PROJECT REPORT

ON
AMUL INDIA

Submitted To Punjabi University, Patiala

in partial fulfillment of the requirements of the degree of
MASTER OF BUSINESS ADMINISTRATION
Session 2023-2024

SUBMITTED TO SUBMITTED BY
Mr. Rohin Malhotra Jashan Saini
Asst. Professor Class Roll No. 154028
Uni. Roll No. 770701
M.B.A. 3rd Semester

ASRA Group of Institutions

ASRA INSTITUTE OF ADVANCED STUDIES, CHANNO

1
2
 DECLARATION

I, Jashan Saini hereby declare that the Major Research

Project, titled “AMUL INDIA” submitted in partial fulfilment of
the Masters of Business Administration is based on my
own work carried out during the duration of this course.

I further declare that all the information present in this report

is authentic to the best of my knowledge and this work has
not been submitted to any other Institute for any other
Degree, Diploma, or Fellowship.

JASHAN SAINI

iii
 ACKNOWLEDGEMENT

My project titled “AMUL INDIA” offered me an excellent

opportunity to and apply the concepts I learnt during my MBA
course, and helped me learn more about them through
practical application.

I would like to extend my thanks to Mr. Rohin Malhotra, my

faculty mentor during this project. He was very helpful
throughout the process, clearing my doubts and giving me
solid advice. It was an enriching experience working under
the guidance of Mr. Rohin Malhotra.

I would also like to thank all the faculty members at ASRA

Group of Institutions, as it was under their guidance that I
received the knowledge and skills that I used while working
on this project.

Jashan Saini

iv
 Executive Summary

Amul is one of the respected and best brands in India. Attempt is to present this
research paper for accumulating the marketing and strategies used by Amul. The
Marketing strategy of Amul covers various aspects of the business right from
segmentation and targeting to the overall mission and vision of the company and the
various parameters which the company executes to become the top brand that it has in
the market. AMUL, has developed a successful business model in the large emerging
economy. It was primarily responsible, through its innovative practices, for India to
become the world's largest producer of milk. The research work draws various insights
from AMUL 's experience that can be useful to cooperatives around the world as well
as to companies involved in doing business in broad emerging markets such as India.
Most of the developing nation’s economies have underdeveloped markets and
fragmented supply bases. Market failures are high for many of these small producers.
On the other hand, the size of both markets and suppliers is very large. As a result,
firms that identify appropriate business strategies that take these characteristics into
account are more likely to succeed in these markets. The following is a key lesson
from AMUL 's success: companies in such environments must simultaneously build
markets and suppliers to synchronize demand and supply planning, establish or
become part of the producer network to achieve economies of scale, concentrate on
operational efficiency to achieve cost leadership in order to allow for a low-price
strategy. In addition, a central focus is needed to bring together a diverse element and
a long-term approach. At the end, it has been concluded that Amul stands profitable at
same time competitive due to three strong practices namely Branding, matching
supply and demand and professional management. A subset of approaches adopted by
AMUL would still be very useful, however.

v
 Table of Contents

Contents Page No.

Title Page (i)
Certificate (ii)
Student Declaration (iii)
Acknowledgement (iv)

Executive Summary (v)

Chapter 1 – Introduction 1-8

Chapter 2 – Literature Review 8-12

Chapter 3 – Company Profile 13-19

Chapter 4 – Data Analysis and Interpretation/
Learnings 20-37

Chapter 5 – Conclusions and Suggestions 38-40

References (APA Referencing)
41

vi
 CHAPTER 1:
INTRODUCTION

1
1.1 Dairy in India
India has the world's largest dairy herd and is the world's largest producer of dairy
products by volume, accounting for more than 13% of global milk production. This is
due to India's 75 million dairy farms, which account for over half of all dairy farms
worldwide.

India has a competitive advantage over many industrialized countries since its
production costs are the lowest in the world, giving it a comparative advantage in milk
production.

Fig.1 The Indian dairy market is in fact worth more than 9 trillion Rupees ($128
billion).
Source: UN Food and Agricultural Organisation

On November 26, India commemorates National Milk Day, which falls on the
birthday of Dr. Verghese Kurien, the inventor of the popular dairy brand AMUL. The
AMUL Company has helped India become the world's leading producer of milk.

1.2 HISTORY OF AMUL:-

The narrative of AMUL sparked 'Operation Flood' and ushered in India's 'White
Revolution.' It all started with two local cooperatives and 250 litres of milk each day,

2
a trickle in comparison to the deluge it has become.

