(CONSUMER BUYING PATTERN

TOWARDS AMUL MILK)

A project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies

Under the Faculty of Commerce

By

(MOHAMMAD NAVEED SIRAJUDDIN SHAIKH)

Under the guidance of

PROF. SHASHANK VARDHAN SINGH

SANPADA COLLEGE OF COMMERCE & TECHNOLOGY

SANPADA, NAVI MUMBAI- 400 705
APRIL-2019

SANPADA COLLEGE OF COMMERCE & TECHNOLOGY

Sector - 2, Behind Sanpada Railway Station Road,
Sanpada West,NaviMumbai – 400705.

1
 Certificate
This is to certify that (Mr. MOHAMMAD NAVEED SIRAJUDDIN SHAIKH)
has worked and duly completed his project work for the degree of Bachelor of
Management Studies under the Faculty of Commerce in the subject of
MARKETING MANAGEMENT and his project is entitled, “(CONSUMER
BUYING PATTERN TOWARDS AMUL MILK)” under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of
any University.
It is his own work and facts reported by his/her personal findings and investigations.

Seal of
the
College Prof. SHASHANK.V.SINGH
(Name & Signature of
Guiding Teacher)

Date of submission:

2
 Declaration by learner

I the undersigned (Mr/ Ms. MOHAMMAD NAVEED SIRAJUDDIN SHAIKH)

hereby, declare that the work embodied in the project work titled “(CONSUMER
BUYING PATTERN TOWARDS AMUL MILK)”, forms my own contribution
to the research work carried out under the guidance of Prof SHASHANK
VARDHAN SINGH is a result of my own research work and has not been
previously submitted to any other University for any other Degree/Diploma to this
or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has obtained and
presented in accordance with academic rules and ethical conduct.

(MOHAMMAD NAVEED SIRAJUDDIN SHAIKH)

(Name & Signature of the learner)

Certified by

Prof. SHASHANK VARDHAN SINGH

(Name & Signature of the Guiding Teacher)

3
 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.
I would like to thank my Principal,Prof. RAOSAHEB SHINDEGALWEKAR for
providing the necessary facilities required for completion of this project.
I take this opportunity to thank our HOD Prof. MUSTAK DERAIYA, for his moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Prof.
SHASHANK .V .SINGH whose guidance and care made the project successful.
I would like to thank my COLLEGE LIBRARY, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially MYPARENTS AND PEERS who
supported me throughout my project.

4
5
TABLE OF CONTENTS

6
CHAPTER Title Page
No

1 GENERAL INFORMATION
1.1 INTRODUCTION AND HISTORY 9

1.2 INDUSTRY PROFILE 22

1.3 OBJECTIVE OF THE RESEARCH 25

1.4 LITERATURE REVIEW 26
2 ABOUT THE TOPIC

2.1 CONSUMER BEHAVIOUR 46

2.2 CONSUMER SATISFACTION 50

3 MARKETING RESEARCH 51
4 RESEARCH METHODOLOGY 56
5 DATA ANALYSIS AND INTERPRETATION 61
6 S.W.O.T ANALYSIS 71
7 NEWS ARTICLES 73
8 GCMMF Overview: 79

9 CONCLUSION OF (AMUL MILK) 111

10 COMPARATIVE STUDY 114
11 ANNEXURE:

a) BIBLIOGRAPHY & WEBLIOGRAPHY 125

b) QUESTIONNAIRE 127

7
8
 PREFACE

Today the business environment is rapidly changing in this competitive

environment the popular trend is also striving for maintaining its positions therefore
it become essential for the companies that they should know about their preference
& taste. Regarding a particular product it is of almost necessary to know the
consumers satisfaction to the value offered by the company in case of dissatisfactory
result it is essential to ascertain whether the dissatisfaction is for entire product or
part of it is and what value do the consumers expect from it?

The research will provide the relevant information to the organization about
consumer’s attitude towards their products & services.

The research work is sincere effort to find out the ultimate requirement of
consumers for the betterment of research as well as the organization.

9
 Executive Summary

This final project was undertaken with the objective of “CONSUMER BUYING
PATTERN TOWARS AMUL MILK”
In the year 1946 the first milk union was established. This union was started with 250
liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the
union was known as KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the
Sanskrit word “AMULYA” which means “PRICELESS”. A quality control
expert in Anand had suggested the brand name “AMUL”. Amul products have been
in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
(The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like
of the high-quality products sold at reasonable prices, of the genesis of a vast co-
operative network, of the triumph of indigenous technology, of the marketing savvy
of a farmers' organization. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”).

