NCRDs STERLING INSTITUTE OF MANAGEMENT STUDIES,NERUL, NAVI MUMBAI.

MARKET APPLICATION & PRACTICES Project Title

Submitted To: Dr. R.K. Shrivastava & Prof. Iftiqar Mistry

Submitted By: Priyanka Shewale F.Y.M.M.S. (A-58)

Contents
INTRODUCTION ...................................................................................................................... 3 COMPANY PROFILE ............................................................................................................... 4 HISTORY ................................................................................................................................... 5 PRODUCT LINE ........................................................................................................................ 7 PRICING STRATEGY ............................................................................................................. 14 MARKETING STRATEGIES.................................................................................................. 15 CONCLUSION ......................................................................................................................... 17

INTRODUCTION
Gujarat Co-operative Milk Marketing Federation Ltd(GCMMF) as India's largest food products marketing organisation with annual sales turnover of Rs.9700 crores(US $ 2 billion). GCMMF manufacture and market a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. GCMMF has 35 affiliated dairy plants with a total milk handling capacity of 13 million litres per day. The total milk drying capacity is 600 MT per day. GCMMF is also the largest exporter of dairy products from India.

GCMMF manufacture and market a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. The product categories are Infant Milk Food, Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk Food, Blended Breadspreads, Fresh milk, UHT(Long life) Milk, Iceream and ethnic Indian sweets. Each of our products is a market leader in India.

GCMMF is the largest exporter of dairy products from India. We export our products in consumer packs and bulk to USA, Singapore, UAE, Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc. On a regular basis. We have won 13 awards consecutively from APEDA, Govt . of India.

Company Profile

Basic Information

Amul India (Gujarat Co-operative Milk Marketing Federation Ltd.) Business Type: Manufacturer Infant Milk Food,Skimmed Milk Powder,Butter,Cheese Product/Service (Cheddar,Mozzarella,Emmental,Gouda),Cheese (We Sell): spreads,Ghee,Condensed Milk,Chocolates,malted milk food,Breadspreads,fresh milk,UHT milk,Ice-cream Address: Amul Dairy Road Number of Employees: 501 - 1000 People Company Website URL: http://www.Amul.com Company Name: Ownership & Capital Year Established: 1973 Legal Representative/Business B M Vyas Owner: Trade & Market North America South America Eastern Europe Southeast Asia Africa Main Markets: Oceania Mid East Eastern Asia Western Europe South Asia Total Annual Sales Volume: Above US$100 Million Export Percentage: 1% - 10% Factory Information No. of R&D Staff: Above 50 People Contract Manufacturing: OEM Service Offered 4

HISTORY

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. 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

Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement in India. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others.Situation of farmersOver five decades ago, the life of an average farmer in Kheda Districtwas very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee eat throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand 5

in the country) to collect milk from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabh bhai Patel (who later became the first Home Minister of free India) and Morarji Desai (wholater become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative.

Product Line
Bread Spreads Amul Butter
Utterly Butterly Delicious

Amul Lite
Low fat, low Cholesterol Bread Spread

Delicious Table Margarine

The Delicious way to eat healthy

Milk Drinks Amul Kool Millk Shaake Amul Kool

Amul Kool Cafe

Kool Koko
A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink

A drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Masti Spiced Buttermilk

Amul introduces the Best Thirst Quenching Drink

Amul Lassee

Amul Kool Thandai

Powder Milk Amul Spray Infant Milk Food

Still, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk Powder

A dairy in your home

Sagar Skimmed Milk Powder

Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy Whitener

The Richest, Purest Dairy Whitener

Fresh Milk Amul Fresh Milk

This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouchpacked for convenience.

Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Amul Buttermilk

Cheese Amul Pasteurised Processed Cheese

100% Vegetarian Cheese made from microbial rennet

Amul Cheese Spreads

Tasty Cheese Spreads in 3 great flavours..

Amul Emmental Cheese

The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese

Pizza cheese...makes great tasting pizzas!

