitch.
3) Also the low per capita income low per capita consumption of the people
is a threat to Amul.
4) Free entry to the markets.
5) Even Vadilal is coming up with their new strategy and promotions of
various variants of ice creams.
6) Health conscious people refraining from sweets

26
EXISTING STP AND SWOT OF AMUL ICE CREAM

STP

I) SEGMENTATION

1) Geographical – Urban and Rural

2) Demographic -

A) Age: 1 to 60
B) Family Life Cycle: Young, Single, Married, Older
C) Education: Grade School or less, high school, college graduates, etc.
D) Attitude towards the product: The attitude towards the product is positive as
people have trust in Amul‟s products.

3) Psycho graphic-

Working Class, College Goers, Accepted by all religion.

4) Behavioural-

A) Occasions: Amul targets special occasions such as New Year‟s Eve,

Diwali and Valentine‟s Day etc.
B) Benefits: They provide good quality product at economical prices.
C) Usage Rate: The usage rate is very high in behavioural segmentation of Amul Ice
cream.
D) Buyer Readiness: The consumers are ready to buy these products and so
the buyer readiness is high.
E) Loyalty Status: The loyalty for Amul Ice-cream is Shifting Loyal as there is
a major competitor in the market i.e. Nestle, Kwality walls

27
II) TARGET

The target of Amul Ice-cream is Lower, Middle, Upper Middle Income group
people. It targets both men and women and children

III) POSITIONING

Amul Ice Cream is positioned as an Ice Cream with various flavours for all occasions
and for all age groups.

28
 FINDINGS OF THE SURVEY

1. What ice cream brand comes in your mind when you heard the word ICE
CREAM?
a) Kwality walls
b) Amul
c) Mother dairy
d) Baskin robins
e) Naturals
f) Other

Brands

Natural
Amul
Baskinrobins
Kwality
Others

29
2. Do you like AMUL ice-
cream?

Yes No

Likes

Yes
No

30
3. Have you seen the ads of amul ice-creams?

Yes No

Seen the Ads

YES
NO

31
4. Do you think that price of amul ice-creams are high?

Yes No

Price high

YES
NO

32
5. Is the brand name
visible?

Yes No

Brand Visibility

YES
NO

33
6. Do you like the packaging of the brand?

Yes No

Like the packaging

YES
NO

34
7. Have you visited the amul parlour?

Yes No

Visit the parlour

YES
NO

35
8. Do you think amul should use the brand ambassador or it should stick with the amul
girl?

Yes No

Amul Girl Vs Brand Ambassador

Amul Girl
Brand Ambassador

36
9. Would you prefer amul ice-cream in a less-sugary base?

Yes No

Preference on Sugar Base

YES
NO

37
10. Do you still prefer amul ice-creams after the worm controversy?

Yes No

Preference after warm-Contravercy

YES
NO

38
11. Do you think that amul has succeeded in all marketing strategies it has undertaken
to get the control of the confectionery market?

Yes No

Success in Marketing Stratergy

YES
NO

39
12. From where do you come to know about the amul ice-creams?

a. News paper
b. Advertising
c. Radio
d. Hoardings

Media

News paper
Advertising
Radio
Hoardings

40
13. Would you prefer a „low calories‟ ice-creams even if it is priced high?

Yes No

Preferece over low Calories Ice-Cream if Price high

YES
NO

41
14. re you satisfied with the amul ice-cream?

Yes No

Satisfaction

YES
NO
No

42
15. Any other suggestion?

Suggestion

YES
NO

43
 ANALYSIS OF THE SURVEY

Through this survey, it is clear that:

1. People love Amul ice cream very much.

2. It is the most preferred brand of ice cream.

3. As most of the people are health conscious they would like to have a „less sugar
based‟ or „no added sugar‟ chocolate, especially if it comes from a reputed name
like „AMUL‟.

4. But Most people will not prefer a „Low Calories‟ chocolate even if it is highly
priced.

44
 REPOSITIONING OF THE BRAND

After the findings and analysis of the survey, it is clear that if a new product is
launched in the market, i.e. „LOW CALORIES‟ Ice cream, it will most probably be
a success.