10
11
 INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with 250
liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the
union was known as KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the
Sanskrit word “AMULYA” which means “PRICELESS”. A quality control
expert in Anand had suggested the brand name “AMUL”. Amul products have been
in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
(The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like
of the high-quality producdts sold at reasonable prices, of the genesis of a vast co-
operative network, of the triumph of indigenous technology, of the marketing savvy
of a farmers' organization. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira
district was farming and selling of milk. That time there was high demand for milk
in Bombay. The main supplier of the milk was Polson dairy limited, which was a
privately owned company and held monopoly over the supply of milk at Bombay
from the Kaira district. This system leads to exploitation of poor and illiterates’
farmers by the private traders. The traders used to beside the prices of milk and the
farmers were forced to accept it without uttering a single word.

12
 However, when the exploitation became intolerable, the farmers were
frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a
leading activist in the freedom movement. Sardar Patel advised the farmers to sell the
milk on their own by establishing a co-operative union, Instead of supplying milk to
private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain
his co-operation and help. Shri Desai held a meeting at Samarkha village near
Anand, on 4th January 1946. He advised the farmers to form a society for collection
of the milk.

13
These village societies would collect the milk themselves and would decide the prices
at which they can sell the milk. The district union was also form to collect the milk
from such village co-operative societies and to sell them. It was also resolved that the
Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the
negative response by turning down the demand for the milk. To respond to this action
of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not
a single drop of milk was sold to the traders. As a result the Bombay milk scheme
was severely affected. The milk commissioner of Bombay then visited Anand to
assess the situation. Having seemed the condition, he decided to fulfill the farmers
demand.

Thus their cooperative unions were forced at the village and district level to
collect and sell milk on a cooperative basis, without the intervention of Government.
Mr. Verghese Kurien showed main interest in establishing union who was
supported by Shri Tribhuvandas Patel who lead the farmers in forming

14
the Co-operative unions at the village level. The Kaira district milk producers union
was thus established in ANAND and was registered formally on 14th December 1946.
Since farmers sold all the milk in Anand through a co-operative union, it was
commonly resolved to sell the milk under the brand name AMUL.

15
 At the initial stage only 250 litres of milk was collected everyday. But
with the growing awareness of the benefits of the cooperativeness, the collection of
milk increased. Today Amul collect 11 lakhs litres of milk everyday. Since milk was
a perishable commodity it becomes difficult to preserve milk flora longer period.
Besides when the milk was to be collected from the far places, there was a fear of
spoiling of milk. To overcome this problem the union thought out to develop the
chilling unit at various junctions, which would collect the milk and could chill it, so as
to preserve it for a longer period. Thus, today Amul has more than 150 chilling centres
in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New
Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk
powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the
foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime
minister of India declared it open at Amul dairy on November 20, 1955.

16
17
 ACHIEVEMENTS:
Amul : Asia’s largest dairy co-operative was created way back in1946 to
make the milk producer self-reliant and conduct milk- business with pride. Amul
has always been the trend setter in bringing and adapting the most modern
technology to door steps to rural farmers.
Amul created history in following areas:

a) First self motivated and autonomous farmers‟ organization comprising of

more than 5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk
collection centres owned by them.
c) Computerized milk collection system with electronic scale and
computerized accounting system.
d) The first and only organization in world to get ISO 9000 standard for its
farmer’s co-operatives.
e) First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal
farmers can provide means for the socio-economic development of the under
privileged marginal farmers

18
AWARDS:
Amul a co-operative society and its co-operation has led many different
awards in its favor.

Magsaysay award for community leadership presented in manila,

Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri awarded was given to V. Kurien, general manager, by

the president of India

1987: “Best Productivity” awarded by national productivity council for

the year 1985-86 awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-
87 by the president of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining co-

operative worldwide ICA regional office for Asia and pacific, New Delhi,
1996.

1999: G.B.Birla award.

Moreover the Amul union has achieved the prestigious ISO 9001-2000 and
HACCP Certificate and effects are got to obtain ISO 14000.

19
Amul in abroad:
Amul is going places. Literally. After having established its presence in China,
Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation

(GCMMF), India‟s largest milk cooperative, is waiting to flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations.
Amul products are already available on shelves across several countries, including
the US, China, Australia, West Asian countries and Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include
pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at

remunerative prices for producers' milk besides acting as a channel to market the
production enhancement package. What's more, it does not disturb the agro-system

20
of the farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was
cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern
and model for emulation elsewhere.

Amul has been able to:

 Produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its rotes and
limitations,
 Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
 Provide a support system to the milk producers without disturbing their
agro-economic systems,
 Plough back the profits, by prudent use of men, material and machines,
in the rural sector for the common good and betterment of the member
producers and

The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the

21
village societies. Basically the union and cooperation of people brought Amul into
fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE
TASTE OF INDIA.

