SUMMER TRAINING REPORT ON

“TO IDENTIFY DISTRIBUTION GAP IN THE LOCAL RETAIL

MARKET FOR AMUL BEVERAGES, CHOCOLATES, CHEESE AND
GHEE”

Submitted in Partial Fulfilment of the requirements for the Post

Graduate Diploma in Management (PGDM) 2018-20

UNDER SUPERVISION OF: SUBMITTED BY:

DR. RAJ KUMAR SINGH ANKIT BHARUKA
( Professor and Dean (R&D)) PG/24/016

School Of Management Sciences

Varanasi
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 DECLARATION
I hereby declare that the project entitled, “TO IDENTIFY DISTRIBUTION GAP IN THE LOCAL
RETAIL MARKET FOR AMUL BEVERAGES, CHOCOLATES, CHEESE AND GHEE” is my original
work under the guidance of DR. RAJ KUMAR SINGH (Professor and Dean (R&D)) towards
partial fulfilment of the requirements of the PGDM course. I have utilized the requisite
concepts and applied the required methodologies to analyse the primary data collected to
reach the conclusion present in the report.
I claim the report to be my indigenous work and have not been presented anywise for any
purpose.

ANKIT BHARUKA

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 ACKNOWLEDGEMENT
First of all I would like to thank Professor P.N JHA (Director of SMS Varanasi) to provide me
this opportunity and platform. It is great honour to work with such an organisation which is
India’s largest dairy company. I am immensely grateful to DR. RAJ KUMAR SINGH (Professor
and Dean (R&D) of SMS Varanasi) and Miss Aparajita Pandey (TSI AMUL) for his continuous
support and guidance while pursuing the project and for providing me his valuable time to
structure the report. Without his help, valuable inputs and guidelines, the completion of this
project would not have been possible.
I also want to thank Dr. Amitabh Pandey (Coordinator PGDM) and Mr Veeresh Tripathi (Co-
Coordinator PGDM) for providing me this opportunity.
Research work is combined effort, so one should thank all who has helped in making the
report purposeful. Hence I take this opportunity to thank all that have been instrumental in
helping me to prepare this report.
Mr. Kumar Nilabh (Branch Manager)

Miss Aparajita Pandey (TSI )

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 CONTENTS

CHAPTERS: PAGE NO:

Section-A
1. Introduction
A. Industry Overview 5-8
B. Company Overview 9-20
2. Experiential learning 21

Section-B
1. Introduction of project
2. Literature Review 22

3. Research Methodology 23

4. Data Analysis, Result & Interpretation 24-39

5. Findings & Conclusion 40-43

6. Recommendations 45

Annexure 46-50

Bibliography 51

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 INTRODUCTION
Industry Overview: Major Players:

Amul Industries Pvt Ltd

Amul Industries Pvt Ltd was founded in the year 1946. Its headquarter is located in Anand
India. It is one of the top dairy companies in India. It is offering a product range includes
paneer, butter, cheese, ghee, ice-cream, chocolate, milk powders etc. The leading dairy
company is managed by the co-operative body, the Gujarat Co-operative Milk Marketing
Federation Ltd. It is one of the leading food brands in India.
Andhra Pradesh Dairy Development Cooperative Federation Limited
Andhra Pradesh Dairy Development Cooperative Federation Ltd is one of the leading dairy
companies in India. It is offering a wide range of products prepared from milk. Its product
range includes curd, butter milk, ghee, paneer, doodh peda, and butter. The leading dairy
company is also growing product range to meet the changing customer needs. It has the huge
share in the daily use of dairy products.
Karnataka Co-operative Milk Federation
Karnataka Co-operative Milk Federation is one of the top dairy companies in India. It is
offering a range of products like paneer, curds, pedha, milk. The entire system works through
the chain of farmers. The company has reached into even rural areas of Karnataka. It is known
for its quality products that it distributes into even remote areas.
Kwality Ltd
The company was started in the year 1992 as Kwality Dairy. It is one of top private sector dairy
companies in India. It is offering a range of innovative products and currently enjoy the huge
presence in Northern India. It has the manufacturing unit in leading Indian states. It is
committed to fulfilling all quality standards. It is one of the top companies in the Institutional
segment.
Mehsana District Co-operative Milk Producers Union Ltd (Dudhsagar Dairy)
The company was founded in the year 1963. Its headquarter is located in 1963. It is one of
the top dairies in Asia. It is the member of state level Gujarat Co-operative Milk Marketing
Federation.
Mother Dairy Fruit & Vegetable Pvt Ltd
Mother Dairy is a famous dairy company that was founded in the year 1974. It is an Indian
company that produces and sells milk, milk products, and other edible products. Mother Dairy
is a subsidiary of the National Dairy Development Board (NDDB). This brand has seen to
establish itself as a noteworthy occurrence in the market of Indian dairy.

The brand is quite popular in Delhi and NCR region. The main strength of this company is its
existence in many sectors. It deals with milk and milk products which include ice cream, ghee,
paneer and other dairy products. Over the years since its production, this brand has
established a high trust among customers.

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The customers are satisfied with their products and the company mainly focuses on the
sentiments and demands of Indian customers. Due to their various products in this brand,
Mother Dairy is considered one of the top Amul competitors.

Schreiber Dynamix Dairies Pvt Ltd

Schreiber Dynamix Dairies Pvt Ltd was started in the year 1945. It is headquartered in Green
Bay. It is one of the top dairy companies in India producing cream cheese, yogurt, process
cheese.
Tamilnadu Co-operative Milk Producers Federation Ltd
It is one of the top dairy companies in India, currently located in Tamil Nadu.
The Kerala Cooperative Milk Marketing Federation Ltd (Milma)
The company was founded in the year 1980. It is headquartered in Thiruvananthapuram. The
company product range includes milk products and cattle feeds.
The Orissa State Cooperative Milk Producers Federation Ltd
The Orissa State Cooperative Milk Producers Federation Ltd was founded in the year
1985. Company’s product range includes milk & milk products, horticulture products,
kandhamal organic products, cattle feed. Its headquarter is located in Bhubaneswar, Orissa.

