Project Comparison of Amul Milk and Mother Dairy Milk 15 March 2014

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COMPARATIVE ANALYSIS OF AMUL INDIA AND MOTHER DAIRY

1COMPARATIVE ANALYSIS OF AMUL INDIA AND MOTHER DAIRY

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Acknowledgement


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Table of ContentsCHAPTER I - INTRODUCTION........................................................................................................................5

1.1. SUMMARY:..................................................................................................................................5

1.2. OBJECTIVES OF THE STUDY:.........................................................................................................5

1.3. ABOUT THE PRODUCT:................................................................................................................5

1.3.1. Product Specifications:............................................................................................................5

1.3.2. Product Features, Application and Market Availability:...........................................................6

1.4. COMPANY PROFILE:.....................................................................................................................7

1.4.1. Mother Dairy:..........................................................................................................................7

1.4.2. Amul India:.............................................................................................................................12

CHAPTER - II...............................................................................................................................................19

2.1. PRODUCT EVOLUTION:..............................................................................................................19

2.1.1. Mother Dairy Milk..................................................................................................................19

2.1.2. Amul Milk...............................................................................................................................19

2.2. DETAIL OF THE MARKET.............................................................................................................20

2.2.1. Mother Dairy:........................................................................................................................20

2.2.2. Amul Milk...............................................................................................................................22

2.3. COMPARISON OF SELLING PREPOSITIONS.................................................................................22

2.3.1. Product:.................................................................................................................................22

2.3.2. Price.......................................................................................................................................23

2.3.3. Place......................................................................................................................................23

2.3.4. Promotion:.............................................................................................................................24

2.4. POSITIONING MAP:....................................................................................................................25

CHAPTER - III..............................................................................................................................................27

3.1. HYPOTHESIS...............................................................................................................................27

3.2. SELECTION OF SAMPLE..............................................................................................................27


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3.2.1. Data Analysis..........................................................................................................................28

CHAPTER - IV.............................................................................................................................................42

4.1. CONCLUSION:............................................................................................................................42

4.2. RECOMMENDATIONS................................................................................................................42

4.3. LIMITATIONS:.............................................................................................................................43

REFERENCES..............................................................................................................................................44


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CHAPTER I - INTRODUCTION

1.1. SUMMARY:

This chapter describes the introduction to the project in terms of objectives of the study, company

profiles which have been selected to be compared and about the products:

Target Companies Amul India Mother Dairy

Selected Products Milk Milk

1.2. OBJECTIVES OF THE STUDY:

To perform the comparative analysis between Amul Milk and Mother Dairy Milk to understand

their marketing and positioning strategy

To study the current market position of Amul Milk and Mother Dairy Milk

To compare the marketing mix of Amul Milk and Mother Dairy Milk

1.3. ABOUT THE PRODUCT:

Company

Amul India Mother Dairy

Product Name Amul Gold Mother Dairy Milk

DescriptionPasteurized milk Amul milk meets the PFA standards for the respective type of milk.

Pasteurized milk, meets the PFA standards for the respective type of milk

PackingPoly Pack - 500ml, 1000ml, 5 Ltr * Poly Pack - 500ml, 1000ml* In Selected markets only

1.3.1. Product Specifications:

Company Amul India Mother Dairy

Composition FAT(%) 6.0 min FAT(%) 6.0 min SNF (%)* 9.0 min SNF (%)* 9.0 min

Serving Size 200 ml 250 mlAmount per 100 ml 110 mlEnergy 87 kcal 87 kcal


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Energy from FAT 54 kcal 54 kcalTotal FAT 6 g 8 gSaturated FAT 3.7 g 3.9 gCholesterol 16 mg 16 mgTotal Carbohydrate 5.0 g 5.0 gAdded Sugar 0 g 0 gProtein 3.3 g 3.0 gCalcium 150 mg 150 mgPhosphorus 130 mg 130 mgSodium 50 mg 50 mgThiamine 42 mcg 42 mcgRiboflavin 120 mcg 120 mcgNiacin 100 mcg 100 mcgFolic Acid 7.5 mcg 7.5 mcgVit. A(Retinol) 65 mcg 65 mcg*Approx. values

Shelf Life 48 Hours from the date of packing if kept under refrigeration below 8°C

Storage condition Under Refrigeration (Below 8°C)

1.3.2. Product Features, Application and Market Availability:

Company Amul India Mother Dairy

Product Features

Amul Milk is the most hygienic liquid milk available in the market.It is pasteurized in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers.

Packed with energy and nutrition that’s essential for growing kids. It makes them stronger from within and keeps them active and healthy.

