GRAND PROJECT REPORT

ON
RETAILER SATISFACTION OF AMUL PRODUCTS IN TERMS OF
AREA DELIVERY AGENT SERVICES

AT
MOTHER DAIRY (A UNIT OF GCCMF)

PREPARED BY:
RAVISH MOTERIYA
ROLL NO: 34

SUBMITTED FOR:

PARTIAL FULFILLMENT OF REQIREMENT OF TWO

YEARS OF FULL MBA
Guided By:
Mrs. RAKSHA PORIYA
Faculty Member, HNSMBA
Submitted To:

H.N.SHUKLA COLLEGE OF MANAGEMANT STUDIES

NEAR LAL PARI LAKE BICHRI, RAJKOT.

Dr. Vergese Kurien

Founder of
ANAND Pattern

DECLARATION
I RAVISH MOTERIYA student of H.N.SHUKLA COLLEGE OF
MANAGEMENT STUDIES, RAJKOT, hereby declare that the project work
presented in this report is my own work and has been accomplished under the
supervision of our guide MRS.RAKSHA PORIYA (SHREE H.N.SHUKLA
COLLEGE OF MANAGEMENT STUDIES, RAJKOT)
The report has not been previously submitted to any other university or college
for any other examination.

Date:
Place:

RAVISH MOTERIYA

PREFACE
As a part of curriculum and to be familiar with the real depth and wide span of the
industry every student at the MBA is required to undergo intensive training.

My interest is in Fast Moving Consumer Goods (FMCG) so I selected a

marketing unit of Motherdairy (amul/sagar) as the most suitable place for training.
As a part of my project I undergo to a marketing research work to find out
Retailers Satisfaction in terms of Product Performance, Price, Promotion, and
Place of Four AMULs liquid milk and milk Products. Scientifically authentic
analysis of Satisfaction Level of the Retailers and find out the reasons, which lead
to dissatisfaction were also a part of my study and survey. To compete with other
large players in the field I have recommended some suggestion in my project.
In my survey I purported the key elements that affect the Satisfaction level of the
retailers and their feedback about the product.
I also declare that this project report is my own preparation and not copied from
any where.

ACKNOWLEDGEMENT
As a part of our academic study as the student of M.B.A .SEM-4 th are required to
undergo training in marketing department of an industry in order to obtain practical
knowledge and broaden our view regarding the same.
I would like to express my special thanks to the entire executive person as well as staff of
MOTHER DAIRY AND RAJKOT AMUL OFFICE. Who have given their costly
time for me and provided all the possible information for my practical study.
I am highly thankful to our director And also thanks to every faculties of college who
gave me lots of guidance.
I am specially thankful to my project guide Mrs. Raksha Poriya who gave me lots of
guidance.
I am also thankful to mr. Vipul joshi Rajkot amul marketing incharge and few others who
extended necessary guidance in preparation of report
Thanking you,

Date:-

Ravish Moteriya

INDEX

SR.NO.

PARTICULARS

PAGE.NO.

EXECUTIVE SUMMERY

INDUSTRY ANALYSIS

EVOLUTION OF COOPERATIVES

13

GROUP MEMBER UNIONS

16

NAME,FORM & SIZE OF ORGANISATION

17

LOCATION

19

SECRET OF SUCCESS

21

ORGANISATION CHART

23

INTEGRATED MANAGEMENT SYSTEM

25

10

ACHIEVEMENT

26

11

RESEARCH & DEVELOPMENT

28

12

GLOBAL SCENARIO

30

13

INDIAN SCENARIO

31

14

DAILY SALES OF AMUL

33

MARKET SIZE & GROWTH

34

MAJOR PLAYERS

35

MACRO ENVIRONMENT

39

POLITICAL

40

GOVERNMENTAL

41

SOCIAL FACTOR

43

TECHNOLOGICAL

45

SR.NO.
15

PARTICULARS
MARKETING DEPARTMENT

PAGE.NO.
49

16

ADVERTISEMENT

52

17

DISTRIBUTION CHANNEL

54

18

SWOT ANALYSIS

56

19

INDUSTRIAL RELATION

60

20

SOCIAL RESPONSIBILITY OF BUSINESS

61

21

TIME KEEPING SYSTEM

62

22

QUALITY ASSURACE DEPARTMENT

63

23

PROJECT PROFILE

64

24

SOURCES OF DATA

66

25

SAMPLE AREA

67

26

KALAVAD ROAD AND UNI. ROAD

67

27

GANDHIGRAM

69

KESHRI HIND BRIDGE

71

BHAKTINAGAR CIRCLE

73

MAVADI PLOT

75

28

CONCLUSION

78

QUESTIOONAIRE

79

SUGGESTIONS

81

BIBLIOGRAPHY

82

EXECUTIVE SUMMARY
The objective of this project is To Find out retailers satisfaction about four
products of Amul in terms of Communication, As per Time, As per Order, WDs
Services and

To do that in an efficient way I decide a sample size of 150 retailers and further
they are divided into five area wise clusters so we can have the accurate and
unbiased result.
To get accurate finding I have used Questionnaire as a tool of data collection,
which is designed as per the requirement of information. After collecting data of
all 150 retailers the whole analysis and interpretation has been made as per
sample category and then product wise sub-category. In this report rating scales
are used to gather accurate information about different degree of satisfaction,
which is ranging from Fully Satisfied to Fully unsatisfied (5 to 1) where 3 means
partially satisfied. Here I also try to mention the feedback by the customers,
which cause the problem.
Here I also find market penetration level of the product as per the sample area and
it can be shown in a graph at the end of the each sample areas analysis.
I tried to use my all abilities to do the project in the best way and try to represent
my finding as accurate as possible.

INDUSTRY ANALYSIS
Dairy Industry: In a Globe
The recently passed US Farm Bill 2002, titled the Farm Security and Rural
Investment Act of 2002 and signed by the US President George Bush, provides
for continuation of the existing Milk Price Support Program. This would further
depress international prices of dairy products and enhance subsidies.
Under this Bill, instead of reducing trade-distorting subsidies, the US Department
of Agriculture's Commodity Credit Corporation is committed to buy unlimited
quantities of butter, cheese and skimmed milk powder (non-fat dry milk) from
dairy plants at prices that enable them to pay a minimum support price for the
milk supplied by farmers.
Under a scenario where international prices are lower than domestic prices,
traders can and do make quick profits without any big investment. But the
interests of the large numbers of farmers with critical dependence on dairy may be
totally forgotten.
Though WTO framework is based on free trade, European Union and the United
States have bypassed and even openly violated their (WTO) commitments. For
developed countries confronting saturation in their own markets, penetration into
large developing countries is but a logical choice. This may be the reason why
New Zealand Dairy Board has dumped a large quantity of butter oil into India at
prices below $ 1000 per ton, whereas the prevailing international price is around
$1300 per ton.

10

In simple terms, New Zealand's butter oil made available at Rs 64.54 per kg is
roughly cheaper by Rs 15 a kg, compared to the prevailing international prices of
Rs 87.40 per kg.

