PROJECT REPORT

ON
“The Rise of AMUL Analyzing Market Position and
Consumer Preferences"
Submitted in partial fulfilment of the requirement for the award of the
degree of
“BACHELOR OF BUSINESS ADMINISTRATION”
to
Chhatrapati Shahu Ji Maharaj University

Under the Guidance of Submitted by

Dr. Sarika Singh Karan Gupta
(Assistant Professor) BBA-IV Sem
Roll no. 23070001946

Session (2024-25)
PSIT College of Higher Education, Kanpur

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 DECLARATION

I hereby declare that the Project Report entitled “The Rise of AMUL Analyzing Market Position and
Consumer Preferences” submitted to PSIT College of Higher Education, Kanpur in partial fulfillment of
Degree of Bachelor of Business Administration is the original work conducted by me. The information and
data given in the report is authentic to the best of my knowledge.
This Project Report is not being submitted to any other University for award of any other Degree, Diploma
and Fellowship.

Place: Kanpur KARAN GUPTA

Date: Roll No :2307002062

2
 CERTIFICATE

Certified that Karan Gupta has carried out the project work entitled, “The Rise of AMUL Analyzing Market
Position and Consumer Preferences"”

For the award of Bachelor of Business Administration from Chhatrapati Shahu Ji Maharaj University,
Kanpur, under my supervision. The project embodies the result of original work and studies out by the student
himself.

Dr. Amit Sharma Dr.Sarika Singh

(HOD) ( Assistant professor)
Date: (Project Guide)
Place: Kanpur

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 PREFACE

As per the curriculum of 4th semester of BBA, we had undergone through a project study. The main
objective of practical training is to develop skill in student by supplement to the theoretical study
of business management in general. Practical training helps to gain real life knowledge about the
consumer behavior and business practices. This project provides student with a fundamental
knowledge of business and consumer perception towards products, as well as an exposure to
strategic thinking of management.

In every professional course, practical training is an important factor. Professors give us theoretical
knowledge of various subjects in the college but we are practically exposed to such subjects when
we get to prepare these projects. These projects help us to learn about various departmental
operations performed in an industry, which would, in return, help me in the future when I will enter
the practical field.

My topic for this project is “The Rise of AMUL Analyzing Market Position and
Consumer Preferences” in which emphasis is given that how consumers are satisfied with the
quality, brand name, easy availability etc. of Amul milk and prefer it over other brands of milk.

To start with company’s profile and its secret of success in the market, the project explains about
the consumer buying behavior. It includes the analysis and results of survey which focuses on the
reasons behind preferring Amul milk over other milk brands.

In this report I have put my best efforts to compile the data to highest level of accuracy and give my
views to best of my judgment.

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 ACKNOWLEDGEMENT

I wish to express my gratitude to PSIT College of Higher Education for giving me an opportunity
to be a part of such kind of learning experience, which will surely enhance my knowledge and skills.

I am grateful to Ms Sarika for guiding me during the course of the project. Her assistance and
support have been instrumental in the completion of my project whenever needed.

The project has been a great experience, the learning and the exposure, I got through this project
was immense and will surely help me in my future pursuits.

Karan Gupta
(BBA IV Sem)
23070001946

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 TABLE OF CONTENT

SR.NO TOPIC PAGE NO.

1. Introduction 7

2. Company profile 10

3. Literature review 20

4. Objective of the study 24

5. Significance of the Study 31

6. Research Methodology 33

7. Data Analysis 36

8. Findings 56

9. Recommendations 58

10. Limitations 61

11. Conclusion 63

12. References 65

13. Annexure 67

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Introduction

7
 Consumer Satisfaction

Each business firm has understood that showing off is a central aspect of the
executive logic and the solution to its success is to engage an increasingly large
number of towards the clients. That is, it would be the client who would be choosing
where the firm is heading. In this manner, the dilemma before the advertiser is to
make sure that how they could serve every client.
Fulfillment is a significant aspect in the evaluating stage. Fulfillment means the
purchasers condition properly paid in a buying position for the penances he has
suffered in buying and utilize the product they could then be either fulfill or
dissatisfy.
The impact of fulfillment to client from buying of item or services
is that better post buy behavior, higher buy expectation and brand loyalty to be shown
that a similar type of behavior is most likely to be shown in a comparative buying
scenario.
The word buyer is often used to address a person who repeatedly buy from a specific
store or establishment.
Customers are people who are happy with the goods and
services and will return and pay for it in the future.
Nowadays the organizations plan to fulfill the client through advertising concepts.
The company effort to help the buyers to resolve the problem then competitors.
The advertisers should realize that the buying power customers create a potential
buyer.
It is fundamental that the advertiser should execute the business such that they offer
fulfillment to buyer must, when an organization sell an object or administration it
must set out to measure shoppers fulfillment and profit development.

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Factor impacting buying behavior:

• Individual factors

• Cognitive thinking process i.e. perception, attitude, needs/motives.

• Personal characteristics i.e. demography, lifestyles, personal traits.

• Environmental factors

• Culture i.e. values, beliefs, subculture/cross culture factors.

• Social class i.e. society

• Influence group i.e. family, opinion leaders, reference group

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Company
profile

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 History of Amul

Amul (Anand Milk Union Limited), formed in 1946 is a milk beneficial

development of India. Amul is a brand name under the administration of a peak
beneficial association, Gujarat Cooperative Milk Marketing Federation Ltd.
(GCMMF), that today is jointly owned by around 2.6 million milk producers in
Gujarat, India.

Amul is located at Anand, Gujarat and has been a genuine example of a beneficial
association outcome in the long term. It is one of the most incredible examples of
co-employable success in the creating world. Anyone who has witnessed the dairy
cooperatives in the state of Gujarat, especially the highly successful one called
AMUL, will typically think about what combination of influences and incentives is
necessary to replicate such a model several times over in creating regions
everywhere. The Amul design has established a solid foundation for itself incredibly
suitable model for provincial turn of events. Amul has prompted the White
Revolution of India, which has transformed India into the largest producer of
endlessly milk products in the world. It is also the world's largest veggie lover
cheddar brand.

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Amul is the largest dairy brand in India and the world's largest pouched milk brand
with an annual turnover of US $10.50 million. Currently Amul has 2.6 million milk
makers part with milk assortment normal of 10.16 million liters daily.