Nestle

IT is a popular food processing company that is headquartered in Switzerland. It is a great

food processing company in the world. The several products of Nestle are bottled water, baby
food, medical food, breakfast cereals, coffee, tea, ice cream, dairy products, confectionery,
frozen food, snacks, and pet foods. The company has about 447 factories which are operated
in about 196 countries having approximately 339,000 employees.

Nestle is focused on improving the quality of food by providing various factors like wellness,
health, and nutrition in their food products. They provide the healthy and great taste that
caters to all the stages of a consumer’s life and at all time of the day. The company has been
continually in various research for giving innovative food and beverages. Due to their well-
known products and their quality, Nestle is considered one of the top Amul competitors.

Baskin Robbins

A strong Amul competitor, Baskin Robbins was founded in the year 1945. It is the largest
specialty store chain and the company is headquartered in Massachusetts, United States. The
company has popular for their 31 flavors which are significant in their logo.

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It also means that a flavor for each day of a month. But, at present, there are about 1000
flavors across the globe. It currently has their operations in about 50 countries and has about
7,500 stores. The company focuses on customer satisfaction and introduces new products
that they will like. This brand is a global brand and is available in many places around the
world. The company has set up many franchises which are also a reason for their expansion.
The main strength of this brand is the availability of various flavors.

The ice creams of Baskin Robbins are prepared with great care with good ingredients and
flavor that is liked by all. These ice creams stores can be seen easily available and are almost
found in many places. Due to their great customer service and keeping up with the trend,
Baskin Robbins is considered as a top Amul competitor.

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Dairy Industry in India:

Traditionally, all the milk in the past had been produced in the villages in India. Even today
the bulk of the country’s milk supply comes from the cattle owners in the rural areas. In the
old days, the farmers produced milk usually for their own consumption. Most of the milk was
converted by them into butter, ghee and butter milk, which constituted important food items
for the family. As marketing facilities for milk did not exist in those days, the surplus milk was
generally turned into ghee 4 for sale in the villages or in the near-by town markets. Later on,
this pattern changed and most of the surplus milk was either sold by the cattle-owners to the
consumers, in the nearby areas or collected by the middlemen for sale in the urban markets.

Modernisation of Dairy Industry:

Modernization of the dairy industry in India gained momentum with the commencement of
India’s first five Year plan in 1951. With the aim of catering to the requirement of clean milk
for the growing population in urban areas, the initial government action in this regard
consisted of organizing milk schemes for the large cities. The basic objectives of these
schemes was to facilitate arrangement for the efficient flow of milk produced in the rural
areas to the dairy plants located in cities and distribution of the processed milk to the urban
consumers. The working of the milk schemes was quite helpful for the development of the
dairy industry on modern lines in India

Co-operativization:

The establishment of milk co-operatives is another feature of the modern dairy industry in
India. For successful functioning of economic enterprises in our villages, it is necessary that
they are given a corporate identity. In most developed countries, co-operative have emerged
as the most cohesive organization of farmers. They provide the middle course between the
acquisitive and individualistic trends of economy on one hand and too much centralization
and regimentation on the other. They have the merit of combining freedom and opportunity
for the small man with benefits of large scale management and organization as also good- will
and support from the community. In India, though the co-operative movement was initiated
by the co-operative credit societies Act, 1904, dairy co operative could not be promoted till
the passing of the co-operative societies Act, 1912. though, with the establishment of the first
cooperative dairy society at Allahabad (U.P.) in 1913, the movement of dairy cooperative got
initiation and spread subsequently in different parts of our country. Its real large sale and
systematic break through could be noticed since 1946 when Kaira District Co-operative Milk
producers’ Union Limited (KDCMPUL) popularly known as ‘Amul Dairy’ which was set up at
Anand in the Gujarat state. The genesis of co-operative movement can be traced back to the
first half of the 18th century. Industrial revolution in U.K. had augmented the production at
the cost of ethics and values of mankind as man was replaced by machine. Because of lust
and lure for the production, it had directly resulted in the exploitation of the mankind and so
co-operative movement took birth in U.K. for improving the condition of labourer. From

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England, co-operative movement spread out all over the world and had been changed in to
the great movement.

India has been the leading producer and consumer of dairy products worldwide since 1998
with a sustained growth in the availability of milk and milk products. Dairy activities form an
essential part of the rural Indian economy, serving as an important source of employment
and income. India also has the largest bovine population in the world. However, the milk
production per animal is significantly low as compared to the other major dairy producers.
Moreover, nearly all of the dairy produce in India is consumed domestically, with the majority
of it being sold as fluid milk. On account of this, the Indian dairy industry holds tremendous
potential for value-addition and overall development. According to the latest report by
IMARC Group, titled “Dairy Industry in India 2018 Edition: Market Size, Growth, Prices,
Segments, Cooperatives, Private Dairies, Procurement and Distribution”, the dairy market
in India reached a value of INR 7,916 Billion in 2017.
Along with offering profitable business opportunities, the dairy industry in India serves as a
tool of socio-economic development. Keeping this in view, the Government of India has
introduced various schemes and initiatives aimed at the development of the dairy sector in
the country. For instance, the “National Dairy Programme (Phase-I)” aims to improve cattle
productivity and increase the production of milk expanding and strengthening and expanding
the rural milk procurement infrastructure and provide greater market access to the farmers.
On the other hand, the private participation in the Indian dairy sector has also increased over
the past few years. Both national and international players are entering the dairy industry,
attracted by the size and potential of the Indian market. The focus is being given to value-
added products such as cheese, yogurt, probiotic drinks, etc. They are also introducing
innovative products keeping in mind the specific requirements of the Indian consumers.
These players are also improving their milk procurement network which is further facilitating
the development of the dairy industry in India. Looking forward, the market is expected to
reach a value of INR 18,599 Billion by 2023, exhibiting a CAGR of around 15% during 2018-
2023.

