A STUDY ON

CONSUMER BUYING PATTERN TOWARDS AMUL MILK

Dissertation Submitted towards

Partial fulfilment of
POST GRADUATE DIPLOMA IN MANAGEMENT
ACADEMIC SESSION
2014 - 2016

Submitted by:
ADIL KHAN
(BM-014012)

Faculty Guide:
Prof. Vijendra Dhyani

DECLARATION

I, Adil Khan , PGDM student of Institute of Management Studies, Ghaziabad declare that the
project entitled CONSUMER BUYING PATTERN TOWARDS AMUL MILK, is the
original work done by me and the information provided in the study is authentic to the best of
my knowledge.

Place:

ADIL KHAN

Date:
Signature

ACKNOWLEDGEMENTS
2

In the first place, I thank IMS GHAZIABAD for giving me an opportunity to work on this
project. I would also like to thank Mr. VIJENDRA DHYANI, Professor Marketing, IMS
GHAZIABAD for giving me his valuable guidance for the project. Without his help it would
have been impossible for me to complete the project.
I would be failing in my duty if I do not acknowledge with a deep sense of gratitude the
sacrifices made by my parents and thus have helped me in completing the project work
successfully.

Place: Ghaziabad
Date:

ADILKHAN

Signature of the student

(BM 014012)
2014-2016

PREFACE

Today the business environment is rapidly changing in this competitive environment the popular
trend is also striving for maintaining its positions therefore it become essential for the companies
that they should know about their preference & taste. Regarding a particular product it is of
almost necessary to know the consumers satisfaction to the value offered by the company in case
of dissatisfactory result it is essential to ascertain whether the dissatisfaction is for entire product
or part of it is and what value do the consumers expect from it?
The research will provide the relevant information to the organization about consumers
attitude towards their products & services.
The research work is sincere effort to find out the ultimate requirement of consumers for the
betterment of research as well as the organization.

S.NO

Contents

Page No.

Executive Synopsis

Introduction

Industry scenario

27

Objective of the study

35

Literature review

36

Research Methodology

43

Analysis

44

Findings

66

Recommendations

67

11

Conclusion

68

12

References

69

13

Annexure

70

TABLE OF CONTENT

LIST OF TABLE & GRAPHS

S.NO
1
2
3
4
5
6
7

TABLES AND GRAPHS

gender
Satisfaction
Factor of liking
Daily consumption
Brand preference
Consumption period
Variant of amul

PAGE .NO
44
45
46
47
48
49
50

crosstab between gender & the

54

factor they like.

9

Crosstab b/w satisfaction & brand

56

10

preference
Crosstab b/w satisfaction & variant

58

11

of amul milk.
One sample T-test

64

12

One way annova

65

EXECUTIVE SYNOPSIS

This final project was undertaken with the objective of CONSUMER BUYING PATTERN
TOWARS AMUL MILK
In the year 1946 the first milk union was established. This union was started with 250 litre of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the
brand name AMUL in 1955.
The brand name Amul means AMULYA. This word derived from the Sanskrit word
AMULYA which means priceless. A quality control expert in Anand had suggested the brand
name AMUL. Amul products have been in use in millions of homes since 1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand,
Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in
India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the
high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of
the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And
have a proven model for dairy development (Generally known as ANAND PATTERN).
I worked with questionnaire ,a sample size of 50 respondents was taken for the study whose
responses were studied and interpreted .The sampling design was used convenience sampling.
The process of analysis was done through excel work sheets, frequency table, percentage
analysis, cross-tabulation, t-test, Annova test.
During the preparation of questionnaire I faced difficulties regarding the selection of questions
and in collection of the data I found some difficulties like the customers had no time to give.

INTRODUCTION

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The
word amul () is derived from the Sanskrit word amulya (), meaning rare,
valuable. The co-operative was initially referred to as Anand Milk Federation Union Limited
hence the name AMUL.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products. In the process Amul became the largest food brand in India and has
ventured into markets overseas.
Dr. Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006), is
credited with the success of Amul.

The birth of amul

It all began when milk became a symbol of protest

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 cooperative, 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 litres 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, they employed professionals
to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive
to the needs of farmers and responsive to their demands.
9

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.

10

GCMMF

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organisation with annual turnover (2014-15) US$ 3.4 billion. Its daily milk
procurement is approx 14.85 million lit per day from 18,536 village milk cooperative
societies, 17 member unions covering 31 districts, and 3.37 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 56 Sales Offices and
has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in
India. Its product range comprises 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
11

Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 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. In 2013-14, GCMMF took giant strides in
expanding its presence in International markets. Amuls presence on Global Dairy Trade (GDT)
platform in which only the top six dairy players of the world sell their products, has earned
respect and recognition across the world. By selling milk powders on GDT, GCMMF could not
only realize better prices as per market demand but it also firmly established Amul in the league
of top dairy players in world trade.

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 The IMC Ramkrishna Bajaj National Quality Award - 2003 certificate of merit- 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. For the innovations,
GCMMF has received AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN
Innovating for better tomorrow award in 2014.
World Dairy Innovation Awards- 2014 for Best Marketing Campaign - "Eat Milk with Every
Meal". For the tree plantation activity GCMMF has received seven consecutive Good Green
Governance award from Srishti during 2007 to 2013.
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.