Application

Direct consumption, Making of: Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee

Direct consumption, Making of: Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee

Market Availability

Gujarat, Delhi & NCR, Mumbai, Kolkata, Kanpur, Lucknow, Allahabad, Agra, Meerut, Aligarh, Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali , Pune, Nasi

Delhi, Mumbai, Saurashtra and Hyderabad


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1.4. COMPANY PROFILE:

1.4.1. Mother Dairy:

Mother Dairy was set up in 1974 under the Operation Flood Program. A

wholly owned company of the National Dairy Development Board (NDDB),

Mother Dairy manufactures, markets & sells milk and milk products under

the Mother Dairy brand (Milk, Cultured Products, Ice Creams, Paneer and

Ghee), Dhara range of edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed

Fruit & Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit juices at a

national level through its sales and distribution networks for marketing food items.

Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Similarly,

Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also

contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of

edible oils by undertaking to nationally market all Dhara products. It is Mother Dairy’s constant

endeavor to ensure that milk producers and farmers regularly and continually receive market prices by

offering quality milk, milk products and other food products to consumers at competitive prices and

uphold institutional structures that empower milk producers and farmers through processes that are

equitable.

At Mother Dairy, processing of milk is controlled by process automation whereby state-of-the-

art microprocessor technology is adopted to integrate and completely automate all functions of the milk

processing areas to ensure high product quality/ reliability and safety. Mother Dairy is an ISO 9001:2008


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(QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004 (EMS) certified organization. Mother Dairy has

Certificate of Approval from Export Inspection Council of India also. Moreover, its Quality Assurance

Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-

Department of Science and Technology, Government of India.

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.

The company derives significant competitive advantage from its unique distribution network of

bulk vending milk booths, retail outlets and mobile units. 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 &

Flavored Milk and most of these products are available across the country.

Safal is the market leader in the organized fruit & vegetable retail business in Delhi NCR where it

sells an average of 300 MT/day through a network of 350+ exclusive retail outlets under brand name

Safal/ Safal Pure Veg, supported by a state-of-the-art large and ultramodern Central Distribution Facility

located in Delhi with an annual capacity to handle and process 2,00,000 MT of fresh fruits and

vegetables. Safal today operates the largest number of F&V Stores in Delhi NCR and has further

expansion plans in place. Retail Outlets are also present in Bangalore under the brand name Safal Daily

Fresh.

Safal has a prominent presence in Export market spread across 40 countries viz., USA, Europe,

Russia, Middle East, Asia and Africa and exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin,

Onion, etc.), Fruit Pulp & Concentrate, Frozen Fruits & Vegetables, etc. A state-of-the-art fruit

processing plant of fruit handling capacity of 15,000 MT annually, setup in 1996 at Mumbai supplies

quality products in the international market. With increasing demand another state-of-the-art fruit

processing plant has been set up at Bangalore with fruit handling capacity of around 50,000 MT

annually.


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The Dhara range of edible oils is marketed by Mother dairy. Today it is one of the leading brand of edible

oils and is available across the country in over 2, 00,000 outlets. The brand is known for its PURITY and

focuses on the indigenous oil. The brand is currently available in the following variants: Refined

Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard

Oil and Filtered Groundnut Oil.

Mother Dairy has over the past 3 decades, harnessed the power of farmer cooperatives to

deliver a range of delicious products and bring a smile on your face.

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 farmers, rural India & our consumers. Our values

reflect who we are & what we firmly believe in.

Quality:

Mother Dairy is committed to deliver products which

meet all regulatory, industrial, consumer Quality and

Food safety requirements to our valued consumers.

Our continuous efforts focused on building a

sustainable “Quality and Food Safety Program”


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across food chain, using state of the art processes and innovative technologies towards delivering wide

range of “Dairy and Food” products.

Our systems are designed to have process monitoring and controls at each stage of food chain towards

Continual Improvements. We, assure that our valued consumers are satisfied, each time they experience

our product.

We achieve this by,

Implementing robust Mother Dairy Management System, which is an Internal System,

developed to meet the all Process Requirements based on National & International Standards.

Implementing International Management System Standards (ISO)

Bench Marking, Best-In-Class requirements

Process Optimization : Constantly working on latest innovative Technologies

Capability Development across the Organization

Auditing & Assessments : Mother Dairy has established a frame work for Auditing &

Assessments of Complete Food Chain

Consumer Satisfaction

It is our endeavor to create a culture of “Total Quality” where continuous improvement of our people,

processes and products becomes a way of life. At Mother Dairy Innovation Centre, we have a dedicated

team of Scientists who are constantly collaborating international standards and best practices for

Quality & Food Safety in its products.

Product Quality:


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Product Portfolio:

Milk

Mother Dairy maintains stringent measures to ensure the quality and purity of the milk provided to its

consumers. Each batch of incoming and outgoing milk is subjected to 21 quality tests including presence

of foreign matter and bacteriological tests. The quality of milk accepted and dispatched meets certain

predetermined standards. The milk goes through various processes such as Clarification,

Homogenization, Standardization and Pasteurization, to ensure that it is safe for human consumption.

