CHAPTER -1

INTRODUCTION
DAIRY INDUSTRY
Dairy plays a significant part in numerous aspects of Indian society,
including cuisine, religion, culture, and the economy.
India has the world's largest dairy herd with over 300 million bovines, producing over 187
million tonnes of milk. India is first among all countries in both production and consumption
of milk. Most of the milk is domestically consumed, though a small fraction is also
exported. Indian cuisine, in particular North Indian cuisine, features a number of dairy
products like paneer, while South Indian cuisine uses more yogurts and milk. Milk and dairy
products play a part in Hindu religious practice and legend.
Dairy production in the Indian subcontinent has historical roots that go back 8,000 years to
the domestication of zebu cattle. Dairy products, especially milk, were consumed on the
subcontinent at least from the Vedic period. In the mid- to late 20th century, Operation Flood
transformed the Indian dairy industry into the world's largest. Previously, milk production in
India occurred mainly on household farms.
The economic impact of the dairy industry in India is substantial. Most of the milk produced
comes from buffalo; cow milk is a close second, and goat milk a distant third. A large variety
of dairy products are produced in India. Dairy imports into India are negligible and subject
to tariffs. The domestic industry is regulated by government agencies such as Ministry of
Animal Husbandry, Dairying and Fisheries; National Dairy Development Board; and Food
Safety and Standards Authority of India.

Dairy in India was once a largely subsistence-oriented occupation intended to produce milk
for home consumption. In 1919, a dairy animal census was conducted for the first time by
British colonial officials. A report authored in 1937 indicated a sub-optimal rate of milk
consumption in the country. It estimated a per capita intake of 7 ounces (200 g) per day
(inclusive of all dairy products), which was the lowest among all large dairy countries. Low
productivity of dairy animals and widespread poverty were the challenges in increasing
dairy production and consumption. Consumption varied by geographic and economic
conditions, but was on the whole quite low.
In the 1920s, modern milk processing and marketing technologies were introduced in India.
The National Dairy Development Board (NDDB) was founded in 1965. It
launched Operation Flood in 1969–70, a programme aimed at modernising and developing
the dairy sector using co-operatives. During this period, dairy co-operatives emerged as a
dominant force, as a result of the exploitative nature of private milk plants and vendors. Co-
operatives were based on the "Anand model" – a three-tier organisational structure

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comprising (i) village-level co-operative societies (the primary producers), (ii) district-level
co-operative producers' unions which collected the milk and operated processing plants, and
(iii) state-level federations for marketing. This model was evolved in Anand, Gujarat, having
begun there in 1946, and came to be adopted all over the country.
Operation Flood proceeded in three phases. Phase I (1970–1981) focussed on developing
dairy production in areas surrounding New Delhi, Mumbai, Kolkata, and Chennai. Phase II
(beginning 1986), a larger phase of the project, expanded investment to 147 urban centres
across the country. Phase III, which continued to the mid-1990s, expanded investment still
further, to a number of smaller towns. In addition to investments by the government of India,
several phases of Operation Flood were funded in part by the World Bank and European
Economic Community.
India has been the world's largest milk producer since 1997, when it surpassed the United
States.

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.
The dairy market in India reached a value of INR 13,174 Billion in 2021. Looking forward,
IMARC Group expects the market to reach INR 30,840 Billion by 2027, exhibiting at a
CAGR OF 14.98% during 2022-2027.
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 ini tiatives 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.

RATIONALE FOR CHOOSING THIS TOPIC:

Amul is one of the most popular and successful brands in India. With its wide range of dairy
products, Amul has now been a household name in the minds of Indian families.
Amul has constantly managed itself in staying relevant for all these years in the minds of the
customers ever since its foundation.

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I chose this topic because Amul has always been a prominent name in the dairy industry. Its
business model is a combination of a cooperative society and a consumer brand so it lets you
take a deeper dig at both of them.
Amul is the only brand in the dairy industry that is responsible towards both the consumers
and the producers.

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 OBJECTIVES OF THE
STUDY

1. To know awareness of people towards Amul products.

2. To know the preference of Amul products with comparison to other

competitive products.

3. To know the factors which affect the consumer’s buying behaviour while
purchasing dairy products.

4. SWOT Analysis of Amul

5. To study various factors such as quality, price, easy availability etc.

influencing the sale of a product.

LIMITATIONS OF STUDY

While carrying out the study, researchers always come across some limitations. Some
of the limitations faced during this research are:-

1. The study is limited to Delhi only.

2. Sample size is small so the conclusion cannot be generalized for the
complete dairy industry.
3. Lack of time is a major constraining factor.
4. Most of the concerned people are so busy that they did not have quality time
to fill the questionnaire judiciously and give detailed information.
5. Lack of proper experience on the part of the researcher in conducting such
studies in the past.
RESEARCH METHODOLOGY OF THE STUDY

Research is defined as careful consideration of study regarding a particular concern or

problem using scientific methods. According to the American sociologist Earl Robert Babbie,
“research is a systematic inquiry to describe, explain, predict, and control the observed
phenomenon. It involves inductive and deductive methods.”

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Research is conducted with a purpose to:

• Identify potential and new customers

• Understand existing customers
• Set pragmatic goals
• Develop productive market strategies
• Address business challenges
• Put together a business expansion plan
• Identify new business opportunities

SCOPE OF THE STUDY

The scope of the research is based on the dairy industry and it throws light on the
consumer preference of dairy products with respect to Amul. This study is done on 121
people who have responded on the questionnaire. The duration of this was 3 weeks. Target
geographical area was Delhi NCR. The data on questionnaire was collected via Google
forms.
RESEARCH DESIGN

Research design is the framework of research methods and techniques chosen by a researcher.
The design allows researchers to hone in on research methods that are suitable for the subject
matter and set up their studies for success. The design of a research topic explains the type of
research (experimental, survey research, correlational, semi-experimental, review) and also
its sub-type (experimental design, research problem, descriptive case-study).