12

GCMMF - An Overview

Year of Establishment

1973

Members

17 District Cooperative Milk Producers' Unions

No. of Producer Members

3.37 Million

No. of Village Societies

18,536

Total Milk handling capacity per day

24 Million litres per day

Milk Collection (Total - 2014-15)

5.42 billion litres

Milk collection (Daily Average 2014-15)

14.85 million litres

Cattlefeed manufacturing Capacity

6340 Mts. per day

Sales Turnover -(2014-15)

Rs. 20733 Crores (US $ 3.4 Billion)

13

AMUL Member Unions

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd.,Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14

14. Amreli District Cooperative Milk Producers Union Ltd., Amreli

15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited,Junagadh

SALES TURNOVER

15

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

2011-12

116680

2500

2012-13

137350

2540

2013-14

181434

3024

2014-15

207330

3410

The Amul Model

16

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 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.

17

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 1,44,500 dairy cooperative societies across the
country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.

18

AWARDS

GCMMF received Bronze Trophy at the Indian Marketing Awards 2014

GCMMF Finalist in World Beverage Innovation Awards - 2014
GCMMF received APEDA Awards for 16 years continuously
Amul wins World Dairy Innovation Awards - 2014
Amul receives Srishti Good Green Governance award for the year 2013
GCMMF Receives Prestigious CNN-IBN Innovating for a Better Tomorrow Award
Amul wins AIMA High Performance Brand Award-2013 for brand Amul
Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD STANDARD

Quality Award 2013

GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the

category of "Best Run Award in Finance"

ET-Corporate Citizen Award of the Year 2010-11 to GCMMF
Amul receives Green Globe Foundation Award
Dr. V.Kurien honoured with Life Time Achievement Award
GCMMF receives Srishti's G-Cube Award - 2010
Amul Bags International Dairy Federation Award
Amul Bags Srishti G-cube Award For Good Green Governance - 2009
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
Ramkrishna Bajaj National Quality Award - 2003
Qimpro Gold Standard Award - 2003
Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award For

Resourcefulness
Rajiv Gandhi National Quality Award - 1999

Mascot:

19

The Amul baby

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby butter
girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with
the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for
Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has
also been used for other product like ghee and milk.
Currently Amul is in the process of getting the Amul Girl registered as the oldest ad campaign in
the Guinness Book Of World Records. Although there seems to be no competition for this
mascot, Amul Corporation is still doing further research to confirm their claim.

List of Products Marketed:

Breadspreads:
20

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

21

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

22

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams:
Royal Treat Range

Butterscotch, Rajbhog, Malai Kulfi

Nut-o-Mania Range

Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond

Nature's Treat

Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra
Mantra, Fresh Pineapple

Sundae Range

Mango, Black Currant, Sundae Magic, Double Sundae

Assorted Treat

Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta

Utterly Delicious
23

Vanila, Strawberry, Chocolate, Chocochips, Cake Magic

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)

Amul Kool Cafe

Health Beverage:
Amul Shakti White Milk Food

24

PRODUCT SHOWCASE:
Amul Gold

Product Details
Product Name

Amul Gold

Description

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

Packing

Poly Pack - 500ml, 1000ml, 5 Ltr *

* In Selected markets only

Amul Taaza

Product Name

Amul Taaza

Description

Pasteurised Milk Amul milk meets the PFA standards for the
respective type of milk.

Packing

Poly Pack - 500ml, 1000ml, 200ml, 5 Ltr *

* In selected markets only

25

Product Details

Amul Slim and Trim Milk

Product Details

Product Name

Amul Slim and Trim Milk

Description

Pasteurised Milk Amul milk meets the PFA standards for the
respective type of milk.

Packing

Poly Pack 6 L*, 5 L*, 1 L*, 500ml, 350ml*, 300ml*,200ml*

* In selected markets only

26

SWOT ANALYSIS OF AMUL MILK:-

STRENGTH:-

Very efficient distribution channel.

Brand name.
Trust of the end users.
Shelf life of the products.
Quality of the product.
Relationship with the distributor.

WEAKNESS: No supply as per demand.

THREATS: From National & Local players:

Mother dairy
parag
madhusudhan
gopalji

OPPORTUNITY: Capture the market where supply of milk is nil.

27

Indian dairy Industry - a profile

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy
processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. As he expands his overseas operations to India many
profitable options await him. He may transfer technology, sign joint ventures or use India as a
sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's
and foreign investors alike.
Indias dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their domestic milk products sector. Also
India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared
with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of
milk production and increasing production in the country multinational companies are planning
to expand their activities here. Some of these milk producers have already obtained quality
standard certificates from the authorities. This will help them in marketing their products in
foreign countries in processed form.
The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000
million. Presently the market is valued at around Rs7,00,000mn
Background
India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world.
Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent
of the buffaloes and twenty percent of the cattle in the world are found in India and most of these
are milch cows and milch buffaloes.
Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy
federation. Milk production gives employment to more than 72mn dairy farmers. In terms of
total production, India is the leading producer of milk in the world followed by USA. The milk
production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.
This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn
cows' milk constitute 36mn MT while rest is from other cattle.
28

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia's production. The top five
milk producing nations in the world are India ,USA, Russia, Germany and France.
Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

Lack of use of scientific practices in milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.

Milk Yield comparison:

Country

Milk Yield
(Kgs per year)

USA

7002

UK

5417

Canada

5348

New Zealand

2976

Pakistan

1052

India

795

World (Average)

2021

Source: Export prospects for agro-based industries, World Trade Centre, Mumbai.

