INTRODUCTION

Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's greatest

success stories with its Amul brand, is now aiming at a 17-per cent growth in sales to Rs

3,200 crores this fiscal against sales of Rs 2,746 crores in the previous year ended 31

March 2003.

The federation is expecting each of its products to contribute higher sales this year as new

products are being added to each product line.

The big hope is not surprisingly the Amul brand of ice creams, which is expected to

contribute Rs 250 crores to the turnover, up from Rs 150 crores last year. Last year there

was a good growth in ice cream, cheese, butter and ghee. The company is launching new

products in almost every line that are in, with specific stress on ice creams.

For its ice cream and milk business, GCMMF has begun investing in increasing its milk

capacity. It recently firmed up plans to invest Rs 100-120 crore to expand this from 1.1

million liters a day to 1.8 million litres a day at its Gandhinagar factory. The investment

will take place over the next two years.

1

COMPANY PROFILE

Formally known as GCMMF, AMUL means “ priceless ” in Sanskrit. The brand

name “AMUL” from the Sanskrit “Amoolya,” was suggested by a quality control expert

in Anant. 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

shrikhand, Amul ice cream, Nutramul, Amul milk and Amulya have made Amul a

leading food brand in India. Today Amul is a symbol of many things… of high quality

products sold at reasonable prices… of the genesis of a vast cooperative network… of the

triumph of indigenous technology… of the marketing savvy of a farmers organization…

and of a proven model for dairy development.

50 years after it was first launched, Amul sales figures have jumped from 1000

tones a year in 1966 to over 25000 tones a year in 1997 and sales figure of rupees 11140

millions in 1994-95 to rupees 23365 millions in 2001-02 . No other brand comes even

close to it. It was all because a thumb sized girl climbed on to the hoardings and put a

spell on the masses.

For thirty odd years the utterly butterly girl has managed to keep her fan following

intact. So mush so that the ads are now ready to enter the Guinness book of world records

for being the longest running campaign ever. The ultimate compliment to the butter came

when a British company launch a butter and called it utterly butterly, few years back.

2

50 years after it was first launched, Amul sales figures have jumped from 1000

tones a year in 1966 to over 25000 tones a year in 1997. No other brand came even close

to it. All because thumb sized girl climbed on the hoardings and put a spell on the masses.

Mumbai : summer of 1967. A charni road flat. Mrs. Sheela mane, a 28 year old

house wife is out in the balcony drying clothes. From her second floor flat she can see her

neighbours on the road. There are other people too. The crowd seems to be growing

larger by the minute. Unable to curb her curiosity Sheela mane hurries down to see what

all the commotion is about. She expects the worst but can see no signs of an accident. It is

her four year old who draws her attention to the hoarding that has come up over night. “ it

was the first Amul hoarding that was put up in Mumbai,” Recalls Sheela mane. “ people

loved it. I remember it was our favourite topic of discussion for the next one week!

Everywhere we went some how or the other the campaign always seem to crop up in our

conversation.”

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,

strategically placed hoardings at many traffic lights. She is the Amul moppet everyone

loves to love ( including prickly votaries of the Shiv sena and BJP ). How often have we

stopped, looked chuckled at the Amul hoardings that casts her sometime as the coy, shy

Madhuri, a bold sensuous Urmilla or simply as her self, dressed in her little polka dotted

dress and a red and white bow, holding out her favourite packet of butter.

For 30 odd years the utterly Butterly girl has managed to keep her fan following

intact. So much so that the ads are now ready to enter the Guinness book of world records

3

for being the longest running campaign ever. The ultimate compliment to the butter came

when a British company launched a butter and called it utterly butterly.

It all began in 1966 when Sylvester dacunha, then the managing director of the

advertising agency, ASP, clinched the account for Amul butter. The butter which had

been launched in 1945, had a staid, boring image, primarily because the earlier

advertising agency which was in charge of the account preferred to stick to routine,

corporate ads.

In India, food was something one couldn’t afford to fool around with. It had been

taken too seriously, for too long. Sylvester dacunha decided it was time for change of

image.

The year Sylvester dacunha took over the account, the country saw the birth of a

campaign whose charms has endured fickle public opinion, gimmickry and all else.

The Amul girl who lends herself so completely to Amul butter, created as a rival

to the polson butter girl .This one was sexy, village belle, clothed in a tantalizing choli all

but covering her upper region. “ Eustace Fernandez ( the art director) and I decided that

we needed a girl who would warm her way in to a house wife’s heart. And who better

than a little girl ?” says Sylvester dacunha. And so it came about that the famous Amul

moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with the

moppet on a horse. The base line Simply Said. Through bread, utterly butterly delicious

Amul it was matter of few hours before the duacunha office was ringing with calls. Not

just adults, even children were calling up to say how much they had liked the ad. “ The

4

response was phenomenal,” recalls Sylvester dacunha. “ we knew our campaign was

going to be successful.”

For the first one year the ads made statements of some kind or the other but they

had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ad a solid

concept would give them extra mileage, more dum, so to say. It was a decision that would

stand the dacunha in good stead in the years to come.

In 1969, when the city first saw the begning of the hare Rama Hare Krishna

movement , Sylvester dacunha , mohammad khan and Usha Bandarkar, than the creative

team working on the Amul account came up with a clincher—‘ Hurry Amul, Hurry

Hurry’. Mumbai reacted to the ad with a fervour that was almost as devout as the iskon

fever.

