Amul Project Report(my).docx

A PROJECT REPORT ON “A STUDY ON MARKETING STRATEGIES AND SALES DEVELOPMENT METHIODS IN AMUL LTD.” With reference to

Project Report submitted in partial fulfilment of the requirement for the award of the degree POST GRADUATE DIPLOMA MANAGEMENT Submitted by A SHAILESH 1701168 Under the guidance of Dr. CH LAKSHMI KUMARI Assistant Professor, IPE

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1. Marketing: Marketing is the activity, set of institutions, processes for creating, communicating, delivering exchanging offerings that have value for customers, clients, partners and society at large.

From a societal point of view, marketing is the link between a society’s material requirements and its economic pattern of response. Marketing satisfies these needs and wants through exchange process and building long term relationships. Marketing can be looked at as an organizational function and a set of process for creating delivering and communicating value to customers, and managing customer relationship in ways that also benefit the organization and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behaviour and providing superior customer value.

There are five competing concepts under which organizations can choose to operate their business: the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing. The set of engagements necessary for successful marketing management includes capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating value, creating long-term growth, and developing marketing strategies and plans. The scope of marketing can be understood in terms of functions that an entrepreneur has to perform. This includes the following a. Functions of exchange – which include buying, selling, assembling b. Functions of physical supply – includes transportation, storage, where house c. Functions of facilitation – product 3

planning and development, marketing research, standardization, grading, packaging, branding, sales promotion, financing.

2. Market segmentation: Market consists of large number of individual customers to differ in terms of their needs, preferences and buying capacity. Therefore it becomes necessary to divide the total market into different segments or homogeneous customer groups. Such division is called market segmentation. They may have uniformity in employment patterns, educational qualifications, economic status, preferences, etc.

Market segmentation enables the entrepreneur to match his marketing efforts to the requirements of the target market. Instead of wasting his efforts in trying to sell to all types of customers, a small scale unit can focus its efforts on the segment most appropriate to its market.

Market can be segmented on the basis of the following variables1. Geographic segmentation - the characteristics of customers often differs state, region, cities or neighbourhoods the entrepreneur can decide to operate to and of a few or all the geographic areas, but pay attention to differences 2. Demographic segmentation – variables such as age, sex, family size, income, occupation, education, race, religion and nationality widely used for market segmentation. 3. Psychological variables – personality, lifestyle, social class, etc. can also be used for market segmentation. For ex products like pens, cosmetics, watches briefcases are designed differently for common man and status seekers. 4. Behavioural segmentation: buyers are divided into several groups of buyers on the basis of their knowledge, attitude and use of response to a product.

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Marketing Mix: A brief description of four elements of marketing mix is as follows:1. Product: The first element of marketing mix is product. A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need. Products include physical objects, services, events, persons, places, ideas or mixes of these. This element involves decision concerning product line, quality, design, brand name, label, after sale service product range etc., an appropriate combination of features and benefits by the small firm will provide the product with USP (unique selling proposition). This will enhance the customer loyalty towards the product. Products and services are broadly divided into consumer products and industrial products. Consumer products are bought for final consumption whereas industrial products are bought by individuals and organizations for further processing or for use in conducting business.

2. Price. The second element is the price, which affects the volume of sales. It is one of the most difficult tasks of the marketing manager to fix the right price. The variables that significantly influence the price of a product are: demand of the product, cost, competition and government regulation. It includes determination of unit price of the product., pricing policies and strategies, discounts and level of margins, credit policy, terms of delivery, payment etc. pricing decisions have direct influence on the sales volume and profits of the firm. Price, therefore, is an important element of the marketing mix. Right price can be determined through pricing research and by adopting test marketing techniques. Small firms should think of pricing as a method whereby prices are set with regard to costs, profit targets, competition and the perceived value of products. Because of their simplicity, cost-plus-pricing are attractive to small businesses, though this is not the only mode of pricing utilized by small firms. For example- the profit margin in the cost- plus approach may well be fixed after examine both the nature of the market and the competitor activity within it. It is a mistake for all small firms to rely wholly on cost-plus, but very often small firms do that to the detriment of profits and market share.

3. Promotion. Promotion is the important part of marketing mix of a business enterprise. The purpose of promotion is to inform, persuade and influence the prospective customers. Advertising, salesmanship, sales promotion and publicity are often used to inform the people about the availability of products and create among them the desire to buy the products. No business enterprise can market its products unless it 5

takes promotional activities effectively. The prospective customers have to be informed about the product, its features, utility and availability. The need for promotional activities has increased because of stiff competition, widening of market, rapid changes in the technology and tastes of customers. 4. Place. This is another key marketing mix tool, which stands for the various activities the company undertakes to make the product available to target customers. Place mix or delivery mix is the physical distribution of products at the right time and at the right place. In every industry, catching the eye of the customer and making it easy for them to buy it is the main aim or good distribution or ‘place strategy’. Retailers pay a premium from the right location. it is also helpful for the company to decide its target customers and carryon its business operations.