Following is the new product, its features and a SWOT Analysis and STP
of the product:

Company: Amul
Brand: Ice Creams
Product Launched: Amul Ice Cream Healthy wealthy (Low

Calories) Tag Line: “Enjoy Moments of Happiness in a healthy

way” Characteristics:

1. For the health conscious people.

2. A „Low Calories‟.

3. Priced at Rs. 200.

SWOT ANALYSIS OF CADBURY DAIRY MILK HC

STRENGTHS:

1. Especially for the health conscious people.

2. Comes from a reputed company „Amul‟

3. Good Visibility, Good Product Quality and packing.

WEAKNESSES:

1. High priced.

OPPORTUNITIES:

1. Flavours will be launched in the near future.

45
THREATS:

1. Competitors- Nestle, Kwality walls

STP OF AMUL ICE CREAM HEALTH WEALTHY

SEGMENTATION:

1. GEOGRAPHIC SEGMENTATION: It will target the Urban Market.

2. DEMOGRAPHIC SEGMENTATION:
AGE: The age of the customer will be between 18 to 35 years.
INCOME: Middle income, Upper Middle Income group.
OCCUPATION: It can be consumed by people of all occupations.

3. PSYCHOGRAPHIC:

It can be used by working class as well as house wives who are health conscious,
also by those who have busy lifestyle. It is accepted by all religions.

4. BEHAVIOURAL SEGMENTATION:

BENEFITS: Low on calorie, good quality, easily available in supermarkets and

general stores also

OCCASIONS: There is no specific occasion for consuming this ice

creams.
Whenever the person wants he can consume the product and not worry about
the calories also.

USAGE RATE: The Usage Rate will be high as it will be consumed more
in urban areas.

LOYALTY STATUS: Loyalty status will be „Hard core Loyals‟ as there is

no much completion in the market.

BUYER READINESS STAGE: The buyer will be ready to buy this

product as it will be low on calorie even if it is highly priced. So buyer
readiness will be high.

TARGETING:
“Amul Ice Cream Healthy wealthy” will be targeted on both men and women who
46
are health conscious and also youth who are more health conscious.

POSTIONING:
It will be positioned as a „LOW CALORIES‟ ice cream. Its USP will be that it
will be rich in nutrients which are necessary for maintaining the health of the person.

47
 CHAPTER 3

LITERATURE REVIEW

Amul is one of the most successful Indian business firm. It provides various
milk production in which its main brand product Amul butter is also present.
Amul begins with just little group of milk producing villagers and now become
largest milk producing cooperative society in India. It had started with tow
village cooperative with 250 liters milk producing capacity and now it collects
daily a 6.5 million (average) of milk from a very large no of Indian villages. It
had become a hope for poor villagers who were exploiting by middlemen
before the origin of Amul or Gujarat milk marketing federation or Kaira
union. By originated Amul got its first chairman Shri Tribhuvandas Patel who
through his integrit y had favor of villagers and understands the needs of
cooperative society. Through their interpersonal faith and cooperation Amul
got this success history besides facing various diff iculties.

Gujarat Milk Marketing Federation os a cooperative society. It done a very good

job in milk marketing, making way for poor villagers earnings. It not onli
provides effective returns to the farmers but also take cares of customers
interests. It serves for customer on the basis of Indian ethics. They provide milk
of better nutrients, better quality products regularly and help in meeting
country’s need of daily milk requirements. Some of the articles on Amul are are
follows:-

“India report part 5: AMUL, India‟s number-one dairy brand”

Published: April 11, 2006 reference [Link]
[Link]

•On 14 December 1946 the predecessor of the Gujarat Milk Marketing

Federation, better known as the AMUL dairy cooperative, was founded in
Kaira (Gujarat state).
•The daily milk collection was 247
litres.
•Anno 2005 the 2.4 million members/ dairy farmers supplied AMUL
daily with 5.9 million litres of milk.