Besides India, Amul has ventured overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and some South African
countries.
Its plans to enter the Japanese market in 1994 had failed, but now it has new
intentions of inundating the Japanese business markets. Other possible business
markets under consideration include Sri Lanka.

Dr. Verghese Kurie, former director of the GCMMF, is viewed as the man behind
the success of Amul. On 10 Aug 2006, Parthi Bhatop, executive of the Banaskantha
association was elected administrator of GCMMF.

Profile

Amul signifies very valuable in Sanskrit. The brand name "Amul" is derived from
the Sanskrit Word "Amoolya" meaning "Valuable" which was suggested by a
master of quality check in Anand, molded in 1946, is a dairy beneficial in India.
Amul is treated as India's most well-liked local brand in all categories.

Amul The Taste of India, a brand so distinctive has been a part of our lives for
nearly five decades now but is able to touch an equilibrium in our hearts. As a brand
AMUL has evolved from being merely a distinguishing factor to protect the

12
interests of producers and consumers. AMUL launched 'Activity Flood' and
declared the 'White Revolution' in India. It began with two town cooperatives and
250 liters of milk per day, merely seepage compared to the flood it has turned into
today.
AMUL transports more than 1,000,000 liters of milk per day, it also collects and
recycles other milk products, at the peak, in behalf of over 1,000 town individually
owned by part of 1,000,000 rancher members. AMUL has also become a symbol of
the aspirations of millions of farmers.AMUL grew out of the seeds sown in the
black soil of CHAROTAR, a district in the KAIRA region of Gujarat, as a
beneficial development to facilitate the milk producers. 1. Established in 1946,
Amul has initiated the Dairy Cooperative development in India and built an Apex
Cooperative Organization, Gujarat Co-usable Milk Marketing Federation Ltd.
(GCMMF), jointly owned by some 2.1 million milk producers in Gujarat, India.
Its products, such as milk powders, fluid milk, margarine, ghee, cheddar, chocolate,
frozen yogurt and pizza are mostly consumed throughout India and overseas and
have made Amul the largest food brand in India today with an annual turnover of
some Rs.29 Billion ($US 616 million) annually. 2. The prime endeavor of Dr. V.
Kurien, Chairman, GCMMF, has been to produce regions of strength for a general
population economically through an innovative benevolent organization, to provide
quality assistance and products to end-consumers and excellent re-visitations of the
rancher people.
Dr. Kurien wrote, "We have crossed a path that few have ventured to. We are
moving ahead with a path that still fewer dare to tread. We must pursue a path that
far fewer can dream to pursue. But we must. We hold on to trust the points and
aspirations of millions of our kinspeople". 3.\tInformation Technology plays had a
significant role in developing the Amul brand.

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The intended activities in the backdrop of arranging the inventory of about 6 million
liters of milk on a daily basis from 10,755 independent Village Cooperative
Societies across all of Gujarat and then storing, processing and developing milk
products at the respective 12 District Dairy Unions. Setting up 3000 Automatic
Milk Collection System Units (AMCUS) at Village Societies to capture part data,
milk fat content, volume collected and amount payable to each part has shown
greatly in ensuring fairness and transparency throughout the whole Amul
organization. 4. In 1996, Amul was perhaps the first major affiliation in Indium to
have a website and this has been used both to develop an intranet of Amul
wholesalers and a virtual shop for customers, perhaps the first example of web
based business activity in Indium.

PLANTS

The initial plant is established at ANAND which is involved in the production of milk, butter, ghee,
milk powder, flavored milk and butter milk.
Second plant is located at MOGAR which is involved in the production of chocolate, Nutramul,
Amulganthia and Amul Lite.

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Third plant is at KANJARI which produces cattle.

Fourth plant is at KHATRAJ which is engaged in producing cheese.

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Today 12 dairies are producing different products under the brand name Amul. Presently, Amul
dairy is No.1 dairy in Asia and No. 2 in the world, which is a matter of proud for Gujarat and whole
India.

PEOPLE POWER: AMUL'S KEY TO SUCCESS

The model succeeded primarily on the fact that it provides an assured market at remunerative prices
for producer's milk apart from serving as a channel to promote the production improvement
package. It does not disrupt the agro structure of the farmers. It also enables the consumer an access
to quality forever milk products. Despite the traditional structure, when the business benefit was
cornered by the go between, the structure ensured that the benefit accrues to the members for their
financial improvement and ordinary great.

Amul has succeeded in:

•creating a proper mix of the policy makers, farmers, board of management and the professionals,
each appreciating its rotes and limitations.
•bring to the doorstep of the rural milk producers the finest of the technology and tap its fruit for
improvement.
•furnish a supporting system to the milk producers without disrupting their agro economic systems.
•plough back the profits, through judicious utilization of men, material and machines, in the rural
arena for common good and improvement of the member producers

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The organization provides strategy plan, treatment and exhibition of milk, preparation of specialized
services to improve milk production of animals, the regulated impregnation service, veterinary care,
improved feeds and more throughout the social orders of towns.

Research and Development in Dairy Industry:

The pioneering effort necessity in the milk dairy industry is to make and survive for long periods of
time with higher stature. The varied structure and milk dairy company R&D outputs form
foundation for current business growth and improvement.
The innovative research work of dairy products, such as yogurt and cheddar statistical polling and
company records provides insights into product and market trends, research, opportunities, sales
and advertising systems which will assist the local milk unions in developing and sharing overall
by receiving this information. Clear on slice of the pie, division, size and growth in the US and
global business markets are also helps industry in expanding its market as a whole even small
association too.

Investment Potential in Milk Products:

At the existing rate of development, India is projected to overtake the US in milk production
permanently 2021, when demand is projected to be more than 125.69 ml tn. Being predominantly
imported, manufacture of case in and lactose contains high degree in the nation. Commodities of
milk products have been decentralized and exports are valued in terms of 71.875 crore.

Data Regarding competitors:

The Indian market is flooded with infinite small local local producers and provincial players. They
have approximately 150 producers in the organized part which account for 30-40% of transactions
and nearly 1000 units in the sloppy part of the market. They have also competed on the lookout.
They experienced extremely tough competition in our country and outing countries.