Four elements of brand image: When brands look to holistically improve customers’ brand experiences, it can be helpful to consider four criteria: Impression, Interaction, Responsiveness and Resilience.

1. Impression- ‘I like what this brand has to offer me’ It’s quite simple – to attract a customer they have to like what a brand has to offer – in other words, its proposition. The effectiveness of a brand’s proposition is based on its relevance to a customer – whether it firstly targets the right customer and then meets a need (or creates one first, in order to meet it). Another key element of marketing the right impression is differentiation. Standing out from peer brands is important but standing out across categories can ensure share of mind in a world where consumers are constantly assaulted with competing marketing messages. But probably the most critical element is that the proposition must be based on organizational truths. If it doesn’t link to a core competency, and operational advantage, to business strategy (or even all three), it has the potential to leave the brand exposed. 2. Interaction- ‘This brand does what it says’ Creating a brand is all well and good, but how often do customer find that it isn’t delivering on what it promised? Optimizing delivery is contingent, first and for most, on consistency. If a brand doesn’t consistently reinforce its contingent, first and foremost, on consistency. If a brand doesn’t consistently reinforce its message through every possible touch point, it’s missing an opportunity to optimize the opportunities created by the impression. Several organizations today are aligning their ‘experience’ across bricks-and-mortar operations as well as on line channels in an effort to do this. The other key component 6

of delivery is access- is the brand available to people when and where they want it with an effective channel, distribution and online strategy? And finally there’s the delivery – if plenty kitchen towels didn’t actually absorb 25% more as compared with store label towels, it would simply lose all credibility. 3. Responsiveness- ‘This brand responds to my needs’ If impression and interaction seem like standard brand fare, this element is where brands truly start to make a difference. ‘Personalization’ (not to be mistake for bespoke) is an essential requirement to ensuring your brand doesn’t become commoditized. At the basic end, this can mean variants of shampoo that address ‘issue’ such as dandruff, frizz or hair – loss. At a more sophisticated end, it means a digital strategy that adapts itself to users to deliver a custom experience, the more and more and more you use it. Responsiveness also includes the concept of approachability. This is about more than just general accessit about a customer felling that a brand like direct can be approached easily and will respond appropriately. Perhaps most important however, is the concept of adaptability- does the brand proactively look at its audiences and practice incremental innovation that addresses needs or adapts to emerging lifestyles? For instance, when British airways intercede electronic boarding passes, it was based on an understanding of how their customers’ lifestyle were changing. 4. Resilience- ‘This brand cares about our future’ One may see this element as a nice-to-have, but it’s the pillar that some of the world’s most powerful brands build their businesses around. A key element of resilience is imparting a reputation of ‘responsibility’ this has far outgrown traditional expectations of being ‘sustainable’-it now manifests itself as organizational integrity. No one expects a brand to be infallible, which is may be why apple get away with suicides at manufacturing plants in china or how Nike managed to ultimately come out on the right side of a sweatshop scandal it’s about perception more than anything else –but it does mean brand now have to subject their supply chain to unprecedented scrutiny – so that your burger don’t end up with horsemint’ or that your dishwashing liquid doesn’t suddenly earn itself a reputation for wiping out entire ecosystem Brand also need to be future-proof—this now transcends categories like bank that are meant to safe gaur your assets and provide much needed credit to business over extended periods of time. Today, brand in almost any category that aren’t perceived as having strong business behind them simply lack credibility, which can undermine the other elements of the brand experience. The ultimate component of this categories however, is category influence. Brand that think beyond the confines of categories, market and capabilities – apple, Google, amazon, Netflix- are usually the ones that ones that shatter conventions, transform expectations and change the way customer live their lives. 7

5. SALES : Sales is activity related to selling or the amount of goods or services sold in a given time period. The seller or the provider of the goods or services completes a sale in response to an acquisition, appropriation, requisition or a direct interaction with the buyer at the point of sale. There is a passing of title (property or ownership) of the item, and the settlement of a price, in which agreement is reached on a price for which transfer of ownership of the item will occur. The seller, not the purchaser generally executes the sale and it may be completed prior to the obligation of payment. In the case of indirect interaction, a person who sells goods or service on behalf of the owner is known as a salesman or saleswoman or salesperson, but this often refers to someone selling goods in a store/shop, in which case other terms are also common, including salesclerk, shop assistant, and retail clerk. In common law countries, sales are governed generally by the common law and commercial codes. In the United States, the laws governing sales of goods are somewhat uniform to the extent that most jurisdictions have adopted Article 2 of the Uniform Commercial Code, albeit with some non-uniform variations.