Production of milk in India

Year

Production in million
29

MT
1988-89

48.4

1989-90

51.4

1990-91

53.7

1991-92

56.3

1992-93

58.6

1993-94

61.2

1994-95

63.5

1995-96

65

1996-97

68.5

1997-98

70.8

1998-99

74.7

1999-00(E)

78.1

2000-01(T)

81.0

E= estimated
T= target / expected
Source: DFPI, Annual Report-1999-2000
World's major milk producers
(Million MTs)
Country

1997-98

1998-99
( Approx.)

India

71

74.5

USA

71

71
30

Russia

34

33

Germany

27

27

France

24

24

Pakistan

21

22

Brazil

21

27

UK

14

14

Ukraine

15

14

Poland

12

12

New
Zealand

11

12

Netherlands 11

11

Italy

10

10

Australia

10

Operation Flood

The transition of the Indian milk industry from a situation of net import to that of surplus has
been led by the efforts of National Dairy Development Board's Operation Flood. programme
under the aegis of the former Chairman of the board Dr. Kurien.
Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and
created a strong network for procurement processing and distribution of milk by the co-operative
sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over 220 gm
per day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the
milkshed areas of the village, and to link them to the four Metro cities, which are the main
markets for milk. The efforts undertaken by NDDB have not only led to enhanced production,
improvement in methods of processing and development of a strong marketing network, but have
31

also led to the emergence of dairying as an important source of employment and income
generation in the rural areas. It has also led to an improvement in yields, longer lactation periods,
shorter calving intervals, etc through the use of modern breeding techniques. Establishment of
milk collection centers, and chilling centers has enhanced life of raw milk and enabled
minimization of wastage due to spoilage of milk. Operation Flood has been one of the world's
largest dairy development programme and looking at the success achieved in India by adopting
the co-operative route, a few other countries have also replicated the model of India's White
Revolution.
Per Capita availability of milk

Year

gm/day

1950

132

1960

127

1968

113

1973

111

1980*

128

1990

178

1992

192

1996

198

1997

200

1998

202

1999

203

2000

212

2001E

225

2002P

250

E= Estimated
P= Provisional
32

* Operation flood was launched in 1970

Fresh Milk
Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo milk
contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6% protein,
7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5% protein, 3.7%
fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000) the price of
Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT. Fresh
pasteurized milk is available in packaged form. However, a large part of milk consumed in India
is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely available in
India.
Packaged milk can be divided according to fat content as follows,
Whole (full cream) milk - 6% fat
Standardized (toned) milk - 4.5% fat
Doubled toned (low fat) milk - 3% fat
Another category of milk, which has a small market is flavoured milk.
The Indian Market - A Pyramid
Consumer Habits And Practices
Milk has been an integral part of Indian food for centuries. The per capita availability of milk in
India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 199899.This is expected to increase to 212gms for 1999-00. However a large part of the population
cannot afford milk. At this per capita consumption it is below the world average of 285 gm and
even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian
Council of Medical Research.
There are regional disparities in production and consumption also. The per capita availability in
the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day.
This disparity is due to concentration of milk production in some pockets and high cost of
transportation. Also the output of milk in cereal growing areas is much higher than elsewhere
which can be attributed to abundant availability of fodder, crop residues, etc which have a high
food value for milch animals.
In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent
is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc.
Only 7 per cent of the milk goes into the production of western products like milk powders,
processed butter and processed cheese. The remaining 54% is utilized for conversion to milk
products. Among the milk products manufactured by the organized sector some of the prominent
33

ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk
infants foods etc. Of these ghee alone accounts for 85%.
It is estimated that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various cooperatives, private
dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and
other private dairies.
While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used
for manufacturing processed value added dairy products; for private dairies only 45% is
marketed in fluid form and rest is processed into value added dairy products like ghee, makhan
etc.
Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong
perception that loose milk is fresh. Also, the current level of processing and packaging capacity
limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world market, which is
dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72%
of the total population, whereas the urban sector with 28% population consumes 56% of total
milk produced. Even in urban India, as high as 83% of the consumed milk comes from the
unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded pasteurized milk,
valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is
inconsistent and so is the price across the season in local areas. Also these vendors add water and
caustic soda, which makes the milk unhygienic.
India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast
market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas
whose individual requirement is small, maybe a glassful for use as whitener for their tea and
coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major cities
lies an immense growth potential for the modern sector. Presently, barely 778 out of 3,700 cities
and towns are served by its milk distribution network, dispensing hygienically packed
wholesome, quality pasteurized milk. According to one estimate, the packed milk segment would
double in the next five years, giving both strength and volume to the modern sector. The narrow
tip at the top is a small but affluent market for western type milk products.
Growing Volumes
The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the
country's population. An estimated 50 per cent of the total milk produced is consumed here. By
the end of the twentieth century, the urban population is expected to increase by more than 100
34

million to touch 364 million in 2000 a growth of about 40 per cent. The expected rise in urban
population would be a boon to Indian dairying. Presently, the organized sector both cooperative
and private and the traditional sector cater to this market.
The consumer access has become easier with the information revolution. The number of
households with TV has increased from 23 million in 1989 to 45 million in 1995. About 34 per
cent of these households in urban India have access to satellite television channel.

Potential for further growth

Of the three A's of marketing - availability, acceptability and affordability, Indian dairying is
already endowed with the first two. People in India love to drink milk. Hence no efforts are
needed to make it acceptable. Its availability is not a limitation either, because of the ample scope
for increasing milk production, given the prevailing low yields from dairy cattle. It leaves the
third vital marketing factor affordability. How to make milk affordable for the large majority
with limited purchasing power? That is essence of the challenge. One practical way is to pack
milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for
retailing milk has given way to single-use sachets which are more economical. Another viable
alternative is to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea
or coffee.

