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PROJECT REPORT

ON
“CONSUMER BUYING PATTERN TOWARDS AMUL MILK”

GUJARATCO-OPERATIVE MILK MARKETING FEDERATION


3LTD.

PRESENTED BY:

RAHUL SINHA

BM-016184

PGDM

BATCH 2016-2018

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S.NO. CONTENT PAGE

1. TITLLE 1

2. TABLE OF CONTENT 2

3. ACKNOWLEDGEMENT 3

4. INTRODUCTION AND HISTORY 4-13

5. PRODUCT PROFILE 14

6. OBJECTIVE OF THE RESEARCH 15

7. LITERATURE REVIEW 16-20

8. ABOUT THE TOPIC 21-25


“CONSUMER BEHAVIOUR”

9. RESEACRCH METHODOLOGY 26-28

10. SOURCES OF DATA 29-30

11. DATA ANALYSIS 31-40

12. SWOT ANALYSIS 41

13. CONCLUSION 42

14. BIBLIOGRAPHY 43

15. ANNEXURE 44-45

QUESTIONNAIRE

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ACKNOWLEDGEMENTS

With immense pleasure, I would like to thank INSTITUTE OF MANAGEMENT STUDIES,


GHAZIABAD & INDUSTRY MENTOR for giving me an opportunity to work on this project.

I would also like to thank Mr.Anand kumar Shukla & Mr. Hariom Gulati (Amul) for giving me
his valuable guidance for the project. Without his help it would’t have been possible for me to
complete the project.

I would be failing in my duty if I do not acknowledge with a deep sense of gratitude the sacrifices
made by my parents and thus have helped me in completing the project work successfully.

Place: Noida

Date:

Signature of the student

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INTRODUCTION AND HISTORY

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 form 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 was 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 Bombay from 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.

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.

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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 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 Co-operative unions at the village level. The Kaira district milk producers

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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 litres of milk was collected everyday. But with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect
11 lakhs litres of milk everyday. Since milk was a perishable commodity it becomes 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 centres 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

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Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20,
1955.

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ACHIEVEMENTS:
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 centres 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 farmer’s 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

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AWARDS:
Amul a co-operative society and its co-operation has led many different awards in its favor.

Magsaysay award for community leadership presented in manila, Philippines to Shri Tribhuvandas
Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India

1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded
to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by the
president of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining co-operative worldwide ICA regional
office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award.

Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and
effects are got to obtain ISO 14000.

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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 crore last fiscal. Its products include pouch milk, ultra
heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

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 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,
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 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

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.

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Plants:
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavoured milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia
and Amul lite.

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Third plant is at Kanjari, which produces cattelfeed

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today
Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat
and whole India.

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PRODUCT PROFILE:-

S.No. NAME FAT SOLID NATURAL FATS

1. AMULCOW MILK 3.5% min. 8.5% min.

2. AMUL DIAMOND 7 % min. 9% min.

3. AMUL GOLD 6% min. 9% min.

4. AMUL TAZZA 3.0% min 8.5%min

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OBJECTIVE OF THE RESEARCH

 To know awareness of people towards Amul products


 To know the preference of Amul products with comparison to
other competitive brands.
 To know the factors which affects consumer’s buying behaviour while purchase milk.
 Swot analysis of Amul
 To study
 various factors such as quality, price, easy available etc. Is influencing lot and influences
positively
 Ideas about to increase the sale of the “Amul

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LITERATURE REVIEW
In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has
developed a successful model for doing business in large emerging economy. It has been primarily
responsible, through its innovative practices, for India to become world’s largest producer of milk.
This paper draws various lessons from the experiences of AMUL that would be useful to
cooperatives globally as well as firms that are interested in doing business in large emerging
markets like India and China.
Many of these economies have underdeveloped markets and fragmented supply bases.
Market failures for many of these small producers are high. On the other hand, the size of both,
markets and the suppliers is large. As a result, firms that identify appropriate business strategies that
take into account these characteristics are more likely to succeed in these markets. The following
are some key message from AMUL’s success: firms in these environments need to simultaneously
develop markets and suppliers to synchronize demand and supply planning, develop or become a
part of network of producers (i.e., cooperatives in this case) to obtain scale economies, focus on
operational effectiveness to achieve cost leadership to enable low price strategy. In addition, a
central focus to bring the diverse element together and a long-term approach are required.