A person or organization expressing an interest in acquiring the offered item of value is referred to as a potential buyer, prospective customer or prospect. Buying and selling are understood to be two sides of the same "coin" or transaction. Both seller and buyer engage in a process of 8

negotiation to consummate the exchange of values. The exchange, or selling, process has implied rules and identifiable stages. It is implied that the selling process will proceed fairly and ethically so that the parties end up nearly equally rewarded. The stages of selling, and buying, involve getting acquainted, assessing each party's need for the other's item of value, and determining if the values to be exchanged are equivalent or nearly so, or, in buyer's terms, "worth the price". Sometimes, sellers have to use their own experiences when selling products with appropriate discounts. From a management viewpoint it is thought of as a part of marketing, although the skills required are different. Sales often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salespersons (singular: salesperson). Selling is considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesman relates his or her offering of a product or service in return enabling the buyer to achieve their goal in an economic way. While the sales process refers to a systematic process of repetitive and measurable milestones, the definition of the selling is somewhat ambiguous due to the close nature of advertising, promotion, public relations, and direct marketing. Selling is the profession-wide term, much like marketing defines a profession. Recently, attempts have been made to clearly understand who is in the sales profession, and who is not. There are many articles looking at marketing, advertising, promotions, and even public relations as ways to create a unique transaction. Two common terms used to describe a salesperson are "Farmer" and "Hunter". The reality is that most professional sales people have a little of both. A hunter is often associated with aggressive personalities who use aggressive sales technique. In terms of sales methodology a hunter refers to a person whose focus is on bringing in and closing deals. This process is called "sales capturing". An example is a commodity sale such as a long distance sales person, shoe sales person and to a degree a car sales person. Their job is to find and convert buyers. A sales farmer is someone who creates sales demand by activities that directly influence and alter the buying process. Many believe that the focus of selling is on the human agents involved in the exchange between buyer and seller. Effective selling also requires a systems approach, at minimum involving roles 9

that sell, enable selling, and develop sales capabilities. Selling also involves salespeople who possess a specific set of sales skills and the knowledge required to facilitate the exchange of value between buyers and sellers that is unique from marketing, advertising, etc. Within these three tenets, the following definition of professional selling is offered by the American Society for Training and Development (ASTD): “

The holistic business system required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods or services for equitable value.[5]

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Team selling is one way to influence sales. Team selling is "a group of people representing the sales department and other functional areas in the firm, such as finance, production, and research and development". (Spiro) Team selling came about in the 1990s through total quality management (TQM). TQM occurs when companies work to improve their customer satisfaction by constantly improving all of their operations.

Relationships with marketing.

Marketing and sales differ greatly, but generally have the same goal. Selling is the final stage in marketing, which also includes pricing, promotion, place and product (the 4 P's). A marketing department in an organization has the goals of increasing the desirability and value to the customer and increasing the number and engagement of interactions between potential customers and the organization. Achieving this goal may involve the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating new products (new product development), among other things. It 10

can also include bringing the potential customer to visit the organization's website for more information, or to contact the organization for more information, or to interact with the organization via social media such as Twitter, Facebook and blogs. Social values also play a major role in consumer decision processes. Marketing is the whole of the work on persuasion made for the whole of the target people. Sales is the persuasion and effort that from one person to one person (B2C), one person makes to the corporation (B2B) in the face or in the phone or in the digital environment, to make a living resource enter the company. The field of sales process engineering views "sales" as the output of a larger system, not just as the output of one department. The larger system includes many functional areas within an organization. From this perspective, "sales" and "marketing" (among others, such as "customer service") label for a number of processes whose inputs and outputs supply one another to varying degrees. In this context, improving an "output" (such as sales) involves studying and improving the broader sales process, as in any system, since the component functional areas interact and are interdependent. Many large corporations structure their marketing departments so they are directly integrated with all lines of business. They create multiple teams with a singular focus and the managers of these teams must coordinate efforts in order to drive profits and business success. For example, an "inbound" focused campaign seeks to drive more customers "through the door", giving the sales department a better chance of selling their product to the consumer. A good marketing program would address any potential downsides as well. The sales department would aim to improve the interaction between the customers and the sales facility or mechanism (example, web site) or salesperson.as Sales is the forefront of any organization, this would always need to take place before any other business process may begin. Sales management would break down the selling process and then increase the effectiveness of the discrete processes as well as the interaction between processes. For example, in many outbound sales environments, the typical process includes out-bound calling, the sales pitch, handling objections, opportunity identification, and the close. Each step of the process has salesrelated issues, skills, and training needs, as well as marketing solutions to improve each discrete step, as well as the whole process. In many cases becoming a salesperson is a default career as