From the sixties to the nineties, the Amul ads have come a long way. While most

people agree that the Amul ads were at their peak in the eighties they still maintain that

the Amul ads continue to tease a laughter out of them.

Where does Amul’s magic actually lie ? Many believe that the charm lies in the

catchy lines. That we laugh because the humour is what anybody would enjoy. They do

not pander to your nationality or certain sentiments. It is pure and simple, Every day fun.

5

Members: 12-district cooperative milk producers’ Union

No. Of Producer Members 2.23 million

No. Of Village Societies: 10,852

Total Milk handling capacity: 6.7 million litres per day

Milk collection (Total - 2001-02): 1.67 billion litres

Milk collection (Daily Average 2001- 02): 4.59 million litres

Milk Drying Capacity: 510 metric Tons per day

Cattlefeed manufacturing Capacity: 1450 Mts per day

AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the

brand name “Amul,” from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are

found in several Indian languages. 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. (Turnover: Rs. 25 billion in 2002). Today

Amul is a symbol of many things. Of 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 of a proven model for dairy

development.

6

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a

year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it.

All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) recorded 22

per cent growth in turnover during the first half of the current financial year with milk

products sales amounting to Rs 1,000 crore.

GCMMF sold 10.5 crore litres of milk in pouches during April to September 1998 under

its well-known brand `Amul'.

"GCMMF's financial performance during this period has been even more attractive with a

growth of 25 per cent. However, this won't be reflected in our balance sheet. The

multinationals would have shown it as glittering profit, but we are working on our

mandate of returning any surplus back to grass-root village co-operative milk society

members by periodic price differentials for their production.

With 12 processing units (unions), each located at the district-level, GCMMF today has a

membership of 20 lakh farmers, who belong to 10,000 village dairy co-operative

societies.

7

GCMMF, the largest producer of dairy products in Asia, has over 26 products ranging

from `Amul Butter', `Amul Spray', `Amul Lite', `Amul Cheese' to `Amul Mithaimate',

`Amul Mithaee Gulabjamun' and ‘Amul Frozen Pizza’.

The co-operative is launching wide range of cheese including the exotic Emmental from

the Swiss Alps, soft Mozzarella from Italy and slices of processed Cheddar cheese.

GCMMF has also come out with `Amul cheese powder' used in soups, salads, dressings

and hoard of other fast foods.

The federation has been able to capture 50 per cent of the ice-cream market in the state in

a short span of one year.

`Amul Ice creams' are also now available in 12 states and two union territories and enjoy

35 per cent to 40 per cent market share.

The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real ice-cream'

`Amul Ice creams' were smoother and creamier than its competitors as fat used was pure

milk, which was more expensive and not vegetable fat.

8

GCMMF, which has 45 sales offices, plans to make these products "available all over the

country".

The federation has a distribution network comprising more than 2,700 wholesale dealers

and over five lakh retail outlets.

9

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing

organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide

remunerative returns to the farmers and also serve the interest of consumers by providing quality products

which are good value for money.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.41 million

No. of Village Societies: 11,615

Total Milk handling capacity: 7.4 million litres per day

Milk collection (Total - 2004-05): 2.08 billion litres

Milk collection (Daily Average 2004-05):

5.71 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing Capacity:

2340 Mts per day

Sales Turnover Rs (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 672

For further details, please contact:

10

Gujarat Cooperative Milk Marketing Federation Ltd.

Amul Dairy Road

P B No.10, Anand 388 001,

India

Phone: +91-2692-258506, 258507, 258508, 258509

Fax: +91-2692-240208

Email: gcmmf@amul.com

11

COMPNAY HISTORY

Way back in December, 1946 the seeds of what was later to become the Amul

juggernaut were sown. Following strategic advice from Sardar Vallabhbhai Palel and

nifty footwork by Shri Morarji Desai, a handful of farmers formed a milk co-operative in

Kaira district. About 250 liters of milk collected daily from the farmers of two village co-

operative societies was pasteurized and send to the Bombay milk scheme. The first lesson

in milk marketing was learnt when an assured outlet for milk in Bombay stimulated

increased milk in the villages of Kaira district. More and more farmers joined hands in

more villages to supply milk. The Amul milk co-operatives started growing rapidly.

The second lesson in marketing came some seven years later. Even by 1953, all

the milk collected by Kaira’s village co-operative societies in peak winter months was not

accepted by the Bombay milk scheme. It had to be sold as surplus milk at low prices to

middlemen. A need was felt for building a dairy plant with powder and butter

manufacturing capacity that would process and utilized all the milk supplied by the

farmers. This was accomplished by 1955.

To legendary figures of the Indian dairy industry - Tribhuvandas K. Patel and

Verghese Kurien made all these possible. Together they consolidated, scaled up and

developed the milk co-operatives. Many milestones were created one after another. New

products were added, the brand name AMUL was created and milk co-operatives on the

lines of Anand were from in other districts of Gujarat in quick succession. The Gujarat

12

Co-operative Milk Marketing Federation (GCMMF) was born in 1973 to market the

products being packed at several dairy plants in the states under the brand name ‘AMUL’.