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


development. In some of the sectors all of the above environmental characteristics faced may not
hold. However, a subset of strategies followed by AMUL would still be very useful. Thus, firms
that are contemplating addressing large undeveloped markets or have an intention of taking
advantage of extensive but marginal supplier base would still benefit.

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The AMUL Story
The Kaira District Cooperative Milk Producers’ Union Limited was established on December 14,
1946 as a response to exploitation of marginal milk producers in the city of Anand (in Kaira district
of the western state of Gujarat in India) by traders or agents of existing dairies. Producers had to
travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went
sour, especially in the summer season, as producers had to physically carry milk in individual
containers. These agents decided the prices and the off-take from the farmers by the season. Milk is
a commodity that has to be collected twice a day from each cow/buffalo. In winter, the producer
was either left with surplus unsold milk or had to sell it at very low prices. Moreover, the
government at that time had given monopoly rights to Polson Dairy (around that time Polson was
the most well known butter brand in the country) to collect milk from Anand and supply to Bombay
city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries
in the world in 1946.
The producers of Kaira district took advice of the nationalist leaders, Sardar Vallabhbhai
Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become
the Prime Minister of India). They advised the farmers to form a cooperative and supply directly to
the Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to
the producers). Thus the Kaira District Cooperative was established to collect and process milk in
the district of Kaira. Milk collection was also decentralized, as most producers were marginal
farmers who would deliver 1-2 litres of milk per day. Village level cooperatives were established to
organize the marginal milk producers in each of these villages. The first modern dairy of the Kaira
Union was established at Anand (which popularly came to be known as AMUL dairy after its brand
name). The new plant had the capacity to pasteurise 300,000 pounds of milk per day, manufacture
10,000 pounds of butter per day, 12,500 pounds of milk powder per day and 1,200 pounds of casein
per day. Indigenous R&D and technology development at the Cooperative had led to the successful
production of skimmed milk powder from buffalo milk – the first time on a commercial scale
anywhere in the world. The foundations of a modern dairy industry in India had just been laid as
India had one of the largest buffalo populations in the world
We move to year 2000. The dairy industry in India and particularly in the State of Gujarat
looks very different. India has emerged as the largest milk producing country in the world (see
Table 1). Gujarat emerges as the most successful State in terms of milk and milk product production
through its cooperative dairy movement. The Kaira District Cooperative Milk
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Producers’ Union Limited, Anand becomes the focal point of dairy development in the entire region
and AMUL emerges as one of the most recognized brands in India, ahead of many international
brands1.
Starting with a single shared plant at Anand and two village cooperative societies for milk
procurement, the dairy cooperative movement in the State of Gujarat had evolved into a network of
2.12 million milk producers (called farmers) who are organized in 10,411 milk collection
independent cooperatives (called Village Societies). These Village Societies (VS) supply milk to
thirteen independent dairy cooperatives (called Unions). AMUL is one such Union. Milk and milk
products from these Unions are marketed by a common marketing organization (called Federation).
Figure 1 gives the hierarchical structure of this extensive network of cooperatives. Gujarat
Cooperative Milk Marketing Federation or GCMMF is the marketing entity for products of all
Unions in the State of Gujarat2. GCMMF has 42 regional distribution centers in India, serves over
500,000 retail outlets and exports to more than 15 countries. All these organizations are independent
legal entities yet loosely tied together with a common destiny! (In a recent survey GCMMF was
ranked amongst the top ten FMCG firms in the country while AMUL was rated the second most
recognized brand in India amongst all Indian and MNC offerings). Interestingly, the Gujarat
movement spread all over India and a similar structure was replicated (all are at different levels of
achievement but their trajectory appears to be quite similar). Two national organizations, the
National Dairy Development Board (NDDB) and the National Co-operative Dairy Federation of
India (NCDFI) were established to coordinate the dairy activities through cooperatives in all the
States of the country. The former provides financing for development while the latter manages a
national milk grid and coordinates the deficit and surplus milk and milk powder across the states of
India. In the early nineties, AMUL was asked by the Government of Sri Lanka to establish a dairy
on similar lines in Sri Lanka. Interestingly, while Polson folded up sometimes in 1960s, the
cooperatives are faced with new competition in liberalizing India – from multi-national corporations
(MNCs) that brought in new and improved product portfolio, international network and immense
financial support. The Cooperatives face new challenges that test the robustness of their approach
and their commitment to the movement and a new style of management thinking.

