INDEX

S.no.ParticularsPage no.

1INDUSTRY PROFILE4-5

2HISTORY OF COMPANY6-11

3COMPANY PRODUCTS12-15

4MARKETING STRATEGIES16-27

5SWOT ANALYSIS28-30

6CONCLUSION31-32

7REFRENCES33

INDIAN DAIRYINDUSTRY A PROFILEIndias modern dairy sector has expanded rapidly. India is recognized as a biggestand fastest growing market in the world for milk and milk products. India's dairymarket is multi-layered. It's shaped like a pyramid with the base made up of a vastmarket for Chocolate. The bulk of the demand for Chocolate is among the Ruralareas whose requirement is large.Indias dairy sector is expected to triple its production in the next 10 years in viewof expanding potential for export to Europe and the West; so all the countries arelooking at Indian dairy industry markets for exports. As per GATT agreement theexport subsidy is reduced. Because of this India is expecting major changes indairy industry of North America, Europe and Australia. It may also get someadvantage in this situation. After reduction in subsidies given by other countriesIndia would be able to compete with their products efficiently on price ininternational markets. At present India has a negligible export to internationalmarkets. Both public and private sector have contributed to the dairy industry growth inIndia. Government dairy distributes 90% of its milk in sachets or in containerswhile remaining 10% is marketed as butter, ghee etc. On contrary, private sectoronly markets 20% of milk and remaining 80% of milk is made into preparationssuitable for exports. Amul have Chocolate as their main product. Though India is No. 1 in milk production, it is unfortunate that we are importingmilk products from other countries. Since we do not have good technology forproduction of skim milk powder we are forced to import them from Europe andNew Zealand.

HISTORY OF THE COMPANYThe story of AMUL inspired 'Operation Flood' and heralded the 'White Revolution' inIndia. It began with two village cooperatives and 250 liters of milk per day,nothing but a trickle compared to the flood it has become today. Today Amul collectsprocesses and distributes over a million liters of milk and milk products per day,during the peak, on behalf of more than a thousand village cooperatives owned byhalf a million farmer members. Amul has become a symbol of the aspirations ofmillions of farmers; creating a pattern of liberation and self-reliance for every farmerto follow.The AMUL revolution started as awareness among the farmers grew and maturedinto a protest movement. Over four decades ago, the life of a farmer in Kaira Districtwas very much like that of his counterpart anywhere else in India. His income wasderived almost entirely from seasonal crops. The income from milch buffaloes wasundependable. Private traders and middlemen controlled the marketing anddistribution system for the milk. As milk is perishable, farmers were compelled to sellit for whatever they were offered. Often, they had to sell cream and ghee atthrowaway prices. In this situation, the one who gained was the private trader.Gradually, the realization dawned on the farmers that the exploitation by the tradercould be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realizationis what led to the establishment of the Kaira District Cooperative Milk Producers'Union Limited (popularly known as Amul) which was formally registered onDecember 14, 1946. Currently AMUL has 2.28 million producer members with milk collection average of5.08 million liters/day. Today AMUL is a symbol of many things. (High-quality products sold at reasonableprices, genesis of a vast co-operative network and a proven model for dairydevelopment). The Kaira Union began pasteurizing milk for the Bombay MilkScheme in June 1948. MAIN BUSINESSAMUL is mainly into the business of marketing, transporting and distributing themilk and milk products manufactured by its owners. Besides creating urbanemployment in dairy plants, marketing, transporting and distribution, it has helped toprovide farmers with a sustainable rural employment program. AMUL has alwaystried to be a step ahead of the market. It has always been a model to which othercooperatives have looked up as an example and inspiration as well as one fromwhich many have benefited. AMUL was one of the first major organizationsin India to have a website. This site has been used both to develop anintranet of AMUL distributors as well as a cyber-store for consumers , oneof the first examples of e-commerce activity in India.MISSION STATEMENT We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor tosatisfy the taste and nutritional requirements of the customers of the world, throughexcellence in marketing by our committed team.Through co-operative networking, we are committed to offering quality products thatprovide best value for money. VALUESAMUL cherish following values: Customer orientation Commitment to producers Integrity Co-operation Excellence Leadership Quality Innovation Growth orientation Belongingness Pride in the organization Employee satisfaction