India is the world's largest producer and consumer of dairy. The dairy industry in India was
worth INR 5,000 billion in 2016. India is also globally the largest milk producing country since
1997. In India, the co-operatives and private dairies have access to only 20% of the milk
produced. Approximately, 34% of the milk is sold in the unorganized market while 46% is
consumed locally. This is in comparison to most of the developed nations where almost 90%
of the surplus milk is passes through the organized sector.

The country is the worlds largest milk producer, accounting for more than 13% of the worlds
total milk production. It is the world’s largest consumer of dairy products, consuming almost
100% of its own milk production. There are many Opportunities And Challenges in The Indian
Dairy Industry.Dairy products are a major source of cheap and nutritious food to millions of
people in India and the only acceptable source of animal protein for a large vegetarian
segment of the Indian population, particularly among the landless, small and marginal
farmers and women. Dairying has been considered as one of the activities aimed at alleviating
the poverty and unemployment, especially in the rural areas in the rain-fed and drought-
prone regions. In India, about three-fourth of the population live in rural areas and about 38%

9
of them are poor. In 1986-87, about 73% of rural households own livestock. Small and
marginal farmers account for three-quarters of these households owning livestock, raising
56% of the bovine and 66% of the sheep population. According to the National Sample Survey
of 1993-94, livestock sector produces regular employment to about 9.8 million persons in
principal status and 8.6 million in subsidiary status, which constitute about 5% of the total
work force. The progress in this sector will result in a more balanced development of the rural
economy.

Milk Processing

The milk processing industry is small compared to the huge amount of milk produced every
year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian
phenomenon is the unorganised sector of milkmen, vendors who collects the milk from local
producers and sell the milk in both, urban and non-urban areas, which handles around 65-
70% of the national milk production. In the organised dairy industry, the cooperative milk
processors have a 60% market share. The cooperative dairies process 90% of the collected
milk as liquid milk, whereas the private dairies process and sell only 20% of the milk collected
as liquid milk and 80% for other dairy products with a focus on value-
added products.

Domestic Consumption

The huge volume of milk produced in India is consumed almost entirely by the Indian
population itself, in a 50-50 division between urban and nonurban areas. Increasingly,
important consumers of the dairy industry are fast-food chains and food and non-food
industries using dairy ingredients in a wide range of products.

Trade

In spite of having largest milk production, India is a very minor player in the world market.
India was primarily an import dependent country till early seventies. Most of the demand-
supply gaps of liquid milk requirements for urban consumers were met by importing
anhydrous milk fat / butter and dry milk powders. But with the onset of Operation Flood
Programme, the scenario dramatically changed and commercial imports of dairy products
came to a halt except occasional imports of very small quantities. In the 1990s, India started
exporting surplus dairy commodities, such as SMP, WMP, butter and ghee. The Agricultural
and Processed Food Products Export Development Authority (APEDA) regulated the export
and import of dairy products till early 1990s. However, in the new EXIM Policy announced in
April 2000, the Union Government has allowed the free import and export of most dairy
products.
The major destinations for Indian dairy products are Bangladesh (23.1%), UAE (15.4%), US
(15.6%) and Philippines (8.9%). In terms of products, SMP is the most important product
accounting for about 63% of total export volume, followed by ghee and butter (11.7%) and
WMP. Export figures clearly demonstrate that the Indian dairy export is still in its infancy and
the surpluses are occasional. Indigenous milk products and desserts are becoming popular
with the ethnic population spread all over the world. Therefore, the export demand for these
products will increase and hence, there is a great potential for export.

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On the other hand, there has been a sharp increase in import of dairy products (especially
milk powders) after trade liberalisation. As per the latest report of Foreign Trade Statistics of
December 2004, the imports of dairy products (milk and cream) has reached a cumulative
total of 22.145 million tonnes for the period April – March 2004, as compared to only 1473
million tonnes for the same period during the previous year. The main reasons for sharp rise
in imports are huge export subsidies given by developed countries (mainly the US and EU).

Key Areas of Concern in the Dairy Industry

1. Competitiveness, cost of production, productivity of animals etc. The demand for

quality dairy products is rising and production is also increasing in many developing
countries. The countries which are expected to benefit most from any increase in world
demand for dairy products are those which have low cost of production. Therefore, in
order to increase the competitiveness of Indian dairy industry, efforts should be made
to reduce cost of production. Increasing productivity of animals, better health care and
breeding facilities and management of dairy animals can reduce the cost of milk
production. The Government and dairy industry can play a vital role in this direction.
2. Production, processing and marketing infrastructure If India has to emerge as an
exporting country, it is imperative that we should develop proper production,
processing and marketing infrastructure, which is capable of meeting international
quality requirements. A comprehensive strategy for producing quality and safe dairy
products should be formulated with suitable legal backup.
3. Focus on buffalo milk based specialty Dairy industry in India is also unique with regard
to availability of a large proportion of buffalo milk. Thus, India can focus on buffalo milk
based specialty products, like Mozzarella cheese, tailored to meet the needs of the
target consumers.
4. Import of value-added products and export of lower value products With the trade
liberalisation, despite the attempts of Indian companies to develop their product range,
it could well be that in the future, more value-added products will be imported and
lower value products will be exported. The industry has to prepare themselves to meet
the challenges.