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 For liquid milk

➢ Gayatri milk

➢ Super milk

➢ Payal milk

➢ Sardar milk

➢ Samrrudhi milk

➢ Sagar milk

SALES
Throughout the year, league deals registered a growth of 13.4% to reach Rs. 4,277.84 crores( Rs.
42.77 billion). This is a very significant growth when viewed in terms of the perspective of 29%
growth that is been achieved last year. In global terms, Amul has now become a billion dollar
organization.

The alliance has performed incredibly well in the majority of the value added consumer packs. Sales
of Amul milk in packets have grown by 40% in value terms. Moreover, supply of ghee of Amul and
Sagar brands of also increased by 28%, UHT milk has further witnessed a significant value growth
of 25%. With the highly successful launch of Amul Kool Café, the deals value in the improved milk
segment has witnessed a staggering growth of 55%. Amul has reasserted the position as the
undisputed leader in Ice-cream segment by registering phenomenal growth in sales.

In line with the policy of continuous improvement, Amul has launched Probiotic and sugar-free Ice-

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cream to cater to the growing health-conscious segment.
The transactions of Amul Processed Cheese have registered consistent and highly remarkable
growth, a huge number of years. During 2016-2017, it has maintained 20% growth in value
transactions for Cheese. It has managed to register double digit value growth in Butter and Milk
Powders, despite intense competition in these categories. It also introduced a completely new range
of chocolates in a-list packaging, with the brand name Amul Choco Zoo. In the wellbeing spread
segment, Amul Lite and Delicious have sold very well, with a combined growth of 58%.

Retailing:

The arrival of new organisation retailing has induced an ocean shift in consumer behaviour of
consumers. Whereas massive corporate store actually provide a consolation to consumers, mostly
they beneficially influence farmers who are supplying agricultural produce to them.
Globally, it can be observed that the rancher's share in the customer's rupee, keeps on reducing
due to the rise in dealing power of the general store chains. This quirk will happen in India, also,
within the next couple of years. To offset this, Amul has decided to establish its own Amul

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Preferred Outlets(APOs), throughout the nation.

GCMMF ventured into the trend of coordinated retailing in 2002 with a vision of bringing closer
to the customer and provide them with the complete brand perspective. Amul established their
presence by opening a few strategically located parlors, in a short span of time. The entire
extension drive relies on the course of action taken by GCMMF which means a business prospect
for millions of aspiring Indians. The retailing operations would not benefit the ranchers and
modest business individuals to compete against the wave of Modern arrangement stores but would
also benefit the consumers with enjoying complete Amul brand experience.

Export

Since we are aware that the Government of India had restricted commodity of milk powders until
30th Sept, 2007 and also does not allow trades due to the Letter of Credit received by them prior
to the boycott. In the current global economy, prohibition of commodities would be considered a
backward step.

The milk producers of Gujarat and border areas of Maharashtra, Madhya Pradesh and Rajasthan
had suffered enormously due to heavy rains and floods in June - August season. This had reduced
their remuneration levels as well as made them suffer miseries due to loss of steers and damage to
the homesteads.

Despite these challenges our milk producers people have continued to present their efforts in
maintaining pace with milk supply that has helped with sustaining over the emergency period.
Central thrust of confidence has been the hope of appreciation of improved costs for their milk as
global market prices have increased due to expulsion of appropriation in Europe and dry spell in
Australia in recent few months.

Ever since the boycott of February, 2007 the global SMP prices were increased from US$ 3000
per MT to US$ 5000 per MT. Our milk producers are evidently subsidizing an open door shortfall
of US$2000 per MT insofar as additional recognition that we may have gained.

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Additionally, the Ministry of Commerce and Ministry of Agriculture have been fighting
vigorously since last more than 10 years at WTO to ensure that Europe abolishes rural
sponsorship, which leads to improved costs and market access to our Indian ranchers. The Indian
ranchers have hardly even realized the product of expulsion of appropriation on SMP by EU since
they have observed rise in milk acquirement expense and increase in India's visibility in global
dairy market. The shift to boycott milk powder items is damaging the organization because India
will lose the ability to exchange portion of overflows at the prevailing global prices that are only
slightly superior to the current domestic prices.

The notice is also not allowing sends out under para 1.5 of Foreign Trade Policy and therefore the
buyers, who have made 100 % payment in advance or have invested Letter of Credit prior to the
date of boycott, are also not prepared to import milk powders, which has damaged India's
reputation as reliable provider.

Large quantities of the dairies have invested in improved plant and equipment by importing
Capital products on EPCG licenses and thus entering into trade commitments. With power of
prohibition on milk powder, the plants cannot fulfill their commodity commitments.

Because the existing framework established for milk production enables pay age for vast numbers
of milk producers, the Union Government truly must ought to have measures that complement
dairy development consistent with this profile.

Equally relevant, the Union Government must go to significant lengths to ensure that the Indian
milk producers receive a fair chance to market their output in global market, which typically have
tons of endowment in milk products, and he doesn't face danger or disintegrate India's near edge
in dairying as well as its competitive resources in the field.

Amul has greeted the Hon. Top state leader of India, Hon. Hon. Business Minister and
Horticulture Minister and requested that the Union Government withdraw the hold on products of
milk powders in consideration of a rightful interest of India's ranchers and milk manufacturers and

21
also in public interest. This year, the turnover of our product has fallen from Rs. 134 crores in to
Rs. 60 crores.

This is due to the boycott of the product during the past few months. Anyways, the buyer pack it
sends out has been increased by 32% compared to the previous year. Amul's Kool Cafe and Butter
Milk have great response in UAE, Singapore and Australian market. The company expect that
their shopper pack business can help with further development of their image presence in the
target with the delivery of business sectors and support their position as "Asia's Largest Milk
Brand". Distribution Network:

Total economic growth, increased disposable incomes, shifting consumer attitude towards
spending, different alternative forms of consumption, and Organized Retail emergence pose
challenges as well as opportunities to the Distribution function of the Federation. To match the
evolving market scenario, in the past years, Amul has expanded their distribution networks in
small towns.

This year, Amul have segmented markets into 14 segments so that there can be better availability
of products. Better availability of products and better distribution target newly introduced
products.