A farmer's life in Kaira District was very similar to that of his counterpart everywhere
else in India over seven decades ago. Their earnings were nearly completely based on
seasonal crops. Milch buffaloes provided unreliable income. The milk marketing and
distribution system was controlled by private traders and middlemen. Due to the
perishability of milk, farmers were forced to sell it for whatever they could get. They
had to sell cream and ghee for very less price on a regular basis. The private dealer
was the winner in this instance.

Farmers gradually realised that the only way to stop the trader from exploiting them
was to market their milk themselves. They needed to organise some sort of
organisation in order to do so. The Kaira District Cooperative Milk Producers' Union
Limited (commonly known as AMUL) was formally registered on December 14,
1946, as a result of this realisation.

Tribhuvandas Patel was the driving force behind AMUL, which was led by Sardar
Vallabhbhai Patel. Kaira District Milk Union Limited was established as a result in
1946. (Later renamed to AMUL). Tribhuvandas was the organization's first chairman
and led it until his retirement in the 1970s. In 1949, he enlisted the help of Dr.
Verghese Kurien. Dr. Kurien agreed to stay and assist with the mission once he
persuaded him to do so. Dr. Kurien served as the general manager of AMUL under
Tribhuvandas Patel's chairmanship, guiding the company's technological and
marketing initiatives. After Tribhuvandas Patel died in 1994, Dr. Kurien became
chairman of AMUL.

Kurien, the GCMMF's founder and chairman from 1973 to 2006, is credited with
AMUL's marketing success. AMUL has expanded its business into international
markets. AMUL has 2.28 million producer members and collects 5.08 million litres of
milk per day on average. Today, AMUL stands for numerous things. (High- quality
goods at cheap rates, the birth of a broad cooperative network, and a successful dairy
development model)

During the peak season, AMUL collects, processes, and distributes over a million

3
litres of milk and milk products on behalf of over a thousand village cooperatives with
500,000 farmer members. AMUL has become a symbol of millions of farmers' goals,
setting an example of freedom and self-reliance for all farmers to follow.

Fig. 2 Amul logo

1.3 MAIN BUSINESS:-

AMUL specialises in marketing, delivering, and distributing milk and milk products
produced by its owners. It has helped to give farmers with a sustainable rural
employment programme, in addition to producing urban jobs in dairy plants,
marketing, transportation, and distribution. AMUL has always attempted to stay one
step ahead of the competition. It has always served as an example and source of
inspiration for other cooperatives, as well as a model from which many have profited.

AMUL was one of the first large Indian companies to launch a website. This site was
utilised to create an intranet for AMUL distributors as well as a consumer cyber- store,
one of India's first examples of e-commerce activity.

Durga Agencies is a firm which is a supplier of AMUL dairy products.

4
 1.4 4 P’s of AMUL Company:

1.4.1 Product: Consumer requirements and changing lifestyles are tracked, and
products are developed to meet those needs. Product quality, as well as
packaging, are critical.

1.4.2 Pricing: Amul's key selling point is its inexpensive price. It takes aim at
multinational corporations by lowering the prices of its product portfolio.
The company's competitive advantage is its "backward integration"
method, which significantly reduces costs.

1.4.3 Place: A dedicated cool chain network is required for any food firm. In
comparison to any other corporation in India, Amul has the greatest cold
chain network (18000 refrigerators).

1.4.4 Promotion: Amul invests a little portion of their advertising budget, but it
is well spent. It possesses the strength of the Amul umbrella brand, which
is a well-known and trusted brand with over 1000 million households. The
co-operative has been able to get away with spending only 1% of its
earnings on advertising thanks to its brand mascot, the Amul girl. Its
competitors, on the other hand, spend anything from 7% to 10% on
advertising. The positioning of Amul is "Value for Money."

1.5 Marketing strategy adopted by AMUL

1.5.1 Segmentation: Amul's target market is the general public, and its goods are
enjoyed by individuals of all ages and demographics. This is because Amul
can be found in a variety of foods, including ice cream, milk, butter,
cheese, and other dairy products.

1.5.2 Targeting: Regular middle-class people are the target audience. This is due
to the fact that higher-end customers have a wide range of ice cream
options. Other products, such as butter and cheese, are targeted at both
high-end and low-end clientele.

1.5.3 Positioning: In terms of positioning, Amul is the most well-known brand

because it is the first name that comes to mind when someone mentions ice
cream, milk, cheese, butter, or any other milk-based product.