The essential elements of research design are:

• Accurate purpose statement

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 • Techniques to be implemented for collecting and analyzing research
• The method applied for analyzing collected details
• Type of research methodology
• Probable objections to research
• Settings for the research study
• Timeline
• Measurement of analysis

Types of Research Design are as follows:

1. Descriptive research design: In a descriptive design, a researcher is solely interested

in describing the situation or case under their research study. It is a theory-based
design method which is created by gathering, analyzing, and presenting collected
data.
2. Experimental research design: Experimental research establishes a relationship
between the cause and effect of a situation. It is a causal design where one observes
the impact caused by the independent variable on the dependent variable.
3. Correlational research design: Correlational research is a non-experimental research
technique that helps researchers establish a relationship between two closely
connected variables.
4. Diagnostic research design: In diagnostic design, the researcher is looking to
evaluate the underlying cause of a specific topic or phenomenon. This method helps
one learn more about the factors that create troublesome situations.
5. Explanatory research design: Explanatory design uses a researcher’s ideas and
thoughts on a subject to further explore their theories. The research explains
unexplored aspects of a subject and details about what, how, and why of research
questions.
6. Exploratory research design: It is chosen to gain background information and to
define the terms of the research problem. This is used to clarify research problems and
hypotheses and to establish research priorities.

My project is a type of descriptive research design which is done by gathering, analysing and
presenting collected data.

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SAMPLING SIZE- 121 Respondents
SAMPLING TECHNIQUE- Simple Random Sampling technique

DATA COLLECTION

• Primary data has been collected by in the form of Questionnaire, which is the
basic method of collecting primary data, which suffices all research objectives.

• Secondary data sources like internet sites such as Amul.com, Wikipedia.org &
google.com have been used.

CHAPTER -2
ABOUT THE
TOPIC

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Type State Government Cooperative society

Industry Dairy Industry

Founded 1946; 76 years ago

Founder Tribhuvandas Patel
Headquarters Anand, Gujarat, India
Area served Worldwide
Key people R S Sodhi
(Managing Director)[1]
Products Dairy
Revenue ₹386 billion (US$5.1 billion)[2] (2020)
Owner Gujarat Cooperative Milk Marketing
Federation, Ministry of
Cooperation, Government of Gujarat
Number of 1,000 (Marketing Arm)
employees 3.6 million (3.6 million) (Milk producing
members)[2]

Divisions • Banas Dairy

• Dudhsagar Dairy
Website www.Amul.com

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Amul is an Indian Dairy State Government cooperative society, based at
Anand in Gujarat. Formed in 1946, it is a cooperative brand managed by the Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly controlled by
36 lakh milk producers in Gujarat, and the apex body of 13 district milk unions, spread across
13,000 villages of Gujarat. Amul spurred India’s White Revolution, which made the country
world's largest producer of milk and milk products. Word AMUL stands for Anand Milk
Union Limited. In August 2019, Amul became the first Indian dairy company to
enter Rabobanks’s Global Top 20 Dairy Companies list.

Tribhuvandas Kishibhai Patel under the guidance of Sardar Vallabhbhai Patel became the
founding chairman of the organization and led it until his retirement in the 70s. He hired
Verghese Kurien in 1949 and convinced him to stay and help with the mission. Under the
chairmanship of Tribhuvandas, Kurien was initially the general manager and helped guide the
technical and marketing efforts of Amul. Kurien became the chairman of Amul briefly after
Tribhuvandas Kishibhai Patel died in 1994. Kurien, founder-chairman of the GCMMF for
more than 30 years (19121 –2006), is credited with the success of Amul's marketing. Amul
has ventured into overseas markets. Amul was seen to come up with an association with
Cricket World Cup and Formula-One Racing. Amul was the official sponsor of the Indian
team for dairy products for the 2012 Olympic Games.
HISTORY

Amul cooperative was registered on 19 December 1946, as a response to the exploitation of

marginal milk producers by traders and agents in small cities. The prices of milk were
arbitrarily determined at that time. The government had given Polson an effective monopoly
in milk collection from Kaira and its subsequent supply to Mumbai.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk
directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them
low prices). He sent Morarji Desai to organize the farmers. In 1946, the milk farmers of the
area went on a strike which led to the setting up of the cooperative to collect and process
milk. Milk collection was decentralized, as most producers were marginal farmers who

9
could deliver, at most, 1–2 liters of milk per day. Cooperatives were formed for each village,
too. By June 1948, the KDCMPUL had started pasteurizing milk for the Bombay Milk
Scheme. Then-Prime Minister Lal Bahadur Shastri visited Anand to inaugurate Amul's cattle
feed factory.

On 31 October 1964, and sporganization in the village and spoke to farmers about their
cooperative and after returning to Delhi, he set in motion the creation of an organization,
the National Dairy Development Board (NDDB), to replicate the Kaira cooperative in other
parts of India. Under the leadership of Tribhuvandas Patel, in 19121, Amul celebrated its
25th Anniversary with Morarji Desai, Maniben Patel, and Verghese Kurien.

Under the leadership of Tribhuvandas Patel, the cooperative was further developed through
the efforts of Verghese Kurien and H. M. Dalaya. Dalaya's innovation of making skim milk
powder from buffalo milk was a technological breakthrough that revolutionized India's
organized dairy industry.

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With Kurien's help, the process was expanded on a commercial scale which led to the first
modern dairy of the cooperative at Anand. This cooperative would go on to compete against
established players in the market.

The trio's (T. K. Patel, Kurien, and Dalaya) success at the cooperative's dairy soon spread
to
Anand's neighborhood in Gujarat. Within a short span, five unions in other districts–
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach
sometimes described as the Anand pattern.

In 1970, it spearheaded the "White Revolution" of India. To combine forces and expand the
market while saving on advertising and avoid competing against each other, the Gujarat
Cooperative Milk Marketing Federation Ltd., an apex marketing body of these district
cooperatives, was set up in 19121. The Kaira Union, which had the brand name Amul with it
since 1955, transferred it to GCMMF. In December 1980, Prince Charles, Prince of Wales
visited India and Amul with H. M. Dalaya.