22
OBJECTIVE OF THE RESEARCH

 To know awareness of people towards Amul products

 To know the preference of Amul products with comparison to
other competitive brands.
 To know the factors which affects consumer’s buying behaviour while
purchase milk.
 Swot analysis of Amul
 To study various factors such as quality, price, easy available etc. Is
influencing lot and influences positively
 Ideas about to increase the sale of the “Amul

23
 LITERATURE REVIEW

Abstract

In this paper we describe a case study of a dairy cooperative, AMUL, in western India
that has developed a successful model for doing business in large emerging economy.
It has been primarily responsible, through its innovative practices, for India to
become world’s largest producer of milk. This paper draws various lessons from the
experiences of AMUL that would be useful to cooperatives globally as well as firms
that are interested in doing business in large emerging markets like India and China.
Many of these economies have underdeveloped markets and fragmented
supply bases. Market failures for many of these small producers are high. On the
other hand, the size of both, markets and the suppliers is large. As a result, firms that
identify appropriate business strategies that take into account these characteristics are
more likely to succeed in these markets. The following are some key message from
AMUL’s success: firms in these environments need to simultaneously develop
markets and suppliers to synchronize demand and supply planning, develop or
become a part of network of producers (i.e., cooperatives in this case) to obtain scale
economies, focus on operational effectiveness to achieve cost leadership to enable
low price strategy. In addition, a central focus to bring the diverse element together
and a long-term approach are required.
In emerging economies different industrial sectors may be at different stages
of development. In some of the sectors all of the above environmental characteristics
faced may not hold. However, a subset of strategies followed by AMUL would still
be very useful. Thus, firms that are contemplating addressing large undeveloped
markets or have an intention of taking advantage of extensive but

24
marginal supplier base would still benefit.

Introduction
Since the turn of 19th century, Cooperatives have existed as dominant forms of
organization in the dairy industry around the world. Sometimes they have played the
role of developing infant industry while at other times they have been used to
strengthen weak production bases in an environment where market failures tend to
be higher for marginal producers. In some other cases, a network of small producers
have organized themselves to better market their products. Management of these
cooperatives have also led to some interesting managerial insights for managers in
emerging as well as developed economies.
Large emerging economies, e.g., India and China, have complexities that range
from development of markets (where the largest segment of population is the one
which has low purchasing power) to integration of low cost suppliers who are
predominantly very small. For firms that aspire to conduct substantial business in
such markets, such complexities have to be recognized and then overcome. The
challenge is to understand the linkages between markets and the society. This would
also require development of a new business model that helps a firm grow in such
environments. This paper is about one such successful model. The Kaira District Milk
Cooperative Union or AMUL in India is an example of how to develop a network of
firms in order to overcome the complexities of a large yet fragmented market like
those in emerging economies by creating value for suppliers as well as the customers.
AMUL has led the milk dairy revolution in India that has now emerged as one of the
largest milk producers in the world.

25
AMUL’s Journey towards Excellence

AMUL’s journey towards excellence is marked by some critical understanding of the

business environment in large emerging economies like India where markets have to
be developed by combining efficiency related initiatives with increasing the base of
marginal suppliers and consumers. The essence of AMUL’s efforts were as follows:
 It combined market and social development in an emerging economy. It
recognized the inter-linkages between various environments that governed the
lives of marginal milk farmers and the unmet needs of consumers. It also changed
the supply chain paradigm in order to reduce the cost to the consumer while
increasing the return to the supplier.
 It realized that in order to achieve their objectives, it had to benefit a large number
of people – both suppliers and consumers. While large scale had the danger of
failure due to poor control and required more resources, it also had the advantage
of creating a momentum that would be necessary to bring more people into the
fold and thereby help more suppliers and consumers.
 It also realized that its goal could only be achieved in the long run and this
required developing values in people and processes that were robust, replicable
and transparent.
It also realized that the cooperative would not be independent and viable in the face
of competition if it were not financially sound. This implied that AMUL had to

26
develop distinct capabilities that would deliver competitive advantage to its
operations.

Leadership

While Kaira Union (or AMUL) had the support of national leaders who were at the
forefront of the Indian independence movement, its local leaders were trained in
Gandhian simplicity17 and had their feet rooted firmly amongst people whom they had
mobilized – the poor farmers of Anand. The foremost amongst them was
Tribhuvandas Patel18 who had led the movement for the formation of cooperatives of
small and marginal farmers in order to compete against investor owned enterprises
on one hand, and keep bureaucracy away on the other hand. Tribhuvandas was the
first Chairman of the cooperative. His skills lay in organizing the village producers,
in making them believe in the power of cooperation and their rights towards
improvement of human condition. He is remembered as fair and honest person whose
highest sense of accountability to the members of the union laid the foundation of
trust between network members19. Another important aspect of his remarkable
management style was his gentleness and ability to repose trust in people – he gave
complete autonomy to managers of the union and earned complete commitment from
them20. Verghese Kurien21 was one such manager who would, first, shape the destiny
of the Union and then the milk movement throughout the country.