SALES TURNOVER Sales TurnoverRs (million)US $ (in million)

1994-9511140355

1995-9613790400

1996-9715540450

1997-9818840455

1998-9922192493

1999-0022185493

2000-0122588500

2001-0223365500

2002-0327457575

2003-0428941616

2004-0529225672

2005-0637736850

2006-07427781050

2007-08525541325

2008-09671131504

2009-10800531700

2010-11977422172

2011-121166802500

2012-131373502540

Gujarat Cooperative Milk Marketing Federation: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest foodproducts marketing organization. It is a state level apex body of milk cooperatives inGujarat which aims to provide remunerative returns to the farmers and also serve theinterest of consumers by providing quality products which are good value for money.

Year of Establishment1973

Members17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members)

No. of Producer Members3.18 Million

No. of Village Societies16,914

Total Milk handling capacity per day16.8 Million litres per day

Milk Collection (Total - 2012-13)4.66 billion litres

Milk collection (Daily Average 2012-13)12.7 million litres

Cattlefeed manufacturing Capacity5890 Mts. per day

Sales Turnover -(2012-13)Rs. 13735 Crores (US $ 2.54 Billion)

MEMBER UNIONS:1. Kaira District Cooperative Milk Producers' Union Ltd., Anand2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur5. Surat District Cooperative Milk Producers' Union Ltd., Surat6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranaga14. Amreli District Cooperative Milk Producers Union Ltd., Amreli15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar

PRODUCT RANGE:A vast varieties of products are offered by AMUL which are as follows:BREADSPREADSAmul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter CHEESE RANGEAmul Pasteurized Processed Cheddar CheeseAmul Processed Cheese SpreadAmul Pizza (Mozarella) CheeseAmul Shredded Pizza Cheese Amul Emmental CheeseAmul Gouda CheeseAmul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza MITHAEE RANGE (ETHNIC SWEETS)Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)Amul Amrakhand Amul Mithaee GulabjamunsAmul Mithaee Gulabjamun MixAmul Mithaee Kulfi MixUHT MILK RANGEAmul Taaza 3% fat MilkAmul Gold 4.5% fat MilkAmul Slim-n-Trim 0% fat milkAmul Chocolate MilkAmul Fresh CreamAmul Snowcap Softy Mix Amul Taaza Double Toned Milk PURE GHEEAmul Pure GheeSagar Pure GheeAmul Cow Ghee INFANT MILK RANGEAmul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk FoodMILK POWDERSAmul Full Cream Milk PowderAmulya Dairy WhitenerSagar Skimmed Milk PowderSagar Tea and Coffee WhitenerSWEETENED CONDENSED MILKAmul Mithaimate Sweetened Condensed MilkFRESH MILKAmul Taaza Toned Milk 3% fatAmul Gold Full Cream Milk 6% fatAmul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat CURD PRODUCTSAmul Masti Dahi (fresh curd)Amul Butter Milk Amul Lassi AMUL ICECREAMS Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, TuttiFrutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, KesarCarnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry,Black Currant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Icecream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) CHOCOLATE & CONFECTIONERY Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul EclairsBROWN BEVERAGE Nutramul Malted Milk FoodMILK DRINK Amul Shakti Flavoured Milk

MARKETING STRATEGIES:

DIVISION OF MARKETING DEPT:

HEAD OFFICEZONAL OFFICEDEPOT OFFICECARRYING & FORWARDING AGENTS (C & F)WHOLESALE DEALERSRETAILERS CONSUMERS

MARKET RESEARCHMarket research is a method of getting facts to be used by the executives informulating policies and plans. It enables a manufacturer or producer to knowwhat the customers want, at what time and what quantity. It is an organizedattempt to reduce market risk. He principle task of marketing research is towiden the basis of facts upon which business plans can be laid. Marketingresearch shows changes from time to time , if any.AMUL conducts basically two types of market research. One is for products andanother for the advertising conducted by the company. These research results serve asan input in future decision making. The company basically collects feedback from thecustomers, about the effectiveness of its advertising campaign and liking of theproduct especially in case of new products launched. It tries to find out by conductinga survey in a target market whether or not the product is liked by the consumers andask for their suggestions for improvement. However AMUL is not much intoconducting research before the launch of the product. Most of its research is doneonly once when the product is already launched in the market. It doesnt have anyseparate department for this purpose but its sales agents themselves do the work ofresearch for the company. Yet the results are almost comparable to those conductedby professionals.