According to Mr Khanna, an AMUL director ‗with special assignments‘– as

his business card says– the milk supply to his co-operative is increasing
all the time. In the 2003/04 financial year, the m i l k c o l l e c t i o n w as u
p t o 5. 1 m i l l i o n l i t r e s p e r d a y , a r i s e o f s o m e 1 5 . 2 % B y c o n t r a s t , t
h e c o - operative‘s turnover rose by just 1.4% in the financial year 2004/05,
bringing it to INR 29.22 billion or EUR 584 million. This growth is lower
than expected and due, believes Khanna, to the reduced milk supply in
the latter months of 2004 and the poor increase in the price of basic
products in the early months of 2005.
48
From what Khanna is saying, it is evident that AMUL is a co-operative
operation without equal. The 2. 4 m i l l i o n m e m b e r s / d a i r y f a r m e r s i n t h
e s t a t e o f G u j a r a t a r e g r o u p e d i n t o 1 1 , 6 1 5 v i l l a g e c o - operatives
equipped with both testing equipment and a milk cooling tank. Some of the
unpasteurized milk is sold to the villagers. The rest is transported by
milk tankers twice a day to the 12 district Milk Unions in the state. These
Milk Unions process the milk by using the services of 24 processing
companies. The output of dairy products reflects the order submitted by the
state‘s marketing body, the Gujarat Co-operative Milk Marketing Federation.
These products are then sold throughout India under the AMUL and Sagar brand
names.

Indian consumers are increasing ly showing a preference for packaged

dairy products, due to food safety concerns. This explains in part why
the revenues of AMUL‘s consumer range of packaged dairy products
grew by
11.8% in the last financial year. The sales revenue of pasteurised
drinking milk in plastic pouches under the AMUL brand rose in 2004/05 by no
less than 36%. This rise was attributable chiefly to the successful introduction
of AMUL milk more than a year ago in the Indian c i t y o f K o l k a t a (f o r m e
rl y Calcutta), home to mi llions of pe ople. Thanks to thi s succes
s, t h e pasteurised milk pouches are the biggest contributor to AMUL‘s
total turnover. In the 2004/05financial year, this range brought in a turnover
of INR 6.26 billion or EUR 125 million.

The turnover of UHT milk grew 23% in t he last financial year compared
to preceding year. The turnover of ice cream rose by 10%, consolidating
AMUL‘s position as market leader. And despite cu t - t h r o a t c o m p e t i
t i o n , t h e s a l e s o f A M U L b r a n d b u t t e r r o s e b y 4 . 5 %. T h e s al e s
o f c h e e s e a n d cheese spreads rose by 21%. Cheese includes cheese for
pizzas. And, says Kurien, other packaged products such as flavoured
milk, fresh cream, paneer or cottage cheese also have the potential to
become major products bearing the AMUL brand within a couple of years.

As the country‘s largest co-operative dairy, AMUL has developed a two-

pronged strategy to address his issue and develop national presence. Firstly,
last year AMUL expanded its distribution network to include some of
India‘s smaller cities. In so doing, the co-operative has responded
quickly to rapidly changing market conditions.

Situated all over India, these smaller cities are now promising markets with great
purchasing power as the income of India’s middle classs are rapidlu rising and
the better-off rural families are migrating to these developing cities. In the last
financial year AMUL has introduced some 900 food wholesalers in these

49
smaller cities to its product rang. This initiative has already started yielding
results. AMUL products are increasingly available in smaller cities throughout
India. This initiative. Which we’ll be continuing forth time being, is generating
additional turnover, ‘says Kurian. Director Khanna describes the second prong
of Amul expansion plan. We expect that the milk production in our procurement
area, the state of Gujarat, will increase by 5% or more per year in the coming
period. That’s the first source of growth. As not only the dairy market but also
the market for farm milk has been liberalized, we are now collecting milk in sic
other place in India milk

50
What is new that we would like to talk to other co-operative dairy companies. Most
of them are also organised by state following the Anand model. Our standpoint is
clear. They know about milk processing and we know about marketing. They can
continue to produce dairy products that we will sell under our strong AMUL and
SAGAR brands. In this way, our partners will be able to piggy-back on the success
of AMUL‘s ever expanding distribution network. ‘He foresees a future in which
the players in India‘s co-operative dairy world increasingly cooperate to offer the
Indian consumer a wide range of dairy products. It is completely obvious to him
that AMUL will be a driving force in shaping this new future. ‗AMUL is India‘s
oldest dairy brand.