35

OBJECTIVES OF THE STUDY

To know awareness of people towards Amul products

To know the preference of Amul products with comparison to other competitive brands.
To know the factors which affects consumers buying behaviour while purchase milk.
To study various factors such as quality, price, easy available etc.
Ideas about to increase the sale of the Amul

36

Literature review
In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has
developed a successful model for doing business in large emerging economy. It has been
primarily responsible, through its innovative practices, for India to become worlds largest
producer of milk. This paper draws various lessons from the experiences of AMUL that would be
useful to cooperatives globally as well as firms that are interested in doing business in large
emerging markets like India and China.
Many of these economies have underdeveloped markets and fragmented supply bases. Market
failures for many of these small producers are high. On the other hand, the size of both, markets
and the suppliers is large. As a result, firms that identify appropriate business strategies that take
into account these characteristics are more likely to succeed in these markets. The following are
some key message from AMULs success: firms in these environments need to simultaneously
develop markets and suppliers to synchronize demand and supply planning, develop or become a
part of network of producers (i.e., cooperatives in this case) to obtain scale economies, focus on
operational effectiveness to achieve cost leadership to enable low price strategy. In addition, a
central focus to bring the diverse element together and a long-term approach are required.

In emerging economies different industrial sectors may be at different stages of development. In

some of the sectors all of the above environmental characteristics faced may not hold. However,
a subset of strategies followed by AMUL would still be very useful. Thus, firms that are
contemplating addressing large undeveloped markets or have an intention of taking advantage of
extensive but marginal supplier base would still benefit.

37

AMULs Journey towards Excellence

AMULs journey towards excellence is marked by some critical understanding of the business
environment in large emerging economies like India where markets have to be developed by
combining efficiency related initiatives with increasing the base of marginal suppliers and
consumers. The essence of AMULs efforts were as follows:

It combined market and social development in an emerging economy. It recognized the

inter-linkages between various environments that governed the lives of marginal milk
farmers and the unmet needs of consumers. It also changed the supply chain paradigm in
order to reduce the cost to the consumer while increasing the return to the supplier.

It realized that in order to achieve their objectives, it had to benefit a large number of
people both suppliers and consumers. While large scale had the danger of failure due to
poor control and required more resources, it also had the advantage of creating a
momentum that would be necessary to bring more people into the fold and thereby help
more suppliers and consumers.

It also realized that its goal could only be achieved in the long run and this required
developing values in people and processes that were robust, replicable and transparent.

It also realized that the cooperative would not be independent and viable in the face of
competition if it were not financially sound. This implied that AMUL had to develop distinct
capabilities that would deliver competitive advantage to its operations.

38

Leadership
While Kaira Union (or AMUL) had the support of national leaders who were at the forefront of
the Indian independence movement, its local leaders were trained in Gandhian simplicity17 and
had their feet rooted firmly amongst people whom they had mobilized the poor farmers of
Anand. The foremost amongst them was Tribhuvandas Patel18 who had led the movement for the
formation of cooperatives of small and marginal farmers in order to compete against investor
owned enterprises on one hand, and keep bureaucracy away on the other hand. Tribhuvandas was
the first Chairman of the cooperative. His skills lay in organizing the village producers, in
making them believe in the power of cooperation and their rights towards improvement of
human condition. He is remembered as fair and honest person whose highest sense of
accountability to the members of the union laid the foundation of trust between network
members19. Another important aspect of his remarkable management style was his gentleness and
ability to repose trust in people he gave complete autonomy to managers of the union and
earned complete commitment from them20. Verghese Kurien21 was one such manager who would,
first, shape the destiny of the Union and then the milk movement throughout the country.
Kurien emerged as the father of the dairy movement in India. He managed to keep the
government and bureaucrats away from the cooperative22 and gave shape to the modern structure
of the cooperative, worked tirelessly to establish the values of modern economics, technology
and concern for farmers within the cooperative. He interfaced with global financing agencies to
build new projects at AMUL. He worked with the Unions to bring the best of technology to the
plants. He worked with marginal village farmers to create systems that would increase milk
yields. He understood that without meeting the needs of customers he would not be able to
satisfy his obligations to the farmers. In short, Kurien shaped the destiny of the milk movement
in India through NDDB (as its Chairman) and particularly at GCMMF and cooperatives in
Gujarat. He helped build a modern organization with professional management systems that
would support the aspirations of farmers and customers.