The dairy business reached new heights year after year. The magic of milk co-

operative was working not only in Gujarat but also elsewhere across the country under

Operation Flood of NDDB where the Anand pattern of dairying was being replicated in

its entirely breeding, feeding, milk collection, cattle management, disease control,

nutrition, milk processing and product manufacture and marketing. The dairy industry of

India was coming into its own. There was no looking back.

It has often been said that the Chinese invented ice cream and that marco polo brought the

idea to Europe in the thirteenth century. This is more myth than historical fact backed by

evidence but it can be sated with some confidence that ice cream was invented in China in

the first milenium. The process of freezing liquids by immersing them in a mixture of ice

and salt, which react together to lower the temperature of the mixture below freezing

point, was also invented in the distant past – it was first documented in the thirteenth

century. This is how ice cream had to be made until the invention of the freezer in the

twentieth century. A vessel containing ice and salt surrounds a container containing the

ice cream mixture. The temperature in the ice and salt mix drops, freezing the container's

contents. To ensure it freezes evenly, it is generally stirred or rotated.

Since the method of producing ice cream depended on a supply of ice, it was of limited

use without that precious commodity. Ice could be gathered from ponds and lakes, in

winter, and the storage of ice in ice wells and ice houses goes back several centuries. By

packing ice into an insulated underground chamber with adequate drainage ice could be

13

stored for months, sometimes years. Ice remained a luxury and dependant on nature to

produce it, and cumbersome methods to harvest it.

Ice cream made with a milk mixture was first recorded in Europe in Italy.. In England, the

first recorded serving of this rare luxury was in 1672, to King Charles II, whose table at a

banquet was served a delight denied to those sitting at more humble tables.

The first English cookery book to give a recipe was Mrs Mary Eales Receipts of 1718.

The recipe did not include a process for making the ice smooth and it must have been

coarse with ice crystals. Ice being rare, ice cream was a luxury for the well off in all

countries and had to be made and served immediately, there being no way to store it for

any great time.

The second half of the nineteenth century was the period in which ice cream became a

treat for ordinary people. Italy continued to lead Europe in ice creamery and immigrants

to the UK from thee brought with them a tradition and expertise which led to the popular

name "Hokey Pokey" which is thought to derive from a corruption of the Italian for "try a

little". In other countries too, especially the United States, ice cream gained popularity.

The commercial harvesting of ice in cold climates and its transport to population centers

was a growth area from the earl nineteenth century. This ice trade made large volumes of

ice available at a realistic price and it became possible for ice cream sellers to offer a taste

of ice cream to the ordinary person. Ice was sold on glasses which were wiped clean and

re-used. These glass "licks" remained in use in London until they were made illegal in

1926 for reasons of public health. Ice cream edible cones were first documented by Mrs

Agnes Marshall in her book Fancy Ices of 1894.

14

The modern face of Amul

The nineties brought in some winds of change. Liberalization of the countries

economy was being talked about. In the milk business the scene had changed from one of

shortages of self sufficiency. While everything seemed to be going well, there was a

growing realization of the need to manage effectively the ever expanding milk business in

tune with changing times. Would the dairy managers be able to handle the business

through the existing systems and processes? Two factors needed attention (1) How to

cater to ever changing aspirations of the customers and, (2) How to improve the quality of

products and services that GCMMF offered. The organization had to brace themselves to

effect the change fast and with as little pain as possible. Information technology had to be

incorporated in our systems and the organizations made learning organization through

perpetual training and retraining.

In 1994, to facilitate the above information GCMMF decided to introduce the

concept of Total Quality Management (TQM) with its twin pillars of customers focus and

continuous improvement. This package entailed employee involvement, waste reduction,

problem solving techniques and improvement of the processes, together with continuous

training. Shri B.M. Vyas who had then just taken over as the managing director of

GCMMF took up this gamble and decided to lead the organization from the front. He was

ably assisted by Shri James Joseph (now in U.S.). Six years down the line and

organization has been transformed.

15

DISTRIBUTION NETWORK

16

Amul

Baroda Dairy

C&F

Agencies

Sub Distributor Retailers

Retailers

Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw material like milk

from different places of Gujarat to Baroda dairy. When ice cream is fully prepared and

packed than it’s transferred to different states via air-conditioned trucks. The C&F agents

store it in big deep freezer rooms. From C&F the ice cream is delivered to different

distributors. And from distributes the ice cream is delivered to different retailers and sub

retailers. And finally the consumers purchased from the retailers.

17

GUJARAT COOPERATIVE MILK MARKETING

FEDERATION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food

products marketing organisation. It is a state level apex body of milk cooperatives in

Gujarat which aims to provide remunerative returns to the farmers and also serve the

interest of consumers by providing quality products which are good value for money.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.41 million

No. of Village Societies: 11,615

Total Milk handling capacity: 7.4 million litres per day

Milk collection (Total - 2004-05): 2.08 billion litres

Milk collection (Daily Average 2004-05): 5.71 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing Capacity: 2340 Mts per day

18

Amul’s Values

Customer orientation

Commitment to producers

Integrity

Cooperation

Excellence

Leadership

Quality

Innovation

Growth orientation – new products

Belongingness

Pride in organization

Employee satisfaction

19

Amul’s Mission

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the

customers of the world, through excellence in marketing by our committed team.