DAIRY INDUSTRY . IN INDIA

Dairy industry in India has come a long way from dependence to self-reliance as
the total amount of milk produced more than tripled from 23 million tones back in
1973 to 81 million tones in 2000.
Interestingly, it's the single largest contributor to India's GDP and involves as
many as 80 million small farming households. The social impact of developing
the dairy industry has thus been profound. With the opening up of the Indian
market to an influx of foreign goods, much concern has been expressed over the
state of the Indian dairy industry.
Indian milk farmers are paid on the basis of the value of fat in the milk. In the last
one year, due to lower realization of ghee prices, there has been approximately 15
per cent erosion in the milk value realized by the farmers. A further drastic
decrease in the milk fat price would be enough for the farmer to exit the dairy
industry. If the undervalued imports are not checked, then all the gains achieved
by Operation Flood may be wiped out.
But this is just the beginning. What happens when imports of highly subsidized
milk powders follow and domestic milk production and supply is taken over by
reconstituted milk?
India has the world's cheapest milk but unfortunately costliest of milk products. It
may be due to cost diseconomies, process inefficiencies and poor yield. In postWTO regime cheap foodstuff need not necessarily mean poor quality. It could be
a very high quality product from the developed countries, available at low prices
due to lower tax barriers. I think we have already started to feel the heat of such

11

market changes with multinationals and domestic majors like Amul improving
their product mix and package.
Being a large country with small milk producers even a slight signal of a shortfall
or surplus in production tends to influence its interests. While developed countries
may have evolved better institutional mechanisms to protect the interests of
farmers and processor, this is not the case with India.
Indian milk production, however, in contrast to other milk producing countries, is
characterized by lakhs (millions) of small and marginal farmers including landless
milk producers for whom it is not only a business but also the main source of
earning.
Technology and management are both important factors affecting the
competitiveness of India's dairy sector. We need latest technologies to produce
high quality products at low cost and professional management to utilize
optimally the industry's human and financial resources.
We can successfully meet the emerging challenges and harness the new
opportunities if we ensure widespread adoption of the latest available
technologies for processing, packaging and marketing of milk and milk products,
organize milk producers and professionally manage their organizations. I feel that
there should be level playing games for all the countries under WTO rules
Since the country is not faced with milk shortage, innovative use of technology
and proper resource management can help the industry to achieve export
competitiveness in terms of price and yield and quality.
India has emerged as the biggest producer of milk with an output of 81 million
tones in 2000-01, outpacing 72 million tones produced in the United States.

12

From the view point of economy dairy industry has several points of
significant to this credit.
(1)

It gives production of milk and milk products which are dietcurious.

(2)

It brings significant change in social economy structure of rural economy.

(3)

It has important role in employment generation.

(4)

By sound growth of co-operation this industry mutual help and selfsufficient are cultivated among the masses.

(5)

It provides regular source of income as supplementary. Employment to

small and marginal farmers and agricultural labors, therefore it acts
as a cattail change in the directions of equitable society.

13

EVOLUTIONS OF COPERATIVES
Dairy Cooperatives
Emergence of Amul and Anand Pattern Cooperatives
Management of Dairy Cooperatives
Last decades has witnessed phenomenal rise in milk production due to which
India, today, tops of the list of milk producing countries,. The country has the
largest cattle and buffalo population in the world, accounting for about one sixth
of the worlds cattle and one half of the worlds buffalo population. About 55% of
India milk output consists of buffalo milk.
Prior to formation of cooperatives, the milk producers were at the mercy of the
traditional traders who would pay remunerative prices in lean summer months and
extremely low prices in flush months of monsoon and winter. The irrational
pricing and exploitation by the trade, discourage farmers from initiation better
management practices for more production.
In India, the idea of cooperatives is as old as 1875, registration of societies at the
time was done under the companies act 1882 of societies. Registration act
1860.The cooperatives credit societies act was passed in 1904.
The first dairy society The Katra Cooperative Dairy Society, Allahabad, was
registered in 1913 in U.P., soon after the cooperatives societies act (1912) was
passed.

14

EMERGENCE OF MOTHER DAIRY

HISTORY:
Mother Dairy owned by Gujarat Cooperative Milk Marketing federation
Limited(GCMMF Limited) a state level apex cooperative organization of 1.6
million farmers of Gujarat, was commissioned in September 19, 1994 with a
sole objectives of receiving each and every drops of milk from its member unions
dairies.
The plant was set-up by L&T on turn basis and supported by a consortium of
world renowned dairy equipment and services supplied such as Denmark, LT
niro- Denmark, NUCON-New Zealand, Prepac-France and WestfaliaGermany.
Mother Dairy receives milk in raw chilled condition from dairies insulated tankers
and after QA clearances and unloads to the silos after filter. Milk in processed and
packed in pouch with surplus milk gets converted into powder and surplus FAT
gets converted into ghee. Recently Ice-cream plant and long life milk plant
equipped with state of art technology have been added to the dairys arsenal.
The total investment made into the mother dairy is to the tune of Rs. 150 crore
including recently set up ice cream and long life milk facilities. The dairy operates
in shifts round the clock and managed by 600 young professionals.

15

PROMOTERS
Promoters are the owners of the company who established the company and run
it. They bring the necessities for running the business such as capital and handle
all the prospects of the business.

Promoters & Board of Directors

BANKERS:-

State Bank of Saurashtra Main

State Bank of India Main

Bank of Baroda-Main

I.C.I.C.I. Bank limited-Main

HEAD OFFICE AND WORKS CORPORATE

OFFICE:Gujarat co-operative milk marketing Federation
Dairy Road,
Anand.
District: Kheda
State Gujarat

AUDITOR:I.G.Muniya
Special Auditor (Milk)
Milk Audit offic

16

GROUP MEMBER UNION:-

NO. NAME OF DAIRY

PLACE

1.

Sabar Dairy

Himatnagar

2.

Baroda Dairy

Baroda

3.

Panchamrut Dairy

Godhra

4.

Rajkot Dairy

Rajkot

5.

Dudhadhara Dairy

Bharuch

6.

Dudhsagar Dairy

Mehsana

7.

Banas Dairy

Palanpur

8.

Sumul Dairy

Surat

9.

Uttan Dairy

Ahmedabad

10.

Vasudhara Dairy

Valsad

11.

Gandhinagar Dairy

Gandhinagar

12.

Mother Dairy

Gandhinagar

17

NAME, FORM AND SIZE OF ORGANIZATON

Name and Address:Mother Dairy Gandhinagar (A unit of GCCMF)
Near indira bridge,
Village- Bhat
District: Gandhinagar
State Gujarat.

Size of Organization:On the basis of size any industrial unit can be categorized into three types:1. Large Scale Unit
2. Medium Scale Unit
3. Small Scale Unit
Small scale units are those who are saving are not above three cores. Medium
scale industries are those who are saving are above three cores but not above
hundred cores. Although larges scale units are those whos saving is above three
cores. Rajkot Mother Dairy is a large scale unit because of his investment.

18

Form of Organization:1. Democratic Management:The governing body is also known as managing committee as the government
interferes in the affairs of the society.
2. Service motive:The main objective of a co operative society is the service to the members of the
organization by providing them, services at minimum cost.
3. Voluntary association:As in the limited company it is an association of people and not of capital. Any
person can join or leave the institution as per his own desires.
4. State control:It is registered as per the Indian co operatives act and Gujarat state co operative
act. Therefore, it mentions all the duties in favors of the state.
5. Distribution of surplus:The [art pf the profit earned is transfer to reserve funds. The remaining amount of
profit is utilized by distributing it into various groups of members contain the
amount of share value.
6. Interest on capital:The payment of the interest on capital is limited. It is moreover not compulsory
and when it is paid, the rate of interest can be fixed or cannot be fixed.
7. Equal voting rights:Only the members of the co operative society have the right to vote and fulfill the
promise of receiving equality. Every member has the right to vote only once.
8. Cash Trading:The organization cannot sustain the indebtedness resulting into losses. The trading
on credit is discouraged so the trading on cash is only carried out.
19

LOCATION

When a new industrial unit is to be established, three interrelated decision are to

be made. This decision related to:
1. The scale of operations of the new industrial unit to be established,
2. The choice of techniques to be adopted if production.
3. The site at which manufacturing unit is to be located.