27
Strategy
AMUL’s business strategy is driven by its twin objectives of (i) long-term,
sustainable growth to its member farmers, and (ii) value proposition to a large
customer base by providing milk and other dairy products a low price. Its strategy,
which evolved over time, comprises of elements described below.
Simultaneous Development of Suppliers and Customers: From the very early stages
of the formation of AMUL, the cooperative realized that sustained growth for the
long-term was contingent on matching supply and demand. Further, given the
primitive state of the market and the suppliers of milk, their development in a
synchronous manner was critical for the continued growth of the industry. The
organization also recognized that in view of the poor infrastructure in India, such
development could not be left to market forces and proactive interventions were
required. Accordingly, AMUL and GCMMF adopted a number of strategies to assure
such growth. For example, at the time AMUL was formed, the vast majority of
consumers had limited purchasing power and was value conscious with very low
levels of consumption of milk and other dairy products. Thus, AMUL adopted a low
price strategy to make their products affordable and guarantee value to the consumer.
The success of this strategy is well recognized and remains the main plank of AMUL's
strategy even today. The choice of product mix and the sequence in which AMUL
introduced its products is consistent with this philosophy. Beginning with liquid milk,
the product mix was enhanced slowly by progressive addition of higher value
products while maintaining desired growth in existing products. Even today, while
competing in the market for high value dairy products, GCMMF ensures that
adequate supplies of low value products are maintained.
strategy of education and support. For example, only part of the surplus generated by
28
the Unions is paid to the members in the form of dividends. A substantial part of this
surplus is used for activities that promote growth of milk supply and improve yields.
These include provision of veterinary services, support for cold storage facilities at
the village societies etc. In parallel, the Unions have put in place a number of
initiatives to help educate the members.
Financial Strategy: AMUL’s finance strategy is driven primarily by its desire to
be self-reliant and thus depend on internally generated resources for funding its
growth and development. This choice was motivated by the relatively
underdeveloped financial markets with limited access to funds, and the reluctance to
depend on Government support and thus be obliged to cede control to bureaucracy.
AMUL’s financial strategy may thus be characterized by two elements: (a) retention
of surplus to fund growth and development, and (b) limited/ no credit, i.e., all
transactions are essentially cash only. For example, payment for milk procured by
village societies is in cash and within 12 hours of procurement (most, however, pay
at the same time as the receipt of milk). Similarly, no dispatches of finished products
are made without advance payment from distributors etc. This was particularly
important, given the limited liquidity position of farmer/suppliers and the absence of
banking facilities in rural India. This strategy strongly helped AMUL implement its
own vision of growth and development. It is important to mention that many of the
above approaches were at variance with industry practices of both domestic and MNC
competitors of AMUL.

29
ABOUT THE TOPIC:-
CONSUMER BEHAVIOUR:-

 It is defined as all psychological, social and physical behavior of potential

customers as they become aware, evaluate, purchase, consume, and tell to
others about product and services.

 Buying behavior involves both individual ( psychological) and group

process.

 Buyer behavior is reflected from awareness right through post

purchase evaluation indicating satisfaction and non satisfaction ,
from purchaser

 Buyer behavior includes communication, purchasing and consumption

behavior

 Consumer behavior is basically social in nature hence the social factors

play important roles in shaping buying behavior

30
CONSUMER BEHAVIOR AND MARKETING MANAGEMENT

Marketing managements work around consumers which is actually the market

for them

 Understanding their behavior is very vital in every segment to plan marketing

activities accordingly.

 Both industrial and individual customers are vital in marketing

management

DIVERSITY OF CONSUMER BEHAVIOR:-

 customer and consumer words are referred as synonyms but the

difference exists

 customer - the purchaser of product or service , may or may not be the

end user

 consumer- the end user , may or may not be the purchaser

 New age of business demands differentiation of customers by individual

differences in consumer expectations, preferences and influences.

31
  Firms need to go into deep of consumer behavior to analyze and act to
achieve objectives

CONCEPT & NEED FOR STUDYING CONSUMER BEHAVIOR:-

Consumer behaviour can be said to be the study of how individual make decision on
how to spend their available resources (time, money, effort) on various consumption
related items. This simple definition of consumer behaviour tells the markets to
resolve every activity around the ultimate consumers & gauge their behaviour by
specially focusing on:

 Who buys products or services?

 How do they buy products or services?
 Where do they buy them?
 How often they buy them?
 Why do they buy them?
 How often they use them?