1.5.4 Competitive advantage: Amul has two distinct competitive advantages

over other brands. The supply chain is first and foremost. Amul's supply
chain has significant strength and stability due to its vast number of dairy
suppliers. As a result, it can create such large quantities. The company's
second competitive advantage is its diverse product selection, which

5
 allows it to operate Amul Shoppes as well as sell its items in retail.

1.5.5 BCG Matrix– When we look at the BCG matrix, we can see that Amul has
some products that are stars and others that are cash cows. Amul
chocolates, in reality, are a question mark because they have a small market
share in a growing market. However, when compared to similar products,
Amul enjoys a significant market share. As a result, these Amul goods are
stars.

1.5.6 Distribution strategy– Amul focuses on breaking down the bulk. It

provides massive quantities to its C&F, who must make the necessary
arrangements to keep Amul items in bulk. As a result, distribution is
another strength of Amul's marketing strategy.

1.5.7 Brand equity– Amul is in a very good position in terms of brand equity
because to its superb products, top-of-mind positioning, fantastic
distribution and supply chain channels, and lastly the point-of-purchase
branding and advertising of the Amul girl.

1.5.8 Competitive analysis– Amul is up against some powerful competitors that

have entered the market in the previous decade and are constantly
increasing. The majority of these ice creams began in a regional market
and then maintained their regional market share. Butter and cheese, as well
as other dairy products, face significantly less competition.

1.5.9 Customer analysis- Amul's typical consumers are from the Sec B and Sec
C segments, and are either middle class or low-income. Amul uses mass
marketing in general, therefore it primarily targets these two groups.

1.6 RESEARCH OBJECTIVES

1.6.1 To study the market demand of AMUL dairy products.

1.6.2 To study the consumption pattern of AMUL products.

1.6.3 To analyze sales of competitive brands in the market.

1.6.4 To determine the change in distribution channel during Pandemic.

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 1.7 Research Problem:

1.7.1 Seek the general perception of consumer towards Amul.

1.7.2 To know the consumer psyche and their behavior towards Amul
products.
1.7.3 To know awareness of people towards Amul products.
1.7.4 To know the preference of Amul products with comparison to Other
competitive brands.
1.7.5 To know the factors which affects consumer’s buying behavior to
purchase milk.

1.8 DATA COLLECTION

There are two types of data used in this research namely:-

1.8.1 PRIMARY DATA:

Primary Data involved in the research is the surveys from the customers
(various retailers) and potential customers of Durga Agencies.

1.8.2 SECONDARY DATA:

Secondary Data involved in the research is the information and contactdetails of the
customers (various retailers) of Durga Agencies.

1.9 RESEARCH TECHNIQUE

1.9.1 The research technique followed is Descriptive Research.

1.9.2 Survey technique used in the research is Probability Sampling.

1.9.3 Stratified Random Sampling was further used in the research.

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1.10 SAMPLE SIZE

DURGA AGENCIES 50
HONEY ENTERPRISE 10
Table 1

Honey Enterprises sells multiple companies product namely:-

• AMUL
• Britannia
• Coca-Cola
• Cadbury

8
 CH-2:

LITERATURE REVIEW

9
Various researcher researched about Amul and gave a lot of views about the
company and its product.

2.1 Salunkhe Pravin Pandurang (2013) examined the distribution system

of Amul. India is one of the world's major milk producers, with 127
million tonnes produced in 2011-2012, up 4.25 percent from the
previous year. India remained the world's largest milk producer in
2011-12. And it accounts for roughly 17% of global milk production.
In India, dairy cooperatives collected 10.5 million tonnes of milk, an
increase of roughly 10% over 2010-11. The cooperatives sold 8.6
million tonnes of milk last year, up around 4% from the previous year.

2.2 As his h Ku mar I s her , Sud hakar D w iw e d i a nd R a j iv S har ma

( 2017 ) e xa mine d “T he r e t a i ler ’ s satisfaction towards distribution
channel of AMUL products in Jammu”. In Jammu, convenience sampling was
used to choose stores and distributors from various locations throughout the
city. The data was examined using descriptive statistics, pie charts, and
percentages after it was collected from various retail outlets and wholesalers
utilising a well-structured pre-tested routine. Two AMUL product distribution
channels in Jammu were found in this study: (I) Company → Distributer →
Retailer → Consumer and (II) Company → AMUL retail outlet → Consumer.