39

Several young people left better paying jobs to help create a dream of making India the milk
capital of the world. Kurien had learnt the persuasive charm of Tribhuvandas through plain
speaking and had soon created a cadre of highly capable managers to whom he had delegated
both management as well as commitment. These leaders were created at the village, district and
state levels in different organizations of the network.
He was charismatic in his communication and committed in his effort. Over a period of time, he
developed a very close link with the poor farmers who, as he always says, were his employers
at the cooperative. He would travel through the villages along with Tribhuvandas and work out
the details of how the milk collection cooperative would work, how trucks would pickup milk
from village societies, how the cattle would have to be taken care of and how all of this would
help the poor milk farmer come out of poverty and the clutches of the middleman. Operational
details were meticulously planned and executed. And then, he along with two of his close
associates would work on the design of the dairy plant including conducting experiments to
create powder out of buffalo milk a task that was ridiculed by all who heard of it including the
international aid agencies in the dairy industry. Tribhuvandas and Kurien were able to convince
the government also of the value of his efforts and secured funding for several projects of the
cooperative. He was slowly laying the foundation of a modern dairy industry in India.
Membership of the cooperative started to increase, professional managers started to join AMUL
and production capacity at AMUL started to expand (and this expansion was done through
innovative changes to processes at the plant and through equipment designed and fabricated inhouse). Kurien had transformed AMUL from a dream into a major industrial entity a network
of plants, cooperative societies, research centers, an institute for training future managers in rural
management, secondary services like veterinary/artificial insemination expertise/feed factory etc.
Kuriens biggest strength lay in his ability to convince people that the cause of rural farmers was
important thus establishing an important shared value. Subsequently, he could convince the
government to replicate the AMUL model in almost all states of the country.

40

Strategy
AMULs business strategy is driven by its twin objectives of (i) long-term, sustainable growth to
its member farmers, and (ii) value proposition to a large customer base by providing milk and
other dairy products a low price. Its strategy, which evolved over time, comprises of elements
described below.
Simultaneous Development of Suppliers and Customers: From the very early stages of the
formation of AMUL, the cooperative realized that sustained growth for the long-term was
contingent on matching supply and demand. Further, given the primitive state of the market and
the suppliers of milk, their development in a synchronous manner was critical for the continued
growth of the industry. The organization also recognized that in view of the poor infrastructure in
India, such development could not be left to market forces and proactive interventions were
required. Accordingly, AMUL and GCMMF adopted a number of strategies to assure such
growth. For example, at the time AMUL was formed, the vast majority of consumers had limited
purchasing power and was value conscious with very low levels of consumption of milk and
other dairy products. Thus, AMUL adopted a low price strategy to make their products affordable
and guarantee value to the consumer. The success of this strategy is well recognized and remains
the main plank of AMUL's strategy even today. The choice of product mix and the sequence in
which AMUL introduced its products is consistent with this philosophy. Beginning with liquid
milk, the product mix was enhanced slowly by progressive addition of higher value products
while maintaining desired growth in existing products. Even today, while competing in the
market for high value dairy products, GCMMF ensures that adequate supplies of low value
products are maintained.
On the supply side, as mentioned earlier, the member-suppliers were typically small and
marginal- farmers had severe liquidity problems, were illiterate and had no prior training in dairy
farming. AMUL and other cooperative Unions adopted a number of strategies to develop the
supply of milk and assure steady growth. First, for the short term, the procurement prices were
set so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash
payments for milk supply was made with minimum of delay. For the long-term, the Unions
followed a multi-pronged strategy of education and support. For example, only part of the
surplus generated by the Unions is paid to the members in the form of dividends. A substantial
41

part of this surplus is used for activities that promote growth of milk supply and improve yields.
These include provision of veterinary services, support for cold storage facilities at the village
societies etc. In parallel, the Unions have put in place a number of initiatives to help educate the
members.
To summarize, the dual strategy of simultaneous development of the market and member farmers
has resulted in parallel growth of demand and supply at a steady pace and in turn assured the
growth of the industry over an extended period of time.
Cost Leadership: AMULs objective of providing a value proposition to a large customer base
led naturally to a choice of cost leadership position. Given the low purchasing power of the
Indian consumer and the marginal discretionary spending power, the only viable option for
AMUL was to price its products as low as possible. This in turn led to a focus on costs and had
significant implications for managing its operations and supply chain practices (described later).
Focus on Core Activities: In view of its small beginnings and limited resources, it became clear
fairly early that AMUL would not be in a position to be an integrated player from milk
production to delivery to the consumer23. Accordingly, it chose a strategy to focus on core dairy
activities and rely on third parties for other complementary needs. This philosophy is reflected in
almost all phases of AMUL network spanning R&D, production, collection, processing,
marketing, distribution, retailing etc. For example, AMUL focused on processing of liquid milk
and conversion to variety of dairy products and associated research and development. On the
other hand, logistics of milk collection and distribution of products to customers was managed
through third parties.
However, it played a proactive role in making support services available to its members
wherever it found that markets for such services were not developed. For example, in the initial
stages, its small and marginal member farmers did not have access to finance, veterinary service,
knowledge of basic animal husbandry etc. Thus to assure continued growth in milk production
and supply, AMUL actively sought and worked with partners to provide these required services.
In cases where such partnerships could not be established, AMUL developed the necessary
capabilities and provided the services. These aspects are elaborated later in this section.

42

These include logistics of milk collection, distribution of dairy products, sale of products through
dealers and retail stores, some veterinary services etc. It is worth noting that a number of these
third parties are not in the organized sector, and many are not professionally managed. Hence,
while third parties perform the activities, the Unions and GCMMF have developed a number of
mechanisms to retain control and assure quality and timely deliveries (see the sub-section on
Coordination for Competitiveness later in the paper for more details). This is particularly critical
for a perishable product such as liquid milk.
Financial Strategy: AMULs finance strategy is driven primarily by its desire to be self-reliant
and thus depend on internally generated resources for funding its growth and development. This
choice was motivated by the relatively underdeveloped financial markets with limited access to
funds, and the reluctance to depend on Government support and thus be obliged to cede control
to bureaucracy. AMULs financial strategy may thus be characterized by two elements: (a)
retention of surplus to fund growth and development, and (b) limited/ no credit, i.e., all
transactions are essentially cash only. For example, payment for milk procured by village
societies is in cash and within 12 hours of procurement (most, however, pay at the same time as
the receipt of milk). Similarly, no dispatches of finished products are made without advance
payment from distributors etc. This was particularly important, given the limited liquidity
position of farmer/suppliers and the absence of banking facilities in rural India. This strategy
strongly helped AMUL implement its own vision of growth and development. It is important to
mention that many of the above approaches were at variance with industry practices of both
domestic and MNC competitors of AMUL.