Meaning:Location is selection of place for established of industry were the cost of

production is the lowest at the time of establishment and where all the factors
necessary for production are available.
Mother Dairy is located at Gandhinagar. It is very large co-operative society.
There
an

are various factors taken into consideration while selecting location of

industry:

Nearness to Market
Quickness in marketing action can be ensured by being close to the market.
Slowing down of deliveries can be avoided when the plant is located near the
market. The geographical dispersal of market is also important. Rajkot dairy
market is spread all over the Rajkot district.

Raw Material
Raw material is very important for an industry to manufacture different products.
They play a very vital role in every industry. Amul milk is the basic raw material
of production of butter, milk power etc. which is easily available because of
abounded availability of cow and buffalo.

20

Availability of Labor
It is an important factor to be considered because the manufacture process
requires labor with different skills.

Transport Facilities
Transportation facility is the necessity for each and every industry to bring in raw
materials and to supply finish goods to market. There are three means of
transportation road, air, and sea. While selecting one these, its cost is also
considered.Mother Dairy uses roadways routes as it is beneficial to it.

Climatic conditions:
This factor also influences the location of an industry. Natural climatic factors
which are necessary for a particular industry cannot be artificially created. Thus,
we can see that Mother Dairy has given due consideration to all the factors
influencing the location of an industry which has proved advantageous to it.

Availability of Power
In an industry which gives quite a due importance to atomization, availability of
power is very important for its machines and equipments to function. Mother
Dairy has its own captive co-generation steam power plant which generates 1.5
MW of power. It is based on Nutria power supply.

21

Secret Of Success
Despite of all the problems faced by the dairy industry in India, its progress is
remarkable. It is one of the fastest growing industries, about to acquire second position in
the world. Following are the basic sectors of success on India's dairy industry:
1. The efficient milk production, which is symbiotically integrated into agriculture.
The crop farming system provides residues and by-products are feed and fodders
for dairy animals. The milk production system in turn provides drought power and
organic fertilizers to the farming system.
2. The involvement's of milk producers in setting up their own organization for milk
production enhancement, procurement, processing and marketing. The dairy cooperative combines the strength of farmers with the skills of professionals to
ensure high returns
3. It has an important role in employment generation with regard to its contribution
to national income it has 1st rank at producer price. The value of its output in the
year 1997-98 was Rs.50,0511 crores. This is the amount next to the value of
paddy.
4. The milk producers in India are assured of remunerative prices. They receive
almost 66% of what is paid by the consumers as retail price. This has acted as an
incentive to increase milk production. A low margin between the producer price
and the retail price has also resulted in reasonable price to the consumer, thus
expanding the market for milk and milk products.
5. Imports of dairy commodities in India have been cancelled through a farmer
friendly NDDB, which ensures that imported commodities are not made available
to the processing plants at a price lower than that of locally produced milk.
6. Collecting milk from the milk producers now carries the responsibility of
supplying those inputs to increase the milk production. This linkage also
optimizes on the transportation cost of the cattle feed to milk producers to the
processing plants.

22

7. Bulk of the milk is delivered to processing plants within 3-4 hours of making,
thus avoiding intermediate chilling. This has resulted in reducing the price spread
between the producer and the customer.
8. National milk Grid: Milk now moves right across the length and breadth of the
country, linking producers with the consumers and evening out of regional and
seasonal disparities in production and consumption. This ensures right prices to
the producers and the continues supply to the customers.
9. India ha achieved bilk of the increase in milk production through the genetic up
gradation of the local stock rather than important milk cattle. Only a limited
number of exotic were imported for the production of exotic bulks needed for the
up gradation of local stock.
Cattle feed: Balanced cattle feed concentrates are now being made available to
milk producers right at the village level at reasonable price. Trucks that bring
also carry cattle feed thereby saving on the transportation cost.

23

ORGANIZATION CHART
Organization chart is a graphical presentation of authority relation in an organization.
Organization chart is a diagrammatical presentation of organizational relation.
Organization chart is a way to explain entire organization in the form of a picture or
sketch chart is essential for managing because it provides readymade information about:1. Number of function
2. Number of persons
3. Number of levels
4. It shows authority relation.

DESCRIPTION:At the top of organization chart of Mother Dairy there are boards of directors
including Chairman Mr. Parthiv Bhatol under the managing director Mr. B. M. Vyas
there is general manager Mr. A.K DHAGAT, under the general manager there are
managers if each and every department.

24

ORGANIZATION CHART OF MOTHER DAIRY

Officer

Accountant

Officer

25

INTEGRATED MANAGEMENT SYSTEM(IMS)

(QUALITY, ENVIRONMENT,AND FOOD SAFETY)
Mother dairy will established a brand truly worthy of gaining customers truth. In striving
so mother dairy is committed to receive milk supply from member unions, manufacturing
of quality and safe dairy and food products and reliable delivery to customers. This will
be achieved by apposite integration of food chain, use of frontline technology, efficient
utilization of resources, maintaining support of these values, Mother Dairy Shall-

QUALITY POLICY
WE THE MOTIVATED AND DEVETED WORK FORCE OF MOTHER DAIRY ARE
COMMITTED TO PRODUCE WHOLESOME AND SAFE FOODS OF EXCELLENT
QUALITY TO REMAIN MARKET LEADER THROUGH THE DEPLEYMENT OF
THE QUALITY MANAGEMENT SYSTEM, SATE

OF ART, TECHNLOGY,

INNOVATION AND ECO- FRIENDLY EPERATIONS TO ACHIVE DELIGHTMENT

OF CUSTOMER AND HETTERMENT OF MILK PRODUCERS

26

ACHIEVEMENTS

Mother Dairy a branch of Amul is fully computerized vacuum and

automatic dairy in Asia.

It has 1000000 liters milk producing capacity with managing 200

employees.

The type of technology is imported form L & T.

They can 1000000 liters of milk per day and packed and distribute.

For packing they have own plastic bag factory in Gandhinagar.

They have owned tube well water demand.

Amul was received J.D.Birla Award for rural development in the year
1999.

In the year 1998-99 the GCMMF popular as largest dairy product market
organization.

Milk payment to farmer rising from Rs.2.1 million in 1972 to close to

Rs.40 billion today.

Substantial increase in employment both direct and indirect.

The no. of women who are involved in the running of dairy co-operation
has gone up from 622000 in 1986-87 to 196700 in 1997-98. This
increasing involvement of women has resulted in more girls attending
school longer.

Joint turnover of 12 union federation is more than 2200 cr.

According to Amul official in just 3 years, Amul has become a formidable

player in the organized sector with nearly 40% of total market share.

In this financial year many foreign has demanded amul products.

Veterinary case has reduced the economic losses suffered from disease.

27

Strategic Focus of Amul

The GCMMF has targeted a sales turnover of Rs. 10000 cr by 2005.
GCMMF want to increase the export from Rs. 30 Cr to 100 Cr.
They want that their future will include another 100 offices dealing with about
7500 stockiest.
They need of Indias next door neighbour for exports of milk and milk products
i.e. Pakistan, Bangladesh, and China etc.
GCMMF is going to launch VAT milk in a card board pack of 500 ml.
Amul want to gave discount other on average big scale.
Also in place will be a distribution network 7500 stock is (3500 today) and 1
million retail outlets (4 lack today).
Current amul ice-cream are manufactured at 15 plants, which are mainly cooperative dairies amul plans to increase their 70 to 25.
Amul is focusing on new added value products like Butter Milk.

28

RESEARCH AND DEVELOPMENT

Introduction:Research and Development plays an important role in determining the changes
and techniques to be adopted in an organization. It is the research and
development that helps the organization in making the profits.
The spirit of inquiry, research and development has helped the organization excel
in producing products, which would delight the consumer of this diverse land.
Mother Dairy research and development established in 1991 to benefit the
members by increasing productivity an efficiency or live stock agriculture through
its animal husbandry programmed.