Through cooperative networking, we are committed to offering quality products

that provide best value for money.

20

Journey 2005

GCMMF will be an outstanding marketing organization, with specialization in

marketing of food and dairy products, both fresh and long life, with customer focus and

information technology integration.

The network would consist of over 100offices, 7500 (4000 urban, 3500 rural)

stockists covering at least every taluka headquarter town, serving nearly 10 lakh outlets

with a turnover of Rs. 10,000 crores, and serving several cooperatives.

GCMMF shall also create a market for its products in neighboring countries.

21

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit

"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning

"priceless", are found in several Indian languages. 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. (Turnover: Rs. 29

billion in 2004). Today Amul is a symbol of many things. Of 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' organisation. And of a

proven model for dairy development.

Check out this vast and ever-growing range of 'tasteful' Amul delectables!

22

LIST OF PRODUCTS MARKETED

Breadspreads:

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

23

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

24

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

25

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,

Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Megabite, Cassatta)

26

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)

Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

United

27

Katayani

Himachal

Eden tower

Shri Krishna

Anant

Brindawan garden

Total order received :

From house hold : 175 ltrs

From retailers : 150 ltrs

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Bread Spreads

Amul ButterUtterly Butterly Delicious

Delicious Table MargarineThe Delicious way to eat healthy

Amul LiteLow fat, low Cholesterol Bread Spread

29

Powder Milk

Amul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk PowderA dairy in your home

Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.

30

Sagar Tea Coffee Whitener

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

31

Fresh Milk

Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

Amul Taaza Double Toned Milk

32

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Kool Chocolate Milk

33

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Shakti Toned Milk

34

Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

35

Cheese

Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

36

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

Gouda Cheese

37

For Cooking

Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

Cooking Butter

Amul PaneerReady to cook paneer to make your favourite recipes!

38

Utterly Delicious Pizza

Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

39

Masti Soups

40

Desserts

Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

41

Gulab Jamun Mix

Amul ChocolatesThe perfect gift for someone you love.

Amul Lassee

42

Health Drink

NutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

Amul Shakti Health Food Drink

43

Amul’s Strategic Thrust Areas

Build capability of marketing fresh products

Expand marketing of existing products

Identify and market new products

Rationalizing taxes

Integration through IT

Attract and retain quality manpower

Integration of cooperatives with common branding

44

FOUR P’S OF THE PRODUCT

PRODUCT: Amul ice cream has wide range of variety that consists of more than

hundred flavors available in the market including 20 new flavors, which is introduced in

this summer. As ice cream is an impulsive purchase item so, its sale depends mostly on

availability and variety.

PRICE: The price of Amul ice cream is very less compared to its competitors. In novelty

item the price of the flavors varies from Rs.2 to Rs22. The pricing strategy of Amul is, to

target each income group of the society. The cheaper price of ice cream is meant for

targeting the people with low income. Along with the low income group Amul is also

targeting medium as well as the premium segment by providing different flavors at

different prices.

PLACE: The distribution of the ice cream in Delhi is done through exclusive Amul

outlets situated in various locations. In Delhi, Amul has eleven distributors who supplies

ice cream to more than 3000 outlets. These eleven distributors are responsible for their

respective areas.

45

PROMOTION: Amul is a well-established brand name of GCMMF. For promotion of

the ice cream the company gives advertisement in newspaper and magazines. It gives

glow sign board to every retailer and also makes wall paintings on their request. Amul

uses their punch line ---“Real milk real ice cream” for the promotion.

46

SWOT ANALYSIS

STRENGTHS:

Amul is a reputed and well known company in India, its products are easily

recognized by the customers.

Amul has evolved from a single product company to Multi-product Corporation.

Its products range is spread over a wide spectrum, from milk and curd to ice

cream and chocolate.

Customers will at least think of using the product once and check its quality, as it

is the product of Amul.

47

WEAKNESSES:

It is good in quality but not better than Mother Dairy.

Advertisement is not frequent.

Mother Dairy has the advantage of being the market leader of packaged milk in

the market.

Price is competitive as compared to other brands in the market except mother

dairy but margin to the distributor is less than that of other brands.

Amul milk has been launched just one and half year back in Delhi, so awareness

among the people is low about the Amul milk.

48

OPPORTUNITIES:

There is a huge opportunity in milk market.

Mother Dairy is available since last so many years in the market, and it has

dominated this industry, so people need change.

If Amul provide a better taste and quality then it can swap most of the customers

of Mother Dairy with least effort.

Customers always believe that there is a chance of improvement.

Milk is basic necessity for daily use; everyone needs it daily for one or other

reason.

Average consumption of milk is 1-2 liter in each house.

In Delhi about 72% of total milk market is packaged milk market and rest is of

loose milk. So there remains a big area to be covered.

49

THREATS:

There is a very tough competition with other brands.

Mother Dairy is dominating milk in the market, quality wise and price wise.

Market is too price sensitive.

People are using Mother Dairy and other brands since so many years, so it is

difficult for them to suddenly change the brand and taste that has already been

developed. So it is really difficult to convince them.