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not many people aspire to be a salesman but rather fall into the job due to circumstances. It can be highly rewarding as you receive remuneration in the form of a salary and also commission. One further common complication of marketing involves the inability to measure results for a great deal of marketing initiatives. In essence, many marketing and advertising executives often lose sight of the objective of sales/revenue/profit, as they focus on establishing a creative/innovative program, without concern for the top or bottom lines – a fundamental pitfall of marketing for marketing's sake. Many companies find it challenging to get marketing and sales on the same page.[8] The two departments, although different in nature, handle very similar concepts and have to work together for sales to be successful. Building a good relationship between the two that encourages communication can be the key to success – even in a down economy. Industrial marketing: The idea that marketing can potentially eliminate the need for sales people depends entirely on context. For example, this may be possible in some B2C situations; however, for many B2B transactions (for example, those involving industrial organizations) this is mostly impossible. Another dimension is the value of the goods being sold. Fast-moving consumergoods (FMCG) require no sales people at the point of sale to get them to jump off the supermarket shelf and into the customer's trolley. However, the purchase of large mining equipment worth millions of dollars will require a sales person to manage the sales process – particularly in the face of competitors. Small and medium businesses selling such large ticket items to a geographically-disperse client base use manufacturers' representatives to provide these highly personal service while avoiding the large expense of a captive sales force.

Sales and marketing alignment and integration: Another area of discussion involves the need for alignment and integration of corporate sales and marketing functions. According to a report from the Chief Marketing Officer (CMO) Council, only 40 percent of companies have formal programs, systems or processes in place to align and integrate the two critical functions.

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Traditionally, these two functions, as referenced above, have operated separately, left in soloed areas of tactical responsibility. Glen Petersen's book The Profit Maximization Paradox sees the changes in the competitive landscape between the 1950s and the time of writing as so dramatic that the complexity of choice, price and opportunities for the customer forced this seemingly simple and integrated relationship between sales and marketing to change forever. Petersen goes on to highlight that salespeople spend approximately 40 percent of their time preparing customer-facing deliverables while leveraging less than 50 percent of the materials created by marketing, adding to perceptions that marketing is out of touch with the customer and that sales is resistant to messaging and strategy.

OVERVIEW OF THE STUDY The project work entitled “A study on comparative marketing strategies of milk and milk products at GCMMF LTD” with special reference to Gujarat co-operative milk marketing federation (GCMMF) ,is mainly conducted to segment, target and position the product. This study mainly focused on 4p’s (marketing mix) and marketing challenges. This study was carried out in the Hyderabad city. The purpose of the study is focused on launching the butter milk in the market and improving the retailing of the butter milk curd and milk products in Hyderabad. This study considered the feedbacks given by the retailers to evaluate the problems and improving the quality of supply chain. Milk and curd comes under necessities; so availability of product matters a lot. Considering this fact amul focused more on the supply chain. Based on the findings of this study, the company can expect its future marketing plan and marketing strategy. Dairy activities have traditionally been integral to India’s rural economy .the country is the world’s largest producer of dairy products and also their largest consumer. In India after white revolution many new private milk companies had opened and many milk cooperatives were also formed due to this the dairy products market became a competitive fleld and thus dairy sector tried to increase its market share and started introducing new technique for producing new dairy products range such as curd, buttermilk, lassie, cheese, ghee, butter etc. Curd is considered to be an essential part of a meal of the Indian food culture. Has now a days most of the people in the family are working members the need for the purchase of curd has arose. This has increased the sales of packed curd too along with milk.

Hyderabad being a cosmopolitan city and with many competitors in the field of dairy products, there is a rise in the brand of milk. Amul being one of the best brands in dairy products and it has now entered into the sale of milk it needs to withstand the competition by being able to give its customers what they required so that it could retain its present customers and also grab the attention of other customers. 13

Food still accounts for highest share of monthly household expenditure in india, number of urban Indian households growing by more than three times in the next 50 years, we anticipate sharp rise in demand for branded, packaged, nutritious food products which are easily available and offer value – for money as well as convenience. Affordability and easy avai with food, milk and dairy products account for the highest share of expenditure (after cereals) for an average Indian household.

NEED OF THE STUDY The managers of consumer market must react in a different way to change the markets, develop products to meet these changes and market them in exclusively different way to target and sophisticate customers. They can face many distinctive marketing situations in the consumer market. For marketing effectiveness, the product should always be regarded as variable and should be viewed from the perspective of customer, customers satisfaction, need satisfaction should be the center of attention . further customer satisfaction should be dominant in all corporate decision making. So before taking any major decision it is very important to know customer’s preferences about the factors they consider to be available in a product of their choice . it can help in taking major decisions. Dairy sector is one of the fastest growing sectors in India as it is still having 85% of unorganized sector. Competition is growing day by day as many MNC’s are focusing on the Indian market. The dairy industry is dominated by the co-operative sector. Marketing is the process through which the goods of the manufacture goes to its final consumer. It is the process through which the selling of the product happens through which revenue generates. Its importance can be seen from the fact that according to Philip kotler in the united states channel member collectively have earned margins that accounts for 30%to 50% of the ultimate selling price. In contrast advertising typically accounts for less than 5% to 7% of final price. It ranges in a similar manner for south Asia as well. One of the chief roles of the marketing channel members is to convert potential buyer into profitable buyer. Marketing channels must not serve market but also make markets.