Our motive for following such strict quality measures is to ensure that there is no contamination while

processing or packaging. Mother Dairy promises its consumers that it will continue to produce products

of the highest quality standard. Its Dairy products are processed & packed in ISO certified plants & strict

controls are exercised by quality assurance department on all the plants. Most of our plants are certified

for FOOD SAFETY MANAGEMENT SYSTEM. Quality Assurance Laboratory at Mother Dairy Delhi is

certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of

Science and Technology, Government of India. All the operations in our organization are manned by

qualified & highly experienced personnel.

We at Mother Dairy focus on motivated & hard working, well qualified & trained personnel in

front end as well as back end operations. The dedicated Field QA team ensures that the products

manufactured at the plant are handled properly once the products dispatched from manufacturing

units.

Fruit & Vegetable:

Quality of “Safal” Produce starts from the field itself. Mother Dairy Quality Assurance professionals

constantly provide technical support to Farmers during all stages of Supply chain (e.g. harvesting,

handling, transportation and storage).

We, at Mother Dairy Monitor and Control the produce quality during material receiving, processing and

finished product stage against Company Standards & Specifications. Our state of the art Manufacturing

Operations are certified for Quality Management System (ISO 9001: 2008) and Food Safety Management

System (ISO 22000: 2005). The Core purpose of “Safal” is to bring Fresh, Frozen and Processed Fruit &

Vegetable Quality products that form daily diet of the people.


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Edible Oil:

Dhara uses sophisticated quality assurance instruments such as GLC, GCMS, HPLC, HPTLC, Rancimat etc.

to ensure that Dhara oils are 100 % pure. The unique packaging material used for packing Dhara oil

variants is food grade to ensure that the oil packed in it remains hygienic and fresh.

1.4.2. Amul India:

Amul was started when milk became a symbol of protest. The company

Founded in 1946 to stop the exploitation by middlemen, inspired by the

freedom movement. The seeds of this unusual saga were sown more than

65 years back in Anand, a small town in the state of Gujarat in western

India. The exploitative trade practices followed by the local trade cartel

triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the

trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a

solution. He advised them to get rid of middlemen and form their own co-operative, which would have

procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel.

Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas

Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two

village dairy co-operative societies and 247 liters of milk and is today better known as Amul Dairy. Amul

grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder

Chairman and the committed professionalism of Dr Verghese Kurien, who was entrusted the task of

running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should

become the basis of a National Dairy Development policy. He understood that the success of Amul could

be attributed to four important factors. The farmers owned the dairy, their elected representatives

managed the village societies and the district union, a they employed professionals to operate the dairy


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and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers

and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic

objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman

and asked to replicate this model throughout the country.

Business Model:

The Amul Model of dairy development is a three-

tiered structure with the dairy cooperative

societies at the village level federated under a

milk union at the district level and a federation of

member unions at the state level.

Establishment of a direct linkage between

milk producers and consumers by

eliminating middlemen

Milk Producers (farmers) control

procurement, processing and marketing

Professional management

The Amul model has helped India to emerge as

the largest milk producer in the world. More than

15 million milk producers pour their milk in 1,

44,246 dairy cooperative societies across the

country. Their milk is processed in 177 District Co-

operative Unions and marketed by 22 State

Marketing Federations, ensuring a better life for

millions.


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Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing

organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily milk procurement is approx 13

million lit (peak period) per day from 16,117 village milk cooperative societies, 17 member unions

covering 24 districts, and 3.18 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL',

which aims to provide remunerative returns to the farmers and also serve the interest of consumers by

providing quality products which are good value for money. Its success has not only been emulated in

India but serves as a model for rest of the World. It is exclusive marketing organisation

of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of

5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises


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milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates,

and traditional Indian sweets, etc.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"

status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan,

China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in

Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden

Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF has received

numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award

in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award

instituted by Business World. In 2003, it was awarded the IMC Ramkrishna Bajaj National Quality Award

- 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is

the first and only Indian organisation to win topmost International Dairy Federation Marketing Award

for probiotic ice cream launch in 2007.

The Amul brand is not only a product, but also a movement. It is in one way, the representation

of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

GCMMF - An Overview

Year of Establishment 1973

Members 17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members)

No. of Producer Members 3.18 MillionNo. of Village Societies 16,117Total Milk handling capacity per day 13.67 Million liters per day

Milk Collection (Total - 2011-12) 3.88 billion litersMilk collection (Daily Average 2011-12) 10.6 million liters (peak 13 million)Milk Drying Capacity 647 Mts. per dayCattle feed manufacturing Capacity 3690 Mts. per day

Sales Turnover -(2011-12) Rs. 11668 Crores (US $2.5 Billion)

Member Unions:

Kaira District Cooperative Milk Producers' Union Ltd., Anand


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Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana

Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar

Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur

Surat District Cooperative Milk Producers' Union Ltd., Surat

Baroda District Cooperative Milk Producers' Union Ltd., Vadodara

Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra

Valsad District Cooperative Milk Producers' Union Ltd., Valsad

Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch

Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad

Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot

Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar

Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar

Amreli District Cooperative Milk Producers Union Ltd., Amreli

Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar

Kutch District Cooperative Milk Producers' Union Ltd., Anjar

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172


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Sales Turnover Rs (million) US $ (in million)

2011-12 116680 2500

Product Portfolio:

Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine

Cheese Range

Amul Pasteurized Processed Cheddar Cheese, Amul Processed

Cheese Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental

Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese),

Utterly Delicious Pizza

Fresh Milk

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk

4.5% Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul

Cow Milk

UHT Milk RangeAmul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5%

fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Milk Powders

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and

Coffee Whitener

Milk Drink

Amul Kool Flavored Milk, Amul Kool Cafe, Amul Kool Koko,Amul

Kool Millk Shaake, Amul Kool Chocolate Milk,Nutramul Energy

Drink

Health Drink Stamina Instant Energy Drink

Brown Beverage Nutramul Malted Milk Food

Curd ProductsAmul Milk (fresh curd), Amul Masti Spiced Butter Milk,Amul

Lassee, Amul Flaavyo Yoghurt

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed Milk Amul Mithaimate

Mithaee Range (Ethnic Sweets)Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar

Ladoos


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Ice-cream Sundae Range, probiotic,,sugarfree and probiotic

Chocolate & ConfectioneryAmul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,

Amul Bindass, Amul Fundoo

CHAPTER - II

1.5. PRODUCT EVOLUTION:

1.5.1. Mother Dairy Milk

In this booming period Mother Dairy is looking to take advantage of the opportunities which are in

galore available for all milk manufacturers. Mother Dairy - Delhi was set up in 1974 under the Operation

Flood Program. It is now a subsidiary company of National Dairy Development Board (NDDB). Mother

Dairy sources its entire requirement of liquid milk from dairy cooperatives.

Mother Dairy milk (bulk vended) is fortified with vitamin A with 2000 IU per litre as social

accountability. This program started with the Mother Dairy, Delhi, in February 1980. Thereafter the dairy

continues this program on their own without having any financial assistance from the government since

it is felt that BVM is generally consumed by the middle/lower middle/poor population. It is found that

the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources

significant part of its requirement of liquid milk from dairy cooperatives.

Processing of milk is controlled by process automation whereby state-of-the-art microprocessor

technology is adopted to integrate and completely automate all functions of the processing areas to

ensure high product quality, reliability and safety.

Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of Delhi,

Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the branded sector in Delhi

where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around

14,000 retail outlets and 845 exclusive outlets. As of April 2013, the dairy commands 71% and Amul

commands 29% of market.


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1.5.2. Amul Milk

Amul has spurred the White Revolution of India, which has made India the largest producer of milk and

milk products in the world. Amul's genesis is linked to the freedom movement in India. Sardar Vallabh

bhai Patel, an eminent Indian freedom fighter encouraged the dairy farmers from the Kaira district in

Gujarat to form a cooperative to counter the 'exploitatively' low prices offered for their milk by the

monopoly milk Supplier of the area, Polson's Dairy. The dairy farmers met in Samarkha (Kaira district,

Gujarat) on the 4th of January 1946, and decided to set up a milk producers' cooperative that would

deal directly with the Bombay government, the final buyer of their milk. This was the origin of the Anand

model. Initially, when the Bombay government refused to deal with the cooperative, the farmers called

a strike. The government finally relented when Bombay went without milk for a fortnight. The successful

union registered itself as the Kaira District Cooperative Milk Producers' Union Ltd. (KCMPUL), Anand, in

Gujarat in December 1946. And so did GCMMF and brand AMUL establish consequently. The main

motto of Amul is to help farmers i.e. Milk producers. Amul system works under objective of highest

possible compensation to the milk producers and lowest possible price to consumers. Farmer are paid

money in cash payment for the milk. Milk gives them money for the daily necessities. Amul is the one

who started using their profits for the milk producers common good.

Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic

network that links more than 3.1 million village milk producers with millions of consumers in India.

These cooperatives collect on an average 9.4 million liters of milk per day from their producer members,

more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable

population of tribal folk and people belonging to the scheduled castes. The turnover of GCMMF (AMUL)

during 2012–13 was 97.74 billion (US$1.77 billion). It markets the products, produced by the district

milk unions in 30 dairy plants.


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1.6. DETAIL OF THE MARKET

1.6.1. Mother Dairy:

Mother dairy ensures milk availability across all the retail outlets through a control room set up at the

dairy premises. The control room is very vital for efficient distribution of milk to all the retail outlets. It

organizes distribution routes so that shops do not run out of milk. Each milk tanker is fitted with a

wireless set. As soon as the person in the control room learns that a shop is running out of milk,

he contacts the tanker nearest to the shop on wireless which then delivers the milk to the shop.