50

MARKETING RESEARCH

The American marketing association defines marketing research as follows:

“Marketing Research is the functional links to the customers, consumers & public to

marketing through information. Information used to identify and define marketing

opportunities and problems; generate, define and evaluate marketing actions; monitor

marketing performance and improve understanding of marketing process.”

Marketing Research specifies the information requires addressing these issues,

designing the method for collecting information, managing and implementing the data

collecting process, analyzing the result and communicating the findings and their

implementations.

51

OBJECTIVE OF RESEARCH

“Establish a new direct channel between the distributor and consumers by

eliminating the retailers from the distributor channel with the aim to promote Amul milk

and to give better facilities and services to the consumers of Dwarka sub city.”

52

EXECUTIVE SUMMARY

Summer has started unusually early this year. And, as the mercury rises nobody is happier

than the Amul manufacturers who are already filling their iceboxes with dollops of new,

mouthwatering flavors.

Out there in front is the hungry-for-growth Rs 3,500-crore (Rs 35 billion) Anand-based

Gujarat Co-operative Milk Marketing Federation that markets the Amul brand of ice

creams. Within two year Amul’s sale progressed three times. Amul target strategic thrust

areas with logical extension. The plus point for this co-operative society is its Amul brand

equity, large procurement base of raw material, having processing technical know-how,

180 milk co-op network and plans to convert ice-cream into a mass product.

Amul started to expand his market share in Delhi under its `Hamara Apna Deep Freezer

(HADF)' scheme. Under this, retailers are encouraged to buy their own deep freezers for

vending ice creams, with Amul negotiating a discounted price on their behalf with

refrigeration companies like Blue Star, Voltas and Carrier and western.

53

This is as against the practice of the ice cream company itself providing the freezer at the

retailer's end, subject to the latter depositing a refundable security amount. "In the HADF

scheme, the retailer not only saves on the security deposit, but also enjoys the flexibility

arising from owning the asset and availing a direct five-year guarantee from the

manufacturer. These, together with our negotiating a discounted price on their behalf,

entails cost savings of Rs 5,000-8,000 per freezer depending on capacity and make. In

this scheme the retailer also get one stabilizer free.

HADF: Modelities

Step 1: Amul WD/FFR/PSM will collect DD/cash/cheque in favour of Deep Freezer

Company or their franchise along with order.

Step 2: retailer will sign an agreement for buying DF at subsidized rate and storing

GCMMF products only.

Step 3: DIC/OIC to verify all orders and agreements and forward the same to local office

of the DF Company.

Step 4: delivery to WD/Retailers directly as per modalities.

For booking of deep freezer the salesman or the PSM have to gone through with two

important stages:

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1) Call up ii) Follow on

Call up:

In call up the salesman have to go to the potential retailers like medicos, departmental

stores, confectioneries, std booths and the shops which are mainly opened till 11 p.m. The

salesman gives the detailed information to the retailers about the HADF scheme of Amul.

If the retailers find, that the scheme is beneficial for him then he gives the next date to the

salesman for further procedure.

Follow on:

In follow on the salesman have to go to those retailers who give some positive sign for

HADF scheme. The salesmen may have to go more then two or three times on the same

retail store for follow on. In follow on the salesmen try to convince the retailer more and

more for purchasing the deep freezer.

In call option we targeted those stores, which are open till 10:30 to 11:00 o’clock night

and are in residential areas. The most of the sale comes after dinner. The demands for

Amul bricks are more than novelties items because bricks are cheaper and contain more

volume than any other competitors.

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As a summer trainee I have to report at10:00 am in the morning to spectra agencies,

Karolbagh, which is one of the franchises of Amul. A spectra agency is the only one

franchises of Amul in central Delhi. It covers a very big area of Karolbagh, Patel Nagar,

Old and New Rajender Nagar, Purani Delhi, Paharganj, Cannaught Place e.t.c. The

agency is the sole supplier of Amul in this area. I have to visit all this areas for opening of

new outlets and more than one area in one day for calling. I have to maintain also the

DMR for daily basis. In DMR, we write the name, address and the reaction of the retailers

whom we visited in a day. Normally I visited more than eighteen to nineteen stores in a

day. Apart from calling, I also asked the retailers perception and customer reaction about

the Amul. I give information to the agency about the problem of existing retailers.

In call up, if we find that the retailer has already deep freezer and stocks some other

company ice cream than we perused them for keeping Amul too. Sometime the retailer

says yes and sometime no. But most of the time the retailers want to keep Amul.

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studies how research is done scientifically. Research

methodology has many dimensions.

The purpose of methodology is to describe the process involved in the research

work. This includes the overall research design, the data collection process, the sampling

process, the field survey, and analysis procedure.

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RESEARCH DESIGN

Research Design consists of three parts:

1. Exploratory Research

2. Descriptive Research

3. Causal Research

An exploratory research focuses on the discovery of idea and is generally based

on secondary data. It is preliminary investigation that does not have a rigid design. This is

because a researcher engaged in an exploratory study that may have to change his focus

as a result of new ideas and relationship among the variables.

A descriptive study is undertaken when the researcher wants to know the

characteristics of certain group such as age, sex, educational level, income, and

occupation etc.

A casual research is undertaken when the researcher is interested in knowing the

cause and effect relationship between two or more variables. Such studies are based on

reasoning along well-tested lines.