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In 1999, it was awarded the “Best of all Rajiv Gandhi National Quality Award”.

Technological developments at Amul have subsequently spread to other parts of India.

The GCMMF is the largest food products marketing organization in India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing organization
for products under the brand name Amul and Sagar. Over the last five and a half decades,
dairy cooperatives in Gujarat have created an economic network that links more than
3.1 million village milk products with crores of consumers in India. In 2007, Gujarat
Cooperative Milk Marketing Federation Ltd crossed US $1 billion in its sales turnover and
entered the elite club of food companies having this distinction from India. In one more
major achievement, the dairy cooperatives of Gujarat under the GCMMF fold crossed milk
procurement of 10 million kg per day mark on 27 December 2007, which is the highest ever
milk procurement achieved by any dairy network in India, be it private or cooperative. Also
the entire quantity of milk received was accepted without any milk holidays and was
processed successfully into milk and other milk products.

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On 30 September 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in
Mogar, Anand near their headquarters. The new plant has been built with an increased
capacity of 1,000 tonnes per month against the earlier 250 tonnes a month capacity. GCMMF
has invested around ₹3 billion in this project. It is a fully automated production factory with
minimal human intervention.

The establishment of Amul is known as the White Revolution.

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The White Revolution inspired the notable Indian filmmaker Shyam Benegal to base his
film Manthan (1976) on it. The film was financed by over five lakh (half a million) rural
farmers in Gujarat who contributed ₹2 each to its budget. Upon its release, these farmers
went in truckloads to watch 'their' film, making it a commercial success. Manthan won
the National Film Award for Best Feature Film during the 24th National Film Awards in
1977.

UHT PRODUCTS AND IMPACT

Over the years, Amul has been witnessing growth in this portfolio, with the segment growing
at 53%. Long-life UHT products for urban populations, like Amul Taaza, which are packed in
Tetra Pak cartons undergo UHT treatment to remove all harmful micro-organisms while
retaining the nutrition in the milk. Amul sells around 400,000–500,000 liters of UHT milk
and other value-added products per day and forecasts this demand to continue growing at
25%. The UHT products have enabled Amul to position itself as the market leader in
packaged milk segment without the need of maintaining cold supply chains.
ADVERTISING

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In 1966, Amul hired Sylvester da Cunha, the managing director of an advertising agency as to
design an ad campaign for Amul Butter. DaCunha designed a campaign as a series of
hoardings with topical ads, relating to day-to-day issues. It was popular and earned a
Guinness World Record for the longest-running ad campaign in the world. In the 1980s,
cartoon artist Kumar Morey and scriptwriter Bharat Dabholkar had been involved in
sketching the Amul ads; the latter rejected the trend of using celebrities in advertisement
campaigns. Dabholkar credited chairman Verghese Kurien with creating a free atmosphere
that fostered the development of the ads.

Despite encountering political pressure on several occasions, DaCunha's agency has made it a
policy of not

backing down. Some of the more controversial Amul ads include one commenting on the
Naxalite uprising in West Bengal, on the Indian Airlines employees' strike, and one depicting
the Amul girl wearing a Gandhi cap.

In 2013, Amul tweeted a picture featuring the Amul Butter Girl, implying that "freedom of
choice" died in 2013, in opposition to the Supreme Court of India, overruling the judgment
of the Delhi High Court and criminalizing homosexuality again.

On 17 October 2016, Amul butter girl celebrated 50 years since she first appeared in the
topical ad titled "Thoroughbread". The ad showed a jockey holding a slice of bread during the
horse race season in 1966. The impish Amul girl had appeared for the first time even before
that, with Eustace Fernandez showing her offering bedtime prayers with a wink and a lick of
lips, saying "Give us this day our daily bread: with Amul butter".

Their Ad on Aagey Badhta Hai India had an excellent response from the audience. It spoke
about how their Milk is seen as a household product with a catchy tune associated with it. It
has over 39 lakh (~4 million) views on YouTube.

In February 2020, Amul posted a picture of the Amul girl treating Joaquin Phoenix with
butter after his academy award win for his role in the 2019 film, Joker. Since Phoenix is a
vegan, Amul faced criticism from vegans in India and PETA for the poor knowledge of his
vegan activism and life.

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Amul posted a picture of its mascot Butter Girl celebrating with PV Sindhu for winning the
bronze medal in the Tokyo Olympics in August 2021.

AMUL GIRL

Amul Girl refers to the advertising mascot used by Amul, an Indian dairy brand. The Amul
girl is a hand-drawn cartoon of a young Indian girl dressed in a polka dotted frock with blue
hair and a half pony tied up. The Amul girl advertising has often been described as one of the
best Indian Advertising concepts because of its humour.

The Amul girl was created as a response to Amul's rival brand Polson's butter-girl. The idea
was conceived in 1967 once ASP (Advertising, Sales and Promotion) clinched the brand
portfolio from the previous agency FCB Ulka. It was executed by Mr. Sylvester Da Cunha,
the owner of the agency and his art director Eustace Fernandes on hoardings, painted bus
panels and posters in Mumbai. The mascot, since then, has been mobilized to comment on
many events of national and political importance like the Emergency in India in 1976.

In 1966, Amul decided to give their account to the advertising agency called Advertising and
Sales Promotion (ASP) to work on their ad campaign. Sylvester da Cunha, the then managing
director of the agency and Eustace Fernandez, art director decided to create something that

16
would grab the attention of every housewife in the country. Dr Verghese Kurien, then
chairman of the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) suggested a
mischievous little girl as a mascot with two requirements. It had to be easy to draw and
memorable as most of the advertising would be outdoor media which required hand painting
in those days and the hoardings had to be changed frequently.