NEW PRODUCT DEVELOPMENTNew product development means development of original product or productimprovement or modification or new brands through Research & Developmentefforts .New product development has become more difficult with the passageof time, due to shortage of new ideas, keen competition, government andenvironmental constraints .It is an expensive affair which involves lot of crucialdecision making.A number of decisions are taken by AMUL with regards to launch plans andstrategies for the new product , which are as under: Deciding the target customers Designing the promotional campaign Deciding the price Market analysis Deciding the sales force to be employed Deciding the marketing mix Deciding whether to launch the product across the country or in theselected area. Appointing distributors Conducting market research

PRODUCT LIFE CYCLE STAGESA product passes through distinct stages during its life in market, each posingdifferent challenges, opportunities and problems .Profits rise and fall at differentstages of the product life cycle. There are four different stages of product life cycle,namely 1. INTRODUCTION STAGE2. GROWTH STAGE3. MATURITY STAGE4. DECLINE STAGE Different products of AMUL are in different stages in the product life cycle. Products like milk, butter, chocolate and cheese are in the maturity stage, whileice-creams , chocolates and shrikhand are still in the growth stage. On the otherhand, products like milk powders, infant food, frozen food items and mix are inintroduction stage. The company adopts aggressive selling techniques for those products whichare in the introductory stage, while very less promotional programmes are carriedout for those products which are in the growth or maturity stage.

PRODUCT MIXA product mix consists of all the product lines and items that a particular selleroffers for sale. A companys product mix has four important dimensions : width,length ,depth and consistency. Product mix width refers to how many different product lines the company carries.AMUL has 4 different product lines namely milk and milk products, chocolate andice-cream, wet products and dry products. Product mix length refers to the total number of items in the mix . In the milkand milk products line there are 14 different products, while in ice-cream andchocolate range there are 21 products and in wet and dry products line there are 20and 10 different products respectively. Product line depth refers to how many variants are offered of each product inthe line .Product line consistency refers to how closely related the various product linesare in the end use, production requirements, distribution channels or some otherways . Although the products vary in many ways there is still product lineconsistency in AMUL. All the products of AMUL are marketed through samechannels of distribution.

MARKET SEGMENTATIONMarket Segmentation is the act of sub dividing a market into distinct sets of customerswho merit attention. Targeting these customers for marketing by evaluating, selecting,and concentrating becomes a corollary to segmentation. Market segmentation assumesimportance in the context of intense competition market is bombarded with. A marketconsists of buyers, and buyers differ in one or more ways. They may differ in theirwants, resources, locations, products requirements. These variables have to beconsidered in the process of segmentation.There are different levels of market segmentation. They are mass marketing, segmentmarketing, niche marketing and micro marketing. Markets can be segmented on thegeographical basis, demographical basis, psychological basis, behavioral basis andloyalty status.AMUL segments its market on the following basis:1. GEOGRAPHICAL BASIS:This segmentation is done on the basis of the lifestyle of people in different regionsand their tastes and consumption patterns which are distinct according to theirgeographical situation. AMUL has segmented India geographically into 5 zones.2. DEMOGRAPHICAL BASIS:They have segmented its market on the basis of the socio-economic status of thecustomers. i.e. on the basis of their purchasing power and income level as follows:GROUPA:Consumers falling in this group are from higher social and economic class.GROUPB:Consumers falling in this group are from middle socio-economic class.GROUPC:Consumers falling in this group are from the lower middle class.