Figure 2.1 – Full Cream Milk Sales

Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of Delhi, Mumbai,

Saurashtra and Hyderabad. They have a market share of 66% in the branded sector in Delhi where it

sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail

outlets and 845 exclusive outlets. As of April 2013, the dairy commands 71% and amul commands 29%

of market.


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Figure 2.2 – Tonned Milk Sales

1.6.2. Amul Milk

AMUL has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread

all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers. Amul became

the world's largest vegetarian cheese and the largest pouched-milk brand. AMUL is also the largest

exporter of dairy products in the country. AMUL is available today in over 40 countries of the world.

AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage

Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA,

West Indies, and countries in Africa, the Gulf Region, and SAARC neighbors, Singapore, The Philippines,

Thailand, Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South African

countries.

Over the years Amul has been witnessing strong growth in this portfolio, with the segment

growing at 53%, as a result of growing consumer awareness and demand for good quality milk, the

urban population has especially been showing great interest in long life UHT products like Amul Taaza,

which are packed in Tetra Pak cartons, which undergoes UHT treatment to remove all harmful

microorganisms while retaining the nutrition in the milk. Today Amul sells around 4-500,000 liters of

UHT milk and other value added products per day and forecast this demand to continue growing at


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25%.The UHT products have enabled Amul to position itself as the market leader in packaged milk

segment by penetrating the deeper and vast markets by maintaining long shelf life of milk, without the

need of maintain cold supply chains.

Amul has installed an "Any Time Milk" machine dispenses a 300-ml pouch of fresh milk for Rs 10,

at Anand's Amul Dairy. As a first step, Amul plans to install six such ATMs in Anand itself. According to

Rahul Kumar, MD of Amul Dairy, Amul wants to add a whole range of dairy products, which could be

dispensed through these machines.

1.7. COMPARISON OF SELLING PREPOSITIONS

1.7.1. Product:

Amul India Mother DairyAmul Gold is Pasteurized milk and most hygienic liquid milk available in the market.Amul Gold is available in Poly Pack - 500ml, 1000ml, 5 LtrAmul Gold can be used for Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, GheeAmul Taaza is pasteurized milk and most hygienic liquid milk available in the marketAmul Taaza is available in Poly Pack - 500ml, 1000ml, 200ml, 5 LtrIt can be used for Direct consumption, Making of: Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee

Mother dairy full cream is wholesome and packed with energy and nutrition that’s essential for growing kids It makes them stronger from within and keeps them active and healthy.Mother Dairy Toned Milk is a perfect blend of good health and wholesome taste. It’s an ideal choice for people in search of a nutritionally balanced diet that does not compromise on taste. It is the right way to stay fit and fine, jolly and cheerful.

1.7.2. Price



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At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.Amul's Taaza brand of toned milk that sold for Rs 34 now costs Rs 36. In early 2013, it was available for Rs 24-26 per litre. Amul Gold, the full cream variant, now costs Rs 46 over Rs 44. The rate in 2013 was Rs 34-36 per litre.

Mother Dairy toned milk now costs Rs 36 per literMother Dairy, the full cream variant, now costs Rs 46

1.7.3. Place


Currently Amul has 2.41 million producer members with milk collection average of 5.08 million liters/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

However, as far as other dairy products are concerned, Mother Dairy plans to expand across the board. Other than milk, for most state federations, dairy products are still a small part of their operations. So they are taking their products to regions across India, where they see enough market potential. In ice creams, it was only two years ago that Mother Dairy entered its first market outside Delhi -UP and Punjab. Today, it's extended its operation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad and Bangalore. In the case of butter and cheese, it's present across north India, Mumbai and Kolkata, and has plans to enter Bangalore by year-end. In UTH milk, it has entered Mumbai and the milk-short areas of West Bengal and north-east. For ghee, although the current focus is the northern region, it has plans for a nationwide presence.


24

1.7.4. Promotion:

Amul India Mother DairyGujarat Co-operative Milk Marketing Federation (GCMMF) has launched a print and digital campaign for its brand Amul.Each ad of the campaign features a person with a milk moustache who ‘Eats milk with every meal’, and lists exaggerated benefits of doing so alongside nutritional benefits of Amul products. The characters depicted include a tennis player who wins doubles playing alone; a man who lifts the car to change the tyre; an office geek who hasn’t taken sick leave in five years; and a young woman who flaunts her out-of-the-shower look 24x7. Amul’s dairy product range including milk, butter, paneer, ice cream and ghee are showcased.

Amul takes humour route, to say ‘‘Eat’ milk

with every meal’

On the marketing front, Mother Dairy says it's trying to take its product campaigns and communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits - milk is good for health, it has calcium and so on - but rather it targets children and are created around ideas such as "The country needs you, grow faster".