These questions will help in understanding better what factors influences the
decision making process of the customers. The decision making process identifies
the number of people who are involve in this process & describes a role to them like
users, decides, influences & buyers.

32
It is believed that consumers or customers make purchase decision on the basis of
receipt of a small number of selectivity chosen pieces of information. Thus it will be
very important to understand what & how mush them to evaluate the goods &
services offerings

CONSUMER DECISION MAKING PROCESS:-

 Stimuli- need, reasons, influences, gathering information

 Information processing- process , analyze information about product

 Decision making - on the basis of analysis , decision to go for

 Response- response to buy without any prejudice

 For industrial buyers the process is almost similar only with addition of
re-buy, modified re buy or new task.

FACTOR INFLUENCING BUYING BEHAVIOR:-

 Individual factors

 Cognitive thinking process – perception , attitudes , Needs/motives

 Personal characteristics – demography, lifestyles ,personal traits

33
  Environmental factors

 Culture- values ,beliefs, sub cultural / cross cultural factors

 Social class- social class , society

 Influence groups – family, opinion leaders, reference group

 Situational variables – purchase occasion , market communication,

shopping behavior, price , sales influence , product position

CONSUMER SATISFACTION:-

All business firms have realized that marketing is a core element of management
philosophy & the key to its success lies in focusing more & more on the customers.
That is, it will be the customer who will decide where the firm is heading. Thus the
challenge before the marketer is to ensure that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers to the
buyers state of being adequately rewarded in a buying situation for the sacrifices he
has made one the customer purchase & use the product they may then become either
satisfy or dissatisfied.

The result of satisfaction to customer form the purchase of the product or services is
that more favourable post-purchase attitude, higher purchase intention & brand
loyalty to be exhibited that the same behaviour is likely to be exhibited in a similar
purchasing situation. The term ‘consumer’ is a typically used to refer to someone who
regularly purchase from a particular store or company.

34
Customers are people who are happy with the product & services & are willing to
come back & pay for it again.

Today the firms aim to give satisfaction to the customer through marketing concepts.
The firm try to help the buyers in the solving the problem then competitors. The
marketers must see that consumers with purchasing power constitute a potentials
buyers are identified. It is essential for the marketer to carry out the business in such
a way that they give satisfaction to consumers needed. When a firm markets a product
or service it should aim to enjoy consumer’s satisfaction & profit maximization.

CONSUMER RESEARCH:-

Consumer research is the methodology used to study consumer behavior research

offer set diverse to identify consumer needs it is used to identify both felt & unfelt
needs, to learn how consumers. Perceive product & brand & stores. What their
attitudes are before and after promotional campaigns & how & why they make their
consumption decision.

MARKETING RESEARCH:-

Marketing research plays an important role in the process of marketing. Starting

with market component of the total marketing talks. It helps the firm to acquire a
better understanding of the consumers, the competition and the marketing
environment.

35
DEFINITION
“Marketing research is a systematic gathering, recording and analysis marketing
problem to facilitate decision making.”

- Coundiff & Still.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market

research problem involved in the task.

(1) Define the problem and its objectives.

(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.

36
 (7) Prepare research report.
(8) Follow-up the stud

1) Define the problem and its objectives :- This includes an effective job in
planning and designing a research project that will provide the needed information.
It also includes the establishment of a general framework of major marketing
elements such as the industry elements, competitive elements, marketing elements
and company elements.

2) Identify the problem :- Identifying the problem involves getting acquainted with
the company, its business, its products and market environment, advertising by
means of library consultation and extensive interviewing of company’s officials.

3) Determining the specific Information needed :- In general the producer, the

manufacturer, the wholesaler and the retailer try to find out four things namely :-

(1) What to sell

(2) When to sell

(3) Where to sell

37
4) Determine the sources of information :-

Primary Data :- Primary datas are those which are gathered

specially for the project at hand, directly – e.g. through questionnaires &
interviews. Primary data sources include company salesman, middleman,
consumers, buyers, trade association’s executives & other businessman & even
competitors.
Secondary Data :- These are generally published sources, which
have been collected originally for some other purpose. Source are internal
company records, government publication, reports & publication, reports &
journals, trade, professional and business associations publications & reports.

5) Decide Research methods for collecting data: - If it is found that the secondary
data cannot be of much use, collection of primary data become necessary. Three
widely used methods of gathering primary data are :-
A) Survey

B) Observation

C) Experimentation

A) Survey Method: - In this method, information gathered directly from individual

respondents, either through personal interviews or through mail questionnaires or
telephone interviews.

38
B) Observation Method: - The research data are gathered through observing and
recording their actions in a marketing situation. This technique is highly accurate. It
is rather an expensive technique.