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DATA SOURCE

Data is generally of two types:

1. Primary data

2. Secondary data

Primary Data are those data specially collected for problem in hand. In this study

data were collected from primary sources in personal interview of retailers and interaction

with consumers by survey method.

These methods of data collection are quite popular. These are the major methods

of data collection in the research study.

Secondary Data are those data, which are collected for some purpose other than

helping and solving the problem in hand.

Sources of secondary data are:

Old reports

Company records

Magazines

Company web site (http://www.amul.com)

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SAMPLING PROCEDURE:

How should the respondents be chosen? To get the most feasible and accurate

result, simple random probability sampling method was adopted for direct interview of

retailers and cluster sampling was used to communicate the consumers from different

apartments of different sectors for the survey.

In simple random probability sampling, probability of being chosen as a sample

unit for each unit in the population is equal. Each sample unit from the population is

chosen randomly. Probability of being chosen as a sample unit depends upon the

population size and no. of sample units to be chosen.

While in cluster (area) sampling the population is divided into mutually exclusive

groups (such as city blocks, sectors etc.), and the researcher draws a sample of the groups

using random sampling. Sometimes researcher again draws sample units of respondents

from the selected groups, It is known as two step area sampling.

SAMPLE SIZE:

Distributors 1

Retailers 25

Consumers 1244

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FIELD WORK:

The field work for research was conducted between May 27, 2005 to July 02,

2005 spread all over the Dwarka sub city. This exercise involved face to face interview

with distributor and retailers. During the survey sample packs of Amul milk pauch and

curd have been distributed among the selected consumers, and their feedbacks have been

taken regarding those samples.

Apartments covered:

Harmony

Shahzahanabaad

Naveen

National

Green heavens

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RESEARCH APPROACH

Primary data can be collected in various ways: through observation, focused group,

surveys, behavioral data, and experiments. During this research data have been collected

using survey method. Survey method is best suited for descriptive research. Companies

undertake surveys to learn about people’s knowledge, beliefs, preferences, and

satisfaction, and to measure these magnitudes in the general population.

RESEARCH INSTRUMENT:

Questionnaire is most common research instrument in collecting primary data during

marketing research. A questionnaire consists of a set of questions presented to

respondents. Because of its flexibility, the questionnaire is by far the most common

instrument used to collect primary data.

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Analyzing & Interpretation

Total Milk Consumption (per day)

Total milk consumption 20200 Ltrs.

Mother dairy 10000 Ltrs.

Amul 2400 Ltrs.

Other packaged milk 1800 Ltrs.

Loose milk 6000 Ltrs.

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Mother Dairy has dominated milk industry in Delhi. Around 65% of total milk market in

Dwarka has been captured by Mother dairy. Other brands include Paras, Gopalji etc.

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Total Packaged Milk

Total consumption 13200 Ltrs.

Amul & Mother Dairy 12400 Ltrs.

Others 600 Ltrs.

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Only 8% of total Packaged milk market is of local brands.

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Packaged Milk Market in Terms of Volume

Total milk consumption 13200 Ltrs.

Mother dairy 10000 Ltrs.

Amul 2400 Ltrs.

Others 1800 Ltrs.

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Packaged Milk Market in Terms of Money

Total milk consumption Rs. 357420

Amul Rs. 39168

Mother dairy Rs. 289800

Others Rs. 284

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Amul had around 11% market share in Dwarka.

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Demand of Different Variants of Packaged

Milk

Total milk consumption 22200 Ltrs.

Full Cream 6660 Ltrs.

Tonned 14430 Ltrs.

Double Tonned 1110 Ltrs.

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Toned is the variant which is highly used.

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Demand of Different Variants of Amul Milk

Total milk consumption 2400 Ltrs.

Full Cream (Amul Gold) 840 Ltrs.

Standardized (Amul Shakti) 24 Ltrs.

Tonned (Amul Taaza) 1416 Ltrs.

Double Tonned (Amul Slim Trim) 120 Ltrs.

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Due to lack of advertisement Amul Shakti was used in least quantity.

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Availability of Milk on Retail Shops

Only Mother Dairy 16%

Only Amul 4%

Both & Others 80%

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Mother Dairy is highly dominated.

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Does Packing Play any Role in Promoting

Sales

Yes 24%

No 76%

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Quality and Taste are basic factors, which affect sales.

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Selling Price of Milk

At M.R.P. 84%

More than M.R.P. 12%

Less than M.R.P. 4%

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80

Improvement Possible with the Distributor

(Preference)

1. Credit Period

2. Replacement

3. Collection of Payment

4. Others

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Customer Purchase Milk Because of

Price 30%

Quality 50%

Packing 2%

Srevices 10%

Scheme 5%

Others 3%

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KEY PLAYERS

Key players in this industry are Mother Dairy, Amul, Paras, Gopalji. But Mother

Dairy dominates this industry. The reason for its success is that it is the first introducer of

packaged milk and ts quality and advertisement also play major role in its success.

As a pioneer in the packaged milk industry, Mother Dairy secured first-mover

advantage in the market. It has sustained this advantage through outstanding product

quality and a well-oiled distribution network. This has helped Mother Dairy to ensure that

its brand has the highest top-of-mind awareness among consumers. During the 1990s,

when the growth potential in the packaged milk market attracted new players, including a

couple of large industries, some observers thought Mother Dairy would take a hit. It

hasn’t the brand has actually grown in value and volume.

