Amul Report

Introductio n & history

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In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombayfrom the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.

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However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district 3

went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes 4

difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that 5

the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

Amul has been able to: • Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, • Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. • Provide a support system to the milk producers without disturbing their agro-economic systems, • Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and • Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

ACHIEVEMENT: 6

Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: a)First self motivated and autonomous farmers‟ organization comprising of more than 5000000 marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centers owned by them. c) Computerized milk collection system with electronic scale and computerized accounting system. d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives. e)First to produce milk from powder from surplus milk. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.

Amul in abroad: Amul is going places. Literally After having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India’s largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. GCMMF recorded a turnover of Rs 2,922 corer last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

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Product profile of AMUL

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LIST OF AMUL PRODUCTS SURVEYED

Bread spread

Amul masti dahi

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Amul paneer

Liquid milk

10

Amul ghee

Amul ice-cream

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Amul cool and coco

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RESEARCH METHODOL OGY

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TITLE OF THE STUDY Analytical study of Survey for AMUL products questionnaires for retailers.

RESEARCH DESIGN A Research design specifies the methods and procedures for conducting a particular study. It is a map (or) blue print to which the research is to be conducted. Descriptive research design has been considered as a suitable methodology for present study and for data analysis.

SAMPLING DESIGN The sampling design used was Convenience sampling, which is a nonprobability sampling method. The convenience factors were the availability and approachability of the respondents.

POPULATION

Pune Wards

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All types of outlets that stock and sell Amul products in the markets. The outlets have been classified into as follows

Super market:

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Bakeries

Tea and snacks shops

Sample size The size of the sample is –

Ward Retailers

11 142

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Sample techniques There are total 144 wards and these wards are allotted to 22 trainees by purposive sampling method, according to their convenient place.

OBJECTIVE OF THE RESEARCH To find out that which products of AMUL are being sold most (milk, butter, ice-cream, cheese) compare to their substitute players product and to know the satisfaction level of retailer toward our product and distribution channel.

PROBLEM STATEMENT There has been a drop in the percentage sale of AMUL milk because of lack of proper distribution channel and misconduct of distributor with retailer.

SCOPE OF THE STUDY The scope of the study is for improving AMUL’S market share in dairy product and binding customers loyalty by providing best quality to the customer as well as retailers and also providing best distribution channel as well as possible.

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SOURCES OF DATA

Primary data Primary data is a data which have been collected originally for the first time. in other words, primary data may be outcome of an original statistical inquiry, measurement of facts or a count that is undertaken for the first time. For instance data of population census is primary. Primary data being fresh from the fields of investigation is very often referred to as raw data. In the collection of primary data, a good deal of time, money and energy are required.

The following are the method of collecting primary data:

➢ Collection directly by personal investigation.

➢ Collection indirectly by oral investigation.

➢ Collection by questionnaires and schedules.

➢ Collection from statistical reports of correspondents and from

local sources.

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Here in this project all data was collected for the first time by the application of questionnaires method of collecting primary data for Amul products and for retailers. In this research project we were 20 students and we had given the ward wise area of Pune as well as Pimpri - Chinchwad.

Field work The field work for research was conducted during 1st June 2009 to July 11th, 2009 nearly spread all over the Pune area. Total 144 ward/location were divided among the group of 22 people. The prime job was to cover 144 wards of Pune city. We were given questionnaires to fill them by retailer. There was target given to us for one day that we have to get at list 15 retailer’s data and also we have to get the best possible information from the retailer about Amul products. I have covered the following places for the survey of Amul products and its retailer’s view on Amul products quality and distribution channel.