In January 2021, a four-year-old child singer Esther Hnamte from Mizoram was used as the
Amul Girl. Hnamte became a media sensation with a music video covering A. R.
Rahman's Maa Tujhe Salaam, which was posted on YouTube on 25 October 2020. The poster
caricature shows Hnamte in a Mizo traditional attire waving the Indian tricolour, and bears
the slogan: "Esthereal performance! Amul vandeful taste."

SOME CONTROVERSIES

• Another ad during Ganesh Chaturthi which said, Ganpati Bappa More Ghya (Ganpati
Bappa take more). The Shiv Sena party said that if the ad wasn't removed, they would
come and destroy Amul's office.

• In 2011, when they came up with 'Maine kyaa khaya' ("What did I eat?", where the
word 'eat' bears the meaning of either directly accepting a bribe or indirectly profiting
from an illegal act, in the Hindi language) for Suresh Kalmadi over the 2010
Commonwealth Games Scam, they ran into trouble. "He was found guilty, he was in
jail, his party had abandoned him. But party workers in Pune actually pulled down the
hoarding," recalls a bewildered da Cunha

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• There have been some laughable protests as well. When they wrote ‘Satyam Sharam
Scandalum’ for Satyam Computer Services Ltd.'s disgraced chairman Ramalinga
Raju, he says, "We got a formal letter from the Satyam Board threatening us with dire
consequences: all their employees would stop eating Amul butter!".

• In July 2011, an ad criticizing Suresh Kalmadi led to trouble in Pune, while an ad

poking fun at Mamata Banerjee in December 2011 led to problems in Kolkata.
Subsequently, another ad with Banerjee was released all over India except in Kolkata
in March 2012.

• In 2001, Amul ran an ad campaign criticizing the Indian Airlines strike; the latter
threatened to stop offering Amul butter on their flights unless the ads were pulled.

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AMUL PRODUCTS

Amul Product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice
cream, cream, shrikhand, paneer, gulab jamuns, basundi, NutrAmul brand and others. In
January 2006, Amul plans to launch India's first sports drink Stamina, which will be
competing with Coca Cola's Powerade and PepsiCo's Gatorade.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst
quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports
drink Stamina.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.

1. AMUL BUTTER

Amul Butter is made up of pure milk fat. It consists of 100g, 500g, 50g, 20g, and 8.1g
packing. It can be eaten with bread, paratha, roti, nans, sandwiches etc. It has a composition
of minimum 80% Milk fat, 16% moisture mix, maximum 3% salt and 1% curd. It has to be
stored under 4 degree Celsius. Its shelf life is 12 months. Amul Butter topical is recognized as
one of the longest running advertisement campaign in the world. Several generation of Indian

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Consumers have grown up with the taste of Amul Butter for 6 decades. It can be used as a
topping on Pav Bhaji, Dals, Soups, Rice etc.

2. AMUL KOOL MILK SHAAKE

Amul Kool Millk Shaake comes with four awesome flavours which are Banana, Mango,
Strawberry and Badam. The price of this is Rs. 22 for 220 ml can. These are also sold in tetra
pack in three flavours i.e. Mango, Strawberry and Banana. The price of this is Rs 15 for 180
ml tetra brick. It is rich in nutrients and is the healthiest drink against any other soft drinks.

3. AMUL SPRAY INFANT MILK FOOD

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Amul Spray is used as an infant milk substitute for feeding bottles. It is made from partially
skimmed milk. It contains Vitamins A, D, K, B, C and minerals, Calcium, Magnesium,
Phosphorus, Iron, Copper, Iodine, Manganese and Zinc. Its shelf life is 12 months. It needs
an ambient storage condition. It has 18g Milk Fat, 22g Milk Protein, 50g carbohydrates and
added vitamins and minerals.

4. AMUL LASSEE

Amul Lassee is refreshing milk natural drink. It can be served at any convenient place like
parties, picnic and during hot summer. It is an easy to use delicious drink that refreshes you
immediately with goodness of nature. Its shelf life is 180 days from the day of
manufacturing. It needs a cool and dry condition with ambient temperature for storage.

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 5. AMUL STAMINA CAN

Amul Stamina is an energy drink which contains electrolytes, vitamin C, minerals,

calcium, milk proteins. It is essential for body growth and muscle building. It is available
in 200 ml Tetra Pack and 250 ml can. It has a shelf life of 120 days from the date of
manufacturing. . It needs a cool and dry condition with ambient temperature for storage.

6. AMUL PRO

Amul PRO is a malt based milk additive. It is to be consumed by adding directly to the hot or
cold milk. It not only enhances milk’s nutritive value but also makes milk a very tasty drink
for people of all ages, especially kids, who need milk and nutrition for healthy growth. It

22
comes from the House of Amul, the brand which is known all over for providing quality
products at value for money price.

7. AMUL CHEESE RANGE

Amul has varieties of cheese ranges and are preferred by many consumers on a daily basis
and are used mainly on bread, cooking, pizza etc. It can be eaten with bread, paratha, roti,
nans, and sandwiches.
The cheese types are outlined below:
• Amul Cheese Spreads
• Amul Emmental Cheese
• Amul Pizza Mozzarella Cheese
• Gouda Cheese

8. AMUL COOKING RANGE

Amul has varieties of cooking ranges. Ghee & Butter is commonly used and is preferred by
many consumers on a daily basis and is used mainly for cooking, making sweets, garnishing
etc. It can be spread with bread, paratha, roti, etc.
The types of ghee are outlined below:
• Amul Pure Ghee
• Amul Ghee
• Amul Yellow Cow Ghee
• Amul Cooking Butter

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 9. AMUL CHOCOLATES

Amul Chocolates are made from Sugar, Cocoa Butter, Milk Solids and Chocolate mass.
These are made from rich creamy milk & delicious cocoa. Amul chocolate syrup in bottle and
Jar are available. It can be used on ice cream, cakes, etc.