However, growing awareness of health and hygiene issues and increasing

prosperity have boosted the demand for branded pasteurized milk. In this scenario,

Mother Dairy is the best-placed brand. And it retains more than 80% share of the branded

milk in Delhi market despite the entry of new players.

Mother Dairy always rides an emotional wave with its advertisement campaigns.

It also attempts to elevate the brand to the status of a health icon- “Piyo Pure”

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Also the reason for its success is its quality. Still consumers feel that Mother

Dairy is better than any other milk in the market. It has captured the maximum share of

this industry.

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AVAILABILITY & VISIBILITY OF KEY

PLAYERS

Most of the milks are available at every shop. Mother Dairy is present nearly on

every shop as it is the necessity of the retailers to keep it so as to retain the customers.

Other branded milks are also present in every shop but they are uneven in availability.

In this tough competition in the milk industry availability is one of the factors for

success. When Britannia was launched, its advertising campaign was very attractive

therefore it created a huge demand in the market, but proper supply or adequate supply

was not there in the market, and quality and taste was as good as Mother dairy, and hence

its sales got down.

The customer are not as much brand loyal in this industry, they comes to the

retailer shop and ask for Mother Dairy milk but if it is not available then it is not that they

come out of the shop and search for Mother Dairy, in spite of this they take any other

milk which is advised by the retailer or supplied by the supplier (suppliers are those who

gives the home delivery of milk) because milk is not luxury but it is the necessity. So

keeping this point in view, Amul must be made available at every shop.

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Although Amul milk is available on most of the shops but there are some shops,

which are left uncovered by the sales agents, so the company needs to focus on covering

those uncovered shops in Delhi city.

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DISTRIBUTION PROCESS

PRODUCT FLOW

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Factory

Distributor

Retailers

Consumers

DISTRIBUTION PROCESS

There is a distributor for every milk in the sub city, his job is to ensure the

distribution of milk to each and every area and outlet in the sub city.

This distributor works as a representative of the company for the retailers. Further

this distributor ensures the supply of milk to the customers with the help of retailers.

Sometime distributor delivers the product directly to the customer.

So there are two main players in the distribution process:

1. Distributor

2. Retailers

The company delivers the product to the distributor with the help of C&F agent,

and the distributor further distributes the product to the customers with the help of

retailers. For this distribution distributor forms a team of sales agents. These sales agents

go to every market in the sub city and check for the demand and supply of milk for the

retailers. These sales agents work as a link between the retailers and the distributor.

Supervisors are appointed to check the working of these sales agents. The supervisor is

responsible for the working of his sales agents.

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TRADE SCHEMES

The company gives schemes to the distributor when the quantity is large. The

sole purpose of scheme is to encourage the purchase. These schemes may be in the form

of discount or in the form of gifts.

Other types of schemes are launched for the retailers to encourage the purchase of

milk. These schemes may be issued by the company or by the distributor also.

Retailers normally prefer the reduction in the net rate of the milk as a scheme.

They like scheme on which milk is free on the purchase of milk rather than anything else

is free on the purchase of milk. This creates problem for the retailers, e.g. suppose on the

purchase of one crate of milk company was giving two pouch of curd free. Now this will

create inventory problem for the retailers. First he has to store curds in the store. Secondly

sometime retailer demands the free gift by purchasing only half crate of milk and says

that he will purchase the rest half crate next day and then the scheme will be satisfied.

The biggest problem in such type of schemes is that customer demands for the

reduction in the net rate rather than anything else. So the retailer always prefer the

reduction in the net price rather than the scheme or they prefer the scheme in which milk

is free on milk. So that the net effect of the scheme is the reduction in price.

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RECOMMENDATIONS & SUGGESTIONS

This industry is most competitive industry. There are large numbers of competitors in

this field. In such condition a small loop may create a big problem. The condition is made

more though by Mother Dairy, which is dominating in this industry, so only a detained

study and full fledged effort can help in good sales to capture the market. Four things are

necessary to improve the sales in the sub city:

1. Service.

2. Advertisement.

3. Quality of milk.

4. Margin provided to the retailer and distributor.

I have found while talking to customers that they want a better service. If one is

providing better service than other, people go for it, they are agree to spend some money

also for a better service. So customers are giving more importance to service than to

money.

Advertisement is the most important step to improve sales. People are not loyal to

any brand; they purchase milk, which had an image in their minds. Before leaving their

home they already know for which milk they will ask the shopkeeper. And this image

comes from advertisement. In city distributing small pamphlets along with newspaper or

fixing posters or hoardings can do advertisement.

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Of course quality of milk is another issue, which can improve sales. In long run if

we want to succeed then we have to create a value for our milk in the mind of the

customers and that can be done by quality. The first priority must be to ensure that the

milk lack in taste by Mother Dairy as it is the main competitor.