2.3 Ra ma na Pr ak a s h ( 2006 ) e xa m ined t he d is t r ibut io n c ha nne l

of e f fect ive ne s s of ic e cr ea m market (Amul, Kwality Walls, etc) in
Hyderabad. Ice cream, a delicious and healthful dish that was long considered
a sophisticated item, is growing increasingly popular across all demographics
in recent years. Nobody is happier than ice cream manufacturers, who are
already filling their iceboxes with dollops of new, delectable flavours as the
temperature increases. Amul is India's largest food brand, with a revenue of
Rs. 3800 crores each year. They use the most sophisticated plants and
effective distribution systems to manufacture and market perishable dairy
products. The study's main goal was to figure out what elements are
impacting the effective distribution of Amul ice creams made by Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMFL) by comparing with
the Kwality Walls, the leading player in Hyderabad market.

2.4 Venkatakrishna V., Saraswathi P. and Radharao Chaganti (April 2002)

examined the white revolution- How Amul brought milk to India. A developing
country's most prominent aspect is the emergence of a number of
organizations—organizations oriented to satisfy the demands of, and
opportunities given by, that development. The development process' success is
dependent on how successfully those new organisations mature and serve the
demands of society as a whole. However, not all startup businesses mature and
grow. Some will have a rapid drop. What defines companies that thrive and
survive? This study proposes a framework for answering this

10
 question and demonstrates it using the history of a well-known Indian
cooperative's corporate strategy.

2.5 Pa nka j C ha ndr a a nd D e va nat h T i r up a t i ( Apr i l 2 003 ) B us i ne

ss St r a t eg ie s fo r Ma nag ing Complex Supply Chains in Large
Emerging Economies. A case study of a dairy cooperative, AMUL, in
western India, that has built a successful model for doing business in a major
rising economy is discussed in this paper. It was significantly responsible for
India being the world's greatest producer of milk, thanks to its innovative
procedures. This study draws a number of lessons from AMUL's experiences
that will be valuable to cooperatives around the world as well as companies
looking to conduct business in huge rising markets like India and China.

2.6 B. Bowonder, B.R. Raghu Prasad and Anup Kotla (July 2005) examined the
ICT application in a d a i r y i n d u s t r y : t h e e - e x p e r i e n c e o f
Amul. Gujarat Cooperative Milk Marketing
Federation Ltd. (GCMMFL) has revolutionized the
d a i r y b u s i n e s s by i m p l e m e n t i n g i n f o r m a t i o n a n d
c o m m u n i c a t i o n t e c h n o l o g y ( I C T ) in r u r a l p a r t s o f
G u j a r a t . W h i l e it h a s l o n g b e e n s a i d t h a t I C T
i n v e s t m e n t s in r u r a l I n d i a a r e i n e f f e c t i v e , t h e A m u l
s t o r y d e m o n s t r a t e s t h a t " w h e r e t h e r e is a w i l l , t h e r e
is a w a y . " A m u l h a s b e c o m e t h e f a c e o f t h e
i n f o r m a t i o n t e c h n o l o g y ( I T ) r e v o l u t i o n in r u r a l
I n d i a . T h e G C M M F L ' s u s e o f I C T in t h e d a i r y
b u s i n e s s is e x a m i n e d in t h i s r e s e a r c h . F a r m e r s c a n
r e c e i v e c a s h p a y m e n t as s o o n as t h e m i l k is
d e l i v e r e d t h a n k s t o t h i s s y s t e m . T he Amu l e xp er ie nce
s ho ws t hat I CT p la t fo r ms ca n be ne f it t he r ur a l po o r if
pr o per ly d e ve lo pe d a nd e xe cut ed. Cu s t o miz a t io n of IT
s yst e ms fo r r ur a l ar e as is e mer g i ng as a s ig nif ic a nt
t r ans fo r mat io n o ppo r t unit y.

LIMITATION of the studies conducted so far:

• The sampling design used was Convenience sampling, which is a non-

probability sampling method.

• The convenience factors were the availability and approachability of the

respondents.

• Since dairy products are used daily hence there is a need to trace the market

11
 and segment it for current scenario.

• The main information needed is the various types of brands available in the
market, and various other facts.

T he cur r e nt s t ud ie s fo cu s on t he cur r e nt st at e of t he
ma na ge me nt s yst e m, inc lu d ing co mp a ny su ppo r t , dist r ibut io n
net wo r k , d is t r ibut o r - r e t a i le r r e la t io ns hip s , pr o mo t io na l
act iv it ie s , a nd so o n.

12
CH-3: COMPANY PROFILE

13
 DURGA AGENCIES

Durga Agencies is a partnership firm located in Krishna market, Pahadganj.The

firm is a supplier of AMUL dairy products.