25

1.8. POSITIONING MAP:

Figure 2.3 – Positioning Map

The above figure 2.3 shows the positioning map of Amul and Mother Dairy. Amul has positioned it as a

slow perishable and high on purity comparative to other milk brands. On the second map, Amul has

positioned as high on taste and health. On the other hand, Mother Dairy has positioned as fast

perishable as compared to Amul however high on purity as compared to Amul. Mother Dairy is less

healthy and low on taste as compared to Amul.


26

CHAPTER - III1.9. HYPOTHESIS

In order to test the competitiveness and marketing effectiveness of Amul and Mother Dairy, there are

the following hypothesis have been tested.

H1: Amul is most salable brand than Mother Dairy

H2: Amul is more preferable choice among consumers


27

1.10. SELECTION OF SAMPLE

The sampling method used was quota sampling with random selection. All eligible retailers selling Amul

and Mother Dairy milk during the study period were included in the study. Data collection was carried

out according to a schedule that was prepared. Data was collected from the identified areas in Delhi and

NCR regional alternate weeks. According to Saunders et al, 2003, the universal sampling is conducted by

defining the target universe or segment of the respondents in selected region.

Target Respondents: Retailers selling Amul and Mother Dairy Milk across Delhi and NCR

Sample Size: 100 surveys

Sampling Method: Random Sampling Method is used

1.10.1. Data Analysis

Data analysis is the most important and critical part of the research. A robust analysis technique should

be adopted by the researcher to present the data effectively. Therefore with this view the research has

used Excel based graphs & tables and percentage method to analyze and represent the data.

Q1. Do you sell below products?


28

Figure 4.1

Figure 4.1 shows that 89% respondents replied yes that they sell Amul Milk however 90% respondents

replied yes that they sell Mother Dairy Milk.

Q2. How will you rate the quality of Amul Milk/ Mother Dairy Milk?

Excellent Good Average Poor

Amul Milk 31% 44% 19% 6%

Mother Dairy Milk 25% 43% 22% 10%

Figure 4.2

Figure 4.2 shows that 31% respondents replied that Amul Milk has excellent quality however 25%

respondents replied that Mother Dairy Milk excellent quality, 44% respondents replied that Amul Milk is

good in terms of quality however 43% respondents replied that Mother Dairy Milk is good in terms of

quality


29

Q3. Which Milk brand is more demanding by the customer?

Amul Milk 64%

Mother Dairy Milk 36%

Figure 4.3

Figure 4.3 shows that 64% respondents replied that Amul Milk is more demanding by the customer

however 36% respondents replied that Mother Dairy Milk is more demanding by the customer

Q4. How will you rate the packaging of Amul Milk/ Mother Dairy Milk in terms of safety and

attractiveness?


Amul Milk 30% 45% 22% 6%



30

Figure 4.4

Figure 4.4 shows that 30% respondents replied that Amul Milk has excellent packaging in terms of safety

and attractiveness however 33% respondents replied that Mother Dairy Milk has excellent packaging in

terms of safety and attractiveness. 42% respondents replied that Amul Milk has good packaging in terms

of safety and attractiveness however 46% respondents replied that Mother Dairy Milk has good

packaging in terms of safety and attractiveness.

Q5. How will you rate the Amul Milk/ Mother Dairy Milk in terms of nutritive values?


Amul Milk 34% 40% 15% 11%



31

Figure 4.5

Figure 4.5 shows that 34% respondents replied that Amul Milk is excellent in terms of nutritive values

however 30% respondents replied that Mother Dairy Milk is excellent in terms of nutritive values. 40%

respondents replied that Amul Milk is good in terms of nutritive values however 49% respondents

replied that Mother Dairy Milk is good in terms of nutritive values.

Q6. How will you rate the Amul Milk/ Mother Dairy Milk in terms of taste?


Amul Milk 24% 43% 23% 10%



32

Figure 4.6

Figure 4.6 shows that 24% respondents replied that Amul Milk is excellent in terms of taste however

31% respondents replied that Mother Dairy Milk is excellent in terms of taste. 43% respondents replied

that Amul Milk is good in terms of taste however 45% respondents replied that Mother Dairy Milk is

good in terms of taste.

Q7. How will you rate the Amul Milk/ Mother Dairy Milk in terms of healthiness?


Amul Milk 28% 46% 21% 5%



33

Figure 4.7

Figure 4.7 shows that 28% respondents replied that Amul Milk is excellent in terms of healthiness

however 22% respondents replied that Mother Dairy Milk is excellent in terms of healthiness. 46%

respondents replied that Amul Milk is good in terms of healthiness however 52% respondents replied

that Mother Dairy Milk is good in terms of healthiness.

Q8. How will you rate the Amul Milk/ Mother Dairy Milk in terms of value for money?