These two above mentioned factors are tough to implement. The easiest step to

improve the sales in the market is the margin provided to the retailers. The reason for this

is simple Mother Dairy is best milk in the market and retailers do not want to sale it. They

are forced to sale it because customer demand for it. The reason why retailers do not

prefer to sale Mother Dairy is its margin. Retailers always try to sale milk other than

Mother Dairy because they provide good margin to them. The milks, which are best in

margin, are Paras and Gopalji. Therefore retailers always try to sale Paras and Gopalji

instead of Mother Dairy and Amul. Now if Amul can provide good margin to the retailers

then they will try to sale Amul instead of Mother Dairy. And once the milk becomes

established then the rates can be increased and the margin to the retailers can be

decreased.

The most important competitive a continuous basis is the biggest challenge for

producer. This is so because milk is a basic necessity (not a luxury) with little relationship

to personal income that is the milk consumption per person is not likely to vary

significantly by income level.

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CRITICAL SUCCESS FACTORS

More frequency of visit of sales personnel

More timely delivery of stocks

Better replacements

More credit period

Relaxation in collection of payment

Initiative on display by distributor

More schemes provided to the smaller outlets

Aggressive sales promotion schemes are needed due to stiff competition

More emphasis should be given on services

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LIMITATIONS

Marketing research suffers from several limitations. A large number of problems

which are caused by financial constraints, insufficient sample size, lack of personal

contact etc. marketing research only helps managers in decision making process. It

provides data and information’s to the managers but it can not be a substitute for

marketing.

Limitations of Survey:

In this industry, it is very difficult to find the exact figures as the consumption is

very low.

There is not a particular trend followed in this industry to promote sales. Actions

are taken according to the situations and the situation changes very fast in this

industry.

Sales price vary from retailer to retailer, as the cost price is different for different

retailers due to schemes given.

The number of shops are very large in number and it is very difficult to cover all

of them.

CONCLUSION

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Milk industry is very competitive industry and dominance of Mother Dairy makes

it tougher for other brands to establish in this field. So in order to compete in this market

everything should be perfect with main focus on distribution. The distribution must be

proper and retailers must be the main center of focus. They are the people who can make

difference.

Amul advertisement is coming on TV. So there is a possibility that sales will

increase as more and more people come to know about Amul milk. Advertisement can

bring the customers to the shops but after that the retailer is the key person. If he wants he

can sell any milk. Therefore it should be the combined effort of company and retailers to

improve the sales. Also people always prefer change so if we provide them better

substitute of Mother Dairy they will welcome this change.

RETAILER SURVEY FORM

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Name of the shop ___________________________

Address ___________________________

Tel.No. ___________________________

Q1) What are the milks you usually keep in your shop?

a) Mother Dairy

b) Amul

c) Paras

d) Gopalji

e) Others _______________

Q2) Rate these milks in terms of volume of sales from 1 to 3.

a) Mother Dairy

b) Amul

c) Paras

d) Gopalji

e) Others

Q3) Does packing play any role in promoting sales?

a) Yes

b) No

Q4) How you sold the milk?

a) At M.R.P.

b) Less than M.R.P.

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c) More than M.R.P.

Q5)How you get the delivery from the distributor?

a) Through rickshaw

b) Through tampo

c) Through mini truck

d) Others _______________

Q6) How would you compare the services of Amul and Mother Dairy on the following?

(Rank 1 to 5)

Amul Mother Dairy

a) Frequency of visit of sales ____ ____

personnel

b) Timely delivery ____ ____

c) Display support ____ ____

d) Any other ____ ____

Q7) Is there any improvement possible with distributor on the following parameter?

(Please tick )

Yes No

a) Credit period ____ ____

b) Collection of payment ____ ____

c) Replacement ____ ____

d) Any other ____ ____

Q8) Customer purchase milk because of:

a) Price

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b) Quality

c) Packing

d) Scheme

e) Others ______________

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CONSUMER SURVEY FORM

Name of consumer ___________________________

Address ___________________________

Tel.No. ___________________________

Q1) Which brand of milk do you consume?

a) Mother Dairy

b) Amul

c) Paras

d) Gopalji

e) Other _____________

Q2) Which variant of milk do you use?

a) Full Cream

b) Standardized

c) Tonned

d) Double Tonned

Q3) How much milk you purchase daily?

a) Full Cream _____ Ltrs.

b) Standardized _____ Ltrs.

c) Tonned _____ Ltrs.

d) Double Tonned _____ Ltrs.

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Q4) How do you get milk?

a) From retailers

b) From supplier

c) From other ______________

Q5) How much do you pay to the retailer/supplier for the milk?

a) FCM Rs._____

b) STD Rs._____

c) Tonned Rs._____

d) DTM Rs._____

Q6) If you are getting home delivery, is supplier charging extra cost for the delivery?

a) Yes Rs._____ per (Liter/Day)

b) No

(For those who are not currently using Amul)

Q7) Have you ever used Amul milk?

a) Yes

b) No

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Q8) If no, then do you want to taste it at least once?

a) Yes

b) No

Q9) If you find it better than your current brand, then will you continue using it?

a) Yes

b) No

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BIBLIOGRAPHY

BOOKS.

Marketing management by Philip Kotler

Published by Pearson Education Pvt. Ltd, Indian Branch, 482 F.I.E. Patpargang

INTERNET WEBSITES

www.Amul.com

www.google.com

www.indiatimes.com

www.infoline.com

MAGAZINES.

India today, April 19, 2004, Page no-36

INSIGHT-The Consumer Magazine, May-June 2003, Page no – 6-12

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