Amul has varieties of chocolates ranges and are preferred by many consumers on a

daily basis.
These are outlined below:
• Amul Fruit ‘n' Nut Chocolate Congrats Pack
• Amul Fundoo Milk Chocolate
• Amul Chocozoo
• Amul Cooking Chocolate – Dark Choco Slab and Milk Choco Slab
• Amul Rejoice Assorted Chocolate
• Amul Wafer Chocolate –Bindaaz
• Amul Chocolate Syrup

10. AMUL ICECREAMS

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Amul Icecreams are made from fresh milk and are available in different flavours. It can be
used to prepare sundaes, shakes, etc. Icecreams are much preferred by kids and also all
generations. It is very nice to consume them during anytime, anywhere.

Amul has varieties of ice-creams ranges and are preferred by many consumers on a daily
basis.
Some of them are outlined below:
• Simply Delicious Range
• Nature's Treat
• Sundae Range
• Cassatta

SWOT ANALYSIS

SWOT Analysis of Amul

Strengths
Amul has seen commendable growth in the past few years. The company continues its
innovative and unique style of business to sustain its position. The company is setting its
next target to achieve record sales with INR 50,000 crores target in 2020 to set a new growth
record.
Large Production Capacity
Amul is a brand managed by the GCMMF (Gujarat Co-operative Milk Marketing Federation
Ltd), a cooperative body that provides about 17.7 million liters of milk per day.
Best Quality

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 Amul has a strong and loyal customer base because of its standard quality production. It has
maintained its operations with required transparency for years and also maintained healthy
relations with the government and health ministry.

Weaknesses
The brand faced an internal crisis after it chose to advertise its products by disparaging its
rival competitors and their competitors demanded that Amul should stop its condescending
advertising immediately. It has tarnished Amul’s image as an irresponsible company that can
use unhealthy ways to beat the competition.
Operational Cost
The operational cost for Amul is enormous due to its massive structure. It is a major issue for
the problem as its pricing is very volatile and keeps changing with time.
Portfolio Expansions
Amul has a huge product portfolio and the company targets a large audience but it is not the
same with its production cycle, both the aspects don’t move proportionally. The best example is
its chocolate products that have not reached the same level of success as its ice creams.
Opportunities
Amul can invest highly in its chocolate section and generate huge revenue as chocolate is a
very common and tempting product. By accurate advertising and marketing, the company
can become a significant leader in the chocolate market as well. International Markets
Amul can explore its reach in the international markets. It can access more Asian markets
from neighbouring countries to other regions and operate accordingly. Its international
exports will increase its margins and turnover rapidly.
Per Capital Milk Consumption
Amul can increase its per capita milk consumption which is generally 97 liters per year,
much lower than that of countries like the USA or the EU. The demand for dairy products is
continuously growing, and Amul has enough resources to fulfil this demand.
Threats
Increasing Competition
Amul is continuously facing increasing competition in the Ice Cream sector. Many
companies and brands both local and foreign are invading its markets and overtaking its
sales, reducing its revenue. The major competitors for Amul in the ice-cream market are
Kwality Walls, Mother Dairy, Baskin Robbins, London dairy, and Havmor.
Negative Media Coverage
Negative media coverage has not been beneficial for Amul’s operations. It has affected the
company both externally and internally and is hampering its brand image.

26
•

LITERATURE REVIEW

In the study title “ A Comprehensive strategic evaluation of success of Amul model”

Dr. Shankar et al stated a strategy is an action that managers take to attain one or more
organizational goals. Strategic management can be dined as, it is continuous process
or relating the organization with its environment by suitable course of action
involving strategy formulation and ensuring that strategy has been implemented
effectively. When various steps of strategic management are well designed, they direct
• the organization to achieve the goals. When the company’s strategy yields superior
performance, it is considered in having a competitive advantage. Amul is a
cooperative organization which yields success in its business and set an example that a
cooperative organization could effectively sustain its business than a cooperate. In this
analysis, various strategies adopted by Amul are described. In the changing
environment of business, Amul initiates transformation in advance and exhibiting its
competencies

In the study titled “ICT application in a dairy industry” B.Bowondor et al stated the
use of Information Communication Technologies (ICT) in rural areas of Gujarat by
GCMMFL has made the operation of the dairy industry different. While it has always
been argued that investments related to ICT made in rural India are not effective, the
case of Amul proves that, where there is a will there is a way. Amul has become rural
India’s flag bearer in the IT revolution. This paper analyses the use of ICT in the dairy
industry by the Gujarat Cooperative Milk Marketing Federation Ltd. The system
makes it easy for the farmers to get the cash payment as soon as the milk is delivered.
The Amul experience indicates that if properly designed and implemented, the rural
poor can benefit from ICT platforms. Customization of IT platforms for use in rural
communities is emerging as a major opportunity for change.

In the study titled “Amul India: A social development enterprise” Harish Chawla stated
The Amul model narrowed the gap between the producer and the consumer, connecting
the dairy farmer to the consumer through its organic network. The success of this
model ignited interest across India, where this model was replicated, in essence leading
to the White revolution. The case provides sufficient insights and learnings to develop
a framework to comprehend the basic 28 essence of a prosperous social enterprise –
 CHAPTER -3
FINDINGS
&
ANALYSIS
FINDINGS

The analysis and interpretation of data involves the analyzing of the collected data and
interpretation of the same with pictorial representation such as pie charts bar graphs etc.

Q1 HAVE YOU EVER USED ANY OF THE AMUL PRODUCTS?

Yes 95.9%
No 4.1%

29
 FIG 1

4.1

YES
NO

95.9

INTERPRETATION:

According to the survey, it is found that 95.9% of 121 respondents have used any of the
Amul products atleast once in their life. In other words, it can be said that out of 121
respondents, most are found to be either consuming or had consumed Amul products.
Q2 WHAT DO YOU THINK OF AMUL AS A BRAND?