29

Area in, which research and development is carried out: From the late forty years Rajkot dairy has been investing in schemes to improve
milk yield of animals.
The union built up a full-fledged infrastructure for needing animals and ensuring
animal health care.
An efficient insemination service also was put into place though village society
workers.
The district union looks after the provision of technical inputs to enhance milk
production in animals like artificial insemination, service, veterinary care, better
feeds, etc.
The union has plants to install village chilling unit in the societies so that the
quality and freshness of milk can be retained.
A part of the society is profit is also channeled to drinking troughs for cattle relief
and veterinary services like first aid and artificial insemination in its village.
The union provides a pregnancy diagnosis service too.
The union cattle feed plant the only ISO-9002 feed factory pf the country sales
balance feed concentrate at cost price, to ensure better nutrition for animals.
The union also conducts hygiene audit in village cooperative and grades
accordingly.

Benefits:-

1. The highest production of Ghee was 455 tune in a year 2003-04

2. In 2003-04 the dairy has get the altimetry achievement by sealing 40 lakhs liters
extra milk.
3. The annual profit of Rajkot dairy is Rs.31.17 lakhs
4. Dairys processing expense is less.

30

Global Senario
The Worlds 20 largest dairy

companies 2006-2007

Company Name
Nestle
Dairy Farmers Of America
Danone
Phillip Morris (Kraft)
Parmalat
Suiza Foods
Aria Foods
Lactalis
Campina Melkunie
Snow Brand
Unilever
Friesland Coberco Dairy Foods
Bongrain
Land OLakes
Meiji Milk
Dean Foods
Morinaga
Sodiaal
Dairy Crest
Nordmilch

Turnover (US $)
12.9
7.4
6.4
6.3
6.1
6.0
5.3
5.1
4.9
4.7
4.5
4.3
3.7
3.3
3.2
3.0
2.9
2.8
2.5
2.4

Indian Scenario
Scope For Foreign Investment In Dairy Industry

31

After adoption of the new economic policy 1991, India offers to foreign investors,
a well-balanced package of fiscal incentives for exports and industrial investment,
without many interventions from government.
DFP (Dairy Food Processing) offers a good opportunity to foreign investors in
India. The changing international dairy trade pattern following GATT and the
emergence of WTO (World Trade Organization) offers the Indian dairy industry
an opportunity to take its blow as an exporter. Indias enthusiasm to integrate with
the world economy is reflected in technological up gradation professional
excellence and a cost effective approach.

The two main reasons for the world focus on India are:
1. The low cost economy.
2. The liberalization process initiated since 1991.

Other important factors include:

Low inflation rate, inexpensive labor, the presence of the worlds third largest pool
of technological man power, worlds largest democracy, an independent and well
established judiciary and case is communication due to wide spread use of
English among educated and professional class. At the same time the market
within India as well as the exports markets is fast growing which ensures
attractive return on entrepreneurs investment.

Problems Faced By Dairy Industry

1.

The consumption of milk among rural population and also low income
groups of urban population is low, despite of India having a tradition of milk
consumption.

32

2.

Inability to feed cattle adequately throughout the year remains the

most wide spread constraint.

3.

Quality dairy animals are in short supply. Artificial insemination

service for breeding better cattle has limited coverage, barely reading an estimated
10% of bovines.

4.

The animal health cover is getting increasingly neglected. In many

states over 70-80% of the veterinary budget is used up for staff salaries and jeeps,
with little left to buy medicines and other supplies.

5.

On the production front, the pesticides contamination of new milk is

demanding immediate remedial steps.

6.

Limited marketing support handicaps rural milk producers seriously.

Presently, urban milk supplies largely comes from major milk shed districts. Dairy
producers in remote areas are neglected.

7.

Limited investment in setting up or expansion of milk procurement

network is another bottleneck. The rapid expansion in milk processing capacity
has not kept place milk production and procurement.

8.

The high cost of credit and unavailability of cheap credit on time is

another adverse factor reducing viability of the dairy industry.

9.

The immense problem to the dairy industry is due to infrastructure for

transporting, processing, and distributing

rurally produced milk to major

consumer centers in urban areas. Improvement in raw milk by its chilling and
refrigerated transport is vital for making quality products.
The rural women, an invisible partner need access to training in modern cattle
management to maximize return.

Daily Sales of Amul Milk In Saurashtra Region ( In liters)

33

District
Rajkot Local
Rajkot Up-country
Surendranagar
Jamnagar Local
Jamnagar Up-country
Porbandar Local
Porbandar Up-country
Amreli Local
Amreli up-country
Diu
Junagadh Local
Juanagadh Up-country

Collection (Lakh Lit.)

90000
22000
30000
17000
4000
2500
1500
4000
2700
3500
2500
7000

Market Size and Growth

Market size for milk is estimated to be 36mn MT valued at Rs.470billion. The
market is currently growing at round 4% p.a. in volume terms. The milk surplus
states in India are U.P., Punjab, Haryana, Rajasthan, Gujarat, Maharastra, A.P.,
Karnataka, and Tamil Nadu. The manufacturing of milk products is concentrate
Tamil Nadu d in these milk surplus states. The top 6 states are U.P, Punjab,

34

Rajasthan, Gujarat, Tamil Nadu, and A.P together account for 58% of national
production.
Milk production grew by a 1% p.a. between 1947 to 1970. Since the early 70s,
under operation flood, production growth increased at 5% p.a.
About 75% of milk is consumed at the household level, which is not a part of
commercial dairy industry. Loose milk has a larger market in India as it is
perceived to be fresh by most consumers, in reality however, it poses a higher risk
of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food,
malted food, condensed milk & cheesed stood at 3.07 lakh MT in 2003.
Production of milk powder including infant milk food has raised 2.25 lakh MT in
2003. Where as that of malted food is at 65000 MT. cheese and condensed milk
production stands at 5000 and 11000 MT respectively in same year.

Market Share
GCMMF faces tough competition in the Indian market by different companies
like Britannia, Vadialal Cadbury etc. Though it is quite new in the Indian market it
shares a fair amount of dairy products in India. By advertising and promoting its
product GCMMF has become one of the leading dairies in India. In western of
India GCMMF shares the most of the market while in other parts of India it is
next so. But slowly and surely GCMMF is growing in sharing the market with
other competitors industries.

Major Players
The packaged milk segment is dominated by the dairy cooperatives. GCMMF is
the largest player. All other local dairy cooperatives have their local
35

brands.e.g.Warana in Maharastra, Saras in Rajasthan, Vijay in A.P etc. other

private players include J K Dairy, Heritage Foods, Indian Dairy etc.

36

Export Prospects For India

Presently, India a non-entity in international dairy market. However exports of
milk products are picking up, having gone up by 40 times by value in the first half
of the nineties, the value worth of RS. 400 million in 1994-95. Today GCMMF
(Gujarat Co-operative Milk Marketing Federation) is Indias largest exported of
dairy products valued at Rs. 18.3 crores in 1995-96. Its exports earnings are likely
to get doubled in 1998-99. Two note worthy export opportunities are emerging
one in South-east Asia and other in Russia, the immediate future is the prospects
of an additional demand of over 3 million tones of milk products in the Asian
region. Equally significant is the rise of Russia as the worlds biggest dairy
importer.
India is not fully utilizing its export potential in respect of dairy products. The
cost of milk production in India is the lowest. And the dairy industry is not getting
any subsidy. There is an urgent need to pay special attention to the quality if India
has to compete with other countries. At present the county is exporting the malted
milk foods, ghee, butter, and cheese to other countries like Bangladesh, UAE,
Nepal, Shri Lanka, Oman and Bahrain. Of course world milk prices are subject to
dramatic fluctuations.
Export earning from the live-stock sector and related products rose to Rs. 19,250
million in 1996-97 from Rs. 7,920 million in 1988-89.