43

RESEARCH METHODOLOGY

Research Design : Descriptive research

b Sample Design
i Sample Unit : People who buy milk available in retail outlets, superstores
etc.
ii Sample Size : 50
iii Sampling Technique : convenience sampling
iv Sampling Area : Ghaziabad.
c

Data Collection
primary data through questionnaire
Secondary data though internet,books,newspaper
and journal.

d Data Analysis
Statistical Tools/Techniques: cross tabulation , one sampe t-test and
oneway annova.

44

ANALYSIS
Frequencies
1.GENDER

GENDER
N

Valid
Missing

Valid

50

GENDER

0
Frequency

Percent

Valid Percent

Cumulative Percent

MALE

18

36.0

36.0

36.0

FEMALE

32

64.0

64.0

100.0

Total

50

100.0

100.0

2 SATISFACTION

45

are you satisfied

N

Valid

50

Missing

are you satisfied

Frequency
Valid

Percent

Valid Percent

Cumulative Percent

YES

35

70.0

70.0

70.0

NO

15

30.0

30.0

100.0

Total

50

100.0

100.0

3. FACTOR YOU LIKE

46

Statistics
what you like
N

Valid
Missing

50
0

what you like

Frequency
Valid

Percent

Valid Percent

Cumulative Percent

QUALITY

20

40.0

40.0

40.0

TASTE

15

30.0

30.0

70.0

PRICE

10

20.0

20.0

90.0

10.0

10.0

100.0

50

100.0

100.0

AVAILABILITY
Total

4.CONSUMPTION PER DAY

47

Statistics
consumption per day
N

Valid

50

Missing

consumption per day

Frequency
Valid

Percent

Valid Percent

Cumulative Percent

1 Ltr

35

70.0

70.0

70.0

2-4 ltr

10

20.0

20.0

90.0

>4 ltr

10.0

10.0

100.0

Total

50

100.0

100.0

5. BRAND PREFERENCE
48

Statistics
brand prefrnc
N

Valid
Missing

50
0

brand prefrnc
Frequency
Valid

Percent

Valid Percent

Cumulative Percent

amul

30

60.0

60.0

60.0

mother dairy

10

20.0

20.0

80.0

parag

12.0

12.0

92.0

others

8.0

8.0

100.0

50

100.0

100.0

Total

6. FROM HOW LONG YOU ARE CONSUMING AMUL

49

Statistics
from how long you are consuming amul
N

Valid
Missing

50
0

from how long you are consuming amul

Frequency
Valid

unapplicable

Percent

Valid Percent

Cumulative Percent

20

40.0

40.0

40.0

6 mnths

4.0

4.0

44.0

1 yr

10.0

10.0

54.0

2-4 yr

10

20.0

20.0

74.0

>4 yr

13

26.0

26.0

100.0

Total

50

100.0

100.0

50

7. WHICH VARIENT YOU BUY IN AMUL.

Statistics
what you buy in amul milk
N

Valid
Missing

50
0

what you buy in amul milk

Frequency
Valid

Percent

Valid Percent

Cumulative Percent

unapplicable

20

40.0

40.0

40.0

gold

17

34.0

34.0

74.0

taaza

12.0

12.0

86.0

slim & trim

14.0

14.0

100.0

50

100.0

100.0

Total

8. Consumer opinion on different factors of amul milk.

51

Statistics
oinion on price
N

Valid

opinion on taste

opinion on availability

50

50

50

Missing

oinion on price
Frequency
Valid

unapplicable
excellent
good
average
Total

Percent

Valid Percent

Cumulative Percent

20

40.0

40.0

40.0

6.0

6.0

46.0

23

46.0

46.0

92.0

8.0

8.0

100.0

50

100.0

100.0

opinion on taste
Frequency
Valid

Percent

Valid Percent

Cumulative Percent

unapplicable

20

40.0

40.0

40.0

excellent

17

34.0

34.0

74.0

good

10

20.0

20.0

94.0

6.0

6.0

100.0

50

100.0

100.0

average
Total

opinion on availability
Frequency
Valid

Percent

Valid Percent

Cumulative Percent

unapplicable

20

40.0

40.0

40.0

excellent

20

40.0

40.0

80.0

good

16.0

16.0

96.0

average

4.0

4.0

100.0

50

100.0

100.0

Total

52

53

54

CROSSTAB
1. Relationship between gender & the factor they like.
Case Processing Summary
Cases
Valid
N

Missing
Percent

GENDER * what you like

50

Total

Percent

100.0%

.0%

Percent
50

GENDER * what you like Crosstabulation

what you like
QUALITY
GENDER

MALE
FEMALE

Total

TASTE

Total

PRICE

AVAILABILITY

18

18

15

10

32

20

15

10

50

Chi-Square Tests
Value
Pearson Chi-Square

df

Asymp. Sig. (2-sided)

42.188a

.000

Likelihood Ratio

52.339

.000

Linear-by-Linear Association

27.562

.000

N of Valid Cases

50

a. 3 cells (37.5%) have expected count less than 5. The minimum expected count is 1.80.