3.1 Durga Agencies deals in: -

3.1.1 Range of AMUL Butter:

3.1.1.1 AMUL Butter

3.1.1.2 AMUL Lite

3.1.1.3 Delicious Table Margarine

3.1.1.4 Garlic Butter

3.1.2 Range of AMUL Beverages Range:

Fig. 3 Amul beverages

(14)
3.1.2.1 AMUL Kool KoKo

3.1.2.2 AMUL Kool Milk Shake

3.1.2.3 AMUL Kool Café

3.1.2.4 AMUL Kool Chocolate Milk

3.1.2.5 AMUL Kool Flavoured Bottled Milk

3.1.2.6 AMUL Masti Spiced Buttermilk

3.1.2.7 AMUL Kool Lassi

3.1.3 Range of AMUL Cheese:

Fig. 4 Amul cheese

3.1.3.1 AMUL Pizza MozzarellaCheese

3.1.3.2 AMUL Cheese Spread

3.1.3.3 AMUL Cheese Slice

3.1.3.4 AMUL Cheese Cubes

(15)
 3.1.4 AMUL Cream

3.1.5 AMUL Pro (chocolate milk powder)

3.1.6 AMUL Cooking Range

3.1.6.1 AMUL Ghee

3.1.6.2 AMUL Yellow Cow Ghee

3.1.6.3 AMUL Paneer

3.1.6.4 AMUL Dahi

3.1.7 AMUL Range of Chocolates

3.1.7.1 AMUL Dark Chocolates

3.1.7.2 AMUL Chocominis

3.1.7.3 AMUL Amanado

3.1.7.4 AMUL Chocolate Syrup

3.1.7.5 AMUL Almond Bar

Fig. 5 Amul Chocolates

(16)
 3.2 BUSINESS MODEL

The firm follows B2B Business model. (Business to Business).

Business-to-business (B2B), also called B-to-B, is a form of transaction between

businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and

a retailer. Business-to-business refers to business that is conducted between

companies, rather than between a company and individualconsumer.

Durga Agencies receives dairy products from AMUL manufacturing unit in large
quantity. These products are then demanded by various retailers (customers)
depending upon their estimated sales. Then these products are distributed in
comparatively smaller quantities to different retailers.

Durga Agencies operates with both cash and credit transactions. The period ofcredit
depends upon various factors like:-

• Different Retailers
• Quantity Ordered
• Past Experience, etc.

(17)
3.3 AREAS OF OPERATION OF THE FIRM
(TARGET MARKET)

• Pahadganj
• CP (Cannaught Place)
• Gol Market
• Ramesh Nagar
• Moti Nagar

3.4 COMPETITORS OF THE PRODUCT OFFERED

COMPETITIVE
PRODUCT LOGO
BRAND

AMUL BRITANNIA
BUTTER BUTTER

AMUL CADBURY

CHOCOLATES CHOCOLATES

AMUL BRITANNIA
CHEESE CHEESE

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 AMUL
COCA-COLA
BEVERAGES

AMUL NESTLE

GHEE GHEE

Table 2: Amul and its competitors

19
 CH-4:
DATA ANALYSIS/
LEARNING

20
The explanatory research has been conducted through both primary data and
secondary data.
The data both qualitative as well as quantitative. The data had been collected
through Surveys and Data of Durga Agencies.

4.1 Market Constitution of Durga Agencies:-

MARKET RETAILERS
(CUSTOMERS)
Cannaught Place 15
Pahadganj 20
Gol Market 10
Ramesh Nagar 5
Moti Nagar 10
Table 3

Sales
Cannaught Place Pahadganj Gol Market Ramesh Nagar Moti Nagar

17%
25%
8%

17%
33%

Fig. 6
It is clearly visible through the survey that majority of the customers are from
Pahadganj market area.

(21)
As the business itself is located in Pahadganj market, it attracts a greater number of
customers.

4.2 Customers of Durga Agencies:-

DURGA AGENCIES 50

COMPETITORS 10
Table 4

CUSTOMER BASE
Competitors Durga Agency

17%

83%

Fig. 7

The survey was conducted from the already existing customers of Durga Agencies.
Comparatively a smaller number of potential customers were contacted due to lack of
information in times of pandemic.