OBJECTIVE OF THE STUDY

Hyderabad is having a wide range of milk products available in the market. Hyderabad is the major consumption area of milk products in the state of Telangana. There are many dairy companies national as well as local who competes with each other to capture the market share. This study was conducted in busy places all over Hyderabad. This study has four aspects that are

1) Product 2) Price 3) Place( distribution) 4) Promotion It has also focused on STP (segmentation, targeting positioning) model. 14

Segmentation: segmentation has been done considering the demographics, behaviour and benefit point of view. Segmentation is a practice that seeks out pieces of the total ability, along with food, milk and dairy products account for the highest share of expenditure (after cereals) for an average Indian household.

NEED OF THE STUDY The managers of consumer market must react in a different way to change the markets, develop products to meet these changes and market them in exclusively different way to target and sophisticate customers. They can face many distinctive marketing situations in the consumer market. For marketing effectiveness, the product should always be regarded as variable and should be viewed from the perspective of customer, customers satisfaction, need satisfaction should be the center of attention . further customer satisfaction should be dominant in all corporate decision making. So before taking any major decision it is very important to know customer’s preferences about the factors they consider to be available in a product of their choice . it can help in taking major decisions. Dairy sector is one of the fastest growing sectors in India as it is still having 85% of unorganized sector. Competition is growing day by day as many MNC’s are focusing on the Indian market. The dairy industry is dominated by the co-operative sector. Marketing is the process through which the goods of the manufacture goes to its final consumer. It is the process through which the selling of the product happens through which revenue generates. Its importance can be seen from the fact that according to Philip kotler in the united states channel member collectively have earned margins that accounts for 30%to 50% of the ultimate selling price. In contrast advertising typically accounts for less than 5% to 7% of final price. It ranges in a similar manner for south Asia as well. One of the chief roles of the marketing channel members is to convert potential buyer into profitable buyer. Marketing channels must not serve market but also make markets.

OBJECTIVE OF THE STUDY Hyderabad is having a wide range of milk products available in the market. Hyderabad is the major consumption area of milk products in the state of Telangana. There are many dairy companies national as well as local who competes with each other to capture the market share. This study was conducted in busy places all over Hyderabad. This study has four aspects that are

1) Product 2) Price 3) Place (Distribution) 4) Promotion It has also focused on STP (segmentation, targeting positioning) model.

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Segmentation: segmentation has been done considering the demographics, behaviour and benefit point of view. Segmentation is a practice that seeks out pieces of the total market that contain customers with identifiable characteristics, as defined by income, age, personal interests, ethnic background, special needs and so forth.

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Targeting: Based on the segmentation, targeting has been done with special strategies and offering. Amul applied market specialization and full market coverage strategies in Hyderabad market. Market specialization is dealing with one specific market only. Amul tried to meet many needs of a particular customer groups.

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Positioning: Placing the product in the minds of consumers in positioning. Success of products starts from here. Amul is able to come up with unique selling proposition for the product.

LITERATURE REVIEW

Industry Profile

India is the highest milk producer in the entire globe. India is well known as the 'oyster' of the global dairy industry, with opportunities galore for the entrepreneurs globally. It might be dream for any nation n the world to capitalize on the largest and fastest growing milk and milk products' market. The dairy industry in India has been witnessing rapid growth with liberalization. As the economy provides good opportunities for MNCs and foreign investors to release the full potential of this industry. The main 16

objective of the Indian dairy industry is to manage the nation resources in a manner to enhance milk production and upgrade milk processing using innovative technologies. The crossbred technology in the Indian dairy industry has further augmented with the viability of the dairy units by increasing the milk production per animal. Then subsequently milk production also increased at an exponential rate while the benefits of an increase in milk production also reached the consumers from relatively lower increase in the price of milk producers for the dairy industry in India however appeared to have weakened during the 90's,a decline in the real price of milk being noticed after the year 1992. And then slowly regained it is glory after 1992 to till now. In India dairying from very much earlier is regarded as an instrument for social and economic development. The country's milk supply comes from millions of small producers, who are dispersed throughout the rural areas. All these farmers maintain an average herd of one or two milch animals, comprising cows and/or buffaloes. Mostly ample labor and a small land base encourage farmers to practice dairying as an occupation subsidiary to agriculture . As income from crop production is seasonal instead dairying provides a stable which is a year round income and also an important economic incentive for the small farmer.