Today AMUL is a symbol of many things. Of a promise to member farmers who are assured
a guaranteed purchase of all the milk that they produce at pre-determined prices. Of high-quality
products sold at reasonable prices to consumers. Of developing and coordinating a vast co-operative
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network. Of making a strong business proposition out of serving a large number of small and
marginal suppliers. Of the triumph of indigenous technology. Of the marketing savvy of a farmers'
organisation.

In the remaining part of the paper, we first review the role that cooperatives have played in the
development of dairy industry globally and how is this sector adjusting to new global challenges.
Next, we look at AMUL within this context and highlight their journey towards excellence.
Specifically, we study how AMUL achieved this exalted status, what were the ingredients of its
success, how did the belief in cooperation transform the business environment and the lives of
people, and what lessons does it hold for other businesses.

Organization
AMUL is organized as a cooperative of cooperatives (i.e., each village society, a cooperative in itself,
is a member of the AMUL cooperative) thereby deriving the advantage of scale and uniformity in
decision making. The founders of Kaira Union realized that to fulfill their objectives, a large number
of marginal farmers had to benefit from the cooperative – a network of stakeholders had to be built.
And once built, it had to grow so as to draw more rural poor to undertake dairy farming as a means
of livelihood. The network had to have several layers – the organizational network where the voice
of the owners governed all decisions, a physical network of support services and product delivery
process and a network of small farmers that could deliver the benefit of a large corporation in the
market place. More importantly, a process had to be put in place to build these networks.
Building an organizational network that would represent the farmers and the customers was
the most complicated task. A loose confederation was developed with GCMMF representing the voice
of the customers, the Unions representing the milk processors and the village societies representing
the farmers. Competition in the markets ensured that the entire network was responding to the
requirements of the customers at prices that were very competitive. The task of ensuring that returns
to the farmers was commensurate with the objectives with which the cooperatives were setup was
achieved through representation of farmers at different levels of decision making throughout the
network – the board of directors of societies, Unions and the Federation comprised farmers
themselves. In order to ensure that most returns from sales went to the producers, the intermediaries
had to operate very effectively and on razor thin margins. This turned out to be a blessing in disguise
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– the operations remained very “lean” and started to provide cost based advantage to the entire
network.

AMUL established a group to standardize the process of organizing farmers into village
societies. In addition to establishing the criteria for selecting members, the group had to train the VS
to run the cooperative democratically, profitably and with concern for its members. This included
establishing procedures for milk collection, testing, payment for milk purchased from member
farmers and its subsequent sale to the union, accounting, ensuring timely collection and dispatch of
milk on milk routes established by the union, etc. The Village Societies Division at AMUL acts as
the internal representative of village societies in their dealings with the Union. Cooperative
development programmes at the village level for educating & training its members have become an
important part of the strategy to build this extensive network.

Milk procurement activity at AMUL comprises development and servicing of village


societies, increasing milk collection, procurement of milk from societies & its transport to the chilling
locations, and resolving problems of farmers and village societies. Their stated objective is to ensure
that producers get maximum benefits. The Village Societies Division coordinates these activities.
Milk collection takes place over a large number of pre-defined routes according to a precise timetable.
The field staff of this division also help village societies interface with the Union on various issues
ranging from improvement of collection, resolving disputes, repair of equipments to obtaining
financing for purchase of equipment etc. In addition, they are also responsible for the formation of
new societies, which is an important activity at AMUL.
In essence, the organization structure of AMUL allows effective utilization of resources
without losing the democratic aspiration of individual members. It is obvious that such a system
needs charismatic leadership to achieve consensus across issues – a process that has long-term
benefits for any organization.

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ABOUT THE TOPIC:-
CONSUMER BEHAVIOUR:-

 It is defined as all psychological, social and physical behavior of potential customers as


they become aware, evaluate, purchase, consume, and tell to others about product and
services.

 Buying behavior involves both individual ( psychological) and group process.

 Buyer behavior is reflected from awareness right through post purchase evaluation
indicating satisfaction and non satisfaction , from purchaser

 Buyer behavior includes communication, purchasing and consumption behavior

 Consumer behavior is basically social in nature hence the social factors play important
roles in shaping buying behavior

 Buyer behavior includes both customer and industrial behavior.