(22)
 4.3 Tenure in dealing with AMUL Products:-

TIME PERIOD NUMBER OF RETAILERS

0-5YRS 21

5-10YRS 27

More than 10YRS 12

Table 5

TIME PERIOD
0-5YRS 5-10YRS <10YRS

20%
35%

45%

Fig. 8

From the survey conducted it was found out that almost 80% of retailers are dealing
in AMUL products from more than 5 years. 35% of retailers are dealing in AMUL
products from more than 10 years.
As AMUL is a very renowned brand and have maintained their market share in
different products, this has motivated the retailers to continue with sales of the product.

(23)
 4.4 Most Preferred Amul Product:-

PRODUCTS RETAILERS PREFRENCE

AMUL Butter 15
AMUL Cheese 15
AMUL Chocolates 1
AMUL Cream 10
AMUL Beverages 5
AMUL Cooking Range 14
Table 6

MOST PREFERRED AMUL

AMUL Butter AMUL Cheese AMUL Chocolates
AMUL Cream AMUL Beverages AMUL Cooking
Range

23% 25%

8%

25%
17%

2%

Fig. 9

According to the survey conducted through various retailers in different markets

AMUL butter, AMUL ghee and AMUL cheese are the most preferred products in the
market.
These three items are demanded by almost every retailer in the market. AMUL butter
and cheese is regularly used in both household as well ascommercial use, this led to
the increase sales of particular product.

(24)
 4.5 Least Preferred Amul Product:-

PRODUCTS RETAILERS PREFRENCE

AMUL Butter 1
AMUL Cheese 1
AMUL Chocolates 40
AMUL Cream 5
AMUL Beverages 8
AMUL Cooking Range 5
Table 7

LEAST PREFERRED AMUL

AMUL Butter AMUL Cheese AMUL Chocolates
AMUL Cream AMUL Beverages AMUL Cooking
Range
2% 2%

8%

13%

8%

67%

Fig. 10

In comparison, Amul chocolates and beverages are less preferred products among the
wide range of Amul products.

This is mostly due to variety of alternatives that pre-exist in market. AMUL

chocolates face a tough competition from Cadbury Chocolates and Nestle chocolates.
It has comparatively less customer base compared to customer base of competitive
product.

(25)
 4.6 Change in demand of product with increase in
prices:-

PRODUCTS CHANGE IN DEMAND

AMUL Butter 5
AMUL Cheese 7
AMUL Chocolates 4
AMUL Cream 9
AMUL Beverages 11
AMUL Cooking Range 24
Table 8

DEMAND CHANGES DUE TO

INCREASED
AMUL Butter AMUL Cheese AMUL
Chocolates
AMUL Cream AMUL AMUL Cooking
Beverages Range
8%
12%
40%
7%

15%

18%

Fig. 11

It is clear from the survey conducted that, if the prices of the AMUL dairy products
increase, the demand of AMUL ghee and beverages would decline sharply. From the
number of retailers surveyed, 40% of the retailers expected that demand of AMUL
ghee would fall.

(26)
 4.7 Change in demand of product with decrease in
prices:-

PRODUCTS CHANGE IN DEMAND

AMUL Butter 5
AMUL Cheese 7
AMUL Chocolates 4
AMUL Cream 9
AMUL Beverages 11
AMUL Cooking Range 24
Table 9

DEMAND CHANGES DUE TO INCREASED

PRICES
AMUL Butter AMUL Cheese AMUL
Chocolates
AMUL Cream AMUL AMUL Cooking
Beverages Range

8%
12%
40%
7%

15%

18%

Fig. 12

It is clear from the survey conducted that, if the prices of the AMUL dairy products
decrease, the demand of AMUL ghee and beverages would raise at higher pace. From
the number of retailers surveyed, 40% of the retailers expected that demand of AMUL
ghee would increase.

From the survey it is clearly visible that increase or decrease in prices of AMUL ghee
would affect its demand accordingly. The demand is highly elastic in this particular
product. The reason behind the highly elastic demand of AMUL ghee is due to the
already existing price of the product.

(27)
 4.8 Competitive brands products sales is done or not:-

YES 49
NO 11
Table 10

COMPETITIVE BRAND SALES

YES NO

18%

82%

Fig. 13

From the survey conducted through retailers, 82% of the retailers also sell the
products of competitive brands.

The sales of competitive brand products are carried out because the retailers have
heterogeneous customer base, so according to their demand they sell the products
needed.