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 Company Overview:

VISION:

- Liberate our farmers from economic oppression and lead them to prosperity

MISSION 2020:

- Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020.

- To satisfy the taste and nutritional requirements of the consumers and increasing numbers of these

consumers today are to be found only at the large format stores. Hence, in order to reach these

consumers, we need to form equitable alliances with organized retail chains wherever possible.

Objective:

Is to ensure that the maximum share of the consumer’s rupee goes back to the milk producers.

Future Plan:

 Expansion of distribution network, creative marketing, consumer education and product innovation,

we will leverage effectively on rising income levels and growing affluence among Indian

consumers.

 Tapping the rising demand for new value-added products.

 Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth

rate of 4%
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 Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative

societies.

 Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush season.

 Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be

established in major metro market

 We plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020

 Milk drying capacity will also be enhanced by 200 MT’s per day

 Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000 MT’s per

day, by 2020.

 Total investments envisaged for creating all the required infrastructure would be Rs. 2,600 crores

(Rs. 26 billion) till the year 2020

The Product Range

Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese

Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese,

Cheese Range
Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly

Delicious Pizza

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk

Fresh Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul

Cow Milk

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza
UHT Milk Range
1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

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 Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Milk Powders Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and

Coffee Whitener

Amul Kool Flavored Milk, Amul Kool Café, Amul Kool Koko,Amul
Milk Drink
Kool Milk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Health Drink Stamina Instant Energy Drink

Brown Beverage Nutramul Malted Milk Food

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul
Curd Products
Lassee, Amul Flaavyo Yoghurt

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed
Amul Mithaimate
Milk

Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulab jamuns, Amul Basundi,Avsar

Sweets) Ladoos

Ice-cream Sundae Range, probiotic,,sugarfree and probiotic

Chocolate & Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,

Confectionery Amul Bindass, Amul Fundoo

Butter Margarine Amul lite Cheese

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Cheese Spread Paneer Pizza Cheese Pizza

Tetra milk Pouch milk Chocolates Milk shake

Flavored Milk Buttermilk Lassi Amulya

Amul spray SMP Nutramul Ghee

Mithai Mate Basundi Gulabjamun Fresh cream

Ice cream Shrikhand Dahi Yogurt

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Table: List of products marketed by GCMMF under brand name Amul

COMPETITION:

PRODUCTS MAJOR COMPETITORS

Cheese range Britannia cheese, Mother Dairy Cheese,

Gowardhan, Kraft

Mithaee Range (Ethenic sweets) Haldirams

Milk Range Mother Dairy, Nestle, Aarey, Gokul

Amul Ice-creams Quality Walls, Mother Dairy, Pastonjee,

Vadilal

Chocolates & confectionery Cadbury, Nestle, Parle

Table: Major competitors of Amul

SERVICES:

GCMMF is sole marketer of all products under brand AMUL and SAGAAR.

It is also the sole selling agent for the National Dairy Development Board’s (NDDB) edible oil –

‘DHARA’.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"

status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy

Product Exports for the last 13 years.

CLIENTS:

Major clients are the five stars hotels (TAJ, Oberoi etc.) and big restaurants throughout the country.

Many of Amul’s products are now available in the USA, Gulf Countries and Singapore.

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 The Birth of Amul

 It all began when milk became a symbol of protest

 Founded in 1946 to stop the exploitation by middlemen
 Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in
the state of Gujarat in western India. The exploitative trade practices followed by the local
trade cartel triggered off the cooperative movement. Angered by unfair and manipulative
practices followed by the trade, the farmers of the district approached the great Indian patriot
Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form
their own co-operative, which would have procurement, processing and marketing under
their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the
cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai
and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just
two village dairy co-operative societies and 247 litres of milk and is today better known as
Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of
Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese
Kurien,who was entrusted the task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should
become the basis of a National Dairy Development policy. He understood that the success of
Amul could be attributed to four important factors. The farmers owned the dairy, their
elected representatives managed the village societies and the district union, they employed
professionals to operate the dairy and manage its business. Most importantly, the co-
operatives were sensitive to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic
objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its
Chairman and asked to replicate this model throughout the country.

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The Amul Model
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation
of member unions at the state level.

Establishment of a direct linkage

between milk producers and
consumers by eliminating
middlemen

Milk Producers (farmers) control

procurement, processing and
marketing

Professional management

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The Amul model has helped India to emerge as the largest milk producer in the world. More
than 15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across
the country. Their milk is processed in 184 District Co-operative Unions and marketed by 22
State Marketing Federations, ensuring a better life for millions.

GCMMF

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product
marketing organisation with annual turnover (2017-18) US$ 4.5 billion. Its daily milk
procurement is approx 18 million lit per day from 18,554 village milk cooperative societies,
18 member unions covering 33 districts, and 3.6 million milk producer members.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known
as 'AMUL',which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money. Its
success has not only been emulated in India but serves as a model for rest of the World. It is
exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through
56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the
largest such networks in India. Its product range comprises milk, milk powder, health
beverages, ghee, butter, cheese, Pizza cheese,Ice-cream, Paneer, chocolates, and traditional
Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House"status. Many of our products are available in USA, Gulf Countries,Singapore, The

19
Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 years. For the year
2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export performance
and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant strides in
expanding its presence in International markets. Amul’s presence on Global Dairy Trade (GDT)
platform in which only the top six dairy players of the world sell their products, has earned
respect and recognition across the world. By selling milk powders on GDT, GCMMF could not
only realize better prices as per market demand but it also firmly established Amul in the
league of top dairy players in world trade.