INTRODUCTION :

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 Mil Marketing Federation Ltd. (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 company. Amul has spurred the White Revolution of India, which has made India the biggest 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. 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, Amul Spray, Amul Cheese, Amul Chocolates, Amul Shirkhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

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HISTORY :

The Amul Revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. The Kaira District Co-operative Milk Producers Union Limited (KDCMPUL) began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled by one Union increased from 250 to 5,000 litres a day. Meanwhile, Dr. Verghese Kurien, fed up being at the government creamery in Anand,Gujarat, which held to challenge, Volunteered to help Shri Tribhovandas Patel, the chairman of KDCMPUL, in setting up a processing plant.This marked the birth of AMUL in 1946. The Success of Amul was instrumental in launching the White Revolution that resulted in increased milk production of India. It is officially termed as Operation Flood by Amul. The break through technology of spray drying and processing buffalo milk, developed by Mr.H.M. Dalaya, was one of the key factors that contributed the Revolution. Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere else in India. His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off–seasons. Their income from milk buffaloes was undependable. The milk marketing system was controlled by contactors and middle men. As milk is perishable, farmers were compelled to sell their milk for whatever they were offered. Often they had to sell cream and ghee at a throw away price. They were in genera illiterate. But they could see that the system under which contractors could buy their produce at a lower price and arrange to sell it at huge profits was just not fair. This became more noticeable when the Government of Bombay started the Bombay Milk Scheme in 1945.Milk had to be transported 427 kilometers, from Anand to Bombay. After preliminary trails, the government of Bombay entered into an agreement with Polsons Limited to supply milk from Anand to Bombay on a regular basis. The arrangement was highly satisfactory to all concerned except the farmers. The Government found it profitable; Polsons kept a good margin. Milk contractors took the biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers. Thus under the Bombay Milk Scheme the farmers of Kaira District were no better off ever before. They were still at the mercy of milk contractors. They had to sell their milk at a price the contractors fixed. The discontent of the farmers grew. They went in deputation to Sardar Patel, who had advocated farmer’s co-operatives as early as 1942. Sardar Patel reiterated his advice that they should market their milk through a co-operative society of their own. This co-operative should have its own pasteurization plant. His advice was that the farmers should demand permission to set up such a co-operative. If their demand was rejected, they should refuse to sell their milk to middlemen. 18

The Trio’s (T.K.Patel,Kurien and Dalaya’s) success at the cooperative’s dairy soon spread to Anand’s neighborhood in Gujarat. Within a short span of,five unions in other district’s – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira union , which had the brand name Amul with it since 1955, transferred to GCMMF. In 1999, it was awarded the “Best of all” Rajiv Gandhi National Quality Award. In June 2013, it was reported that the Kaira District Cooperative milk Producers Union Limited, better known as Amul Dairy, had signed a tripartite agreement to start a dairy plant in Waterloo village in upstate New York. The plant will initially manufacture paneer and ghee. Amul will use an existing dairy plant owned by New Jersey-based NRI Piyush Patel for manufacturing. The plant is strategically located, as it close to supply centres from where raw material is procured, and is near New Jersey, which has a large Indian population.

GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF)

Gujarat Cooperative Milk Federation Ltd. (GCMMF), s India’s largest food product marketing organization with annual turnover (2013-14) US$ 3.0billion. Its daily work milk procurement is approx. 13.18 million lit per day from 17,025 village milk cooperative societies, 17 members unions covering 31 districts, and 3.23 million milk producer members. It is the apex organization 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 of money. Its success has not only been emulated in India but serves as a model for rest of the World. It success has nit marketing organization of ‘Amul’ and ‘Sagar’ branded products. It operates through 53 Sales & offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, whey 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, Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy product Exports for the last 13 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 & many 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.

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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 Awards in 1999 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 IMC Ramakrishna Bajaj National Quality Award – 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organization to win top most 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. For the tree plantation activity GCMMF has received seven consecutive Good Green Governance award from Srishti during the year 20107 to 2013. The Amul brand is not only a product, but also a movement. It is one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream which we can hope to live.

GCMMF Today: GCMMF is India’s largest food products marketing organization. GCMMF markets and manages the Amul brand. From mid- 1990’s Amul has entered areas not related directly to its core of the business Its entry into Ice Cream was regarded as successful due to the large market share it if was able to capture within a short period of time – primarily due to the price differential and the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as Rs. 30/- per pizza when the other players were charging upwards of 100 rupees In September 2007, Amul emerged as the leading Asian brand according to a survey but the name Synovate to find out Asia’s top 1000 brands.

Collection of Milk

Every day Amul collects 4,47,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs.6 crore i.e.; (Rs.6o million) to over 5,00,000 retail outlets across the country. Its supply chain is easily one of the most complicated in the world. How do managers at Amul prevent the milk form there souring? Walk into much Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi. But you will certainly see one particular photograph It shows a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they gave brought in shinning brass matkas.