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Area covered by me:

Ward No

64 65

Ward Name Shankar Rao More School Rambaug Colony Kishkindha Nagar Ram Krishna Paramhans Nagar Ved Bhavan Mahatma SocietyKothrud Vanaz Company Yashwant Rao Chavan Natyagrah Ideal Colony

66 67

Deena Nath Mangehskar Hospital Deccan Gymkhana

86

Lohiya Nagar

57 58 59 60 61 62 63

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Admn Ward

Populat ion

Karve Road Karve Road Karve Road

17103 15394 15861

Karve Road Karve Road

14887 17723

Karve Road Karve Road

16468 18008

Karve Road Karve Road WarjeKarve Nagar Ghole Road Bhavani Peth

16386 15234 16848 16844 17923

Data analysis

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1) Fresh milk Total milk consumption:

11406 liter per day

Total no brand:

10

Most preferred brand

Chitle

By analyzing the data we are able to know that in the fresh-milk category there are most preferred brand is Chitle with 52% market share and after that amul comes at no.2 with having 21% market share in this category and then Katraz brand comes on no.3 with having market share of 13% , so here we can say that in fresh milk category Chitle comes on no.1 position and Amul comes after that at no.2 and katraz come on no.3.

2) Curd Total no of brand:

4

Most preferred:

Sphruiti

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By analyzing this data we are able to know that in the curd category Sphruity brand comes on no.1 with having market share of 52% at after that on no.2 Amul comes with the market share of 37% and on the third rank govardhan comes with having market share of 8%.

3) Butter Total no of brand: Most preferred brand:

4 AMUL

By analyzing the data of butter category we are able to know that in butter category consumers’ first strike is done toward after Amul with having market share of 89% and after that Britannia brand comes with having market share of 6% and then Nestle comes on no. 3rd with having market share of 5%.

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4) Ghee Total no of brand:

10

Most preferred brand: AMUL

By analyzing this data that in ghee category the most preferred brand is Amul with the market share of 57% and after that Chitle comes on the 2nd place with the market share of 17% and then Govardhan brand come on 3rd rank with the market share of 7%.

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5) ICE-CREAM TOTAL NO OF BRAND: 5 MOST PREFERRED:

AMUL

By analyzing the data of ice-cream category, here we can see that Amul comes 1st in this category with market share of 74% and after that Kwality walls comes with having market share of 16% and then pyramid ice-cream come on no.3 with the market share of 6%.

2.

Are these products delivered at your doorstep? • •

YES NO

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If yes, who delivers the products? • • • •

Company Directly Distributor Whole-seller Buying on own from market

3. Are you satisfied with the way these products are delivered to you? • Yes • No

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4. Are you satisfied with the Quality of products you are selling currently? • Yes • no

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5. Are you satisfied with the Quality of service provided by Company / Distributor? • Yes • No

6.

What are the schemes / promotion support provided by the Company?

In this question we have ask to retailer what are the schemes / promotions provided by the company or distributor in current order. From this question we can easily know that retailer has getting benefit or not which is provided by the company, there may be chances of cheating by the distributor to the retailers by not giving the schemes to them. This question will help to indentifying the fraud distribution between suppliers to retailer.

7.

Any suggestions for improvements in ‘Amul’ products?

In this question we are taking suggestions through retailer for improvements in AMUL products. If retailers have bad experience with AMUL product they use to give there open suggestions to us, 27

because AMUL is such a big brand in dairy products which giving the best quality product to the consumer with affordable price. From this question we can easily identifying the rotten products if it’s delivered to retailer, then company can get help to rectify these errors.

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Problem statements of retailers

1. Are you satisfied with the Quality of products you are selling currently?. 2. Are you satisfied with the Quality of service provided by Company / Distributor? 3. What are the schemes / promotion support provided by the Company? 4. Are you satisfied with the way these products are delivered to you? 5. Any suggestions for improvements in ‘Amul’ products?

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These are the question which denotes the Amul’s whole and sole picture about its product and its quality as well as services provided by Amul and its distributors. 1) Here for the question no 1 , according to my findings in Karve area there are 95% of retailer are fully satisfied with the quality of products and remaining 5% retailers are not satisfied with the quality of the product. The remaining 5% retailers were facing problems that: ➢ Sometimes there is come bad smell from the Amul butter. ➢ Amul milk is not having good durability after some day it becomes stale earlier compare to the other company’s milk. 2)Here for the question no 2 , there are 76% retailer who are satisfied with the quality services provided by the distributors but there are 24% of the retailer who are not satisfied with the services provided by the distributors The remaining 24% retailers were facing problems are as follows: ➢ delay in delivery of product ➢ customer are demanding Amul product but there are no distributor provided to some shop,so they have to sale other brand. ➢ sometimes distributor dilevers product when exp date comes to close. ➢ this retailer wants to sale amul product but there is no distributor them. ➢ distributor is not coming regularly. ➢ replacement is not done if product rotten.