Amul's agenda, Amul's line of products were segregated into new line and the main line.
Exclusive distributors for new line have been appointed separately during the year. Exclusive
distributors for certain line of products are also appointed. Separate manpower for each line is
marked.

In order to pass on ideas of contemporary marketing among their distributors measures of

marketing and sales management program of the distributors have been undertaken. In
collaboration with a top ranked business school, a 2 day workshop has been crafted.

All the distributors of the federation will go through a training program. Amul Yatra Program has
been ongoing to take the channel partners to Amul to provide them with an exposure to their

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cooperative organization. This year their focus was on the newly appointed Distributors and
channel partners of different business segments like organized retail etc.

Cooperative Development Program :

In the past seven years, Amul's part associations have been conducting Internal Consultant
Development (ICD) intervention for developing self administration among part makers and
thereby enabling them to manage their dairy business effectively leading to their overall
development.

Throughout the year, Member Unions continued to conduct the module on Vision Mission
Strategy (VMS) for vital milk maker members and Village Dairy Cooperatives. Assisted by
highly trained experts, 901 Village Dairy Cooperative Societies (VDCS) have actively conducted
their Vision Mission Strategy Workshops, set their Mission Statements and Business Plans for
next five years.
The VMS module has provoked milk manufacturers to initiate exercises at towns, for instance,
Water Management, Planned Animal Breeding, Animal Feed Management, Improved Member
Services Management Technology Integration and Networking, which has intensely expansive
and far-reaching implications on the milk trade.

This organized administration of milk production and VDCS will not only aid the manufacturer
individuals to increase financial returns from their milk enterprise but also assist VDCS
management to deal with the brutal competition ahead.

Continuing the Cleanliness drive at town level, Member Unions have identified and awarded
preparing to 8,774 VDCS regarding tidiness and 7 center gatherings composed of milk makers
and the board of the VDCs. For enhancing the degree of tidiness 7,313 VDCS celebrated Red Tag
Day on "Gandhi Jayanti" - second October and the Unions also awarded the best performing
VDCS.

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As part of the Breeding Services Improvement Program, throughout the year, Member Unions
have gone ahead with implementation of the module of Improvement in Artificial Insemination
Services and have awarded training to 212 center meetings at town level and have decided to
cover all the VDCS under Breeding Services with this module within the next one year.

To facilitate this growth, Member Unions are also conducting Mass De-Worming Campaign.
Additionally, Member Unions conducted the AI Audit Competition throughout the year and at the
same time, awarded and recognized the best performing VDCS and AI Workers of these Societies
to motivate them to further work on their job.

For the purpose of increasing mindfulness regarding dairy industry situation and conferring
authority powers to Chairmen and Secretaries of Village Dairy Cooperatives, Member Unions in
concerted effort.

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Literature
review

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Here we present a situational study of a dairy benevolent, AMUL, in Western India which has
developed a successful model for continuing business in massive emerging economy. It has been
largely reliable, by means of its innovative practices, for India to become world's largest producer
of milk.
This paper takes various examples from the experiences of AMUL which would be beneficial to
cooperatives across the globe as well as companies interested in continuing business in gigantic
developing markets such as India and China.

A significant number of these economies possess young business communities and fragmented
supply bases. Market failures for most of these small producers are large. On the other hand, both
the sizes of markets and providers are humongous. Next, companies that understand suitable
business systems that take into consideration such characteristics are destined to dominate such
business arenas.

Some of the main take-home messages of AMUL'S success are:

•firms operating in such environments must develop both markets and suppliers at the same time to
harmonize demand and supply planning, develop or be part of network of producers (i.e.
cooperatives here) in order to acquire scale economics,

•concentrate on operational efficiency to attain cost leadership to facilitate low price strategy.
•one more central focus to integrate the heterogeneous element and a long term thinking are needed.
In emerging economies various contemporary regions could be at different transformation stages.
In some of the regions each of the above environmental attributes faced may not apply. Regardless,
a subset of methods adopted by AMUL would still be extremely useful. In this way, companies that
are considering catering to massive underdeveloped business markets or have an objective of taking
advantage of wide but marginal provider base would in any case be advantaged.
Cooperatives have been in existence as mainstream forms of organization in the dairy industry
worldwide since the turn of nineteenth centuries.

At some points they played the role of building baby industry while at other times they have been

26
used to support weak creation bases in an environment where market failures will usually be greater
for small makers. In a number of other instances, a group of small makers have organized
themselves to more likely sell their products. The managers of these cooperatives have also elicited
some interesting administrative pieces of information for managers in terms of emerging as well as
developed economies.

Enormous emerging economies like India and China have nuances that span from development of
markets (where the largest segment of population is the one which holds low purchasing power) to
organizing the lowest-cost providers who are overwhelmingly small in size for companies that aim
to steer large volumes of business within such markets, such nuances have to be viewed and then
thrive.

The test is to figure out the linkages between the business sectors and the general public. This would
likewise require improvement of another plan of action that assists a firm with filling in such
conditions. This paper is around one such effective model. The Kaira locality milk useful
partnership or AMUL in India is an example of how to promote an organization of companies to
overcome the complexities of a gigantic yet fragmented market such as those of emerging
economies by creating an incentive for providers and the clients alike. Amul has propelled the milk
dairy development in India that has now emerged as one of the largest milk producers in the world.
Clearly implementation of this vision in a serious environment and maintaining sustained benefits
and productivity needs improvement of intensity on several aspects and functional viability.

This article provides insights into the board of a very large stock chains by adapting and
implementing various procedures and practices. This recalls establishing networks developing trusts
and values for the organization, developing equitable systems for sharing benefits throughout the
store network, coordination for functional viability development and new innovation for gaining
seriousness. It is crucial that these victories were achieved within the framework of organization of
cooperatives organized in a hierarchal manner. There are plenty of instances in AMUL'S success
for the beneficial region as well as for companies who intend to continue work in developing
business segments.

27
The Kaira area useful milk producers association was limited was established on December 14,
1946 as a response to double-dealing of small milk producers in the city of Anand by traders or
experts of present dairies. Producers had to travel long distance to deliver milk to the central dairy
in Anand.