(28)
 4.9 Name of the other competitive brands sold:-

COMPETITIVE BRAND NUMBER OF RETAILERS

BRITANNIA 18
NESTLE 15
CADBURYS 13
OTHER 13

Table 11

COMPETITIVE BRAND SALES BY RETAILERS

BRITANNIA NESTLE CADBURYS OTHER

22%
31%

22%

25%

Fig. 14

According to the survey 25% of retailers sell Britannia dairy products along with
AMUL dairy products. Nestle and Cadburys are also popular competitive brands in
the market.
AMUL butter and cheese faces competition with Britannia butter and cheese, and
AMUL chocolates faces a tough competition with Cadburys chocolates. Nestle ghee
also gives competition to the AMUL ghee in the market.

(29)
 4.10 Regular Customer base of Amul Dairy Products

NUMBER OF CUSTOMERS NUMBER OF RETAILERS

0-10 23
10-20 20
<20 17
Table 12

Regularity of Customers
0-10 10-20. <20

28%
39%

33%

Fig. 15

It was concluded from the survey that AMUL products enjoy a loyal customer base.
As almost 61% retailers have more than 10 customers weekly buying Amul products.

Regularity of customers reflect their liking towards a product, hence repeated

purchase of the product is there.

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 4.11 Change in demand of product with change in
season:

PRODUCTS RETAILERS PREFRENCE

AMUL Butter 13
AMUL Cheese 15
AMUL Chocolates 2
AMUL Cream 1
AMUL Beverages 33
AMUL Cooking Range 11
Table 13

CHANGE IN DEMAND WITH CHANGE IN

SEASON
AMUL Butter AMUL Cheese AMUL Chocolates
AMUL Cream AMUL Beverages AMUL Cooking
Range

15% 17%

20%

44%

3%
1%

Fig. 16

According to the survey conducted it was known that sales of AMUL beverages
depend upon change in season.
44% of retailers said that sales of beverages reduce in winters whereas increases in
summers. The sales of butter and ghee also boosts up in winter season.

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 4.12 Satisfaction with sales of AMUL dairy products:-

SATISFACTION (OUT OF 5) NUMBER OF RETAILERS

5 29
4 23
3 5
2 1

1 2
Table 14

SATISFACTION (OUT OF 5)
5 4 3 2 1

2%
3%
8%

49%

38%

Fig. 17

According to the survey conducted, almost 50% of retailers have rated 5 outof 5 in
satisfaction gained by sales of AMUL dairy products.

38% retailers have rated 4 out of 5 in satisfaction gained by sales of AMUL dairy
products.

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On the other hand, retailers rating 1 or 2 out of 5 are almost negligible constituting
to only 5% of total retailers surveyed.

4.13 Amul sales contributing to what amount of total

sales:-

AMUL SALES PERCENTAGE

NUMBER OF RETAILERS
(APPROXIMATE)
>25% 20
25%-50% 33
<50% 7
Table 15

It was concluded from the survey conducted that, 33 out of the total retailers
surveyed said that 25%-50% of total sales contributes to the sale of AMUL products.

AMUL SALES PERCENTAGE

>25% 25%-50% <50%

12%

33%

55%

Fig. 18

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Sales contributing to AMUL products out of total sales depend upon variousfactors
namely

3.13.1 Nature of Business

3.13.2 Size of business operations

3.13.3 Number of goods, retailors deal in, etc.

Sales of AMUL products take place regularly, varying differently in market

according to the retailors and their operations.

4.14 Unsubscribe to AMUL products in future?

PREFERRENCE NUMBER OF RETAILERS

YES 3
NO 48
MAYBE 9
Table 16

UNSUBSCRIBE AMUL PRODUCTS IN FUTURE

YES NO MAYBE

5%
15%

80%

Fig. 19

34
During the survey when it was asked about if retailors would unsubscribe AMUL
dairy products in future, 80% of retailers were interested in carrying the sales of
AMUL dairy products in future.

Only 5% of the retailers said they will discontinue the sales in future and 15%of the
retailers were not sure about the future scenario.

This portrays that most of the retailers are happy and satisfied with the sales of AMUL
dairy products.

4.15 Online order in times of pandemic:-

ONLINE ORDERS PREFEERED NUMBER OF RETAILERS

YES 57
NO 3
Table 17

ONLINE ORDERS PREFERRENCE

YES NO

5%

95%

Fig. 20

35
Distribution pattern undergone drastic changes, more and more telephonic orders
were entertained in times of pandemic.

4.16 Competitor Analysis using ANOVA

Null Hypothesis: The quality and price are comparatively affordable of Amul
Dairy products as that compared to its other competitors.