37

Indias Export Of Milk Products

India is evident that except for baby food, the exports for all other milk products
are showing an increasing trend in terms of quantity as well as in terms of value.
On the other hand Indias imports of milk production specially milk powder and
baby food is showing a declining trend.
Looking at the growing export opportunities in the post GATT ERA, Indian
planners have measures areas already adopted become quality conscious.
Corrective measures areas already adopted to meet the sanitary and photo-sanitary
specifications prescribed by WTO. Besides, covering processed dairy products,
the specifications of the WTO silos extended to the health status of cattle and
other live stock. Consequently, the main thrust of the ninth plan proposals is on
the improvement of animal health and adoption of sanitary and photo sanitary
specifications for dairy products. Towards this end, the TMDD (Technology
Mission on Dairy Development) has initiated wide ranging programmes.

38

Concerns in export competitiveness are

Low cost Of Production
Milk production is a combination of labor & capital intensive. Due to low labor
cost, cost of production of milk is significantly to there in India.

Quality
Significant investment has to be made in milk procurement, equipment, and
chilling and refrigeration facilities. Also, training has to be imparted to improve
the quality to bring it up to international standards.

Productivity
To have an exportable surplus in the long term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee,
paneer, shrikhand, rasgolas, etc.

39

MACRO ENVIRONMENT
PEST ANALYSIS

Societal Environment
Sociocultural
Forces

Economic
Forces

Task
Environment
(Industry)
Suppliers

Stockholders

Employees/
Internal
Labor Unions
Environment
Structure
Culture
Resources

Governments
Special
interest
groups

Competitors

Customers
Creditors

Political-Legal
Forces

Trade Associations

Communities

Technological
Forces

40

POLITICAL FACTORS
Political factor is very important aspect for the growth of any industry, thus the
political factor can immerge as opportunity or threat for that industry.

Regulatory Environment in the Dairy Processing Sector

The Indian processed dairy industry has grown and diversified enormously in the
last few years. To ensure the proper development and growth of this industrial
sector, the Government of India has instituted various laws and regulations. The
various regulations that govern the dairy processing industry can broadly be
classified into:

Compulsory Legislation
Prevention of Food Adulteration Act, 1954
This Act is the basic statute that is intended to protect the common consumer
against the supply of adulterated food. This specifies different standards for
various food articles. The standards are in terms of minimum quality levels
intended for ensuring safety in the consumption of these food items and for
safeguarding against harmful impurities and adulteration. The Central Committee
for Food Standards, under the Directorate General of Health Services, Ministry of
Health and Family Welfare, is responsible for the operation of this Act. The
provisions of the Act are mandatory and contravention of the rules can lead to
both fines and imprisonment.

41

Government Regulations
Industrial License
No license is required for setting up a Dairy Project in India. Only a
Memorandum has to be submitted to the Secretariat for Industrial Approvals
(SIA) and an acknowledgment is to be obtained.

However Certificate of Registration is required under the Milk and Milk Products
Control Order (MMPO) 1992.

Foreign Investment
Foreign Investment in dairying requires prior approval from the Secretariat of
Industrial Approvals, Ministry of Industry, as dairying has not been included in
the list of High Priority Industries.
Automatic approval will be given upto 51% Foreign Investment in High Priority
Industries.
In case of other Industries, proposals will be cleared on case to case basis.
Government may allow 51% without enforcing the old limit of 40% applicable
under Foreign Exchange Regulations Act at its discretion.

Foreign Technology Agreements:

Foreign Technology Agreements are freely allowed in high priority industries
under the following terms:
Lump sum payment of Rs 10 million
Royalty payment of 5% on domestic sales and 8% as exports subject to total
payment of 8% on sales turnover, over a 10 year period from the date of
agreement or 7 years from commencement of production.

42

Foreign Technology Agreements in dairying also need prior approval. Foreign

Exchange required for payment of Royalty will have to be purchased at market
rates.
Foreign Technicians can be freely hired.

Import of Capital Goods

Import of capital goods is automatically allowed if it is financed through Foreign
Equity. Alternatively, approval is needed from the Secretariat of Industrial
Approvals. The approval depends on the availability of Foreign Exchange
Resources.

Import of Second Hand Capital Goods

Import of Second hand goods is allowed subject to the following conditions:
Minimum Residual life of 5 years The equipment should not be more than 7 years
old. A certificate from the Chartered Engineers of the country of origin certifying
the age and the Residual life is to be produced. Import will be allowed only for
actual users.

Dividend Balancing
Remittances of dividend should be covered by earnings from exports recorded in
the years prior to the payment of dividend or in the years of the payment of the
dividend.

43

SOCIAL FACTORS
Life Style Trend
With more money on hand, more and more Indians are drinking milk and
buttering their bread. Rising income levels have led to a rapid increase in the
consumption of milk and milk products among Indian households.

Urbanization
Urban population is increased about 26 million 1901 to 62 millions in 1951 an
increase of only 36 million in 50 years. But thereafter the absolute increase during
the next three decades was of the order of 98 million(1951-81). Due to this reason
the consumption of the milk was drastically increase during last two to four
decades. Because of the consumption of milk is high in urban area compared to
rural area. By the year of last the urban population is reached around 25.7 percent
of total population. 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 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.

44

Consumption Habit And Practices

Day by day the need of milk is continuously increase. In the year 1972 average
requirement of the milk per capita are 172 per gram. While in 2000 the
requirement 215 gram per year. So there will be more demand or milk and milk
products in nearer future.
The consumption of milk is highest in north India that is 278 gram per day, while
in west region 174 gram per day. In eastern and southern area combines 215
grams per day require. 46% of the total milk is consumed in liquid form and 47%
is converted into ghee, paneer and ice cream and only 7% milk goes for western
products like powder, cheese etc.
The 98% of the milk produced in the rural area which is cats of 72% of the
population whereas the urban sector with 28% populations.
Even in urban India India as high as 83% of the consumed milk comes from the
unorganized sector.
Presently only 12% of the milk is represented by packaged and branded
pasteurized milk.

Population
During 1981-91, the population of India grew from 683 million in 1981 to 844
million in 1991-indicating in increase of 161 million during the period. The rate of
the growth slightly declined to 2.11 percent during 81-91 decade. Subsequently,
during the 8 years period (1991-98), population grew from 844 million to 987
million-an increase of 120 million. The annual average rate of growth registered a
decline to 1.8 per cent.

45

TECHNOLOGICAL FACTORS
Some areas of Indian dairy industry can be strengthened by the induction of
specialized technologies and equipment from overseas. These include:

Raw milk handling: It needs to be upgraded in terms of physico-chemical

and microbiological attributes of the milk collected. The use of clarification and
bactofugation in raw milk processing can help improve quality of the milk
products.

Milk processing: Better operational efficiencies are needed to improve yields

and reduce wastage, minimize fat/protein losses during processing, control
production costs, save energy and extend shelf life. The adoption of GMP (Good
Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points)
would help manufacture milk products conforming to international standards.

Packaging: Another area is the range of for butter, cheese and the like. Better
packaging can help retain nutritive value of products packed and extend shelf life.
A cold chain distribution system is needed for proper storage and transportation of
dairy products.

Value-added products: There's immense scope for value-added products like

desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets.
In this 21st Century, the Indian dairy industry has set its goal to better manage its
national resources for enhancing milk production and upgrading milk processing
through newer technologies. Multinational dairy giants can carve a niche for they
in this challenging task a win-win situation that can be won!