More often than not, milk would become sour, especially during the late spring season since
producers had to transport milk in individual containers really. These experts decided on the prices
and the off-take from the farmers by season. Milk is a commodity that has to be collected twice
daily from each cow.

During winter the producer was either left with the surplus unsold milk or had to sell at it very low
prices. Also during that time the public authority had granted syndication liberties to Polson dairy
to collect milk from Anand and supply to Bombay city in return. India held no position among milk
producing countries on the globe in 1946.

The Producers of the Kaira region embraced exhortation of the patriot chiefs, Sardar Valla Bhai
Patel afterward became the primary home clergyman. They urged the ranchers to frame a beneficial
and supply straightforwardly to the Bombay Milk Scheme as opposed to offering it to Polson. The
Kaira region helpful was established to gather and deal with milk in the Kaira region.

The milk range was also decentralized since the majority of producers were peripheral farmers who
could transport 1-2 liters milk daily. Town level cooperatives were established to organize the
meager milk produced in each of these towns. The first running dairy of the Kaira region was
established at Anand.

The new plant can pasteurize 3,00,000 liters of milk per day, make 10,000 pounds of margarine per
day, 12,500 pounds of milk powder per day and 12,000 pounds of casein per day.

Indigenous R&D and innovation enhancement at the beneficial had led to the successful production
of skimmed milk powder from the bison milk, for the first time on a commercial scale anywhere in
the world. The foundations of a modern dairy industry in India had just been laid as India possesses

28
one of the largest bison populations in the world.

From a single common plant at Anand and two town cooperatives social orders for milk
procurement, the dairy beneficial development within the province of Gujarat had grown into an
organization of 2.12 million milk producers who are organized in 10,411 milk producers assortment
free milk cooperatives.

The town cooperatives provide milk to 13 free dairy cooperatives. AMUL is one such infinitely
milk products from these associations are promoted by a typical promoting association. Milk
advertising league is the promotion factor for outcomes of all associations in the state of Gujarat.

According to Dr. P. Rengarajan, R. Sathya, and R.

Gowthami (2014), "Buying behavior of selected branded milk was one of the unmistakable and
major thing used in urban and rural areas. Although the country has emerged as the largest producer
of milk in 90's and one of them being Amul. Market size is increasing step by step and demand for
milk is rising. Therefore, Amul requires a proper distribution network for availability of product at
demand." According to Mohit Jamwal, Dr. Akhilesh Chandra Pandey (2014), "A review was
completed on estimating the consumer loyalty of Amul milk. Consumer loyalty was estimated with
respect to different qualities of Amul milk and client's inclination was indeed examined with respect
to altered boundaries. The overview concluded that in order to promote their creation, promoting
and valuing strategies successfully."

As shown by Akhila D. also, Dr. Boopathi (2015), "The aim of the review is to reveal shopper
insight on Amul milk based on their age, education, ability and month to month compensation of
the customer's relatives. Numerous people buy Amul milk due to its quality rather than the price.
On the off chance that the Amul milk is too high compared to other brands they do whatever it takes
to satisfy their customers.".

According to Mrs. Sonali Dhawan (2016), "A focus on consumer behavior towards Amul milk was
done and it was concluded that there is a lack of awareness regarding Amul milk which people are

29
consuming. The mission needs to be managed by the company that how they clean the milk and
that using branded milk is so hygienic."

According to Dr. S.P. Savitha (2017), "A focus on buyer preference towards Amul continuously
milk products was done. Amul was enjoying No.1 position in dairy sector. The analysis was with
respect to figure out the existing buyer satisfaction towards of Amul. Amul had a good reputation
but it had to focus and extend in rural areas as well."

30
Objectives of
study

31
The primary aims of the research can be enumerated as under:

1. To understand the customer behavior and to determine the degree of customer satisfaction
towards AMUL.

2. To provide realistic suggestion for expansion and development of AMUL products.

3. To understand the different marketing mix that affect the customer behavior.

32
Significance of
study

33
The importance of the company are as follows:

The present research will be useful in knowing the factors which gives utility to the consumers in
terms of purchasing Amul milk.

To learn about the psychology of the consumers behind the selection of Amul milk.

To learn about the brand awareness of Amul among consumers.

To learn about the different marketing mix that affect the consumer behavior.

Scope of the study:

Consumer loyalty plays a large part in the highlighting step. Consumer loyalty determines the future
of the product and business organization. Various elements are influencing consumer loyalty.

Such elements include:

•Post Purchase Behaviour

•Reputation
•Product Availability
•Branding
•Convenience

34
 Research
Methodology

35
Methodology:

The research is primarily interested in the response of the satisfaction of the customer towards
AMUL products and milk products. Accordingly different data and methodology is taken into
account during my report preparation.

The key sources of data are:

• Primary Data
• Secondary Data

Primary Data:

The vital information refers to specific data collected for a specific purpose and provides cutting-
edge, accurate and meaningful data and it is collected in a study according to the needs of the
problem.

Tools employed for gathering the main data:

The crucial details are acquired on the basis of overview technique with the help of survey,
individual perception, direct interview with customers. Open and shut completed questions are
employed in the survey.

Secondary Data:

Secondary data can be termed as data obtained by another person for some other purpose other than
for the problem under investigation and meant for some other purpose earlier

Tools used to gather the secondary data:

36
A secondary data is gathered from the books, periodicals, journals, magazines, papers, company
records, internet and other publications.

Sample Design:

The sample design that is applied in the study is Convenience Sampling. Respondents of Kanpur
were chosen based on convenience.

Methods:

The overview technique is applied to collect the necessary information with the help of survey in
consideration of explorative and persuasive analysis.

Sampling unit:

It is the people who are to be surveyed in the study and it is the customer who is using or consuming
or who has purchased AMUL Milk and milk products were surveyed.

Sample size :

It is the number of individuals surveyed for this topic, in the study 55 individuals were surveyed
and responses taken.

Tools used for analysis:

• Percentage Analysis

37
Data Analysis

38
The collected data were not efficiently justifiable, hence I analyzed the collected data in a calculated
manner and interpreted using Simple Method.

The study and interpretation of the data entails the division of the collected data and comprehending
it with pictorial representation, i.e., bar diagrams, pie charts and others.