Very Good 44.6%

Good 50.4%
Average 5%
Poor 0%

FIG 2

GOOD
VERY GOOD
50.4 AVERAGE
44.6
POOR

INTERPRETATION:
30
According to survey, it is found that 50.4% of the respondents prefer Amul as a good brand
and 44.6% of the respondents prefer it as a very good brand. In other words, out of 121
respondents, 61 respondents prefer Amul as a good brand and 54 respondents prefer it as a
very good brand. It also shows that only 6 of the respondents prefer Amul as an average
brand whereas none consider it a below average brand.
Q3 WHICH PRODUCT DO YOU PREFER MOSTLY?

Butter 34.7%
Milk 40.5%
Ice Cream 19.8%
Chocolate 5%

FIG 3

19.8 34.7 BUTTER

MILK
ICE CREAM
CHOCOLATE

40.5

INTERPRETATION:

According to the survey, it is found that majority of the respondents prefer milk over butter,
ice cream and chocolate. In other words, 34.7% of the respondents prefer butter, 40.5%of the
respondents prefer milk, 19.8% of the respondents prefer ice cream and only 5% of the
respondents prefer Amul’s chocolates. This could also be interpreted as- Out of 121
respondents, 42 respondents prefer butter, 49 respondents prefer milk, 24 respondents prefer
ice cream and only 6 respondents prefer chocolate.
Q4 WHAT IS THE TAKE OFF OF THE PRODUCT YOU USE?

31
 Daily 51.2%
Weekly 43%
Monthly 5.8%

FIG 4
Series1

MONTHLY 5.8

WEEKLY
43

DAILY
51.2

INTERPRETATION:

According to the survey, it is found that majority of the respondents use Amul products daily.
In other words, 51.2% of the respondents use Amul products daily, 43% of the respondents
use it weekly and only 5.8% of the respondents use it monthly. It can also be interpreted as-
out of 121 respondents, 62 respondents use it daily, 52 respondents use it weekly and only 7
respondents use it monthly.
Q5 WHICH OF THE FOLLOWING PRODUCT DO YOU FEEL IS MORE
POPULAR?

Milk 52.1%
Butter 45.5%
Chocolate 1.2%
All are equally popular 1.2%

32
 FIG 5
1.2 1.2
MILK

45.5 BUTTER
52.1

CHOCOLATE

ALL ARE EQUALLY

POPULAR

INTERPRETATION:

According to the survey it is found that majority of the respondents feel milk as a more
popular product than butter. In other words, 52.1% of the respondent’s feels milk is more
popular, 45.5% of the respondents feel butter is more popular, 1.2% of the respondent’s feel
chocolate is more popular and rest 1.2% of the respondents prefer all are equally popular.
This can also be interpreted as- Out of 121 respondents, 63 respondents prefer milk as more
popular, 56 respondents prefer butter as more popular, 1 prefer chocolate and only 1
respondent feels that all are equally popular.

Q6 DO YOU FEEL AMUL IS COMPETITIVE TO MOTHER DAIRY AND

KWALITY WALLS?

Yes 86%
No 14%

33
 FIG 6
Series1

NO 14

YES 86

INTERPRETATION:

According to the survey, majority respondents feel that Amul is a good competitor to Mother
Dairy and Kwality Walls. In other words, 86% of the respondents feel that Amul is
competitive to Mother Dairy and Kwality Walls whereas 14% of the respondents feel that
Amul is not competitive to Mother Dairy and Kwality Walls. This can also be interpreted as-
Out of 121 respondents, 104 respondents feels Amul is competitive to Mother Dairy and
Kwality Walls whereas only 17 respondents feel that Amul is not competitive to Mother
Dairy and Kwality Walls.
Q7 WHOM DO YOU FEEL IS A STRONG COMPETITOR TO AMUL?

Mother Dairy 77.7%

Nestle 19.8%
Britannia 2.4%

34
 FIG 7
2.4

19.8

MOTHER DAIRY
NESTLE
77.7 BRITANNIA

INTERPRETATION:

According to the survey, it is found that majority of the respondents feel Mother Dairy as a
strong competitor to Amul. In other words, 77.7% of the respondents feel Mother Dairy as a
strong competitor to Amul, 19.8% of the respondents feel Nestle as a strong competitor to
Amul and only 2.4% of the respondents feels Britannia as a strong competitor to Amul. This
can also be interpreted as- 94 respondents feels Mother Dairy as a strong competitor to Amul,
24 respondents feels Nestle as a strong competitor to Amul and only 3 persons feel Britannia
as a strong competitor to Amul.

Q8 DO YOU FEEL AMUL’S AMUL GIRL CAMPAIGN HAD AN IMPACT ON THE

CONSUMERS?

Yes 57.9%
No 12.4%
Can’t Say 29.8%

35
 FIG 8

CAN'T SAY 29.8

NO 12.4 Series1

YES 57.9

10 20 30 40 50 60

INTERPRETATION:

According to the survey, it is found that majority of the respondents feels that Amul’s Amul
Girl Campaign had an impact on consumers. In other words, 57.9% of the respondents feels
Amul Girl Campaign had an impact on consumers, 29.8% of the respondents were not sure
about this and 12.4% of the respondents believes that Amul’s Amul Girl Campaign didn’t had
an impact on consumers. This can also be interpreted as- Out of 121 respondents, 70
respondents believes that Amul Girl Campaign had an impact on consumers, 36 respondents
were not sure about the campaign’s impact on consumers and only 15 respondents believe
that there was no impact of Amul’s Amul Girl Campaign on consumers

Q9 IN YOUR PERCEPTION, ARE AMUL PRODUCTS WORTH THE PRICE?

Yes 93.4%
No 6.6%

36
 FIG 9

6.6

YES
NO

93.4

INTERPRETATION:

According to the survey, it is found that majority of the respondent’s feels Amul products are
worth the price. In other words, 93.4% of the respondents feel Amul products are worth the
price whereas 6.6% of the respondents feel that Amul products are not worth their price. This
can also be interpreted as- Out of 121 respondents, 113 respondents believes that Amul
product are worth the price whereas 8 respondents believes that Amul products are not worth
the price.