Organization Structure

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It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and there by ensure maximum in returns of their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network in now covers 3.12 million farmers, 10,411 village level milk collection centers and fourteen as such district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that his initiative would directly benefit and transform small farmers and contribute to the edge development of society. Markets then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market if forces and that proactive intervention were required. Two key requirements were identified. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the robust supply chain behind GCMMF’s endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GSMMF’s competitive position is driven by low consumer prices supported by a low cost system. Today customers can order a variety of products through the Internet and be assured of delivery with payment upon receipt. Another e-initiative underway is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages.

PRODUCTS

AMUL BUTTER

 Table butter ( salted ) Amuls’ table butter is one of the most sold product of amul. It is used more than 60% of the Indian households. There are multiple of variants of this product and they come in the packs of 50gms,100gms and 500gms.

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There is an other variant of salted butter produced by amul which is a carton of 15kgs in which there are two blocks of 7.5 kg butter. This is mainly used in the restaurants where the butter consumption is very high such as 15 kgs per two or three days approximately.

UNSALTED BUTTER

Reduced salt is another variant of the butter produced by amul which has lower amount of salt in it. It is produced in order to meet some requirements of the consumers who prefer low salt in their butter. For example fewer restaurants prefer low salt butter so that it won’t change the taste of the food that they prepare.

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AMUL LITE: Amul lite is the variant of the butter that amul produce which contains low fat as well as low cholesterol in it. It is produced in order to reach customer satisfaction who are health conscious and want to have butter in their eating routines. Amul produces amul lite product in three sizes that are 100gm,200gm and 500gm.

AMUL MITHAI MATE: 

Amul Mithai Mate is much more creamier than competitors available in market   

Made of Pure Milk FAT

Avaiable in very convenient easy to open pack Can be made several milk based desert in minutes

200g and 400g tins are for household consumption and 2.5kgs and 7.5kgs are for restaurants and other institutions.

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Amul processed cheese: we all know the love of cheese in our lives all over the world, it adds tastes to the warm dishes like pizzas , burgers ,pastas etc . Amul produces cheese of the highest quality in india it has all the benefits which other competitors does not have.

Following are the stock keeping units of amul cheese 

Cheese blocks (200g, 500g, 1kg)  Cheese tin (400g)  Cheese slice ( 100g, 200g, 400g, 750g)  Cheese chiplets (200g, 500g, 1 kg )

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Based on the consumption of the cheese in the area of the cities these stock keeping units are placed in the retail stores. Shelf life of the tin packs is 9 months whereas the blocks and the slice is 6 months.

Paneer: Amul mail paneer is one of the most pure and hygienic paneer product in the market. Rich in protein and has high level of healthy fat and less moisture which make it the best choice for the indian cuisines.

The number of stock keeping units of amul paneer are as follows 

Paneer diced ( 200g, 100g, 500g and 1 kg )  Block paneer (200g and 1 kg )

The shelf life of amul paneer is 6 months at -18 degrees .

Ghee: Ghee is one of the most dairy products used in india in various dishes. Ghee is known for its benefits such as overall healthy life, improving immune system, providing high level of energy to perform all day long. Amul has three variants of ghee they are amul ghee (reg), sagar ghee and cow ghee. Ghee is used as ingredient in various sweets in india.

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Stock keeping units of amul ghee are as follows:  Pouch : 500ml and 1kg  Tin: 200ml,500ml,1litre , 2litre , 5litre.  Bulk pack: 10kg bucket and 15 kg tin

ANALYSIS TABLE 1: TABLE SHOWING RESPONSE OF THE RETAILERS REGARDING THE PLACING OF THE AMUL PRODUCTS.

Sources A) YES B)NO C)ON RANDOM BASIS

responses 37 10 3

percentage 74 20 6 26

This question is asked to the retailer when the sales call was made. The above table shows the responses to the question asked during the sales call.

do you prefer selling amul products? 3, 6% 10, 20%

37, 74%

a) YES

B)NO

C)ON RANDOM BASIS

TABLE 2: Table 2 interprets the products that a retailer would prefer selling more, below are the responses and the pie chart that shows the interpretation.

SOURCE BUTTER CHEESE MILK ALL THE ABOVE

RESPONSES 7 5 4 34

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Which product of amul would you prefer to sell more ? 7, 14% 5, 10% 4, 8% 34, 68%

BUTTER

CHEESE

MILK

ALL THE ABOVE

Table 3 The below table and the pie chart represents the reasons based on which retailers are inclined to selling amul products

sources

responses

QUALITY

45

PRICE

3

SERVICE

2

OTHER

0

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Why do you prefer amul products over other brand 3, 6% 2, 4%

0, 0%

45, 90%

QUALITY

PRICE

SERVICE

OTHER

Table 4: The follow interpretation represents the willingness of the retailer to sell amul beverages source YES NO BASED ON DEMAND

responses 4 3 44

Would you like to place amul beverages in your outlets? 3, 6% 4, 8%

44, 86%

YES

NO

BASED ON DEMAND

Amul beverages are one of the low performing product in the market as their margin are low and the retailers are hesitant to place amul beverage. 29

Table 5 The below data analysis is about the retailers response towards the distributors service source yes no

response 22 28

Response of the retailers about distributor's service

22, 44%

28, 56%

yes

no

56 % of the retailers are not satisfied because of the service of the distributor. The main reason for the dissatisfaction is the irregularity of the sales calls made by the salesman and the unavailability of the products in the ware house that are in huge demand such as amul butter, cheese and fresh creame.