But it is more than a brand. It is also a question of belief. Belief in the co-
operative, in a dairy world owned by the dairy farmers. That is important
because they and the rest of the population in thevillages must be pulled up to a
higher standard of living ‘says AMUL director Khanna, speaking straight from
the heart.
Mithaee is an example of Indian sweets made with sweetened condensed
milk. As AMUL delivers this product in cans, it has a shelf life of nine
months and can be stored outside the cooling chain.

Article from India Dossier, ZuivelZicht - 14 december

2005

“INDIA‟S TOP BRANDS”“AMUL‟S ADVERTISING AND

MARKETING SPEND HAS NEVER EXCEEDED 1% OFITS
REVENUES”
B
y

Rajeshwari
Sharma
Sat, Aug 25 2007. 3:30 AM
IST

SUMMARY: ‗
Media‘, brand consultancy Asian Integrated Media Ltd and market research
company Synovate done this survey on the top brand in Asia, among this Amul
comes one of the most successful Indian business firm. It is because Amul‘s
strategy of using―umbrella branding‖ has paid off.
According to R.S. Sodhi, chief general manager, GCMMF. ―Our strength
comes from consistency, trust and relevance of our products.‖ Sodhi
claimed that Amul‘s advertising and marketing spend has never exceeded 1%
of its revenues. Most other food companies spend 6-7% of revenues on
advertising and marketing,he added.
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 ―They (GCMMF) are not big spenders compared to Britannia or Nestle.
Despite a limited budget, Amul‘s creatives in the form of billboards or the
Taste of India campaign have always managed to evoke a larger-than-life
brand feel, consistency and spirit of Indian culture in a contemporary way,‖
said Shashi Sinha,executive director, FCB Ulka, GCMMF‘s advertising agency.

„We may end up touching a turnover of Rs20,000 cr by 2015‟

Sunil Raghu

Bharat [Link] has been the managing director of Gujarat Cooperative Milk
Marketing Federation Ltd (GCMMF), the owner of brand Amul, for more than
12 years. In an interview with Mint, BM, as Vyas is referred to by many, discusses
the business strategy of India‘s biggest cooperative firm, which finds itself under
increasing pressure from nimbler private sector rivals.

52
 CHAPTER 4

MAJOR FINDINGS

1) Majority of the consumers assign easy availability and quality as their

main preference in buying milk of a particular brand.
2) Per capital consumption is around 250 ml.

3) In established market, people buy amul milk mainly because of its

brand popularity, good quality and easy availability.
4) Private brand have been able to enter the market only on the basis of
their low- pricing strategy.
5) Brand awareness for amul milk is very high.

6) The main preference for selling amul milk by the retailers is the
customer demand which also helps in sales of other products like bread,
biscuit etc.
7) Town or villages where amul milk is less available at present, most
people prefer centre and nearby local shops.

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SUGGESTIONS

1) People use milk for various purposes like making Curd, Lassi, Ice-
cream besides Tea and for drinking purpose. So a positive perception can
be created to make them think that amul milk is best suited for those
purposes.

2) Projector films may be shown to the villagers emphasizing on the quality

and the hygenity of amul milk. This would help in convincing the
people & creating a favorable attitude.

3) Arrangement should be made to ensure regular supply of amul milk

to the consumers in new places once the milk in introduced. If possible
transportation facility should also be arranged to make it convenient
for the retailers.

4) Suggestions & complaints made by retailers & consumers should be

given due attention to provide maximum satisfaction. This could create
and impression that amul cares for them.

54
LIMITATION

1) The time for the project was short & it had to be completed on time

2) Language barrier was also a problem in one or two areas.

3) Retailers were not ready to furnish the detailed information. Some

retailers in the villages were hesitant in giving response which could
have lead to some sort of biasedness.