Q10 YOU ARE BUYING AMUL PRODUCTS DUE TO?

Price 22.3%
Quantity 25.6%
Taste 75.2%
Brand Name 44.6%
Quality 0.8%

37
 FIG 10
Series1

75.2
44.6
22.3 25.6
0.8
PRICE QUANTITY TASTE BRAND QUALITY
NAME

INTERPRETATION:

As it was allowed to select multiple answers in the question, the overall percentage will
exceed 100%. According to the survey, it is found that most respondents buy Amul products
because of its taste and brand name. In other words, 75.2% of the respondents buy Amul
Products due to its taste, 44.6% of the respondents buy Amul products because of its Brand
Name, 22.3% of the respondents buy Amul products because of its price and 25.6% because
of its quantity and 0.8% of the respondents buy Amul products because of its Quality. This
can also be interpreted as- 91 responses are recorded for Amul’s taste, 54 responses are
recorded for Amul’s brand name, 27 and 31 responses respectively are recorded for Amul’s
price and quantity each and 1 responses for Amul’s quality
Q11 IF ANY OTHER BRAND STARTS PROVIDING PRODUCTS AT THE SAME
PRICE WITH THE SAME QUALITY AS THAT OF AMUL, WOULD YOU SWITCH
OVER?

Yes 11.6%
No 24%
Maybe 43%
Can’t Say 21.5%

38
 FIG 11

21.5 11.6

24 YES
NO
MAYBE
43 CAN'T SAY

INTERPRETATION:

According to the survey, it is found that majority of the respondents might shift to other brand
if its product would be available at same price with same quality as that of Amul. In other
words, 43% of the respondents might shift to other brand, 24% of the respondents won’t shift
to other brand, 21.5% of the respondents don’t know and only 11.6% would shift to other
brand. This can also be interpreted as- Out of 121 respondents, 52 respondents might shift to
other brand, 29 respondents will not shift to other brand, 26 respondents don’t know whether
they will shift or not and only 14 respondents will shift to other brand.
Q12 ARE YOU SATISFIED WITH THE QUALITY OF AMUL PRODUCTS?

Yes 95%
No 5%

39
 FIG 12

YES
NO

95

INTERPRETATION:

According to the survey, majority of the respondents were satisfied with the quality of Amul
products. In other words, out of 121 respondents, 115 were satisfied with Amul products.
Q13 HAVE YOU EVER VISITED ANY AMUL PARLOUR?

Yes 45.5%
No 54.5%

FIG 13

45.5 YES
NO
54.5

40
INTERPRETATION:

According to the survey, it is found that majority of the respondents have never visited any
Amul Parlor. In other words, 54.5% of the respondents have never visited any Amul Parlor
whereas 45.5% of the respondents have visited an Amul Parlor. This can also be interpreted
as- Out of 121 respondents, 66 respondents have never visited any Amul Parlor whereas 55
respondents have visited an Amul Parlor.
Q14 DO YOU WANT MORE AMUL PARLOURS TO BE SET UP IN YOUR
LOCALITY?

Yes 65.3%
No 34.7%

FIG 14

34.7
YES
NO
65.3

INTERPRETATION:

According to the survey, it is found that majority of the respondents want an Amul Parlor to
be set up in their locality. In other words, 65.3% of the respondents want an Amul Parlor to
be set up in their locality whereas 34.7% of the respondents don’t want an Amul Parlor to be
set up in their locality. This can also be interpreted as- Out of 121 respondents, 79
respondents want an Amul Parlor to be set up in their locality whereas 42 respondents don’t
want an Amul Parlor to be set up in their locality.

41
Q15 DO YOU FEEL CELEBRITIES SHOULD BE INVOLVED IN PROMOTING
AMUL PRODUCTS?

Yes 49.6%
No 50.4%

FIG 15

49.6
50.4
YES
NO

INTERPRETATION:

According to the survey, it is found that majority of the respondents don’t want celebrities to
be involved in promoting Amul products. In other words, 50.4% of the respondents don’t
want celebrities to be involved whereas 49.6% of the respondents want celebrities to be
involved in promoting Amul’s products. This can also be interpreted as- Out of 121
respondents, 61 respondents want celebrities to be involved whereas 60 respondents don’t
want celebrities to be involved in promoting Amul’s products.
Q16 WHAT MODE OF ADVERTISEMENT INFLUENCES YOU TO BUY A
PRODUCT?

Radio 4.1%
Television 51.2%
Magazines 7.4%

42
 Social Media 32.2%
Other 5.1%

60

50

40

30
51.2 Series1
20
32.2
10

4.1 7.4 5.1

RADIO TELEVISION MAGAZINES SOCIAL OTHER
MEDIA

INTERPRETATION:

According to the survey, it is found that majority of the respondents are influenced by
television to buy a product. In other words, 51.2% of the respondents are influenced by
television, 32.2% of the respondents are influenced by social media and rest are influenced
by radio, magazines, newspaper, YouTube ads, animations and other modes. This can also be
interpreted as- Out of 121 respondents, 62 respondents are influenced by television, 39
respondents are influenced by social media and rest are influenced by radio, magazines,
newspaper, YouTube ads, animations and other modes.
Q17 DOES COMPANY’S IMAGE ROLE PLAY A ROLE IN YOUR PURCHASING
DECISION?