For its consistent adherence to quality, customer focus and dependability, GCMMF has
received numerous awards and accolades over the years. It received the Rajiv Gandhi National
Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected
Company Award instituted by Business World. In 2003, it was awarded the The IMC
Ramkrishna Bajaj National Quality Award - 2003 - certificate of merit- for adopting
noteworthy quality management practices for logistics and procurement. GCMMF is the first
and only Indian organisation to win topmost International Dairy Federation Marketing Award
for probiotic ice cream launch in 2007. For the innovations, GCMMF has received AIMA-RK
Swamy High Performance brand award 2013 and CNN-IBN Innovating for better tomorrow
award in 2014. World Dairy Innovation Awards- 2014 for Best Marketing Campaign - "Eat Milk
with Every Meal". For the tree plantation activity GCMMF has received seven consecutive
Good Green Governance award from Srishti during 2007 to 2013.

The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to
dream. To hope. To live.

Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,549
Total Milk handling capacity per day 30 Million litres per day
Milk Collection (Total - 2017) 6.44 billion litres
Milk collection (Daily Average 2017) 17.65 million litres
Cattle feed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2017-18) Rs. 29220 Cr

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Sales Turnover Rs (million) US$ (in million)

2012-13 137350 2540

2013-14 181434 3024
2014-15 207330 3410
2015-16 229720 3500
2016-17 270850 4100
2017-18 292250 4500

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SWOT analysis of Amul:
Amul is one of the largest milk and milk based products manufacturer in India. Known to be
the founder of the white revolution in India, Amul has some strong products and brands up
its sleeves, strongest of them being Amul ice cream. Similarly, the Milk & Dairy products
company has a very in depth product portfolio including cheese, butter, curd, chocolates, ice
cream, and others. You can visit the following link to refer to the marketing mix of Amul.
However, following are the points in the SWOT analysis of Amul.

Strengths in the SWOT analysis of Amul

Very high market share in ice cream – Amul has the top market share in ice cream segment
which further helps it push other products into the market.

Excellent brand equity – amul is a beloved brand over the years and the contribution of amul
girl and her outdoor ads should specifically be mentioned here.

Excellent quality management – even though amul has such a wide and large distribution
network, hardly any quality complaints come for amul.

Strong distribution network – This is one company which is strong in urban as well as rural
distribution. You will find amul present even in small towns and villages.

Good product portfolio – Amul had a deep product portfolio when compared to any fmcg
company. It has many different variety of milk milk based food items like cheese, butter, milk,
buttermilk, lassi and many others. In ice creams too, amul has a large variety of flavours

Strong Supply chain – Vendors love Amul and amul is known for the white revolution in India.

Rural presence – Strong rural presence of Amul is its plus point. It is mentioned here
separately because this rural presence gives amul a strong competitive advantage

Weaknesses in the SWOT analysis of Amul

Cost of Operations – Amul’s operation is huge. And so is the cost. Plus the sector is such that
maintaining margins becomes difficult day by day. Thus, to face internationalplayers,
Amul needs to maintain the operations in the same manner it is carrying out today. It is not a
weakness but rather a constant challenge for Amul. In fact, during summers, the brand faces
severe shortage of supply.

Chocolates – Amuls expansion to chocolate has failed and hardly any product of Amul
chocolates is selling in the market. Amul needs further products to expand its product line and
increase bottomline.

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Opportunities in the SWOT analysis of Amul
Export – Amul can export its product to other countries thereby increasing its turnover and
margins exponentially.

Concentrate more on chocolate market – Amul has a no advertisement policy which creates
a problem for its foray into additional products. Amul should in fact have separate SBU’s and
concentrate more on increasing its product line through chocolates or other such products.

Threats in the SWOT analysis of Amul

Increasing competition in Ice cream segment – Many players, local and international, are
entering the ice cream market thereby taking away share of wallet from Amul. Kwality walls,
Naturals, London dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few brands
who are directly in competition with Amul.

BCG Matrix in the Marketing strategy of Amul

When we plot the BCG matrix, Amul has certain products which are stars whereas others are
cash cows. And in fact, Amul chocolates are question marks because they have very low
market share in a growing market. Amul ice cream and Amul butter can clearly be said to be
a cash cow because they have very high market share and the market in itself is growing with
the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, amul kool etc have a lot
of direct and indirect competition in their niche. However, when compared with the same
type of product, then Amul has a high market share. Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in huge
amounts to its C&F, who is required to have the right arrangements to store Amul products
in bulk. This C&F then transfers the products to distributors who in turn give it to retailers.
Furthermore, Amul has a direct sale team too which sells to modern retail. Besides this, the
company has exclusive Amul stores which sell all products of Amul brand. Thus, in the
marketing strategy of Amul, distribution is another strength of the brand.

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Products:

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25
 EXPERIENTIAL LEARNING

During the period of my training I was been there in sales and marketing department for
whole duration. There were several task assigned to me.

The first responsibility was to identify the shops where the products of amul is not available
and know the reason that why it is not available.

Second task was to place the beverage and chocolates at the shop, I have to go to the shops
and take the order and forward that order to the branch and next day when the salesman
visit to the shop he takes the order after that in next turn I have to visit to the shop from
where I have taken order and check whether the salesman has visited and supplied the order
or not.

Along with the above responsibility I have to collect the data regarding competitor’s price,
policy, schemes, availability and their promotional techniques.

I have to prepare the report on daily basis of the no of outlets visited and have to forward it
daily to the superior and on every Saturday I have to send the report of whole week to the
assistant manager.

I have to do horizontal expansion i.e. have to increase the numbers pf outlets in each beat.

In this tenure of my training I have learn how to interact with customers, dealers, retailers
and how to convince them to choose our product. I have also learn that how to place our
product among the competitor and how to differentiate our product with competitor.

In my view Amul is very strong player in the market because of its high quality products at
reasonable price that’s why there is always excess demand over supply. Overall performance
of the company is very good and also the working culture and environment is so much
friendly.