C) Experimental Method: - This method involves carrying out a small scale trial
solution to a problem, while at the same time, attempting to control all factors relevant
to the problem. The main assumption here is that the test conditions are essentially
the same as those that will be encountered later when conclusions derived from the
experiment are applied to a broader marketing area.

39
D) The Panel Research:- In this technique the same group of respondents is
contacted for more then one occasion; and the information obtained to find out if
there has been any in their taste demand or they want any special quality, color, size,
packing in the product.

 Preparation of questionnaire

 Presetting of questionnaire

 Planning of the sample

6) Tabulate, Analysis and Interpret the Data:-

The report must give/contain the following information:-

a) The title of research

b) The name of the organization for which it has been Conducted

c) The objectives of research

d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)

40
7) Follow-up the study :-

The researchers, in the last stage, should follow up this study to find if his
recommendations are being implemented and if not then why.

RESEARCH METHODOLOGY:-

RESEARCH PROBLEM
 Seek the general perception of consumer towards Amul Milk.
 To know the consumer psyche and their behaviour towards Amul Milk .

OBJECTIVE OF THE RESEARCH

 To know the relationship of sales with the advertisement.
 To know awareness of people towards Amul Milk.
 To know which advertisement tool is mostly preferred by people.
 To know the preference of Amul Milk with comparison to
Other competitive brands .

 To know the factors which affects consumer’s buying behaviour to purchase

milk.

41
Information requirement
 First, I had to know about all the competitors present in the Milk
segment (Reputed and well established brands as well as Local brands).

 Before going for the survey I had to know the comparative packs and
prices of all the competitors existing in the market.

 Since Milk is a product that used daily hence I had to trace the market and
segment it, which mainly deals with people of various age groups.
 The main information needed is the various types of brands available in the
market, their calorific value and various other facts.

 As Amul milk advertisements are mainly done through hoardings but on

television the advertisement is being telecasted timely and on the proper time
or not.

42
RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular
study. It is a map (or) blue print to which the research is to be conducted. Descriptive
research design has been considered as a suitable methodology for present study and
for data analysis.

SAMPLING DESIGN
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.

POPULATION
All types of outlets that stock and sell Amul milk in the markets. The outlets have
been classified into as follows

 Convenience stores: All kinds of shops including bakeries

 Eateries: all kinds of eating joints

43
SOURCES OF DATA

Primary sources
The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher.

Secondary sources
The secondary sources were used only for collecting information regarding the
sample; they were however not used for analysis

LIMITATIONS OF THE RESEARCH :-

The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such studies
in the past.

2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to

estimate the presence of Amul milk. Tools Utilized

 Percentage Analysis

 Graph Chart

44
 SAMPLING

1. Sampling Technique: Non probability sampling

(A non probability sampling technique is
that in which each element in the
population does not have an equal
chance of getting selected)

2. Sample Unit : People who buy milk available

in retail outlets, superstores, etc

3. Sample size : 50

4. Method : Direct interview through questionnaire.

5. scale : Dycpnomic scale and likent scal

45
DATA ANALYSIS AND INTERPRETATION:-
The collected data were not easily understandable, so I like to analyze the collected
data in a systematic manner and interpreted with simple method.

The analysis and interpretation of the data involves the analyzing of the
collected data and interpretation it with pictorial representation such as bar charts, pie
charts and others.

Which milk do you consume?

a. Pouch milk
b. Loose milk
c. Both

Options No of Responded % of Responded

Pouch mik 20 40
Loose milk 20 40
Both `10 20

46
Are you satisfied with the milk you are consuming?
a) Yes
b) No

NO. %
RESPONSE OF RESPONDED OF responded
YES 32 64
NO 18 36

47
What do you like?
a) Quality b) Taste
c) Price d) Availability

Factors No. of Respondents Percentage %

quality 20 40
taste 15 30
price 10 20
availability 5 10

48
Do you get milk pouch at…………..
a) Doorstep
b) From retailer

RESPONDED NO.OF responded % OF responded

Door step 30 60
retailer 20 40

49
What is total consumption of milk in a day?
a) Pouch milk in litre……
b) Loose milk in litre……

RESPONDED NO.OF responded % OF responded

Pouch milk in 30 60
litre……

b)Loose milk in 20 40
litre……

50
What is your monthly expenditure in milk (in Rs.)?

a)) 500-1000
b) 1000-1500
c) 1500 and above

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
500-1000 25 50
1000-1500 15 30
1500 and above 10 20

51
In pouch milk which brand do you prefer?
a)AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
e) WARANA
f) OTHERS

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
amul 15 30
Mother dairy 10 20
mahananda 10 20
Gokul 5 10
Warana 5 10
others 5 10

52
Do you think the price of the product is high/low compared to competitors product?

a) Strongly agree
b) Strongly disagree
c) Agree
d) Neither

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
15 30
Strongly agree

Strongly disagree 10 20

agree 15 30
Neither 10 20

53
If you buy AMUL milk pouch which pack you purchase?

a) AMUL Gold
b) AMUL Taaza
c) AMUL Slim & Trim

RESPONSE NO. %
OF RESPONDED OF CONSUMERS

AMUL Gold 25 50
AMUL Taaza 15 30
AMUL Slim & Trim 10 20

54
CONSUMER’S OPINION TOWARDS PRODUCT

rating No of respondent % of consumer

poor 15 30
average 25 15
good 7 14
excellent 3 6

55
Marketing

GCMMF is the marketing arm of the network and manages the physical
delivery and distribution of milk and dairy products from all the Unions to customers.
GCMMF is also responsible for all decisions related to market development and
customer management. These activities, which range from long- term planning to
medium-term and short-term operational decisions are described below.
As mentioned earlier, introduction of new products and choice of product mix and
markets should be consistent with the growth strategy, and synchronous with growth
in milk supply. GCMMF’s demand growth strategy may be characterized by two key
elements: (i) developing markets for its high value products by graduating customer
segments from low value products, and (ii) maintaining a healthy level of customer
base for its base products (low value segment). This strategy often requires GCMMF
to allocate sufficient quantity of milk supply to low value products, thereby
sacrificing additional profits that could be generated by converting the same to high
value products.
Interestingly, advertisement & promotion (a la FMCG) was not considered to be
enough of value addition and hence the budget was kept relatively small. Instead,
GCMMF preferred a lower price with emphasis on efficiency in advertising. In this
56
context, GCMMF provides umbrella branding to all the products of the network. For
example, liquid milk as well as various milk products produced by different Unions
are sold under the same brand name of AMUL. Interestingly, the advertising has
centered on building a common identity (e.g., a happy & healthy “cartoon”

57
AMUL girl) and evoking national emotion (e.g., the key advertising slogan says
“AMUL - The Taste of India”).

GCMMF also plays a key role in working with the Unions to coordinate the supply
of milk and dairy products. In essence, it procures from multiple production plants
(the thirteen Unions), which in turn procure from the Village Societies registered with
each Union. GCMMF distributes its products through third party distribution depots
that are managed by distributors who are exclusive to GCMMF. These distributors
are also responsible for servicing retail outlets all over the country. GCMMF sales
staff manages this process. Retailing of GCMMF’s products takes place through the
FMCG retail network in India most of whom are small retailers.

Liquid milk is distributed by vendors who deliver milk at homes. Since 1999,
GCMMF has started web based ordering facilities for its customers. A well-defined
supply chain has been developed to service customers who order in this manner.

Conclusion

It is well recognized that markets that are fragmented or producers that are too small
to build competitive infrastructures or those who are unable to manage technological
changes in their operational processes would benefit the most through a cooperative
organization. Consequently a large number of cooperatives have taken roots amongst
producers of food (especially those that are perishable). However, there are
interesting cooperative formations in India and China that are starting to emerge
amongst small producers in auto-components (especially those serving the
replacement markets), amongst small scale dyeing communities and the power- loom

58
operators in the textile industry. In these cases, the producers are coming together to
develop a common brand.

that is based on stringent quality certifications that would distinguish them from other
small producers and for usage of common property resources. The example of AMUL
provides a number of lessons for such organizations to compete successfully in the
face of increasing globalization and competition. More generally, the AMUL case
presents a successful model for operating in emerging economies characterized by
either large under-developed suppliers and/or markets with high potential The largest
segment of the market in emerging economies desires value for money from its
purchases. Development of such markets requires careful nurturing and a long-term
approach. Initial success in these markets is typically based on a low price strategy
(providing value for money) supported by cost leadership. This strategy helps to grow
the market exponentially by focusing on the largest segment of the population, the
middle and the lower middle class. In this context, it is important for global players
to note that the value proposition perceived by consumers is influenced to a large
extent by the state of markets and the economy and cultural factors. Development of
an appropriate value proposition suitable for large mass markets in India requires a
thorough understanding of the environment and a focus on costs. This in turn, requires
designing the organization structure and practices in a manner that it delivers
continued market share through cost leadership. AMUL is a good example of this
strategy. Firms that are able to develop control processes through better use of
operational practices and supply chain coordination are the ones that are able to serve
large volumes and enjoy top line growth in revenues.
Development of suppliers likewise requires nurturing with a long-term
perspective. It is interesting to note that this was achieved by AMUL through a
process of education and social development activities - activities that are not usually
considered to be standard business practices. This type of ‘out of the box’ vision is
59
essential for developing innovative mechanism in new, unfamiliar environments
where building of relationship with consumers goes much beyond marketing
messages and useful product offerings.