AGE GROUP OF RESPONDENTS

Age group plays an important role in influencing purchase behavior. Various age segments possess
different preferences and spending powers. This segmentation assists in determining the core
consumer segment of AMUL milk products.

Age Group No. of Respondents Percentage%

18–25 years 20 20%
26–30 years 18 18%
31–40 years 35 35%
41–50 years 17 17%
51 & above 10 10%
Total 100 100%
Source: Primary Data

39
Interpretation
35% of the sample population fall within the age category of 31–40 years and represent the
predominant consumer group, as per the findings. These respondents are normally family decision-
makers who emphasize nutritional quality and consistency. The younger age groups (18–30 years)
are also seen with good participation, pointing towards a healthy sign for consumer loyalty in the
future. The entire sample population falls in the age group of 18–20 years, evidently indicating the
fact that the responses have been collected from Gen Z consumers, most likely students or young
professionals. This generation is famous for digital literacy, brand literacy, and the need for value-
for-money products.

For AMUL, this is an important long-term market because acquiring their loyalty at this age can
translate into long-term brand loyalty. Marketing here must be geared towards cool, interesting, and
relevant content, especially on social media platforms like Instagram, YouTube, and campus events.
Aspirational but affordable products would also be well accepted.
OCCUPATION

Occupation No. of Respondents Percentage%

Business 20 20%
Employee 10 10%
Housewife 65 65%
Others 05 05%
Total 100 100%
Source: Primary Data
Since almost all of the respondents are students, they do not possess much buying power and are
more budget-conscious. But they also happen to be among the most brand-aware customers,
guided by reputation, word-of-mouth recommendation, social media comments, and emotional
bonding towards brands.

40
The strength of AMUL lies in its long-trusted and established position, which can be leveraged to
market newer products like milkshakes, protein drinks, and desserts in this category. Student
consumers are also more likely to try out ready-to-eat or convenience food, which can be
propelled through retail tie-ups and food aggregators by AMUL.
Analysis of the occupation of the respondents:

Gender-wise Respondents

Gender No. of Respondents Percentage%

Male 35 35%

Female 65 65%

Total 100 100%

Source: Primary Data

41
Interpretation:

The gender distribution of respondents appears relatively balanced, albeit slightly tilted towards
female respondents. Such an even distribution is helpful to gauge various perspectives towards
product usage, preference, and purchasing behavior.
For AMUL, this would translate to its product portfolio enjoying broad acceptability among males
and females. However, the firm can consider gender-neutral marketing — e.g., offering chocolates
and ice creams during the festive or celebratory seasons (more appealing to women), while
marketing towards fitness or protein-based beverages (more appealing to men in the youth
category).

It further emphasizes that AMUL has positioned itself effectively as an inclusive, family-focused
brand as opposed to being a manufacturer of niche products.

Education Level of Respondents

Education Level No. of Respondents Percentage%

High School 20 20%
Graduate 50 50%
Postgraduate 30 30%
Total 100 100%
Source: Primary Data

42
Interpretation:

Young, educationally oriented respondent base (inferable from age and occupation) is a learner-
dominated response base. They are exposed to fickle trends, health awareness, and social pressure.
They are likely to be the first adopters of new formats, especially if effectively promoted through
college parties, influencer offers, or trial offers.
For AMUL, this means opportunities for:

Online Purchase Frequency

Online Purchase Frequency No. of Respondents Percentage%

Frequently 12 12%
Occasionally 28 28%
Rarely 35 35%
Never 25 25%
Total 100 100%
Source: Primary Data

43
Explanation:

A mere 12% of the interviewees shop online frequently, while 35% shop infrequently and 25% do
not shop online at all. This suggests that while the internet is spreading, the traditional retail still
has grip. AMUL needs to keep expanding both offline and online to ensure accessibility.
AMUL needs to focus on:

6. Consumer Choices (AMUL Products Chosen)

Explanation:

Top frequently purchased items include Butter, Ice Cream, Cheese, Chocolates, and Drinks. This
indicates that AMUL is well-penetrated both in household needs items (butter, cheese) and
indulgence products for young people (ice cream, chocolates).

Such observations suggest:

•Ice cream remains a powerful young people's item and can still be pushed via flavor variety and
small-size varieties.

•Butter and cheese provide scope for frequent home use — AMUL should concentrate on making
these available in reasonable, multiple-use packaging.

44
•Chocolates and beverages identify scope for celebration or on-the-go consumption—launching
higher-end ranges or festival varieties can stimulate interest.

•It is data that indicates multi-category strength to be the strength of AMUL, and utilizing these
lines through innovative packaging or product innovation in taste will ring in harmony.

Determinants of Purchase
Interpretation:

Most influential factors are internal and include:

1. Quality

2. Taste

3. Price

4. Trust

5. Variety

45
This proves that AMUL is a value-for-money and reliable brand among students. The previously
robust brand equity earned through years still shows the performance today.
Observation of significance:
•Quality and Taste as primary causes support AMUL's ongoing product quality.

•Faith has brand legacy as determiner for the purchasing decisions.

•Students highly consider Price, corroborating value price strategy and package offers.

• Variety is key in avoiding boredom — AMUL must continue to try out new flavors and
packaging so as not to lead to brand weariness.

8. Customer Satisfaction
Meaning (Detailed):

Most of the respondents declare that they are either "Satisfied" or "Very Satisfied" with the
quality of AMUL. This is a very encouraging observation which suggests:

• Strong performance of the product

• Good supply chain

46
• Brand consistency

However, to maintain and improve this satisfaction:

•AMUL must continue to be active in seeking feedback for new products introduced.

•Taste and freshness should be uniform everywhere.

•Any issues pertaining to quality, even intermittent, must be addressed immediately.

•Increasing customer service (chatbots, mail, delivery reports) will prove helpful in online
shopping.

High satisfaction also means existing customers will probably be brand ambassadors, especially if
incentivized through referral programs, reward points, or early special access to new releases.

47
Hypothesis Testing:
Gender and Buying Frequency of AMUL Products

To determine if the buying frequency of AMUL products differs across different gender groups, a
Chi-Square Test of Independence was conducted. The test is utilized for verifying if there is a
statistically significant relationship between the two categorical variables: Gender and Purchasing
Frequency.