46

IT Technology
In todays cost conscious, competitive business environment the efficiency of
streamlined processes, and the flexibility to grow are important for your business.
The IT solution implementation has been deterred by the need for large
investment, huge information technology (IT) teams, and lengthy implementation
schedules to achieve desired benefits until now.
Smart dairy Solution a comprehensive solution portfolio that addresses the
unique needs of Dairy plant management. It provides a simple but complete
business solution to efficiently meet a wide variety of general and Dairy-specific
business requirements Supported by a the technical support team Smart Dairy
Solutions is designed to deliver tangible value to Dairy plants today while
providing the scalability to fuel tomorrow's growth A simple but powerful
solution that addresses needs from procurements of milk to final dispatch of
products covering all intermediate activities i.e. Production, Quality control,
Accounts & finance, Personnel & Administration, Purchase & store and
Marketing & Sales.
Dairy industry primarily constitute of dairy plants for procurement, processing
and marketing of milk and milk products, unions to supervise the societies at the
village level, societies for procuring milk from the villagers and additionally the
state federations and organizations like NDDB for technical and commercial
consulting. Each dairy has societies attached to it for supply of milk, chilling
centers for intermediate storage of milk and fodder plants for processing and
supply of fodders to societies. The dairy in turn gives technical support, veterinary
& health services and fodder to the societies.

47

I - Bilt Technologies Ltd a along with their consultancy partner James Martin and
Co with their experience of providing integrated solution for all functional areas
at Jaipur Dairy has given us an immense insight into the process and people
requirements of the dairy.
Above Tech.has been short listed by NDDB to implement the Dairy Solution in
India.

The I - Bilt Tech. cater to the needs of dairy industry at all levels, with our offerings

Business Process Reengineering: In the changing business scenario, business

focus needs to shift to consumers/ buyers and it becomes imperative to revisit our
business philosophies in the aspects of operation, culture, social systems and
technology. Our consulting team will do an assessment of the business process
identifying the strengths and weaknesses and propose the opportunities and guidelines
for change.

Information Strategy Plan: Our consulting team will identify the long term IT
needs in terms of hardware, network, and software application.

Dairy Website: To create web presence for the dairies and federations for
effective dissemination of information.

Portal: An on line solution to integrate all the members of the dairy industry,
including NDDB, federations, unions, dairy plants, societies, milk producers and
concerned organizations in the field of dairy development.

Enterprise Resource Planning: A comprehensive application catering to all the

functionalities of dairy plant and its associate entities. The Smart Dairy Solution
shall cater to all the business processes of the dairy plant. The solutions shall
capture the data at the process level of dairies and compile the same for decision
making at Union and federation level. The solution shall also provide ready made
interface to chilling centers and other third party software used at the dairy level.

48

Decision Support System: DSS is an interactive computer-based systems and

subsystems Intended to help decision makers use data, documents, knowledge
and/or models to identify and solve problems and make decisions.

Data warehousing: A data warehouse is a computer system designed to

give business decision makers instant access to information by copying data from
existing systems and storing it for use by

Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the dairy cooperatives initially started marketing branded milk, it was sold in glass bottles
sealed with foil. Over the years, several developments in packaging media have
taken place. In the early 80s, plastic pouches replaced the bottles. Plastic pouches
made transportation & storage very convenient, besides reducing cost. Milk
packed in plastic pouches have a shelf life of just 1 to 2 days, that too only if
refrigerated. In 1996, tetra packs were introduced in India. Tetra packs are aseptic
laminate packs made of aluminum, paperboard and plastic. Milk stored in tetra
packs and treated under ultra high temperature technique (UHT) can be stored for
four months without refrigeration. Most of then dairy co-operatives in A.P, Tamil
Nadu, and Punjab & Rajasthan sell milk in tetra packs. However tetra packed
milk is costlier by Rs. 5 to 7 compared to plastic pouches. In 1999-2000 Nestle
launched its UHT milk. Amul too relaunched its Amul Taaza brand of UHTs milk.
The UHT milk market is expected to grow at a rate of more than 10-12% in
coming years.

49

Marketing Department
Introduction
Marketing is very vital function in any industry. Every company has to handle its
marketing function with care. As the whole world is turning in to a global market,
marketing function is getting more and important in every company. The term
marketing is changing in the world. Now selling product by advertising. It is not
only the function of marketing. But in this new world marketing puts weightage
on satisfying consumer needs. If the market does a good job understanding
consumer needs, develops product that provide superior value and price,
distributes and promotes them effectively. This products will sell very easily.

Marketing Environment
The concept of markets finally brings as full circle to the concept pf marketing.
Marketing means managing markets to bring about exchanges for the purpose of
satisfying human wants. Thus we return to our definition of marketing as a
process by which individual and groups obtain what they need and what by
creating and exchanging products and value with others. The follow will show is
the marketing environment of an industry.

50

Company
Marketer
Marketing
Intermediaries

Supplier

End
User
Market

Competitor

Environment

Marketing Environment Chart

Above figure shows the main element in a modern marketing system in the usual
situations, marketing involves serving for market of end users in the face of
competitors send their respective products and message directly to consumer or
their marketing intermediaries to the end users.

Marketing Aspects Of Dairy Industry

Indias diary market is multi-layered, shaped like as pyramid with the base made
up of vast market for low cost milk. The narrow tip at the top is a small but
affluent market for western type milk products. The bulk of demand for milk,
however is among the poor in urban areas where individual requirement is small
may be a glassful for use as whitener for their tea. Nevertheless, it adds up to a
sizeable volume of millions of liters per day in major urban centers where lays the
immense growth potential for the modern sector. Presently, its milk distribution
network serves hardly 778 out of 3700 cities and towns, dispensing hygienically
segment would double in the next five years.

51

Following readings are important to understand the market structure of dairy

industry and what is projected for 2000 A.D.
1. Urban V/s rural market:
In 1995 out of the total milk production 44% was retained in rural areas for 72.2% of
population; where as 58% of milk was brought to the urban areas for 27.8%
population. By 2000 A.D. the rural to urban ratio is projected to be 40:60. It is evident
of urban bias in the milk market.
2. Organized V/s unorganized sector:
Despite of the fact that under OF (Operation Flood) programmed, the emphasis was
given on developing organized sector was only 18% in the total milk that was
marketed in the urban area. Its share is projected to increase 22% by 2000 A.D.
The index for plant capacity is also showing a rising trend for organized sector. The
plant capacity is 1950s was around 10,000-20,000 liter per day, it increased to 1,
00,000 income per day in 1970s to 5, 00,000 income per day in 1980s and to 1 mega
liter/day in 1990s.

3. Co-operative V/s government and private sector:

Within the organized sector the ratio of co-operative V/s governments department to
private sector was 60:40. This ratio is likely to be 50:50 by 2000 A.D. as new private
sector dairies are entering in the market as a result of policy of liberalization.
The proportion of liquid milk to other milk products in co-operative and government
sector was 90:10. The estimation is this ratio will change to 80:20 and 30:70 for cooperative and private sector respectively. This is an indication of growing market of
other milk products in the country.

52

 Advertising
Advertising can be traced back to the very beginning of recorded history. Any
paid form of non personal, presentation and promotion of ideas goods or services
by an identified sponsor is known as advertising. Advertising is very important
tool to combat competition.
Amul has got many competitors to compete with. So the company has to give out
adapting in new s papers and magazines at regular interval time period.
GCMMF success lies in its excellence advertisements in the market. In the
beginning GCMMF was nothing that much important on advertisement. But after
some time it understand that if it was to enter in the Indian market, it would have
to advertisement its product largely in the market so it stated advertisements its
products in different media.
Just recently it has adopted a new message or slogan that says Amul, The taste of
India and GCMMF has recorded 12% rise in the sales of its products. GCMMF
has made its products very popular by advertisement in all the parts of India.