In my opinion the company should focus on installation of visi cooler,refridgerators and

deep freezers in the markets and the sizes of chocolates to increase their sale and more
market share

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 LITERATURE REVIEW
OBJECTIVE OF THE STUDY

1. To identify the retail gap and opportunity for amul product.

2. To assess the market penetration of focus product.

3. To analyse the market standing of Amul in comparison to its competitor.

SCOPE OF THE STUDY

 This study can be used in taking various marketing decisions in the Varanasi

 This can be used to know the gaps points in the markets

 This can be used in analysing the competitor in the market

 This can provide the information about the outlets which are dealing in amul Milk or
not

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 RESEARCH METHODOLOGY

Research design
Type of research Descriptive
Data to be used in the study Primary and secondary
Data collection method Survey method
Data collection instrument Questionnaire

Sampling design
Sample unit Retailors of Varanasi
Sample size 100
Sample technique Non probability sampling
(Convenience sampling)
Universe Varanasi

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 DATA ANALYSIS

Q-1 How much you are satisfied with the Amul’s products distribution to the retail outlet?

Cumulative
Frequency Percent Valid Percent Percent

Valid Dissatisfied 20 20.0 20.0 20.0

Highly dissatisfied 11 11.0 11.0 31.0

Highly satisfied 26 26.0 26.0 57.0

Neutral 16 16.0 16.0 73.0

Satisfied 27 27.0 27.0 100.0

Total 100 100.0 100.0

Data Interpretation: 27% of retailers are satisfied and 26% of retailers are Highly
satisfied with the Amul’s products distribution to the retail outlets.
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 Q-2 Which type of problem do you face from the distributor’s side?

Cumulative
Frequency Percent Valid Percent Percent

Valid Irregularity in getting the

15 15.0 15.0 15.0
supply

Irregularity of sales person 15 15.0 15.0 30.0

Lack of advertisements 15 15.0 15.0 45.0

Other 25 25.0 25.0 70.0

Unavailability of Products 30 30.0 30.0 100.0

Total 100 100.0 100.0

Data Interpretation: 30% of retailers face problem of Unavailability of products from the
distributor’s side and 25% retailers face Other type of problems from the distributor’s
side.

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 Q-3 When sales person visit at your store for taking the orders?

Cumulative
Frequency Percent Valid Percent Percent

Valid Daily 29 29.0 29.0 29.0

Infrequently 20 20.0 20.0 49.0

Weekly 14 14.0 14.0 63.0

Within 2-3 days 22 22.0 22.0 85.0

Within 4-5 days 15 15.0 15.0 100.0

Total 100 100.0 100.0

Data Interpretation: 29% of retailers say that Daily a sales person visit at their store for taking the
orders and 22% retailers say that a sales person visit Within 2-3 days at their store for taking the
orders.

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 Q-4 After how many days you receive the orders which you had placed?

Cumulative
Frequency Percent Valid Percent Percent

Valid more than a week 9 9.0 9.0 9.0

Within 2-3 days 31 31.0 31.0 40.0

Within 4-5 days 16 16.0 16.0 56.0

Within a day 20 20.0 20.0 76.0

Within a week 24 24.0 24.0 100.0

Total 100 100.0 100.0

Data Interpretation:
31% retailers receive the orders Within 2-3 days and 24% retailers receive the orders Within a week.

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 Q-5 Do you face any problem while returning the expired stocks?

Cumulative
Frequency Percent Valid Percent Percent

Valid No 48 48.0 48.0 48.0

Sometimes 24 24.0 24.0 72.0

Yes 28 28.0 28.0 100.0

Total 100 100.0 100.0

Data Interpretation: 48% retailers don’t face any problem while returning the expired stocks. 28%
retailers face problems while returning the expired stocks.

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 Q-6 How is the replacement procedure of expired stocks?

Cumulative
Frequency Percent Valid Percent Percent

Valid Excellent 22 22.0 22.0 22.0

Fair 38 38.0 38.0 60.0

Good 16 16.0 16.0 76.0

Poor 14 14.0 14.0 90.0

Very poor 10 10.0 10.0 100.0

Total 100 100.0 100.0

Data Interpretation: 38% retailers say that the replacement procedure of expired stocks is Fair and
22% retailers say that the replacement procedure of expired stocks is Excellent.

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 Q-7 How much you are satisfied with the schemes and other benefits provided by the company?

Cumulative
Frequency Percent Valid Percent Percent

Valid Dissatisfied 23 23.0 23.0 23.0

Highly dissatisfied 8 8.0 8.0 31.0

Highly satisfied 23 23.0 23.0 54.0

Neutral 17 17.0 17.0 71.0

Satisfied 29 29.0 29.0 100.0

Total 100 100.0 100.0

Data Interpretation: 29% of retailers are Satisfied with the schemes and other benefits
provided by the company and 23% of retailers are Highly satisfied with the schemes and other
benefits provided by the company.

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 Q-8 How much you are satisfied with the promotion policies adopted by the company?

Cumulative
Frequency Percent Valid Percent Percent

Valid Dissatisfied 26 26.0 26.0 26.0

Neutral 17 17.0 17.0 43.0

Satisfied 27 27.0 27.0 70.0

Very dissatisfied 10 10.0 10.0 80.0

Very satisfied 20 20.0 20.0 100.0

Total 100 100.0 100.0

Data Interpretation: 27% of retailers are satisfied with the promotion policies adopted by the
company and 26% of retailers are Dissatisfied with the Promotion policies adopted by the
company.

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 Q-9 How much you are satisfied with the pricing of Amul products?