Null Hypothesis (H₀):

There is no significant association between the gender of a respondent and his/her frequency of
buying AMUL products. That is, frequency is not different by gender.
Alternative Hypothesis (H₁):
There is a significant association between the gender of a respondent and his/her frequency of
buying AMUL products. That is, frequency may be different by gender.

CHI SQUARE TESTING METHOD

Test Statistic Value
Pearson Chi-Square Value 5.368
Degrees of Freedom (df) 6
Asymptotic Significance (p) 0.498
Number of Valid Responses 50

CHI SQUARE TESTING METHOD

Test Statistic Value
Pearson Chi-Square Value 5.368
Degrees of Freedom (df) 6
Asymptotic Significance (p) 0.498
Number of Valid Responses 50

48
Key Notes:

The p-value = 0.498 is greater than the conventional alpha level (0.05).
This implies that the result is not statistically significant at the 5% level.
Furthermore, 7 out of 12 cells (58.3%) have less than 5 expected counts, which can affect the
validity of the Chi-Square approximation.

Interpretation of Results

Since the p-value (0.498) > 0.05, we fail to reject the null hypothesis. This means there is no
statistically significant gender variation in the frequency of AMUL product purchases in the
current sample.

Although purchase patterns vary slightly between genders in absolute terms (e.g., more males said
they bought daily), these variations are not robust enough to be considered statistically significant
based on the data presented.

Conclusion and Market Survey Implications

The survey results reveal that gender does not significantly influence the frequency with which
customers purchase AMUL products. This is a beneficial observation for the marketing policy of
AMUL, as it implies that promotional messages and campaigns can be addressed equally to both
genders rather than gender-specific campaigns being required.

49
Findings

50
It includes the findings, recommendations and results of my study. The main findings of my survey
are as follows:

1. The conclusions of the study that women are the primary leader for the infinitely milk products.
The statistics indicate that 65% of women and 35% of men pursues purchase option.

2.Subject to the client control, it is found in the research that 65% are housewives and 35% are of
other professions like a money manager, worker, ranchers, etc. for Amul endlessly milk products.

3.Incomes between rs. 5,000 to rs. 10,000 are immensely drawn towards Amul endlessly milk
products. Subject to the information, 79% of the respondents pay fall in this category.

4. The key purchasing factors for the Amul endlessly milk products are brand image and quality.
The findings indicate that 42% impacts on quality and 32% impacted for the brand.

5. 88% of the total respondents are using product since from a long time. The majority of the
respondents are using Amul milk and milk products from more than 3 years.

6. General analysis of the item performance data shows that Amul product satisfies 70% of the
respondent and 30% respondent's viewpoint is common.
7. 325 out of the total number of respondents are disillusioned on vendor's administrations as it is
found in the review.
8. It is found in the review that client are influencing through word.

51
Recommendations

52
1.Milk and milk products buying decision are settled more by woman than man, as they serve as
invigilator, take their decision and affect something very much to buy while learning about quality,
newness and price. So, I propose Amul pleasant society to give extra care towards the women
thinking to devise the showcasing strategy as the position of woman in household is better even in
the different decisions.

2. Client occupation determines the purchasing decisions. The specific occupation plays a crucial
role in determining the product or services. Ladies section is having more impact on continuously
milk products. Therefore, an occupation is the variable that impacts the product.

3. Income earners limit the buying capacity. The premier league wage chooses to buy item with the
quality, freshness, thickness, etc. and the opposite. Thus I recommend Amul to accord similar focus
on low pay piece to capture market and place themselves in the personalities of buyers with required
quality and nature of continuously milk products.

4. Quality and brand image is of utmost importance. Fruits can be milked endlessly in the market
because of its quality and brand. Then it must be sustained with the correct ways.

5. Since Amul is reaping loyal customers it must focus on this aspect more through different possible
initiatives, i.e., campaign, premium packs, offers etc. This increases the loyalty of the customers
towards the Amul products.

6. Customer is persuasive, so I would recommend Amul to look after the seller's issue with care.

7. As only 30% of the total respondents are disillusioned which is a quite huge percentage and this
may impact negatively and push the pace of switch over. Therefore, I suggest the management to
focus not many item quality, time frame of usability, sellers approach, outlet maintenance etc.,
which will enable Amul to match the clients favorably.
8. Milk and milk products are becoming popular and they are consumed as a very fundamental item.

53
In present practice constantly milk products are bought by sellers. In this regard sellers are
approaching the product.

9. When product has quality and other significant features generally they promulgation about the
product through informal exchange as well as vice versa. In this way, on the off chance that the
quality and features are adjusted by the necessities, it will help Amul with getting popularity and
expansion market.

10. Introduction of different monetary product falsehoods can assist Amul in attracting current and
potential clients and can get all pay degree groups.

11. Thus, I recommend that the administration release new product range which can cater to the
complete group.

54
Limitations

55
1. Small Sample Size
The study was conducted on a sample of only 50 customers. Although the maximum effort was
exerted to include diversity in the sample, the comparatively small sample size may constrain the
extent to which conclusions are generalizable to the larger population.

2. Resistance of Respondents to Provide Information

The majority of the respondents were unwilling or hesitant to give detailed information during the
survey exercise. However, the researcher made sure that the data were gathered in a systematic and
respectful manner to provide validity to the study.

3. Time Constraints
The research was carried out within a limited time frame, which put constraints on the depth of data
gathering and analysis. This constraint could have impacted the comprehensiveness of the study.

4. Risk of Information Obsolescence

The most important drawback is the fact that the information being collected may become outdated
very quickly. The ever-changing character of customer preferences as well as market trends means
that the findings may not be dependable for long periods unless they were periodically updated.

5. Temporal Variability of Customer Satisfaction

The study is based on current levels of customer satisfaction. Customer satisfaction, however, varies
over time due to technology changes, market trends, quality of service, and evolving consumer
expectations.

6. Sample Size Too Small to Represent Broadly

Since only 50 respondents were used, the sample size is very limited and would not be representative
of the full spectrum of consumer behavior and attitudes in the market. This lowers the external
validity of the study.

7. Casual Responses from a Minority of Respondents

Some of the respondents were likely to have responded to the survey in a fairly casual or un-serious
fashion. An informal response can lead to a biased or incorrect answer that would affect the
reliability of the end results.