53

Different Advertising Objectives:

Informing
When a product is to be introduced in the market the product gives the
information about it in advance. In this case objectives are to be build the ad in
customers mind. At the time of Uttarayan Amul introduce a new concept of kite
bite and chocolate chikki.

Persuasive advertising
Advertising used to build selective demand for a brand by persuading consumers
that it offers the best quality for their money.

Combined Advertisement
Amul gives advertisement of Nutramul as well as Sagar ghee and also provide
inter related scheme.

Reminding Advertising
Reminding customers that the product may be needed in the near future reminding
customers where to but the product keeping the product in customers minds
during off seasons maintaining top-of-mind position and product awareness.
Amul advertises itself by giving advertisements everyday in newspaper and
especially on Sunday, they provide many schemes and discounts.

54

Distribution Channel
Most producers work with marketing intermediaries to bring their products to
market. The marketing intermediaries make up a marketing channel also called
distribution cannel.
Distribution channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption.
A zero level of channel also called a direct marketing channel consists of a
manufacturer selling directly to the final customers.
A one level channel; contain one selling intermediary such as retailer to the final
customers.
A two level channel two intermediaries are typically wholesaler and retailer.
A three level channel are typically wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution channel, which has
made it so popular. GCMMFs products like milk and milk products are
perishable. It becomes that much important for them to have a good distribution.
So Amul dairy industry has two level distribution channel in which there are a
wholesaler, retailer to final customer.

55

Distribution Chart

Manufacturers

Area Delivery
Agents
Dealer

Retailers

consumers

We can see from above figure that GCMMF distribution channel is simple and clear. The
produced in the plants are sold to whole sale dealers than to retailers and then the
products comes in the hands of the consumers.

56

SWOT ANALYSIS OF GCMMF

STRENGTHS:

Demand profile: Absolutely optimistic

Margins: Quite reasonable, even on packed liquid milk.

Flexibility of product mix: Tremendous. With balancing equipment, you

can keep on adding to your product line.

Availability of raw material: Abundant. Presently, more than 80% of milk

produced is flowing into the unorganized sector, which requires proper
channelization.

Technical manpower: Professionally-trained, technical human resource

pool, built over last 30 years.

WEAKNESSES:

Parishability:
Pasteurization has overcome this weakness partially. UHT gives milk long life.
Surely, many new processes will follow to improve milk quality and extend its
shelf life.
Lack of control over yield: Theoretically, there is little control over milk yield.
However, increased awareness of development like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with
higher income to rural milk producers should automatically lead to improvement
in milk yields.

57

Logistics of procurement:
Woes of bad roads and inadequate transportation facility make milk procurement
problematic. But with the overall economic improvement in India, these problems
would also get solved.

Problematic distribution:
Yes, all is not will with distribution. But then if ice creams can be sold virtually at
every nook and corner, why cant they sell other dairy products too? Moreover, it
is only a matter of time before they see the emergence of a cold chain linking the
producer to the refrigerator at the consumers home.

Competition:
With so many newcomers entering this industry, competition is becoming tougher
day by day. But then competition has to be faced as a ground reality. The market
is large enough for many to carve out their niche.

OPPORTUNITIES
Failure is never final and success never ending. Dr. Kurien bears out this
statement perfectly. He entered the industry when there are only threats. He met
failure head-on and now he clearly is an example of Never ending success. If
dairy entrepreneurs are looking for opportunities in India, the following areas
must be tapped.

58

Value addition

There is a phenomenal scope for innovations in product development, packaging

and presentation. Given below are potential areas of value addition.
Steps should be taken to introduce value addition products like shrikhand, icecream, panner, khoa, favored milk etc. This will lead to a greater presence and
flexibility in the market place along with opportunities in the field of brand
building.
Addition cultured product like yoghurt and cheese lend further strength both in
terms of utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins thro casein, castigates and
other dietary protein, future opening up export opportunities.
Yet another aspect can be addition of infant foods geriatric foods and nutritional
.

Export potential
Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Srilanka, Nigeria, and Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general
and dairy products in particular.

59

 THREATS

Milk vendors, The un-organized sector

Today milk vendor are occupying the pride of place in the industry. Organized
dissemination of information about the harm that they are doing to producers and
consumers should see a steady decline in their importance.

60

INDUSTRIAL RELATION
Industrial relation is used o refer the relations between the two parties concerned
with industry. The two parties in relation are at present is workers and staff
members or say employer employees.
Any organization has one or a set of objectives. The management determines
them. Management involves working with people and getting organizational
objectives. The idea of working trough people is interpreted in terms of assigning
activities to subordinates. Thus in the success of any organization needs the
cooperative of each and every employees along with the management is
necessary.
There are approximately 600 worker working coordinately in Mother dairy which
can be seen by it grand success achieve. Against the co operation received from
worker. Rajkot dairy in return provides sufficing salary and wages to all
employees. As discussed before so many facilities are provided which inspire
each and every worker to put them heart and soul in work. Because of good
relation between management and workers Rajkot dairy is able to erect firmly In
the most competitive market.

61

SOCIAL RESPONSIBILITY OF UNIT

It is the prime objective of the unit to contribute something or the other towards the
employee, members, shares holders or society. In the same way, Rajkot Dairy union has
greatly contributed to the abolishment of illiteracy by adopting member education
programmed.

Benefits of member education programmed

Sr. No.
1.
2.
3.

Benefits To

Numbers

Village co operative society

573

Women

1437

Men

1138

The participation of women milk producers in the dairy co operative society has
been remarkable. During this year Rajkot dairy started 62 new cooperative of
milk and half of the cooperative is managed by women.
Mother Dairy also started a training programmed for dairy and animal husbandry.

TIME KEEPING SYSTEM

62

Man can work for some limited time. He can not work for 24 hour. But
organization like Rajkot Gopal Dairy is working round the clock. But jeer also
there are some adjustments made between workers, which are known as shifts.
Some workers work in one shift, others in second and others in third. Generally,
shifts are of 8 hours.
Rajkot Gopal Dairy rune 24 hours. This unit has also its time keeping system.
Time keeping system is divided into three shifts in this dairy, it can be as under.

Workers shifts
1.

Shifts A

: 7:00 AM. To 3:00 PM.

2.

Shifts B

: 3:00 PM. To 11:00 PM.

3.

Shifts C

: 11:00 PM. To 7:00 AM.

General Shifts
1. 9:30 AM. To 6:30 PM.

63

QUALITY ASSURANCE DEPARTMENT

Introduction

Mother Dairy simply means, Value for money and quality as it should be.
They are focused on delighting their customers by developing new products to
meet their expectations and delivering the best quality products at lowest possible.

Mother Dairy and Quality:At Mother Dairy every half an hour whatever is produced is tested in the Quality
Control Room. From there, they come to know about the percentage of bacteria
present in the product. The equipment here gives the result within four hours.
At butter production section at dairy is being packed with strong glass walls that
prevent the dust from atmosphere to get inside.
Here only the workers are allowed to go inside the room. Also the product should
not have hand touch ability. No moment is allowed near the machine. Workers are
first trained to be dressed in neat clothes with utmost cleanliness of their hands.
After every two hour, all the machines are checked for maintaining the efficiency
in order to get the same quality of the product regularly.

PROJECT PROFILE
64

OBJECTIVE
Find out retailers satisfaction of the four Amuls Product which are Amul milk,
Amul butter milk, Amul paneer, Amul Masti Dahi, Amul Lite Dahi.
Communication
Response
As per order
As per time
WDs services
To simplify the work and get the accurate result the whole population is divided
into five clusters. The other related information about the project is as below:

SAMPLING PLAN

Sample size:

150 per sample

Type of sampling:

CLUSTER SAMPLING

Total no of clusters:

Instrument used for Data

Questionnaire

Collection:

65

Reasons for using Cluster sampling:

Here Area sampling, which is a most important form of cluster type sampling, is
used because here Population is divided into internally heterogeneous subgroups
and some of them are randomly selected for the further study. The advantage of
using cluster sampling is as under:

It provides an unbiased estimates of population parameters

Economically more efficient than simple random

Lowest cost per sample, especially with geographical clusters

Easy to do without a population list

DISTRIBUTION OF SAMPLES
In this project there are five samples which are differentiate from each other by a
specific area boundaries which are as below:
1.