Cumulative
Frequency Percent Valid Percent Percent

Valid Dissatisfied 14 14.0 14.0 14.0

Highly dissatisfied 10 10.0 10.0 24.0

Highly satisfied 25 25.0 25.0 49.0

Neutral 33 33.0 33.0 82.0

Satisfied 18 18.0 18.0 100.0

Total 100 100.0 100.0

Data Interpretation: 33% retailers are Neutral with the pricing of Amul products and 25% retailers
are Highly satisfied with the pricing of Amul products.

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 Q-10 How is the replacement procedure of unsold stocks?

Cumulative
Frequency Percent Valid Percent Percent

Valid Excellent 33 33.0 33.0 33.0

Fair 15 15.0 15.0 48.0

Good 17 17.0 17.0 65.0

Poor 10 10.0 10.0 75.0

Very poor 25 25.0 25.0 100.0

Total 100 100.0 100.0

Data Interpretation: 33% of retailers say that the replacement procedure of unsold stocks is
Excellent and 25% of retailers say that the replacement procedure of unsold stocks is Very poor.

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 Q-11 The profit margin on the Amul products (Beverage, Ghee, Cheese, Chocolate) with respect
to it’s competitors is

Cumulative
Frequency Percent Valid Percent Percent

Valid Equal 17 17.0 17.0 17.0

High 27 27.0 27.0 44.0

Low 20 20.0 20.0 64.0

Very high 26 26.0 26.0 90.0

Very low 10 10.0 10.0 100.0

Total 100 100.0 100.0

Data Interpretation: 27% of retailers say that the profit margin on Amul products is High
with respect to it’s competitors and 26% of retailers say that the profit margin on Amul
products is Very high with respect to its competitors.

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 Q-12 The quality of the Amul products (Beverage, Ghee, Cheese, Chocolate) with
respect to it’s competitors is

Cumulative
Frequency Percent Valid Percent Percent

Valid Excellent 34 34.0 34.0 34.0

Fair 15 15.0 15.0 49.0

Good 20 20.0 20.0 69.0

Poor 11 11.0 11.0 80.0

Very poor 20 20.0 20.0 100.0

Total 100 100.0 100.0

Data Interpretation: 34% of retailers say that the quality of Amul products is Excellent with
respect to it’s competitors and 20% of retailers say that the quality is good with respect to it’s
competitors.

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 Q-13 The demand of the Amul products (Beverage, Ghee, Cheese, Chocolate) with respect to it’s
competitors is

Cumulative
Frequency Percent Valid Percent Percent

Valid Equal 19 19.0 19.0 19.0

High 20 20.0 20.0 39.0

Low 10 10.0 10.0 49.0

Very high 33 33.0 33.0 82.0

Very low 18 18.0 18.0 100.0

Total 100 100.0 100.0

Data Interpretation: 33% of retailers say that the demand of the Amul products is Very high with
respect to it’s competitors and 20% of retailers say that the demand of the Amul products is High
with respect to it’s competitors.

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Q 14) Overall how much rating you will give to Amul distribution services?

Cumulative
Frequency Percent Valid Percent Percent

Valid 1 6 6.0 6.0 6.0

2 16 16.0 16.0 22.0

3 17 17.0 17.0 39.0

4 30 30.0 30.0 69.0

5 31 31.0 31.0 100.0

Total 100 100.0 100.0

Data Interpretation: 31% retailers give 5 ratings to the Amul distribution services and 30% retailers give 4
ratings to the Amul distribution services.

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 RETAIL GAP ANALYSIS
The gap is the difference between the estimated actual sale and its estimated potential sale.
In shorts GAP equals to OPPORTUNITY

The foremost objective of the project was to identify the outlets where the beverages are not
available and also to identify the opportunities for the beverage range.

From the sample taken above it was observed that:

 The gap for amul all beverage product:

YES 30%
NO 70%

There were approximately (30%) outlets where the all the beverage range of amul was not
available, so it can be said that a large portion of the market are having gaps where there is
the opportunity for our product.
Out of those 30% outlets approximately 75% of them were having VISI cooler installed.

 Is there any VISI cooler:

YES 84%
NO 16%

From total outlets which have been covered in the market there were approximately 84% of
outlets have installed VISI cooler of either Coca-Cola or PepsiCo so it’s great opportunity for
the amul to place their product to such outlets.

 Having Amul deep freezer:

YES 2%
NO 98%

Only 2% of the outlets were having deep freezer of Amul which is very less in comparison to
the deep freezer of other competitor.
This is one of the biggest reason for the gaps in the markets for frozen products.

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 Amul milk outlet:
YES 45%
NO 55%

55% of the outlets were not having proper availability of the milk which is the core product,
out of those 55% some of the outlets are not interested in milk because they are in rural area
and the demand for the milk is very less in such areas and some of them do not stock because
of the less margin.
Instead of these issues there are several gap points which can be filled by supplying the milk
on the outlets who are having demand.
Over all we can say that there are approximately 25% of the outlets were having opportunity
for milk.

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 FINDINGS
A-Retail Gap Findings:
1. Approximately 30% of the outlets were not having proper availability of all the
beverage range and out of those 30% 75% of them were having installed visi cooler.
2. Very few of the outlets were having amul deep freezer which can be a big reason for
low sale of frozen foods.
3. 25% of the outlets are still having gaps for pouch milk, this opportunity can be avail if
the supply is increased.
4. An average 25% of the outlets were having demand for the beverage.

Observations and Findings:

Observation:
The key observations are as follows:
1. The replenishment of orders is about 64% which is average.
2. About 40% of the Amul parlour and retailers says that often damaged materials came to them
3. The schemes/ discounts are often given by distributors to the retail stores.
4. The availability and product quality of Amul products is good
5. The satisfaction level of customers of Amul parlours and retail stores is good.
6. The replacement of defective material is poor and also the process is very complicated.
7. The damage material often came about 79% which is due to improper handling by distributors.