Amul Milk 25% 42% 18% 15%



34

Figure 4.8

Figure 4.8 shows that 25% respondents replied that Amul Milk is excellent in terms of value for money

however 27% respondents replied that Mother Dairy Milk is excellent in terms of value for money. 42%

respondents replied that Amul Milk is good in terms of value for money however 43% respondents

replied that Mother Dairy Milk is good in terms of value for money.

Q9. How will you rate the pricing of Amul Milk/ Mother Dairy Milk?

High Reasonable Low

Amul Milk 18% 75% 7%

Mother Dairy Milk 23% 69% 8%


35

Figure 4.9

Figure 4.9 shows that 75% respondents replied that the pricing of Amul Milk is reasonable however 69%

respondents replied that the pricing of Mother Dairy Milk is reasonable.

Q10. Amul Milk/ Mother Dairy Milk always available at your shop

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Amul Milk 32% 49% 5% 8% 6%

Mother Dairy Milk 38% 45% 6% 5% 6%


36

Figure 4.10

Figure 4.10 shows that 32% respondents were strongly agreed with the fact that Amul Milk always

available at their shops however 38% respondents were strongly agreed with the fact that Mother Dairy

Milk always available at their shops. 49% respondents were agreed with the fact that Amul Milk always

available at their shops however 45% respondents were agreed with the fact that Mother Dairy Milk

always available at their shops.

Q11. How will you rate the distribution system of Amul Milk/ Mother Dairy Milk?


Amul Milk 21% 44% 27% 8%



37

Figure 4.11

Figure 4.11 shows that 21% respondents replied that Amul Milk has excellent distribution system

however 22% respondents replied that Mother Dairy Milk has excellent distribution system. 44%

respondents replied that Amul Milk has good distribution system however 47% respondents replied that

Mother Dairy Milk has good distribution system.

Q12. How will you rate the promotional efforts of Amul Milk/ Mother Dairy Milk?

Very Effective Effective Not Effective Not at all Effective

Amul Milk 23% 56% 5% 16%



38

Figure 4.12

Figure 4.12 shows that 23% rated the promotional efforts of Amul Milk as very effective however 22%

rated the promotional efforts of Mother Dairy Milk as very effective. 56% rated the promotional efforts

of Amul Milk as effective however 53% rated the promotional efforts of Mother Dairy Milk as effective.

Q13. How will you rate the TV advertisement of Amul Milk/ Mother Dairy Milk?


Amul Milk 31% 47% 14% 8%



39

Figure 4.13

Figure 4.13 shows that 31% rated the TV advertisement of Amul Milk as very effective however 32%

rated the TV advertisement of Mother Dairy Milk as very effective. 47% rated the TV advertisement of

Amul Milk as effective however 49% rated the TV advertisement of Mother Dairy Milk as effective.

Q14. How will you rate the print media advertisement of Amul Milk/ Mother Dairy Milk?


Amul Milk 29% 48% 12% 11%


40


Figure 4.14

Figure 4.14 shows that 29% rated the print media advertisement of Amul Milk as very effective however

33% rated the print media advertisement of Mother Dairy Milk as very effective. 48% rated the print

media advertisement of Amul Milk as effective however 45% rated the print media advertisement of

Mother Dairy Milk as effective.

Q15. How will you rate the online advertisement of Amul Milk/ Mother Dairy Milk?


Amul Milk 25% 54% 13% 8%


41


Figure 4.15

Figure 4.15 shows that 25% rated the online advertisement of Amul Milk as very effective however 30%

rated the online advertisement of Mother Dairy Milk as very effective. 54% rated the online

advertisement of Amul Milk as effective however 52% rated the online advertisement of Mother Dairy

Milk as effective.

CHAPTER - IV


42

1.11. CONCLUSION:

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 so that we can plan our each activity according to that. It is also necessary to retain the

existing customers apart from attracting the new customers. The final outcome of the project is that the

parameters which hinder the sale of milk products of Mother dairy and Amul are Price, Quality, Service

and Taste. Milk market is a totally unpredictable market and the organization should be over-cautious of

any complaints that come into milk as it includes the sentiments of a mother for her kid and she would

not prefer to give anything to her kid for which she is not 100% satisfied. So the company should take

every step possible to contain these problems which in some way or the other affects the sale of Mother

dairy and Amul and its retailers. It is concluded that Mother dairy milk i.e. Single Toned milk has a high

potential in the market and it is the known to its customers and its acceptance is comparatively higher

as of other variants and competitors present in the market, on the other side most of the consumer

continuously using Amul gold milk and they do not want to switch over to other brand.

1.12. RECOMMENDATIONS

Both companies can cut costs for some period of time followed immediately by strong

advertising. As we have seen during the research that most of institutions give most preference

to the margin provided to them on milk (except coffee outlets). As the quality and taste and

availability of mother dairy milk are best in market and local milk companies’ good margin to

them, Price remains the main criteria of institutional milk sales.