Table 6 Table 6 represents the ordering cycle that a retailer would prefer for doing business smoothly. source WEEKLY TWICE WEEKLY THRICE WEEKLY ONCE RANDOM

responses 31 8 8 3 30

Which ordering cycle would be ideal for your business 3, 6% 8, 16% 8, 16%

WEEKLY TWICE

31, 62%

WEEKLY THRICE

WEEKLY ONCE

RANDOM

62% of the retailers prefer weekly twice as the ordering cycle. The best way to keep the optimum stock is by ordering on Friday and Tuesday by which the weekend as well as the weekdays are covered.

Market findings and suggestions

MARKET FINDINGS

      

Amul is one of the most reputed brand In the market, due to its quality and the range of products that amul has its presence in the market. Well known products that amul performs optimally are milk, butter, cheese, butter milk, lassi. Retailers are mostly found of butter, cheese and milk they do not switch to other brands for these products as they are highly consumed products of amul by the consumers. Amuls penetration is not up to the mark in certain areas because of the accessibility of the distributor or the negligence of the distributors. Amul has strong competition from the brands like heritage, jersey, masqati and vijaya . these brands sell almost every products that amul sells with competition among them selves. Amuls flavoured milk beverages are the lowest performers as the flavours are not recognized or liked by the consumers. Another most significant reason for the low performance of the amul flavored milk beverages is the margin which is lower than the competitive products. Which makes the retailers less enthusiastic about the flavored milk. 31

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In Hyderabad the most recognized product of amul is its ice cream not milk or butter most of us interpret that amul has its higher sales in butter and milk where as in hyderbad and many other cities and towns has proved that amul’s ice creams are the most popular than the other products of the amul . Amul uses technology for its optimal operations the applications amul uses are amul DMS app, amul SFA app , amul trach app , etc., .

Suggestions

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Retailers’ margin has to be increased in such a way that the retailers are interested to display the product for sale as well as the customers should not find it overpriced.

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Retailers will not be loyal to any brand, they are mostly interested in profit margin that they are getting. Margin of the product have impact on sales and therefore the sales man has to explain the other benefits and salability factors of the product.

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Amul have to focus more on advertising and promotional activities to increase its average sale.

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The company should diversify with many more outlets (AMUL Prefered outlets).

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The distributors should strictly follow the norms and policies of amul.

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Use of technology should be implemented more than what it is utilized right now.

Conclusion

The project title being “ A study on marketing strategies and sales development at GCMMF LTD”. After completion of study and careful analysis of the data collected can conclude that AMUL is successful in implementing its marketing strategies compared to its competitors. The only concern which is affecting the sales of AMUL is its margin and distributor’s service. Majority of the retailers prefer to sell other brands for margin as it is one of the vital factor which a retailer is concerned about out of other factors. If AMUL increases the margin and improve the distributors service strategies for retailers then the sales will shoot-up and it may gain a larger market share.

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ANNEXURE Questionnaire for retailers Respected sir/madam I student of INSTITUTE OF PUBLIC ENTERPRISE , Hyderabad is currently doing my summer internship from AMUL, and conducting a survey on marketing strategies and sales development methods. In my effort to collect data , i have prepared a sample questionnaire . it would help me immensely in my internship if i get to know your views. The information received will remain confedential.

QUESSIONNAIRE

Do you prefer selling amul products? a) Yes b) No c) On random basis. ( based on demand) 1) Which product of amul would you prefer to sell more? a) Butter b) Cheese c) Milk d) All the above. 2) Why do you prefer amul products over other brand? a) Quality b) Price c) Service d) Other 3) Would you like to place amul beverages in your outlets? a) Yes b) No c) Based on demand. 4) Are you satisfied with the distributor’s service? a) Yes b) No

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5) Which ordering cycle would be ideal for your business? a) Weekly twice b) Weekly thrice c) Weekly once d) Random

BIBILOGRAPHY

 Milk marketing in INDIA: A review paper on the role and performance of informal sector by     

Indian society of Agribusiness Professionals. www.indiancooperative.com www.gcmmf.com www.dairyindia.com www.apddcf.gov.in http: //www.mbaskool.com/brandguide/food-and-beverages/3349-amul.html

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