“Hence consumer behavior is an orderly process whereby the consumer interacts with the
environment for making a purchase decision on products “

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CONSUMER BEHAVIOR AND MARKETING MANAGEMENT

Marketing managements work around consumers which is actually the market for them

 Understanding their behavior is very vital in every segment to plan marketing activities
accordingly.

 Both industrial and individual customers are vital in marketing management

DIVERSITY OF CONSUMER BEHAVIOR:-

 customer and consumer words are referred as synonyms but the difference exists

 customer - the purchaser of product or service , may or may not be the end user

 consumer- the end user , may or may not be the purchaser

 New age of business demands differentiation of customers by individual differences


in consumer expectations, preferences and influences.

 Firms need to go into deep of consumer behavior to analyze and act to achieve
objectives

CONCEPT & NEED FOR STUDYING CONSUMER BEHAVIOR:-

Consumer behaviour can be said to be the study of how individual make decision on how to
spend their available resources (time, money, effort) on various consumption related items. This
simple definition of consumer behaviour tells the markets to resolve every activity around the
ultimate consumers & gauge their behaviour by specially focusing on:

 Who buys products or services?


 How do they buy products or services?
 Where do they buy them?
 How often they buy them?
 Why do they buy them?

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These questions will help in understanding better what factors influences the decision making
process of the customers. The decision making process identifies the number of people who are
involve in this process & describes a role to them like users, decides, influences & buyers.

It is believed that consumers or customers make purchase decision on the basis of receipt of a
small number of selectivity chosen pieces of information. Thus it will be very important to
understand what & how mush them to evaluate the goods & services offerings.

CONSUMER DECISION MAKING PROCESS:-

 Stimuli- need, reasons, influences, gathering information

 Information processing- process , analyze information about product

 Decision making - on the basis of analysis , decision to go for

 Response- response to buy without any prejudice

 For industrial buyers the process is almost similar only with addition of re-buy,
modified re buy or new task.

FACTOR INFLUENCING BUYING BEHAVIOR:-

 Individual factors

 Cognitive thinking process – perception , attitudes , Needs/motives

 Personal characteristics – demography, lifestyles ,personal traits

 Environmental factors

 Culture- values ,beliefs, sub cultural / cross cultural factors

 Social class- social class , society

 Influence groups – family, opinion leaders, reference group

 Situational variables – purchase occasion , market communication, shopping


behavior, price , sales influence , product position

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CONSUMER SATISFACTION:-

All business firms have realized that marketing is a core element of management philosophy &
the key to its success lies in focusing more & more on the customers. That is, it will be the
customer who will decide where the firm is heading. Thus the challenge before the marketer is to
ensure that they should satisfy every customer. Satisfaction is an important element in the
evaluating stage. Satisfaction refers to the buyers state of being adequately rewarded in a buying
situation for the sacrifices he has made one the customer purchase & use the product they may
then become either satisfy or dissatisfied.

The result of satisfaction to customer form the purchase of the product or services is that more
favourable post-purchase attitude, higher purchase intention & brand loyalty to be exhibited that
the same behaviour is likely to be exhibited in a similar purchasing situation. The term
‘consumer’ is a typically used to refer to someone who regularly purchase from a particular store
or company.

Customers are people who are happy with the product & services & are willing to come back &
pay for it again.

Today the firms aim to give satisfaction to the customer through marketing concepts. The firm
try to help the buyers in the solving the problem then competitors. The marketers must see that
consumers with purchasing power constitute a potentials buyers are identified. It is essential for
the marketer to carry out the business in such a way that they give satisfaction to consumers
needed. When a firm markets a product or service it should aim to enjoy consumer’s satisfaction
& profit maximization

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CONSUMER RESEARCH:-

Consumer research is the methodology used to study consumer behavior research offer set diverse
to identify consumer needs it is used to identify both felt & unfelt needs, to learn how consumers.
Perceive product & brand & stores. What their attitudes are before and after promotional
campaigns & how & why they make their consumption decision.

MARKETING RESEARCH:-

Marketing research plays an important role in the process of marketing. Starting with market
component of the total marketing talks. It helps the firm to acquire a better understanding of the
consumers, the competition and the marketing environment.

DEFINITION

“Marketing research is a systematic gathering, recording and analysis marketing problem to


facilitate decision making.”

- Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.

- Phillip Kotler.

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RESEARCH METHODOLOGY:-

RESEARCH PROBLEM
 Seek the general perception of consumer towards Amul Milk.
 To know the consumer psyche and their behaviour towards Amul Milk .