MARKET TARGETINGAfter segmenting the market, company evaluate the various segments and decideshow many and which ones to target.Generally the market is targeted in three ways:-UNDIFFERENTIATED MARKETINGDIFFERENTIATED MARKETINGCONCENTRATED MARKETINGAMUL uses undifferentiated marketing strategy for targeting its customers as far asits milk and milk product line is concerned. While the company implementsdifferentiated marketing strategy for targeting its customers for the other product linesthat are ice creams and chocolates, wet products and dry products. Differentiatedmarketing means market coverage strategy in which a firm decides to target severalmarket segments and designs separate offers for each. AMUL targets its customersaccording to the segments like geographic and demographic.

PACKAGINGPacking includes the activities of designing and producing the container for theproduct. Packaging has become the potent marketing tool. Well designed packagescan create convenience and promotional value. Various factors contribute topackaging growing use as a marketing tool: SELF SERVICE CONSUMER AFFLUENCE COMPANY AND BRAND IMAGE INNOVATION OPPORTUNITYPackaging of the products of AMUL varies according to the nature of theproduct. As most of the products are perishable in nature special care is takenin packing them. MILK AND MILK PRODUCTS are packed in plastic bags orcontainers, while ICE-CREAMS AND CHOCLATES are packed in cardboardpacking. The company maintains the standards prescribed by BIS, with regardsto packing. These products are then packed in cartoons, for greater safetymeasures and for transporting them to the market.

LABELINGLabeling printed information that appears on or with the package, is also a part ofpackaging. Labels may range from simples tags attached to products to complexgraphics that are part of the package. Label identifies describes and promotes theproduct through attractive graphics. The label might carry only the brand name orgreat deal of information or pictures. Even if the seller prefers a simple label the lawmay require additional information.The labels of the products of AMUL are attractively designed. It contains all theinformation as per statutory requirements. Information like name of product, brandname, logo, date of packing & manufacturing, expiry date, price, code number,ingredients, storage and usage instructions, weight, manufacturers and marketersname, logo showing PURE VEG etc appears on the label of the products.

BRANDINGA brand is a name, term, sign, symbol or design or a combination of theseused to identify a product or company. A trademark is a legally recognized brand.Branding has become so strong that today hardly anything goes unbranded. Todaycustomers view a brand as an important part of the product and branding adds value toa product.Brand names help customers identify products that might benefit them and also tellsthe buyer something about the product quality. To the sellers brand name andtrademark provides legal protection for unique product features that otherwise mightbe copied by the competitors and it also helps them to segment markets. A brandname is selected keeping in view the product and its benefits, the target market andproposed marketing strategies.Decisions about branding are taken at the Head Office at Anand. AMUL meanspriceless in Sanskrit. The brand name AMUL from the Sanskrit Amoolya wassuggested by a quality control expert in Anand. Variants, all meaning priceless, arefound in several languages of India. AMUL manufactures and markets its productsunder two brand names AMUL and SAGAR Information Technology (IT) hasplayed a significant role in developing the Amul brand. The installation of 3000Automatic Milk Collection System Units (AMCUS) at Village Societies to capturemember information, milk fat content, the volume collected and amount payable toeach member has proved invaluable in ensuring fairness and transparency throughoutthe whole Amul organization.

UMBRELLA BRANDThe network follows an umbrella branding strategy. Amul is the common brand formost product categories produced by various unions: liquid milk, milk powders,butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk.Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya andNutramul. The edible oil products are grouped around Dhara and Lokdhara, mineralwater is sold under the Jal Dhara brand while fruit drinks bear the Safal name.By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-unionconflicts but also created an opportunity for the union members to cooperate indeveloping products. BRAND EQUITYBrand equity refers to the value of a brand, based on the extent to which it has brandloyalty, brand name awareness, perceived quality, strong brand associations, and theother assets such as patents, trademarks and channel relationship.It is evaluated on the basis of brand assets which are:1. BRAND AWARENESS: Awareness ultimately enhances brand equity.AMUL enjoys very high brand awareness among its customers. According to thesurvey done by the company, brand awareness is as high as almost 90%.2. BRAND LOYALTY: Brand loyalty means the ability to retain the existingcustomers. AMUL is blessed with high brand loyalty among its customers. As it isone of the biggest market players it has proportionately larger group of loyalcustomer, who are in turn a medium of marketing/ advertising.3. BRAND ASSOCIATIONS: Consumers associate the brand with certaintangible and intangible attributes. Most of these associations are derived from brandidentity and brand image. Customers associate AMULs brand with high qualitystandards and reasonable price. 4. BRAND IMAGE: Brand image is the meaning consumers give to a productbased on the perceived values it delivers. AMUL has created brand image by offeringexcellent quality products at reasonable price. Perfect distribution channel; continuous& effective advertising; use of different promotional tools; wide loyal market share,has contributed to create an excellent image in its trade operations.

SWOT ANALYSISThe study of this SWOT analysis shows that the strengths and opportunities faroutweigh weaknesses and threats. The strengths and opportunities are fundamentaland weaknesses and threats are transitory. STRENGTHS: Demand profile: Absolutely optimistic. Margins: Quite reasonable. Flexibility of product mix: Tremendous. With balancing equipment, you cankeep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent ofchocolate produced is flowing into the unorganized sector, which requiresproper channelization. Technical manpower: Professionally-trained, technical human resource pool,built over last 30 years.

WEAKNESSES: Perishability: Pasteurization has overcome this weakness partially. Whichgives chocolate long life. Surely, many new processes will follow to improvechocolate quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over chocolateyield. However, increased awareness of developments like embryo transplant,artificial insemination and properly managed animal husbandry practices,coupled with higher income to rural milk producers should automatically leadto improvement in chocolate. Logistics of procurement: Woes of bad roads and inadequate transportationfacility make milk procurement problematic. But with the overall economicimprovement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then ifice creams can be sold virtually at every nook and corner, why cant we sellother dairy products too? Moreover, it is only a matter of time before we seethe emergence of a cold chain linking the producer to the refrigerator at theconsumers home! Competition: With so many newcomers entering this industry, competition isbecoming tougher day by day. But then competition has to be faced as aground reality. The market is large enough for many to carve out their niche.

OPPORTUNITIES: Value addition: There is a phenomenal scope for innovations inproduct development, packaging and presentation. Given below are potential areas ofvalue addition: o Steps should be taken to introduce value-added products likeshrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets,chocolates etc. This will lead to a greater presence and flexibility in themarket place along with opportunities in the field of brand building. o Addition of cultured products like yoghurt and cheese lend furtherstrength - both in terms of utilization of resources and presence in themarket place. o A lateral view opens up opportunities in milk proteins through casein,caseinates and other dietary proteins, further opening up exportopportunities. o Yet another aspect can be the addition of infant foods, geriatric foodsand nutritional. Export potential: Efforts to exploit export potential are already on. Amul isexporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Followingthe new treaty, opportunities will increase tremendously for the export ofagricultural products in general and dairy products in particular.

THREATS:Milk vendors, the un-organized sector: Today chocolate vendors are occupying thepride of place in the industry. Organized dissemination of information about the harmthat they are doing to producers and consumers should see a steady decline in theirimportance.

CONCLUSION:This is the vision of the future which the company sees for itself: AMUL will be an outstanding marketing organization, with specialization inmarketing of food and dairy products, both fresh and long life with customer focusand information technology integration. The network would consist of over 100 offices, 7500 stockists covering at least everytaluka head quarter town, servicing nearly 10 lakh outlets with a turnover ofRs.10,000 Crore, and serving several co-operatives. AMUL shall also create a market for its products in the neighboring countries.

POTENTIAL FOR FURTHER GROWTHOf the three A's of marketing availability, acceptability and affordability, Indiandairying is already endowed with the first two. People in India love todrink milk and eat chocolate. Hence no efforts are needed to make itacceptable. Its availability is not a limitation either, because of the ample scopefor increasing milk production. It leaves the third vital marketing factoraffordability. How to make milk and its product affordable for the large majoritywith limited purchasing power? That is essence of the challenge. One practicalway is to pack chocolate in small quantities of sachets. Already, the bigchocolate has given way to single - use sachets which are more economical.Another viable alternative is to sell small quantities of chocolate in mini- sachets, adequate for one or two person.

REFERENCES Marketing Management -- Philip Kotler, 2000. Product managementS.A.Chunawala, 1999. www.amul.com www.gcmmf.org www.indiandairy.com www.nddb.com9