8. Inadequate Coverage of Factors That Influence

All the possible variables that might affect consumer decision-making were not addressed in the
questionnaire. Thus, some significant variables affecting customer behavior and satisfaction may
have been overlooked in the study.

56
Conclusion

57
From the extensive market research conducted on Amul milk and milk products, some of the key
observations and conclusions have been drawn. They are a function of both the customer satisfaction
levels as well as those which are to be strategically prioritized by the company. Below is a
descriptive analysis:

1. Strong Market Presence and Customer Base

Survey findings indicate that Amul has huge market share leadership in the segment of milk and
dairy products due to immense loyalty towards the brand and large extent of reach. Amul succeeded
in building an image as a reliable source for quality dairy products, which attracted consumer
confidence through different segments. This indicates Amul is a market leader by default in the
industry, although there is always scope for further consolidation and enhanced performance.

2. Meeting Customer Needs is the Key to Growth

In order to translate potential opportunities into actual success and transform adversity into strength,
Amul has to continue prioritizing the needs and preferences of its customers. Meeting consumer
expectations and responding positively is the key to formulating a sustainable and competitive
business strategy. The company should attempt to transform any weaknesses that may exist into
strengths by being customer-centric in its approach.

3. Purchase Decision Factors

The survey identified several factors that the customers consider while purchasing milk and milk
products. They are:

Freshness – Customers value products that are perceived to be fresh and newly processed.

Taste – The uniform and natural taste of Amul milk is a significant selling point.

Thickness/Consistency – The richness and thickness of the milk are key in consumer satisfaction.

Easy Availability – Easy availability of buying Amul products from local vendors or shops has a

58
major influence on shopping behavior.

Augmenting and resolving these points can increase market positioning for Amul even further.

4. High Level of Customer Satisfaction

The majority of respondents were content with Amul milk and milk products. The reasons provided
for the positive reaction are:

High quality of the product

Excellent brand image

Broad and accessible distribution system

This good opinion is because the company is able to consistently deliver value to their customers.

5. Customer Dissatisfaction Areas

Although overall feedback has been good, certain customers complained regarding certain areas of
Amul products. The principal issues raised are:

High cost compared to indigenous equivalents

No personalized vendor service or unpleasant experience with dealers

Wastage of products in transit or in storage

Short shelf life for certain products, leading to fast spoilage

These issues, if left unaddressed, would affect customer loyalty and give the competition an
opportunity to pick up market share.

59
6. Strategic Improvements Can Fuel Market Leadership
From the analysis, it is apparent that small changes in Amul's marketing behaviors can have huge
results. Some proposed improvements are:

Enhancing retail touchpoints and ensuring better vendor relationships to provide better customer
service.

Developing promotion programs to expand reach and create brand recall.

Enhancing product ranges in accordance with fresh customer requirements (e.g., organic milk,
flavored milk, lactose-free).

Enhancing packaging and preservation methods to enhance shelf life and reduce wastage.

With these enhancements, Amul can not only enhance customer satisfaction but also become closer
to enjoying monopoly-like positions in the market as a top and trusted dairy brand.

7. Importance of Competitive Awareness and Customer-Centric Orientation

Before implementing any strategic changes, Amul must monitor its competitors' movements
carefully and forecast market trends. Above all, customer sentiment must be the priority of all
decisions. Continuous customer interaction, regular surveys, and data-based findings can assist the
firm in making properly informed decisions that are appropriate for both market needs and brand
values.

To put it simply, while Amul has already become big, there is no end to improvements. With an
even more responsive, adaptive, and innovation-driven strategy, Amul can not only retain its current
consumer base but even expand its wings to become an undisputed market leader in the dairy
segment.

60
References

61
Books
Kotler, Philip. Marketing Management: Analysis, Planning, Implementation and Control,
13th Edition, Pearson Education.

Kothari, C. R. Research Methodology: Methods and Techniques, New Age International

Publishers, 3rd Edition.

Schiffman, Leon G., & Kanuk, Leslie Lazar. Consumer Behavior, Pearson Education, India.

Ramaswamy, V. S., & Namakumari, S. Marketing Management: Global Perspective Indian

Context, Macmillan India Ltd.

Saxena, Rajan. Marketing Management, Tata McGraw Hill, 5th Edition.

Batra, Rajeev, & Kazmi, H. H. S. Advertising and Sales Promotion, Excel Books.

Kumar, Arun, & Meenakshi, N. Marketing Management, Vikas Publishing House Pvt. Ltd.

Gupta, S. L. Marketing Research, Excel Books, New Delhi.

Lal, Jawahar. Consumer Behavior in Indian Market, Himalaya Publishing House.

Majumdar, Ramanuj. Product Management in India, Prentice Hall of India Pvt. Ltd.

Periodicals, Journals, and Reports

Business Today – Articles on FMCG and the dairy industry.

The Economic Times – Periodic reports on Amul and India's dairy sector.

DFPI (Department of Food Processing Industries), Government of India – Annual Reports

62
and statistical releases.

The Hindu Business Line – Business reports on Amul's business strategies and cooperative
model.

India Today – Business page with reports on Amul's market performance.

Websites
www.amul.com – Amul's official website for product, marketing, and company information.

www.nddb.coop – National Dairy Development Board website giving data on India's dairy
sector and cooperative methods.

www.fssai.gov.in – Food Safety and Standards Authority of India; important for food
regulation related to milk and milk items.

www.ibef.org – India Brand Equity Foundation; useful for sector-wise market data and
branding strategies.

www.statista.com – Provides data and statistics related to the Indian dairy sector and
consumer behavior trends.

63
Annexure

64
Questionnaire

65
66
67
68
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 PSIT COLLEGE OF HIGHER EDUCATION
WEEKLY PROGRESS REPPORT

Student Name: Karan Gupta Subject Code: F010404P

University Roll No. 23070001946 Project Guide: Dr.Sarika Singh
Title of Project: The Rise of AMUL Analyzing Market Position and Consumer Preferences

Comments: Exploring the topic under Industrial Research Report. Sign of Project Guide:

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Dr.Sarika Singh
Name & Signature of Project Guide