Findings:
1. 27% of retailers are Satisfied with the Amul’s products distribution to the
retail outlets.
2. 30% of retailers face the problem of Unavailability of products from the
distributor’s side
3. 29% retailers say that Daily a sales person visit at their store for taking
the orders.
4. 31% retailers receive the orders within 2-3 days which they had placed.
5. 48% retailers don’t face any problem while returning the expired stocks.
6. 38% retailers say that the replacement procedure of expired stocks is Fair.

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 7. 29% retailers are satisfied with the schemes and other benefits provided
by the company.
8. 27% retailers are satisfied with the promotion policies adopted by the
company.
9. 33% retailers are Neutral with the pricing of Amul products.
10. 33% retailers say that the replacement procedure of unsold stocks is
Excellent.

11. Most of the Amul retail outlets are not interested in running them for longer period due to very low
margins.
12. The sales of Amul product is average round the year.
13. The full varieties of Amul products are almost as par customers need.
14. Retailers want more margins from Amul.
15. People were highly satisfied with product quality of Amul.
16. Distributors could not provide all type of varieties because of less stock.
17. Due to negligence of the company the customers of Amul are shifting towards other company
18. More preference should be given to retail outlets as within the prescribed 1 km radius other retailers
also provide Amul products.

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47
 CONCLUSION
From the information collected above it has been concluded that the overall performance of
the Amul is above average in the market. The pricing policy of the company is fair and stable
and the quality of the products are superior. The distribution network of the company is also
performing well there were majority of outlets which have given positive response regarding
distribution and supply of products. There were some of the outlets which were dealing with
the problem of unavailability of the product but that can be filled if some steps can be taken.
The margin on the Amul products is less but the retailor then also keep product the demand
is high and they can recover their profit by selling at large scale. The margin on the Amul
products is maximum as compared to the other brand and also the demand for the Amul
products are increasing day by day and it is expected that in this upcoming winter the sale of
the Amul products will move further upwards.
Amul is having monopoly because of the quality and its pricing policy
demand is always remain at top level this is also reason for the gaps at some points in the
market.

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 LIMITATIONS
 The training was for short period of time that is why it was not possible to carry
detailed survey.
 The sample size was limited.
 This study is limited to the region of Varanasi only
 Behaviour of the some of the respondent was not positive.

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 Suggestions/Recommendations:

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 so only a detained study and fully 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. Replacement policy
4. Proper distribution
5. Special attention

1. Service
It is the critical factor in the success of any brand. There is no doubt that Amul services are good but it
needs little more improvement to completely capture the market.
2. Advertisement:
This is the most important factor that affects both the sales as well as the consumers’ attention. Amul
has to take aggressive advertising centered specially for its parlours and outlets.
3. Replacement policy
Amul is already blamed for poor replacement policy; it has to give certain kind of replacement policy to
make its product more acceptable to the parlours and outlets.
4. Distribution
The replenishment is average and often damaged material came on account of improper handling by
distributors due to this parlours find it difficult to retain the customer. The number of distributor
operating in an area also very low in number which also adds to improper distribution.
5. Special attention
The priority should be given to Amul parlours and outlets as compared to other retailers who also keep
products of Amul. Many a times it happens that outlets are not having the product but other retailers
are having the product.

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 ANNEXURE

Q-1 How much you are satisfied with the Amul's products distribution to the retail outlet?

a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly dissatisfied

Q-2 Which type of problem do you face from the distributor's side?

a) Unavailability of products
b) Lack of advertisements
c) Irregularity of sales person
d) Irregularity in getting the supply
e) Others

Q-3 When sales person visit at your store for taking the orders?

a) Daily
b) Within 2-3 days
c) Within 4-5 days
d) Weekly
e) Infrequently

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Q-4 After how many days you receive the orders which you had placed?

a) Within a day

b) Within 2-3 days

c) Within 4-5 days

d) Within a week

e) More than a week

Q-5 Do you face any problem while returning the expired stocks ?

a) Yes

b) No

c) Sometimes

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Q-6 How is the replacement procedure of expired stocks?

a) Excellent

b) Good

c) Fair

d) Poor

e) Very poor

Q-7 How much you are satisfied with the schemes and other benefits provided by the company?

a) Highly satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

e) Highly dissatisfied

Q-8 How much you are satisfied with the promotion policies adopted by the company?

a) Very satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

e) Very dissatisfied

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Q-9 How much you are satisfied with the pricing of Amul products?

a¶ Highly satisfied

b¶ Satisfied

c¶ Neutral

d¶ Dissatisfied

e¶ Highly dissatisfied

Q-10 How is the replacement procedure of unsold stocks?

a) Excellent

b) Good

c) Fair

d) Poor

e) Very poor

Q-11 The profit margin on the Amul products (Beverage, Ghee, Cheese, Chocolate) with respect
to it's competitors is

a) Very high

b) High

c) Equal

d) Low

e) Very low

54
Q-12 The quality of the Amul products (Beverage, Ghee, Cheese, Chocolate) with
respect to it's competitors is

a) Excellent

b) Good

c) Fair

d) Poor

e) Very poor

Q-13 The demand of the Amul products (Beverage, Ghee, Cheese, Chocolate) with respect to it's
competitors is

a) Very high

b) High

c) Equal

d) Low

e) Very low

Q- 14 Overall how much rating you will give to Amul distribution services

a) 1

b) 2

c) 3

d) 4

e) 5

55
 BIBLIOGRAPHY
http://www.amul.com
http://www.indianmirror.com/indian-industries/dairy.html
https://www.imarcgroup.com/dairy-industry-in-india
https://www.marketing91.com/top-11-amul-competitors
https://www.marketing91.com/swot-analysis-amul

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