Kalawad Road

2.

Gandhigram

3.

Keshri Hind Bridge

4.

Bhaktinagar

5.

Mavdi Plot

After completing data collection, I tried to present my findings as good as

possible and for that the whole data is firstly bifurcate sample area wise and then
the product wise satisfaction rating is displayed in this report.

66

SOURCES OF DATA
PRIMARY DATA: In this project a source of primary data is Questionnaire.
The whole data about the retailers satisfaction has been collected and measured
through Questionnaire. The designing of the same is relevant and the sample of
that is at the Annexure, which is attached at the end of the project.

SECONDARY DATA: Websites, Magazines, Books

67

SAMPLE AREA : KALAWAD ROAD, UNIVERSITY ROAD

By getting in touch with 20 retailers I have find the below drivan satisfaction of the 4
products of Gopal.
The rating of the satisfation given by the retailers located in above sample area is as
under.

Retailers Satisfaction Matrix:

communication Response

Fully
Unsatisfied
Quite
Unsatisfied
Partial
Satisfied
Quite
Satisfied
Fully
Satisfied
Total
out
of 20

As per
Order

As
per
time
NIL

WDs
SERVICES

NIL

NIL

NIL

NIL

NIL

20

20

20

20

20

68

KALAWAD ROAD AND UNIVERSITY ROAD

Analysis :
Tacking a glance to the above data, we can say that the retailers are more satisfied
with the response of the wholeseller & distributors. They provide the goods as per
the order & as per time.

69

SAMPLE AREA : GANDHIGRAM

By getting in touch with 25 retailers I have find the below drivan satisfaction of the 4
products of Amul.
The rating of the satisfation given by the retailers located in above sample area is as
under:

Retailers Satisfaction Matrix:

COMMUNICATION RESPONSE

Fully
Unsatisfied
Quite
Unsatisfied
Partial
Satisfied
Quite
Satisfied
Fully
Satisfied
Total
out
of 25

AS PER
ORDER

NIL

NIL

AS
PER
TIME
NIL

WDs
services

NIL

NIL

10

11

11

25

25

25

25

25

NIL

70

GANDHIGRAM

Analysis :
Tacking a glance to the above data, we can say that the retailers are more satisfied
with services of wholesalers and distributors. some time they are not ready to
take responsibility of linkage.

71

SAMPLE AREA : KESHRI HIND BRIDGE

By getting in touch with 30 retailers I have find the below drivan satisfaction of the 4
products of Amul.
The rating of the satisfation given by the retailers located in above sample area is as
under:

Retailers Satisfaction Matrix:

COMMUNICATION RESPONSE AS PER
ORDER

Fully
Unsatisfied
Quite
Unsatisfied
Partial
Satisfied
Quite
Satisfied
Fully
Satisfied
Total
out
of 30

NIL

NIL

AS
PER
TIME
NIL

WDs
services

NIL

NIL

NIL

12

15

14

16

30

30

30

30

30

NIL

72

KESHRI HIND BRIDGE

Analysis :
Tacking a glance to the above data, we can say that the retailers are more satisfied
with the communication and serviced provided by WDs. and retailers also
satisfied with delivery time.

73

SAMPLE AREA : BHAKTI NAGAR CIRCLE

By getting in touch with 25 retailers I have find the below drivan satisfaction of the 4
products of Amul.
The rating of the satisfation given by the retailers located in above sample area is as
under:

Retailers Satisfaction Matrix:

COMMUNICATION RESPONSE

Fully
Unsatisfied
Quite
Unsatisfied
Partial
Satisfied
Quite
Satisfied
Fully
Satisfied
Total
out
of 25

AS PER
ORDER

AS
PER
TIME
NIL

WDS
services

NIL

NIL

NIL

13

10

11

11

25

25

25

25

25

74

BHAKTINAGAR CIRCLE

Analysis :
Tacking a glance to the above data, we can say that the retailers are more satisfied
with the communication skills and service provided by WDs. They also provided
goods as per order and time.

75

SAMPLE AREA : MAVDI PLOT

By getting in touch with 50 retailers I have find the below drivan satisfaction of the 4
products of Amul.
The rating of the satisfation given by the retailers located in above sample area is as
under :

Retailers Satisfaction Matrix:

COMMUNICATION RESPONSE

Fully
Unsatisfied
Quite
Unsatisfied
Partial
Satisfied
Quite
Satisfied
Fully
Satisfied
Total
out
of 50

AS PER
ORDER

AS
PER
TIME
NIL

WDs
services

NIL

NIL

NIL

NIL

NIL

12

21

15

12

12

20

16

17

20

20

14

13

18

18

50

50

50

50

50

76

MAVDI PLOT

Analysis :
Tacking a glance to the above data, we can say that the retailers are more satisfied
with the WDs services, and their responsibility.

77

Suggestion to marketing department

1)

The Company should adopt scientific ways to allocate and manage the
resources for advertisements and sales promotion so as to gain optimum
results

2)

Amul should design its own marketing research system. It should hire people
to carry out systematic market research and surveying the following areas.
-

To know consumer taste, preferences and their consumption and buying

pattern.
- Before launching new products in the market.
-

Retailers and distributors survey from time to time to know competitors

tricks and practices as well as the satisfaction level.

3)

Instead of advertising on national level, one more option that the company
should try for promotion of its brands is to give adds on local cable TV
network.

4)

There should be no gaps in products like more flavors, more scheme,

reasonable price etc to compete the local players as well as competitors.

78

CONCLUSION
Our overall impression about the unit and GCMMF is inexpressible. In this report
after analyzing we can conclude that GCMMF is progressive very rapidly in the
Indian market. The performance of the unit is very impressive in the past year.
Though there is tough competition with Britannia, Nestle, Vadilal, Have more etc.
It has shown a good progress. Amul now days become Asias no.1 milk selling
brand.
In present Amul is become popular as The Taste of India. 50 years is a very big
time for any brand to establish itself successfully in the market. This gives us
golden opportunity to know all functional area of amul. We know about the
products of GCMMF, their quality, packaging and price. The product of GCMMF
demanded at very large scale because of their very reasonable price.
Marketing of GCMMF made it so popular. Under the guidance of Dr. Vergees
Kurein Mother Dairy is growing day by day.
Hope and wise that the success story of AMUL going forever and other industries
should take inspiration from this successfully story.
We are sure and confident that successor capable and innovative my best wishes
for future success of the industry is an important part of our visit.

79

AMUL(MOTHER DAIRY GANDHINAGAR A UNIT OF

GCMMF).
QUESTIONNAIRE
DEALERS SATISFACTION
PERSONAL DETAIL
A. Name of Retailer

B. Name of the out late

C. Address & Phone No.

D. Types of Retailer
:
- General store
- Amul store
- Dairy farm
- Other
E. Which amongst the below stated RAJKOT Dairys Products
you are currently sales
:
- Amul milk
- Amul ghee
- Amul butter milk
- Amul Paneer

Ranks For
1

Fully Unsatisfied

Quite Unsatisfied

Partial Satisfied

Quite Satisfied

Fully Satisfied

80

(Give Rank Below 1 to 5 )

1. How we are communicating with you?

Can we provide our products with

Standard quality?

Can we provide our products as?

Per your order?

7.

Can we provide our products on time?

8.

Agency / