REPORT ON “Understanding Consumer Perception Towards Amul Milk Product ” THIS STUDY WAS CONDUCTED FROM 6th APRIL 2016 TO 30th JUNE 2016 AT
GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED
By- KAJAL PRADHAN, PGDM From
International Institute Of Management Studies (PUNE) A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF PGDM COURSE DURING
(2015-2017)
PREFACE The PGDM program is a well-structured and integrated course of business studies. The main objective of practical training at PGDM level is to develop skills in students by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The PGDM program provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. Training is an integral part of PGDM and each and every student has to undergo the training for 3 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real and how it differs from the theoretical knowledge. In today’s globalized world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Besides this, one need to have practical knowledge, which would help an individual in his /her carrier activities and it, is true that “Experience is the best teacher”.
CERTIFICATE The following summer internship project report titled --“VISIBILITY AND MARKET RESEARCH OF AMUL ICE CREAM ” at Gujarat Co-operative Milk Marketing Federation Ltd., Pune from 5th April 2016 to 5th june 2016 is here by approved as a certified study in management carried out and presented in a manner satisfactory to warrant it’s acceptance as a prerequisite for the award of PGDM . For which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed on conclusion drawn therein but approve the Summer internship report only for the purpose it is submitted.
Signature of Officer in Charge Pune, G.C.M.M.F Ltd
DECLARATION I hereby declare that the following project report titled “Understanding Consumer Perception Towards Amul Milk ” at Gujarat Co-operative Milk Marketing Federation Ltd., Pune is an authentic work done by me. It is to the best of my knowledge and belief. This is to declare that all my work indulged in the Completion of this Project Report such as research, consumer Behaviour and Market Research is a profound and honest work of mine.
Date:
Signature Kajal Pradhan
ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for GUJARAT COOPERATIVE MILK MARKETING FEDERATION LTD; ANAND (AMUL). It has been an enriching experience for me to undergo my summer training at AMUL, which would not have been possible without the goodwill and support of the people around. As a student of INTERNATIONAL INSTITUTE OF MANAGEMENT STUDIES I would like to express my sincere thanks to all those who helped me during my practical training program. I would like to thank Mr.Atul Suru(Branch Manager) for having given me the opportunity to do my project work in the organization, and lighted my way of progress with his guidance. I would like to express my sincere gratitude to my Director Dr. Sandip Sane for the continuous support. I thankfully acknowledge the continuous support and inspiration given to me by my Project Guide Prof. Anil Varma for sparing his valuable time with me and giving all the guidance in executing the project as per requirement. I am grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project Especially MY PARENTS.
EXECUTIVE SUMMARY In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitor’s existing in the market is very essential in chalking out our own plan.It is also necessary to retain the existing customers apart from attracting the new customers. The Project is concerned with the “Understanding Consumer Perception Towards Amul Milk Products” in Pune- Maharastra. The project is included as a part of PGDM Program and is carried out from 6th April 2016 to 30th June 2016. The study helps to Understand Consumer Behavior regarding Amul Milk. Research type was descriptive. The research was done through retailers. I have collected the primary data through questionnaire. Questions were both open and close ended. The secondary data was collected from the distributors and salesman, Websites etc .
INDEX CHAPTER NO.
TITLE
PREFACE CERTIFICATE DECLARATION ACKNOWLEDGMENT EXECUTIVE SUMMARY INTRODUCTION
DAIRY INDUSTRY COMPANY HISTORY ORGANIZATION STRUCTURE PRODUCT SHOW CASE
AMUL MILK
VARIANTS OF MILK 2 3 4 5
COMPETITORS ANANLYSIS OBJECTIVE OF STUDY RESEARCH METHODOOGY DATA ANALYSIS & INTERPRETION RETAILER CONSUMER
6 7
FINDINGS SUGGESTION & CONCLUSION ANNEXURE REFRENCE & BIBLIOGRAPHY
PAGE NO. 2 4 5 6 7 11 12 16 27 30 31 33 36 44 46 50 51 61 72 74 77 80
Chapter-1 Introduction
DAIRY INDUSTRIES IN INDIA The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State with the increase in milk production. Maharashtra now regularly exports milk to neighbouring states. More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more ¾ of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. The share of livestock product is estimated at 21% of total agricultural sector. Dairy industry is of crucial importance to India. The country is the world’s largest milk producer, accounting for more than 13% of world’s total milk production. It is the world’s largest consumer of dairy products, consuming almost 100% of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers and women. The mission achieved thrust and direction with the launching of "Operation Flood", a programme extending over 26 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements. The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organization of India. It is the apex organization of the Dairy Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 2.8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District level and GCMMF at the State level. These cooperatives collect on an average 7.5 million liters of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless laborers and include
a sizeable population of tribal folk and people belonging to the scheduled castes. It markets the products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The combined processing capacity of these plants is 11.6 million liters per day, with four dairy plants having processing capacity in excess of 1 million Liters per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 2.5 million liters of milk per day and process 100 MTs of milk powder daily. During the last year, 3.1 billion liters of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products are manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures the quality of products right from the starting point (milk producer) through the value chain until it reaches the consumer. Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have brought about a significant social and economic change to our rural people. The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our rural producers benefit, the community and nation benefits as well. The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary – the farmer – but eventually contributes to the development of the village community.
COMPANY HISTORY
During the period of 1940s the framers have to travel long distance to deliver milk to one and only Polson dairy due to which often milk went sour and farmers have to suffer loss they were even exploited by giving less money in return of milk they provided. To find the solution to these problem farmers of kheda went to Sardar Vallabbhai Patel under the leadership of Tribhovandas Patel. Sardar Vallabbhai Patel advised them to form a cooperative union to supply milk directly to Bombay instead of selling it to Polson dairy. In those days Tribhuvandas Patel moved from villages to villages convincing farmers to from village level cooperative. The members from all the caste and creed came together to from union. “The kaira district co operative milk producers union” was registered on 10 th December 1946. In 1955 they established brand name “AMUL”. The cooperative was further developed and managed by Dr.Verghese Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the world) and a little later, with Kurien's help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which would compete against established players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer points of marketing, including the creation and popularization of a brand. This led to the search for an attractive brand name. In a brainstorming session, a chemist who worked in the dairy laboratory suggested Amul, which came from the Sanskrit word "Amulya", which means "priceless" and "denoted and symbolized the pride of Swadeshi production.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighborhood in Gujarat. Within a short span, five unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.
GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF) Gujarat cooperative milk marketing federation (GCMMF) is India largest food products marketing organization it is a state level apex body of milk cooperative s in Gujarat which aims to provide remunerative return to the farmers and also serve the interest of consumers by providing quality product which are good value for money. Year of establishment
: 1973
Members
: 17 district cooperative milk producers union
No. Of producer’s members
: 3.37 million
No. Village societies
: 18536
Total milk handling capacity
: 24 million litres per day
Milk collection
: 2.69billion litres
Milk collection
: 5.42billoin litres
(Daily average 2007-08)
: 14.85 million litres million litres
Milk drying capacity
: 626 Mts. per day
As you may be aware, Gujarat co-operative milk marketing federation limited is also one of the India’s largest food company having an annual turnover in 2007-08 above Rs.5000crores. This is an outcome of collective wisdom of some 20 lakh milk producers of Gujarat who have joined hands to carve out a premier co-operative organization which has built such a valuable brands known as Amul and sagar, over a period of 50 years. At present, GCMMF has 12 member union and respective dairy co-operative societies made famous by the much acclaimed Anand pattern of co-operatives. The pattern envisages dairy cooperative at level a processing unit called union at the district level and these are federated at the state level. Today there are 20 lakh farmers forming 10 thousand village dairy co-operative which gives a tremendous strength to the ‘Amul’ sagar.
Company Name
: Kaira District Co-Operative Milk Producers Union Limited “Amul Dairy”
Location
: Kaira District Co-Operative Milk Producers Union Juna Bus Station Road, Anand-388001 ,Gujarat.
Head office
: Gujarat co-operation milk marketing Federation ltd. Amul dairy road, P.B.No .10, anand-388001
Phone
: +91-2692-258506, 258507, 258508, 258509
Email
:
[email protected]
Website
: www.amul.com
Registration
: 14th December , 1946
Initial promoters
: Shri Tribhuvandas Patel Shri Moralji Desai
ORGANISATIONAL STRUCTURE Chairman Board of Directors Managing Director (1) General Manager Assistant General Manager (2) Manager Senior Dy. Manager
Executive Assistant Skilled/Unskilled Work man
PRODUCT SHOWCASE
Introduction to AMUL MILK : Amul was started on in Gujarat. The portfolio consisted of impulse products like pouch as well as take home packs and institutional/catering packs. Amul was launched on the platform of ‘Amul Milk Pita Hey India’ given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In Amul entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. It has combated competition like Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul Milk,Curd,Buttermilk is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor.Not only has it grown at a phenomenal rate but has added a vast only of pouches to its ever growing range. Currently it offers a selection of daily products. Amul has always brought newness in its products and the same applies for Amul. In , Amul introduced FAT FREE , which was a first in India. This range of FAT FREE, LOW FAT Milk created for the health conscious. Amul’s entry into milk regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential, quality of products and of course the brand name. Production Area: The main market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce milk in their home backyard and cater to the local market Types: Indian Milk market can be segmented in three different ways, namely on the basis of pouches; on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis of flavours the market today has a number of pouches traditional flavours like FULL FAT, LOW FAT, FAT FREE etc.
Chapter- 2 Competitor analysis
COMPETITORS IN PUNE MARKET For a company to excel, they need to be well aware about their competitors. The main rivals .
Chitale Katraj Mauli Mother Dairy Others
MOTHER
DAIRY
Mother dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy Development Board (NDDB) , It was an initiative under Operation Flood, a dairy development program aimed at making India a milk sufficient nation. Mother Dairy sources a significant part of its requirement of liquid milk from dairy cooperatives and village level farmer centric organizations.
KATRAJ Katraj Dairy was incorporated in 1960 with an intension of providing an organized facility of milk collection for the village level farmers situated in Pune district.
Chapter-3 Objective of Study
OBJECTIVES :
To find the consumer behavior in the market for Amul Milk. To understand the buying process of Amul Milk products. To study the awareness pattern as well as level of satisfaction of retailers with Amul Milk Products.
Chapter-4 Research Methodology
RESEARCH METHODOLOGY The research was conducted from 6th April 2016 to 30th June 2016. The research included meetings with the retailers, consumers and dealers. It included preparation of the questionnaire to be answered by above people for knowing the competitive position of Amul in the milk market. The views of the above parties were recorded in the research as per the questionnaire.
RESEARCH APPROACH: The objective was to know the competitive position of Amul in the market, thus in order to successfully conduct the research an unbiased opinion of the above parties was desirable. Thus I conducted the research as the representative of AMUL Company.
METHOD
OF
SURVEY:
Personal Interview: It is direct form of investigation, involving face-to- face communication with feedback. It offers a sense of participation. It is more flexible form of data collection. Use of unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible. Complex questions can be asked. The interview can have questions to secure more information. Visual aids in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of responder.
Questionnaire : Direct meeting with the customers and take the permission and giving the form to customers and taking feedback in form of questionnaire. this is helps to me understanding the customers perception towards milk.
Limitation:
The information is given in the report is purely on the basis of the generated data provided by respondents. Total coverage of the study was limited to few consumers and limited areas of Pune. Time period of the project was 8 weeks, which may not be enough to understand the whole market. The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favorably. Respondents may not have been true in answering various questions and may be biased to certain other questions.
Research Design Descriptive Research Design
Sampling Design Convenience Sampling
Size of Sampling 117 respondents
Data Collection Method Primary Data Questionnaire Secondary Data Websites and data provided by AMUL
Data Analysis Method MS Excel Method
Area of survey Pune City
Chapter- 5 Data analysis & Interpretation
SURVEY ON CONSUMER PERCEPTION TOWARDS AMUL MILK 1. which milk you consumed ? (i)Pouch (ii)Loose (iii)Both
Chart Title pouched
loose
both
20% 10% 70%
Interpretation :Through the survey, I found that most of the population consumed 80% people consumed Pouched milk , 10% people consumed loose milk and 20% people consumed both.
2. Are you satisfied with the milk you are consuming ?
(i)Yes
(ii)No
Chart Title yes
no
25%
75%
Interpretation:75% people says that they are satisfied with milk which they are consuming and rest 25% people dissatisfied .
3. What do you like quality & taste , price, availability ?
Chart Title
15%
quality & taste price availability
20% 65%
Interpretation: here I found that 65% people like Quality and taste of milk ,20% buy milk due to price and rest 15% people go for the availability of milk .
4. Do you get milk pouch at doorstep , retailer ?
Chart Title
20%
doorstep retailer
80%
Interpretation: most of the population means 80% people go to the reatailer for buying milk and rest 20% people get milk at doorstep.
5. In pouch milk which brand do u prefer? (i)Aamul (ii)chitle
(iii)katra j (iv)gokul (v)moth er (vi)dairy (vii)maul i
Chart Title Aamul chitle
5% 3% 30%
7%
katraj gokul
15%
mother dairy mauli 40%
Interpretation: here 40% people consumed Chitle milk , 30% people consumed Amul milk , 15% people consumed Katraj milk and rest people go for Gokul,Mother dairy and Mauli.
6. Why do u prefer this brand /due to (i)Quality and taste (ii)Price (iii)Availability
Chart Title
15%
quality & taste price availability
20% 65%
Interpretation: here I found that 65% people prefer milk due to his Quality and taste, 20% people go for price of milk and rest 15% people go for the availability of milk which is easily available .
7. If you buy AMUL milk pouch which pack you purchase? (i)Gold (ii)Taaza (iii)Slim n trim (iv)Cow
Chart Title
15%
18%
gold taaza slim n trim
12%
cow milk
55%
Interpretation: here I found the 55% people purchasing Amul taaza milk, 18% people purchasing Amul gold milk , 12% people purchasing Amul Slim n trim milk those are health conscious and rest population go for the Amul Cow milk they believe thet Cow milk is real milk.
FINDINGS Through this survey, it is clear that:
Amul is preferred by the consumers. Lack of effective marketing.
Lack of new schemes (although this has improved somewhat during the course of research). Supply is not being able to meet the demand. Amul is having its reach in the city area only, when compared to Chitle; the brand is present in village areas also. .No sales person has approached most of the areas. Amul Milk is also not present in the outlet where there is maximum foot fall.
Chapter- 7 Suggestion & Conclusion
Suggestion Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote company’s milk products. Incentives & schemes should be given to the retailers and some cross check system should be followed to check if the schemes are being communicated properly by distributors or sales person. In this competitive market not providing free fridge to retailers when your biggest competitor is providing it with ease leads to huge loss in market
share. All the retailers are in the habit of getting free fridges from Chitle, this strategy by Chitle is not only pushing out Amul from the shops but also not letting it enter to areas where Amul haven’t been able to reach yet. Amul has a relatively good distribution network but supply of basic milk is not meeting the demand of customers. Lack of consistent supply is leading to customers being pushed away to other brands. Maximum number of vendors does not get the products that they ask for. Company should focus on this issue and try and improve the supply chain management.
Conclusion As we know that Amul is a big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese which are its main/core products. But when it comes to Amul Milk, it is not a popular product as compared to other Amul Products. All the retailers feel that Amul products are very good in taste and once a customer tries it they will become loyal to the brand but, then again, supply shortages have led to customers shifting to other brands and retailers too start keeping less of Amul Milk. Also, strong marketing tactics adopted by other brands have resulted in Amul Milk being left behind. It was a great experience working in Amul. The people, the work culture, working
environment was very comfortable and easy to get accustomed with. These eight weeks in Amul were not only enriching but a great learning curve, where I learned how a big company like Amul works, what routine they follow, what are their hierarchy structure, how they successfully manage such a huge supply chain. Amul also taught me how to be a market leader, what they have done to reach that position and to also maintain it for years and years. As I conclude this project I would like to tell that Amul has great potential and with the help of this research, I hope company can find out its drawbacks and can increase its market share by rectifying its mistakes. People have believed in Amul’s product always and they will accept it also if effective actions are taken.
Bibliography 1. http://www.amul.com/ 2. http://www.investorwords.co/6576/market_size.html 3.http://www.businessdictionary.com/definition/market-size.html 4. http://www.barodamunicipal.gov.in/content/city/stmt3.shtml
5. http://en.wikipedia.org/wiki/Feasibility_study#Other_feasibility_factors 6. http://www.businessdictionary.com/definition/feasibility-study.html
Annexure Survey on consumer perception towards Amul milk 1. which milk you consumed ? (i)Pouch (ii)Loose (iii)Both 2. Are you satisfied with the milk you are consuming ? (i)Yes
(ii)No
3. What do you like quality & taste , price, availability ? 4. Do you get milk pouch at doorstep , retailer ? 5. In pouch milk which brand do u prefer? (i)Aamul (ii)chitle (iii)katra j
(iv)gokul (v)moth er (vi)dairy (vii)maul i
6. Why do u prefer this brand /due to (i)Quality and taste (ii)Price (iii)Availability 7. If you buy AMUL milk pouch which pack you purchase? (i)Gold (ii)Taaza (iii)Slim n trim (iv)Cow