Hypothesis: The quality and price are comparatively affordable of Amul Dairy
products as compared to its competitor’s product. To test the above hypothesis, One-
Way ANOVA test is applied taking most preferred brand as fixed factor and
satisfaction from Quality and Price as dependent variables, where following results
were obtained.

Table18: Descriptive

Table 19: ANOVA

Interpretation: The above table shows that, the significance value of F test
obtained in case of quality and price is less than the alpha value of 0.05 (p < 0.05),

36
which states that there is significant association between quality & price of Amul and
affordability by consumers. Hence, the hypothesis i.e. The quality and price are
comparatively affordable of Amul Dairy products as compared to its competitor’s
product is accepted.

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 CH-5:
CONCLUSION AND
SUGGESTIONS

38
5.1 CONCLUSIONS FROM THE RESEARCH

5.1.1 Objective 1: The market demand of AMUL dairy products, it

was found that:

5.1.1.1 Amul Butter is the undisputed market leader.

5.1.1.2 Amul’s all-India volume share in cheese rose to 70% during the period
from March 2020 to February 2022 from 63% in the previous year,
Britannia’s volume share shrunk to 16% from 19%.

5.1.1.3 Amul products have loyal customer base and goods are demanded
regularly due to quality provided.

5.1.1.4 Most of the retailers are satisfied with the sales of the Amul dairy products.
Most of the retailers prefer to sale the products in future as well.

5.1.2 Objective 2: The consumption pattern of AMUL products, it

was found that:

5.1.2.1 AMUL Butter, Ghee, Cream and Cheese are the most popular products and
are demanded regularly.

5.1.2.2 Sales of AMUL Butter and Ghee boosts during winters and AMUL
Chocolates are also demanded more during winter season.

5.1.2.3 AMUL Buttermilk and other Flavoured Milk are in huge demand during
summers and its demand reduces significantly during winters.

5.1.3 Objective 3: Analysis of sales of competitive brands in the

market, it was found that:

5.1.3.1 Substitutes of AMUL Ghee are preferred when the retailors focus on low
priced product ignoring the quality perspective.

5.1.3.2 Amul chocolates and AMUL beverages are less popular products in
comparison of other products due to tough competition in the market.
AMUL Chocolates face tough competition from Cadbury and Nestle.

5.1.3.3 AMUL Ice Creams faces tough competition from Mother Dairy, Kwality

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 Walls, etc.

5.1.3.4 Amul faces tough competition in the market with brands like Britannia,
nestle, Cadburys. Etc.

5.1.4 Objective 4: Determination of change in distribution channel

during Pandemic, it was found that:

5.1.4.1 Distribution pattern saw drastic change but the orders saw no change. So,
retailers preferred to give orders by online modes to reduce the contact in
times of pandemic.

5.1.4.2 Telephonic orders increased and are now the primary source of order
generation after pandemic.
.

5.2 SUGGESTIONS FROM THE RESEARCH

5.2.1 Distributors should search for online markets for distribution to increase
reach and sales.

5.2.2 Credit facility period should be extended to attract more customers and
orders.

(40)
 REFERENCES

• Isher, A. K., Dwivedi, S., & Sharma, R. (2017). Study of Retailer's Satisfaction
towards Distribution Channel of Amul Products in Jammu. Agro-
Economist, 4(1), 41-44.

• PRAKASH, L. R. (2006). DISTRIBUTION CHANNEL EFFECTIVENESS

OF ICE CREAM MARKET (Amul & Kwality Walls) IN HYDERABAD.

• Sarkar, S., Mishra, D., & Ghadei, K. (2014). Collective Marketing–A Hope for
the Farmers. Indian Journal of Crop Ecology, 2(2).

• Chandra, P., & Tirupati, D. (2003). Business strategies for managing complex
supply chains in large emerging economies: The story of AMUL. Indian
Institute of Management, 1-31.

• Misra, H. (2008, September). Prospects and challenges in implementing e-

business strategies for rural enterprises: A case of dairy cooperative in India.
In 2008 4th IEEE International Conference on Management of Innovation and
Technology (pp. 486-491). IEEE.

• Tilekar, A. (2020). Understanding the changing trends in Indian (milk)

industry from a managerial perspective-a case study of Amul Dairy, India
(Doctoral dissertation, Dublin Business School).

Website Citations:

1. ICFA (October, 2020) Indian Dairy Market.Retrieved from:

https://www.icfa.org.in/assets/doc/reports/Indian_Dairy_Product_Marke t.pdf

2. History of AMUL. Retrieved from: https://amul.com/m/about-us

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