LITERATURE REVIEW

CURRENT SCENARIO

Mother dairy has a market share of around 33 % in the branded sector in West Bengal
where it sells 3.4 lakh litres of milk daily on an average and undertakes its marketing
operations through around 51 distributors and around 600 retailers in Kolkata itself.
It has a huge advantage over its competitors as it is the only player when it comes to
sale of loose milk through token. Before the entrance of competitors like Amul ,sale
of loose milk through Mother Dairy booths was around 35 % of the entire sale in
branded segment , when Mother dairy was the only player in the market. However
since last five years the sale is continuously declining and presently it is just 8-9 %.

60
61
Achievements

• Mother Dairy markets approximately 3.2 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad.

• Mother Dairy milk has a market share of 66% in the branded sector in Delhi
where it sells 2.5 million liters of milk daily

• And undertakes its marketing operations through around 1400 retail outlets
and over 1000 exclusive outlets of Mother Dairy

Vision and Mission

• Vision – “Provide quality food and beverages to consumers at affordable

prices while ensuring fair returns to the producers.”

• Mission – “Mother Dairy’s heritage is intrinsically linked to the cooperative

movement in India. With determination & pride we will continue to serve our

62
 farmers, rural India & our consumers. Our values reflect who we are & what
we firmly believe in.”

• Mother Dairy ice creams launched in the year 1995 have shown continuous
growth over the years and today boasts of approximately 62% market share in
Delhi and NCR.

• Mother Dairy also manufactures and markets a wide range of dairy products
that include Butter, Mishti Doi, Paneer, Dahi, Ghee, Cheese, UHT Milk,
Probiotic Products, Lassi & Flavoured Milk and most of these products are
available across the country.

63
Products Milk

64
Diary Products

65
CONCLUSION:-

Majority of the customers are satisfied with the Amul milk and Milk products because
of its good quality, reputation, easy availabilities.

From the survey conducted it is observed that Amul milk has a good market share.

From the study conducted the following conclusions can be drawn. In order the
dreams comes into reality and for turning liabilities into assets one must have to meet
the needs of the customers.

66
The factors considered by the customer before purchasing milk are freshness, taste,
thickness and availability.

Finally I conclude that, majority of the customers are satisfied with the Amul milk
and Milk products because of its good quality, reputation, easy availabilities. Some
customers are not satisfied with the Amul Milk because of high price, lack of dealer
services, spoilage and low shelf life etc. therefore, if slight modification in the
marketing programme such as dealers and outlets, promotion programmers, product
lines etc., definitely company can be as a monopoly and strong market leader.

Amul has also to take care of its competitors into consideration and more importantly
its customers before making any move.

67
 BIBLIOGRAPHY

Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall

Of India Private Limited, New Delhi.

Periodical: Business World

Research Methodology: C.R.Kothari , 2nd edition.

S.N Murty and U Bhojanna

Websites:

i. www.amul.com.

ii. www.marketresearch.com
iii. www.dairy.com

68
 ANNEXURE
QUESTIONNAIRE OF AMUL MILK PRODUCTS

Dear Sir/Madam,

I am conducting a survey entitled “CONSUMER BUYING PATTERN

TOWARDS AMUL MILK “ Please give your valuable information, your
information will be kept confidential and will be used only for academic
purpose.

Mohammad Naveed S. Shaikh

Name :-

Address: -

Age :- Gender :-

Contact No.: -

1) Which milk do you consume?

d. Pouch milk
e. Loose milk
f. Both

2) Are you satisfied with the milk you are consuming?

a) Yes
b) No

69
3) What do you like?
a) Quality b) Taste
c) Price d) Availability

4) Do you get milk pouch at…………..

a) Doorstep
b) From retailer

5) Total consumption of milk in a day?

a) Pouch milk in litre……
b) Loose milk in litre……

6) Your monthly expenditure in milk (in Rs.)?

a) 500-1000
b) 1000-1500
c) 1500 and above

7) In pouch milk which brand do you prefer?

a) AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
e) WARANA
f) ANY OTHER

…………………………………………………..

70
8) Do you think the price of the product is high/low compared to competitor’s
product?

a) Strongly agree
b) Strongly disagree
c) Agree
d) Neither

9) If you buy AMUL milk pouch which pack you purchase?

a) AMUL Gold
b) AMUL Taaza
c) AMUL Slim & Trim

10) What is the reason for buying/ not buying AMUL?

a)……………………………………………………..
b)……………………………………………………..
c)…………………………………………………..…

11) What are your suggestion/ expectations from AMUL?

a)………………………………………………………
b)………………………………………………………
c)………………………………………………………

12) CONSUMER OPINION TOWARDS PRODUCT?

rating No of respondent % of consumer

poor 15 30
average 25 15
good 7 14
excellent 3 6

71
72