OBJECTIVE OF THE RESEARCH

 To know the relationship of sales with the advertisement.


 To know awareness of people towards Amul Milk.
 To know which advertisement tool is mostly preferred by people.
 To know the preference of Amul Milk with comparison to
Other competitive brands .

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

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Information requirement
 First, I had to know about all the competitors present in the Milk
segment (Reputed and well established brands as well as Local brands).

 Before going for the survey I had to know the comparative packs and
prices of all the competitors existing in the market.

 Since Milk is a product that used daily hence I had to trace the market and segment it,
which mainly deals with people of various age groups.
 The main information needed is the various types of brands available in the market, their
calorific value and various other facts.

 As Amul milk advertisements are mainly done through hoardings but on television the
advertisement is being telecasted timely and on the proper time or not.

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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 non-probability sampling
method. The convenience factors were the availability and approachability of the respondents.

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

 Convenience stores: All kinds of shops including bakeries

 Eateries: all kinds of eating joints

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SOURCES OF DATA

Primary sources
The primary data was collected through questionnaires. They were filled using the scheduled
method of data collection by the researcher.

Secondary sources
The secondary sources were used only for collecting information regarding the sample; they were
however not used for analysis

LIMITATIONS OF THE RESEARCH :-


The limitations of the research were as follows

1. LACK OF PROPER TRAVELLING EXPENSES

2. CONSUMERS USE TO GET FRUSTATED WHILE FILLING FORMS

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the presence
of Amul milk.
Tools Utilized

 Percentage Analysis

 Graph Chart

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SAMPLING

1. Sampling Technique: Non probability sampling

(A non-probability sampling technique is hat in which each element in the population does not
have an equal chance of getting selected)

2. Sample Unit : People who buy milk available


in retail outlets.

3. Sample size : 100

4. Method : Direct interview through questionnaire.

5. Sampling Area: Dilshad garden

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DATA ANALYSIS:-
Q1. Which milk do you consume ?

No of % of Respondents
Respondents
Pouch mik 65 65

Loose milk 25 25
Both `10 10

% OF RESPONDENTS

POUCH MILK LOOSE ,MILK BOTH

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Q2. Are you satisfied with the milk you are consuming ?

NO.OF RESPONDENTS % OF Respondents

YES 72 72

NO 28 28

NO. OF RESPONDENTS SATISFIED


80 72
70
60
50
40
28
30
20
10
0
YES NO

32
Q3 What do you like about the product ?

No. of Respondents % of Respondents


Quality 40 40
Taste 15 15
Price 25 25
availability 20 20

% of Respondents
45
40
35
30
25
20
15
10
5
0
QUALITY TASTE PRICE AVAILABILITY

33
Q4. Do you get milk pouch at …?

NO.OF %OF
Respondents respondents
Door step 44 44
retailer 56 56

120

100

80

60

40

20

DOOR STEP RETAILERS

34
Q5 Which brand do you prefer most ?

RESPONSE NO. %
OF RESPONDENTS OF RESPONDENTS
Amul 45 45
Namaste India 30 30
Anand 10 10
Mother dairy 15 15

NO.OF RESPONDENTS
50

40

30

20

10

AMUL NAMASTE INDIA ANAND MOTHERDIARY

35
Q6. Do you think price of the product is low/high as compared to competing brands ?

NO. %
OF RESPONDENTS OF RESPONDENTS
Strongly agree 25 25
Strongly disagree 40 40
agree 15 15
Neither 20 20

%OF RESPONDENTS
40

30

20

10

STRONGLY AGREE STRONGLY AGREE NEITHER

36
Q7. If you buy amul milk which pack do you prefer?

NO. %
OF OF
RESPONDENTS RESPONDENTS
AMUL Gold 65 65

AMUL Diamond 10 10
AMUL Cow milk 15 15

Amul Tonned 10 10

Column1

AMUL GOLD AMUL DIAMOND AMUL COW MILK amul tonned

37
Q8. How much do you expense monthly (in rupees)?

a) 500-1000
b) 1000-2000
c) 2000 and above

NO. %
OF RESPONDENTS OF RESPONDENTS
500-1000 20 20

1000-2000 60 60

2000 and above 20 20

% of RESPONDENTS
70

60

50

40

30

20

10

0
500-1000 1000-2000 2000 and above

38
Q9. At what time do you need milk ?

A) Morning
B) Afternoon
C) Evening
D) All of the above

NO. %
OF RESPONDENTS OF RESPONDENTS
MORNING 75 75

AFTERNOON 15 15

EVENING 5 5

ALL OF THE ABOVE 5 5

80

70

60

50

40

30

20

10

0
MORNING AFTERNOON EVENING ALL OF THE ABOVE

Morning Afternon EVENING ALL OF THE ABOVE

39
Q10. How much do you rate our Amul milk products.?

Products/ Very good Good Poor Very poor


(1)
(4) (3) (2)