Gouda Cheese

For Cooking Amul / Sagar Pure Ghee

Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter

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Amul Malai Paneer

Ready to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

Pro-biotic Dahi

Desserts Amul Ice Creams

Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul Shrikhand
A delicious treat, anytime.

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Amul Mithaee Gulab Jamuns

Pure Khoya Gulab Jamums...best served piping hot.

Amul Chocolates
The perfect gift for someone you love.

Amul Basundi

Amul Flaavyo Yoghurt

Health Drink Nutramul

Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

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PRODUCT
AMUL BUTTER : UTTERLY BUTTERLY DELICIOUSAMUL BUTTER was the first product which was officially launched by AMUL in 1945.It has been a market leader during the last 4 decades. AMUL BUTTER is made from Butter, Common Salt, permitted natural colour- Annatto Composition: Milk Fat 80%Moisture 16%Salt 2.5%Curd 0.8% Calorific Value: 720 kcal./100g Special Features: Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades. Product Specification: Meets AGMARK standard and BIS specifications No.IS:13690:1992

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Pricing Strategy
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. Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand image in the household sector of the society.

Rs.87

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A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years. Currently Amul has 2.41 million producer members with milk collection average of 5.08million litres/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 1994had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

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MARKETING STRATEGIES
4 MAIN STRATEGIES What goes into the contract that is a brand name? First is quality. No brand survives long if its quality does not equal or exceed what the buyer expects. There simply can be no compromise. Thats the essence of the contract. Inthe case of a food product, this means that the brand must always represent the highesthygienic, bacteriological and organoleptic standards. It must taste good, and it must begood. Second, the contract requires value for money. If our customer buys an Amul product,she gets what she pays for, and more. We have always taken pride in the fact that while we earn a good income for our owners the dairy farmers of Gujarat we dont do it atthe cost of exploiting the consumer. Even when adverse conditions have reduced suppliesof products like butter, we have resisted the common practice of raising prices, chargingwhat the market would bear. Rather, we have kept prices fair and done our best to ensurethat retailers do not gain at the consumers expense. The third element of the contract is availability. A brand should be available when andwhere the customer wants it. There is no benefit achieved in creating a positive brandimage, and then being unable to supply the customer who wants to buy it. In our case,over the years we have built what is probably the nations finest distribution network. Were each hundreds of cities and towns through a cold chain that not only ensures that our products are available, but they reach the customer at the farthest end of the country with the same quality as you would find in Ahmedabad or Vadodara.The fourth part of the contract is service. We have a commitment to total quality. But, occasionally, we may make a mistake or, our customer may think weve made a mistake, and the customer, as they say, is always right. That is why, for Amul, every customer complaint must be heard not just listened to. And, every customer complaint must be rectified to the extent humanly possible. For close to fifty years now, Amul has honoured its
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contract with the consumer. The contract that is symbolised by the Amul brand means quality. It means value for money. It means availability. And it means service.

POSITIONING STRATEGY
When the list of target markets is made, a company might want to start on deciding on a good marketing of a product. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. The Process Of Positioning The Product Of A Company: 1. Identifies the differential advantages in each segment. 2. Decides on a different positioning concept for each of these segments. This process is described at the topic positioning, here different concepts of positioning are given. The process-data model shows the concepts resulting from the different activities before and within positioning. The model shows how the predefined concepts are the basis for the positioning statement. The analyses done of the market, competitors and abilities of the company are necessary to create a good positioning statement. When the positioning statement is created, one can start on creating the marketing mix. B2C and B2B The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer. There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is MIPS: a method for managing industrial positioning strategies by Muhlbacher, Dreher an Gabriel-Ritter (1994).
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CONCLUSION
As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know Amul is a co-operative organization but chocolate industry is a profitable industry we cant ignore it. With the help of research, company can find out its week points in chocolate product and can increase its market share through rectify mistakes. People have believed in Amuls product and they will accept its chocolates also if effective actions were taken. The survey resulted into following conclusions : Amul must come up with new promotional activities such that people become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo. Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, are provide a better availability and give competition to the hilt. People are mostly satisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques

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