55

100.0%

INTERPRETATION
H: no relation exist between gender & factor of liking
H1 : relationship exist between gender & factor of liking.
Chi-square value is 42.188 with d.f =3
p-value = .00 which is less than so reject H
There is a relationship between gender & factor of liking.

56

2. Relationship b/w satisfaction & brand preference.

Case Processing Summary

Cases
Valid
N

Missing
Percent

are you satisfied * brand prefrnc

50

100.0%

Total
Percent

.0%

Percent
50

100.0%

are you satisfied * brand prefrnc Crosstabulation

Count
brand prefrnc
amul
are you satisfied

mother dairy

Total
parag

others

YES

22

10

35

NO

15

30

10

50

Total

Chi-Square Tests
Value
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

df

Asymp. Sig. (2-sided)

14.921a

.002

17.974

.000

6.056

.014

50

a. 5 cells (62.5%) have expected count less than 5. The minimum expected count is 1.20.

57

INTERPRETATION
H: no relation exist between satisfaction & brand preference.
H1 : relationship exist between satisfaction & brand preference.
Chi-square value is 14.921 with d.f =3
p-value = .02 which is less than so reject H
There is a relationship between satisfaction & brand preference.

58

3. Relationship b/w satisfaction & variant of amul milk.

Case Processing Summary

Cases
Valid
N

Missing
Percent

Total
Percent

Percent

are you satisfied * what you buy in

50

100.0%

.0%

50

100.0%

amul milk

are you satisfied * what you buy in amul milk Crosstabulation

Count
what you buy in amul milk
unapplicable
are you satisfied

gold

taaza

slim & trim

YES

13

12

35

NO

15

20

17

50

Total

Chi-Square Tests
Value

df

Asymp. Sig. (2-sided)

.756a

.860

Likelihood Ratio

.809

.847

Linear-by-Linear Association

.346

.557

Pearson Chi-Square

N of Valid Cases

Total

50

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is 1.80.

59

INTERPRETATION
H: no relation exist between satisfaction & variant of amul.
H1 : relationship exist between satisfaction & variant of amul.
Chi-square value is .756 with d.f =3
p-value = .860 which is greater than so accept H
There is no relationship between satisfaction & variant of amul.

60

4. Relationship b/w amul variant & opinion on taste.

Case Processing Summary

Cases
Valid
N

Missing
Percent

Total
Percent

Percent

what you buy in amul milk * opinion

50

100.0%

.0%

50

100.0%

on taste

what you buy in amul milk * opinion on taste Crosstabulation

Count
opinion on taste
unapplicable
what you buy in amul milk

unapplicable

excellent

Total

20

gold

12

17

taaza

slim & trim

20

17

10

50

Chi-Square Tests
Value

df

Asymp. Sig. (2-sided)

75.082a

.000

Likelihood Ratio

83.925

.000

Linear-by-Linear Association

22.293

.000

N of Valid Cases

average

20

Total

Pearson Chi-Square

good

50

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .36.

61

INTERPRETATION
H: no relation exist between opinion on taste & variant of amul.
H1 : relationship exist between opinion on taste & variant of amul.
Chi-square value is 75.082 with d.f =9
p-value = .000 which is less than so reject H
There is a relationship between opinion on taste & variant of amul.

62

5. Relationship b/w brand preference & factor of liking.

Case Processing Summary

Cases
Valid
N
brand prefrnc * what you like

Missing
Percent

50

Total
Percent

100.0%

Percent

.0%

50

100.0%

brand prefrnc * what you like Crosstabulation

Count
what you like
QUALITY
brand prefrnc

TASTE

Total

PRICE

AVAILABILITY

amul

10

15

30

mother dairy

10

10

parag

others

20

15

10

50

Total

Chi-Square Tests
Value

df

Asymp. Sig. (2-sided)

56.250a

.000

Likelihood Ratio

55.164

.000

Linear-by-Linear Association

15.239

.000

Pearson Chi-Square

N of Valid Cases

50

a. 13 cells (81.3%) have expected count less than 5. The minimum expected count is .40.

63

INTERPRETATION
H: no relation exist between brand preference & factor of liking.
H1 : relationship exist between brand preference & factor of liking
Chi-square value is 56.250 with d.f =9
p-value = .000 which is less than so reject H
There is a relationship between brand preference & factor of liking.

64

T- TEST

One sample t-test of opinion on price.

One-Sample Statistics
N
oinion on price

Mean
50

Std. Deviation

1.0400

Std. Error Mean

1.12413

.15898

One-Sample Test
Test Value = 3
95% Confidence Interval of the Difference
t
oinion on price

-12.329

df

Sig. (2-tailed)
49

.000

Mean Difference
-1.96000

H : = 3
H1: 3
T-cal= -12.329
Df= 49
p-value = .000 which is less than so reject hypothesis.