Amul gold

Amul Diamond

Amul cow milk

Amul tonned

40
SWOT ANALYSIS

Strengths

The company is having Indian origin thus creating feeling of oneness in the mind of the customers.

It manufactures only milk and milk products, which is purely vegetarian thus providing quality
confidence in the minds of the customers It is aiming at rural segment, which covers a large area
of loyal customers, which other companies had failed to do. People are quite confident for the
quality products provided by Amul.

Amul has its base in India with its butter and so can easily promote chocolates without fearing of
loses.

Weaknesses

There are various big players in the chocolate market, which acts as major competitors restricting
their growth.

Lack of capital invested as compared to other companies.

Improper distribution channel in India.

Opportunities

There is a lot of potential for growth and development as huge population stay in rural market
where other companies are not targeting.

The chocolate market is at growth stage with very less competition so by introducing new brand
and intensive advertising there can be a very good scope in future.

Threats

The major threat is from other companies who hold the majority share of consumers in Indian
market i.e. Cadburys and Nestle.There exists no brand loyalty in the chocolate market and
consumers frequently shift their brands.New companies’ entering in Indian market like Fantasie
fine poses lot problems for Amul.

41
CONCLUSION:-

Majority of the customers are satisfied with the Amul milk and Milk products because of its good
quality, reputation, easy availabilities.

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

From the study conducted the following conclusions can be drawn. In order the dreams comes into
reality and for turning liabilities into assets one must have to meet the needs of the customers.

The factors considered by the customer before purchasing milk are freshness, taste, thickness and
availability.

Finally I conclude that, majority of the customers are satisfied with the Amul milk and Milk
products because of its good quality, reputation, easy availabilities. Some customers are not
satisfied with the Amul Milk because of high price, lack of dealer services, spoilage and low shelf
life etc. therefore, if slight modification in the marketing programme such as dealers and outlets,
promotion programmers, product lines etc., definitely company can be as a monopoly and strong
market leader. As I mentioned about the spoilage of Amul milk due to leak better packaging
material could be used to avoid these condition, so that no tampering should be occurred.

Amul has also to take care of its competitors into consideration and more importantly its customers
before making any move.

42
BIBLIOGRAPHY
Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall
Of India Private Limited, New Delhi.

Periodical: Business World

Research Methodology: C.R. Kothari , 2nd edition.

S.N Murty and U Bhojanna

Websites:

i. www.google.co.in

ii. www.wikipedia.com

iii. www.amul.com.

iv. www.marketresearch.com

v. www.dairy.com

43
ANNEXURE
QUESTIONNAIRE FOR SURVEY OF AMUL MILK

Q.1 which milk do you consume?

A). Pouch milk

B.) Loose milk

C.) Both

Q2. Are you satisfied with the milk you are consuming ?

a) Yes
b) No

Q3. What do you like about the product ?

a) Taste
b) Price
c) Quality
d) Availability

Q4. Do you get milk pouch at …?

a) From retailer
b) Door step

Q 5. Which brand do you prefer most ?

a) Amul
b) Namaste india
c) Anand
d) Mother dairy

44
Q6. Do you think price of the product is low/high as compared to competing brands ?

a) Strongly disagree
b) Stongly agree
c) Agree
d) Neither

Q7. If you buy amul milk which pack do you prefer ?

a) Amul gold
b) Amul diamond
c) Amul cow milk
d) Amul tonned

Q8. How much do you expense monthly (in rupees)?

d) 500-1000
e) 1000-2000
f) 2000 and above

Q9. At what time do you need milk ?

E) Morning
F) Afternoon
G) Evening
H) All of the above

Q10. How much do you rate our Amul milk products.?

Products Very good Good Poor Very poor


(1)
(4) (3) (2)

Amul gold

AmulDiamond

45
Amul cow milk

Amul tonned

46
47

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