Yes 90.9%
No 9.1%

43
 FIG 17

9.1

YES
NO
90.9

INTERPRETATION:

According to the survey, it is found that for majority of the respondents, company’s image
play a role in purchasing decision. In other words, for 90.9% of the respondents, company’s
image play a role in purchasing decision whereas for 9.1% of the respondents, company’s
image doesn’t play a role in purchasing decision. This can also be interpreted as- Out of 121
respondents, for 110 respondents company’s image play a role whereas for 11 respondents,
company’s image doesn’t play a role in purchasing decision

CHAPTER -4
SUGGESTIONS
44
 &
CONCLUSIONS
CONCLUSIONS:

It is well recognised that markets that are fragmented or producers that are too small to build
competitive infrastructures or those who are unable to manage technological changes in their
operational processes would benefit the most through a cooperative organization.
Consequently a large number of cooperatives have taken roots amongst producers of food.
However, there are interesting cooperative formations in India and China that are starting to
emerge amongst small producers in auto-components, small scale dyeing communities and
the power- loom operators in the textile industry. In these cases, the producers are coming
together to develop a common brand.
The example of AMUL provides a number of lessons for such organisations to compete
successfully in the face of increasing globalization and competition. More generally, the
AMUL case presents a successful model for operating in emerging economies characterised
by either large under-developed suppliers and/or markets with high potential.
Development of suppliers requires nurturing with a long term perspective. It is interesting to
note that this was achieved by AMUL through a process of education and social development
activities- activities that are not usually considered to be standard business practices. This
type of ‘out of the box’ vision is essential for developing innovative mechanism is new,
unfamiliar environments where building of relationship with consumers goes much beyond
marketing messages and useful product offerings.
Environments with underdeveloped markets and suppliers add one more dimension of
complexity relating to the relative pace of growth of these two areas. Through its pricing
strategy, AMUL has been able to balance the growth in markets and suppliers and has
achieved some degree of synchronisation.
The AMUL example is also instructive for multinational companies and others contemplating
operations in emerging markets by taking advantage of local small and medium enterprises.
In such cases large businesses are built by forging linkages with these enterprises thereby
changing the boundaries of the entering firm. Such a partnership reduces the operational risk
while providing a credible source of understanding the behaviour of the consumer through
the experience of partners. It also provides operational flexibility and makes the network
responsive to changes within and outside. To be effective it is important that decision making
be decentralised to the extent possible, with appropriate coordination mechanisms to ensure
consistency in the system. The leadership of such organisation have always been larger than
life and have been seen to play an important role in the building of the society.
SUGGESTIONS

1. Company should improve their services.

45
2. Company should provide deep freezer to retailers at lower prices.

3. Customers should be made aware of all the products by undertaking aggressive

promotional campaigns.

4. More innovative schemes should be introduced to the retailers.

5. Exclusive counters should be present so as to counter the competitors.

6. Proper advertisement should be made in electronic and print media so that

there is widespread awareness among the customers.

7. Instead of providing different dealer schemes, company should increase the

margin considerably so as to match the competitors.

8. Company should ensure that distributors cover the entire market.

9. Staff number should be increased so that the orders are delivered on time.

10. Finally, company requires overall improvement in new way.

BIBLIOGRAPHY

1. PRIMARY SOURCES

Personal interview in form of questionnaires

2. SECONDARY SOURCES

INTERNET SOURCES:

Amul.com
www.google.com
Wikipedia.org
Scholar.google

46
 ANNEXURE

QUESTIONNAIRE

NAME:

GENDER:

AGE:

OCCUPATION:

Q1 HAVE YOU EVER USED ANY OF THE AMUL PRODUCTS?

❑ YES ❑
NO

Q2 WHAT DO YOU THINK OF AMUL AS A BRAND?

❑ VERY GOOD
❑ GOOD
❑ AVERAGE ❑
POOR

Q3 WHICH PRODUCT DO YOU PREFER MOSTLY?

❑ BUTTER
❑ MILK
❑ ICE CREAM
❑ CHOCOLATE
Q4 WHAT IS THE TAKEOFF OF THE PRODUCT YOU USE?

❑ DAILY

47
 ❑ WEEKLY ❑
MONTHLY

Q5 WHICH OF THE FOLLOWING PRODUCT DO YOU FEEL IS MORE POPULAR?

❑ MILK
❑ BUTTER ❑
OTHER

Q6 DO YOU FEEL AMUL IS COMPETITIVE TO MOTHER DAIRY AND KWALITY

WALLS?

❑ YES ❑
NO

Q7 WHOM DO YOU FEEL IS A STRONG COMPETITOR TO AMUL?

❑ MOTHER DAIRY
❑ NESTLE ❑
BRITANNIA

Q8 DO YOU FEEL AMUL’S AMUL GIRL CAMPAIGN HAD AN IMPACT ON

CONSUMERS?

❑ YES
❑ NO ❑
CAN’T SAY

Q9 IN YOUR PERCEPTION ARE AMUL PRODUCTS WORTH THE PRICE?

❑ YES
❑ NO

Q10 YOU ARE BUYING AMUL PRODUCTS DUE TO?

❑ PRICE
48
 ❑ QUANTITY
❑ TASTE
❑ BRAND NAME ❑
OTHER

Q11 IF ANY OTHER BRAND STARTS PROVIDING PRODUCTS AT THE SAME PRICE
WITH THE SAME QUALITY AS THAT OF AMUL, WOULD YOU SWITCH OVER?

❑ YES
❑ NO
❑ MAYBE ❑
CAN’T SAY

Q12 ARE YOU SATISFIED WITH THE QUALITY OF AMUL PRODUCTS?

❑ YES ❑
NO

Q13 HAVE YOU EVER VISITED ANY AMUL PARLOURS?

❑ YES ❑
NO

Q14 DO YOU WANT MORE AMUL PARLOURS TO BE SET UP IN YOUR LOCALITY?

❑ YES ❑ NO

Q15 DO YOU FEEL CELEBRITIES SHOULD BE INVOLVED IN PROMOTING AMUL

PRODUCTS?

❑ YES ❑
NO

Q16 WHAT MODE OF ADVERTISEMENT INFLUENCE YOU TO BUY A PRODUCT?

49
 ❑ RADIO
❑ TELEVISIONS
❑ MAGAZINES
❑ SOCIAL MEDIA ❑
OTHER

Q17 DOES COMPANY’S IMAGE PLAY A ROLE IN YOUR PURCHASE DECISION?

❑ YES
❑ NO
RESPONSES:

50