65

Lower

Upper
-2.2795

-1.6405

ONE-WAY ANNOVA

Descriptives
AGE
95% Confidence Interval for Mean
N

Mean

Std. Deviation

Std. Error

Lower Bound

Upper Bound

Minimum

Maximum

amul

30

32.4667

10.43447

1.90506

28.5704

36.3630

18.00

55.00

mother dairy

10

32.2000

9.00370

2.84722

25.7591

38.6409

18.00

44.00

parag

34.3333

12.43651

5.07718

21.2820

47.3846

22.00

52.00

others

42.0000

15.76917

7.88458

16.9077

67.0923

19.00

54.00

50

33.4000

10.83080

1.53171

30.3219

36.4781

18.00

55.00

Total

ANOVA
AGE
Sum of Squares
Between Groups

df

Mean Square

341.600

113.867

Within Groups

5406.400

46

117.530

Total

5748.000

49

Sig.
.969

INTERPRETATION
H : No difference in the mean age among different brands of milk.
H1: difference in the mean age among different brands of milk.
P value = 0.416 which is greater than so accept H.
Thus there is no difference in the mean age among different brands of milk.

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.416

FINDINGS

1. It is findings in the survey that females are the main decision maker for the milk. As per the data,
64% of female and 36% of male makes purchase decision.
2. The main purchasing factors for the Amul Milk are Quality and taste. The data reveals that 40%
influences on Quality and 30% influenced for the taste.
3. Out of 60 % amul consumers 46 % are buying since more than 2 years & 10% since one year.
4. 70% buy 1 litre per day 20% buy 2-4 litre & 10% buy more than 4 litre.
5. 60% buy amul milk, 20% buy mother dairy, 12% parag & 8% other.
6. Out of 60% amul consumers 34% buy amul gold, 12% amul taaza & 14% slim and trim.
7. Out of total respondent 70% are satisfied and 30 % are unsatisfied.
8. Out of 60% amul consumers 34% says taste is excellent, 10% says good & 6% average.
9. Out of 60% amul consumers 6% says price is excellent, 46% says good & 8% average.
10. Out of 60% amul consumers 40% says availability is excellent, 16% says good & 4% average.

SUGGESTIONS:

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1. Milk purchasing decisions are more decided by women rather than male, because she act as a
invigilator, execute her decision and influence the same to the purchase while ascertaining the
quality, freshness and price. Hence, I suggest GCMMF to concentrate more on the women and
men suggestions for designing the marketing strategy, because womens role in the house is
dominant, even in the various decisions.
2. Since Amul is having loyal customers and therefore should concentrate more on this factor
through various potential programmes such as campaign, premium packs, offers etc., this helps
to increase the loyalty towards the Amul products.
3. Milk is having high demand and it is considered as a very essential products. In present practice,
purchase of milk is through dealers. In this connection dealers approach towards the product.
4. Customer is influential, hence I suggest Amul to look after the dealers issue with due care.
5. When product possesses quality and other important attributes naturally they propaganda about
product through word of mouth and vice versa. Therefore if the quality and attributes are fine
tuned according to the needs will help the Amul to get reputation and addition market.
6. Introduction of various economic products lies may help Amul to attract the existing and new
customers and may attract all income level groups. Hence I suggest management to introduce
new product line which can satisfy the entire group.

CONCLUSION:-

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From the survey conducted it is observed that Amul milk has a good market share.
From the study conducted the following conclusions can be drawn. In order the dreams comes
into reality and for turning liabilities into assets one must have to meet the needs of the
customers.
The factors considered by the customer before purchasing milk are freshness, taste, thickness and
availability.
Finally I conclude that, majority of the customers are satisfied with the Amul milk and Milk
products because of its good quality, reputation, easy availabilities. Some customers are not
satisfied with the Amul Milk because of high price, lack of dealer services, spoilage and low
shelf life etc. therefore, if slight modification in the marketing programme such as dealers and
outlets, promotion programmers, product lines etc., definitely company can be as a monopoly
and strong market leader.
Amul has also to take care of its competitors into consideration and more importantly its
customers before making any move.

REFERENCES

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BOOKS.

Marketing management by Philip Kotler

Published by Pearson Education Pvt. Ltd, Indian Branch, 12th edition ,

Hunger J.D &Wheelen T.L ,Essentional of strategic Management ,PrenticeHall,3rd edition,2004,pp-81-94

Wheelen T.L & Hunger J.D-Concept in strategic Management & Business

policy,Pearson education,9th edition ,2007,pp-135-145

INTERNET.

www.Amul.com
www.google.com
www.indiatimes.com
www. Wikipedia.com

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QUESTIONNAIRE
I, Adil Khan, student of PGDM of IMS Ghaziabad, is doing a Project on CONSUMER
BUYING PATTERN TOWARDS AMUL MILK .So I request you to provide the required
information for the completion of my Project Report. Any information received will be kept
confidential.
71

Name

: - ______________________________________________

Age

: - _________________

Gender

: - _________________

1) Do you consume pouch milk ?

a. Yes
b. No
2) Are you satisfied with the milk you are consuming?
a) Yes
b) No
3) What do you like?
a) Quality
c) Price

b) Taste
d) Availability

4) Do you get milk pouch at..

a) Doorstep
b) From retailer
5) Total consumption of milk in a day?
a) 1 liter
b) 2-4 liter
c) >4 liter
d) other
6) Your monthly expenditure in milk (in Rs.)?
a) 500-1000
b) 1000-1500
c) above 1500

7) In pouch milk which brand do you prefer?

a) AMUL
b) Mother dairy
c) parag
d) other
8) How long you are consuming amul milk ?
a) 6 mnths
b) 1 yr
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c) 2-4 yr

d) >4 yr

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

a) AMUL Gold
b) AMUL Taaza
c) AMUL Slim & Trim
10) Consumer openion towards amul milk?
ATTRIBUTE
PRICE
TASTE
AVAILIBILITY

EXCELLENT

GOOD

73

AVERAGE

BAD

V.BAD