Can start schemes like cash prizes or foreign trips on scratching the barcode on the packet

Locate the institutions using competitor’s milk and provide them attractive offers to increase the

market share so that at least the big competitors will not try to expand.

Mergers and Acquisition in the milk industry with local players help the company in increasing

its distribution network and Market share. Following this both companies can buy the milk from

local dairies taking over their business which is substantial in terms of market share

Both companies should introduce a mascot for the milk. This will help in easy Brand

differentiation and Recognition.

Efficiency in distribution

Remove communication barriers and misconceptions between the Institutions and distributors

by effective communication with institutions time to time.


43

1.13. LIMITATIONS:

Biasness on the part of respondents: Some respondents were not ready to reveal the true

information.

Time Consuming-Many respondents do not return the Questionnaire in time despite of several

reminders.

Inaccurate access-Risk of colleting incomplete and wrong information as people are unable to

understand questions properly.

Non response-many people do not respond and returned the questionnaire without answering

all questions.

Questionnaire method cannot be used for illiterate persons.

REFERENCES

Empowerment Case Studies: National Dairy Development Board


44

www.indiadairy.com

Opportunities and Challenges in the Indian Dairy Industry – Dr. K. G. Karmakar and Dr. G. D.

Banerjee

Candler, W. and N. Kumar (1998) India: The Dairy Revolution: Impact of Dairy Development in

India and the World Bank’s Contribution, The World Bank Operation Evaluation Department

(OED), Washington, D.C.: The World Bank.

Chahal, S. S. and Gill, G. S. (1988) Milk cooperatives for rural development in Punjab.

Kurukshetra, 36 (5): 12-15.

Rajan, S. R. G. (1990) Growth of dairy industry in Andhra Pradesh. Indian Dairyman. 42 (3): 93-

95.

Rao, S. V. N., V. Venkatasubramanian and B.S. Rao, (1995) Constraints of dairy development in

India: A review. Indian Journal of Animal Production and Management, 111(4): 177-185.

Sharma, K. N. S., J. Chander and S. Singh, (1974) A study in the procurement of milk by organized

sector of dairy industry in India. Indian Dairyman. 26 (3): 107-111.

Sharma, K.N.S., S. Singh and J. Chander (1974) Marketing and distribution of fluid milk through

organized sector of dairy industry in India. Indian Dairyman, 26 (5): 187-192.

Shukla, R.K. and S.D. Brahmankar (1999) Impact Evaluation of Operation Flood on Rural Dairy

Sector, National Council of Applied Economic Research, New Delhi, pp. 58-60.

SAMPLE QUESTIONNAIRE


45

Q1. Do you sell below products?

Yes No

Amul Milk

Mother Dairy Milk

Q2. How will you rate the quality of Amul Milk/ Mother Dairy Milk?


Amul Milk

Mother Dairy Milk

Q3. Which dahi is more demanding by the customer?

Amul Milk

Mother Dairy Milk

Q4. How will you rate the packaging of Amul Milk/ Mother Dairy Milk in terms of safety and

attractiveness?


Amul Milk

Mother Dairy Milk

Q5. How will you rate the Amul Milk/ Mother Dairy Milk in terms of nutritive values?


Amul Milk

Mother Dairy Milk

Q6. How will you rate the Amul Milk/ Mother Dairy Milk in terms of taste?


Amul Milk

Mother Dairy Milk

Q7. How will you rate the Amul Milk/ Mother Dairy Milk in terms of healthiness?


46


Amul Milk

Mother Dairy Milk

Q8. How will you rate the Amul Milk/ Mother Dairy Milk in terms of value for money?


Amul Milk

Mother Dairy Milk

Q9. How will you rate the pricing of Amul Milk/ Mother Dairy Milk?

High Reasonable Low

Amul Milk

Mother Dairy Milk

Q10. Amul Milk/ Mother Dairy Milk always available at your shop

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Amul Milk

Mother Dairy Milk

Q11. How will you rate the distribution system of Amul Milk/ Mother Dairy Milk?


Amul Milk

Mother Dairy Milk

Q12. How will you rate the promotional efforts of Amul Milk/ Mother Dairy Milk?

Very

Effective Effective

Not

Effective Not at all Effective

Amul Milk

Mother Dairy Milk

Q13. How will you rate the TV advertisement of Amul Milk/ Mother Dairy Milk?


47

Very

Effective Effective

Not


Amul Milk

Mother Dairy Milk

Q14. How will you rate the print media advertisement of Amul Milk/ Mother Dairy Milk?

Very

Effective Effective

Not


Amul Milk

Mother Dairy Milk

Q15. How will you rate the online advertisement of Amul Milk/ Mother Dairy Milk?

Very

Effective Effective

Not


Amul Milk

Mother Dairy Milk


Documents

Project Comparison of Amul Milk and Mother Dairy Milk 15 March 2014