3) The Amul Company is providing such scheme as buy 24qty Amul cool and get 1qty free and buy 10qty butter milk and get 1qty free , but this kind of services are not provided to the retailers by distributors. 30

➢

99% of the retailer are not provided any scheme from the distributor.

4)Here for this question no 4, according to my findings in karve area there are 86% retailers who are satisfied with the way the product are being delivered by distributors but there are 14% retailer who are not satisfied with the way the product are delivered to them. The remaining 14% retailers facing the problems as follows: ➢ There are no distributor allotted to the retailers in some backward area ➢ Ice-cream delivery is not done in time and not done in enough quantity. 5) There are many suggestion given by retailers are as follows. ➢

➢ ➢ ➢ ➢

Quality of Amul is very good. Increase number of distributors for catering good service. Provide ice-cream delivery in time and in enough quantity Provide replacement if product is rotten before expired date. Increase some margin in profit.

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Suggestion s

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Suggestions:Amul is not providing good margin compare to the other brand in spite of retailer have to sale Amul products because customers are very brand loyal. ➢ Provide replacement if product is being rotten before expired date. ➢ Amul should concentrate on pause area as well as backward area too ➢ Amul should provide some scheme as other company is providing. ➢

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Conclusion

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Conclusion:I concluded that Amul has a very good image in the eye of its customer, has a very good brand name. But one thing I come to know that its distribution channels in not good in some wards nd because of which retailers has to face many problem. I also saw that the price of Amul product is high as compare to its competitor product and hence Amul competitors are able to attract consumer towards their product. Another thing is that Amul don’t give the replacement offers to the retailers and because of which retailers are very much dissatisfied.

Bibliography 35

➢ Book - Research Methodology by Aditham Bhujanga Rao ➢ www.amul.com ➢ www.Wikipedia.com ➢ www.marketresearchworld.net ➢ www.emarketer.com

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Appendixe s

Style of questionnaires:

SUR VE Y F OR AMUL P RODU CTS QUE ST IONN AIRE F OR RE TAILE RS 1.

What Kind of milk & milk products do you sell? 37

Product

Avg. Sale per wee k

Wheth er Packag ed or Loose?

If Packa ged BRAN D1

Rate (Rs./Pa ck) & Margin (in Rs)

Liquid Milk Curd / Dahi Paneer Milk Powder Butter Ghee Cheese Condensed Milk Milk Sweets (Shrikhand, Gulab Jamun etc. ) Flavoured Milk Buttermilk / Lassi Ice-Cream Other (pl. specify)

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If Packa ged BRAN D2

Rate (Rs./Pa ck) & Margin (in Rs)

If Packa ged BRAN D3

Rate (Rs./Pa ck) & Margin ( in Rs)

2.

Are these products delivered at your doorstep? • •

Yes No

If yes, who delivers the products? • • • • •

Company Directly Distributor Whole-seller Buying on own from market Any other (Please specify)

___________

3. Are you satisfied with the way these products are delivered to you? • •

Yes No

If No, how would you like it to be delivered? _____________________________________________________________________________

4. Are you satisfied with the Quality of products you are selling currently? • •

Yes No

If No, what are the problems with quality of these products? _____________________________________________________________________________

5. Are you satisfied with the Quality of service provided by Company / Distributor? • •

Yes No

If No, what are the problems with quality of service? _____________________________________________________________________________

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6. What are the schemes / promotion support provided by the Company?

_____________________________________________________________________________

7.

Any suggestions for improvements in ‘Amul’ products?

Retailer Information:

Name of the Establishment: ___________________ Type of Establishment: ___________________ Contact Person:

___________________

Address & Phone No.: ______________________________________________________

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