4) The study is limited to North East Delhi.

5) Due to unavailability of proper conveyance facility, it was really

hard to cover the market under a scorching sun.
6) In many residential blocks, shops located in corners of by lanes
were difficult to locate.
7) The time duration of two months was too short for the completion of
all activities.

8) Being a perishable product no sample could be shown, as

demanded by many prospecting clients.

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OVERALL EXPERIENCE

My overall experience was very well. I was responsible for visiting areas,
prescribed by my coordinator and asking various questions from retailers of
that particular area. A particular format was given by him. I worked for
marketing department of the company.

I could have done my work much better by getting sufficient knowledge about
the supply system of the company. One of the major problem I faced was lack
of information. We were informed about several things but most of the people
asked me about many additional things about which I had no idea, somehow I
managed but it could be better if I would have given enough information.

I have gained more experience in the way that I learnt many things. I learnt
how to communicate well with people. Even in the village areas too, I used to
speak formal language. Apart from this it also helped me in gaining confidence.
Interacting with a lot of people each and every day and asking for their details
too, helped me overcome my shyness and fear of public speaking up to a large
extent.

My this experience will help me in future in a good way as now I know

how an organization works, what are the tasks they perform and how do they do
it. It will help me in quick learning of any task assigned and also I will be ready
for any kind of task and whatever they will teach me. I will be able to learn and
understand quickly.

56
RECOMMENDATIONS

In order to maintain and increase the sales in the city of Delhi, the following
recommendations regarding Amul ice cream; particularly regarding advertisement,
distribution, promotional policies, etc, are hereby suggested:
➢ First and foremost Amul should take proper action in order to improve
service, because although being on a top slot in Butter and milk supplies it
does not get the sales in ice cream, which it should get.
➢ Amul should give local advertisements apart from the advertisements
given at the national level. Local advertisement must mention the exclusive
Amul shops of the city.
➢ Company should introduce sales promotion schemes like free extra weight,
free gifts etc.
➢ Company should provide uniforms to vendors as other company do.

➢ Company should introduce some new flavours in its range of ice-creams.

➢ The company needs to improve their packaging material quality. Packaging

is one of the main areas of disagreement with the ice cream because the
packaging of the ice cream creates problem with caring and forwarding.
Company should have to open more APO‟S & A class outlets because total
number of outels in delhi are very less.

57
 CHAPTER 5

CONCLUSION

As we know that Amul is very big organization and market leader in dairy
products. It has maximum market share in Milk, Butter and Cheese, which are its
main/core products. As we know Amul is a co-operative organization but ice cream
industry is a profitable industry we can‟t ignore it.

It is very difficult proposition to draw conclusion to the Amul Ice creams business
and the impact it has on our daily life. Amul is a company that strongly pushes
itself as an Indian company

With the help of research, company can find out its weak points in Ice cream product
and can increase its market share through rectifying mistakes. People have believed
in Amul‟s product and they will accept its ice cream also if effective actions were
taken. The survey resulted into following conclusions:

➢ Amul must come up with new promotional activities such that people
become aware about Amul Ice cream
➢ Quality is the dominating aspect which influences consumer to purchase
Amul product, but prompt availability of other ice cream brands and
aggressive promotional activities by others influences the consumer towards
them and also leads to increase sales.

With the help of this project, it can be concluded that the marketing strategies
followed by Amul are very successful.

58
BIBLIOGRAPHY

Books:

1. Philip Kotler,” Principles of Marketing, Tenth Edition”, Printed in the United

States of America, Year 1996.

2. Crainer, Stuart,” The Real Power Of Brands”, PITMAN Publishing, Printed

in Great Britain, Year 1995.

3. Philip Kotler,” Marketing Management, Ninth Edition”, Prentice Hall, Printed

in India, Year 1999.

4. Fomell, Claes (1992), “A National Customer Satisfaction Barometer: The

Swedish Experience”, Journal of Marketing.

Personnel:

[Link]

[Link] [Link]

[Link]

[Link]

[Link]

[Link]

[Link]

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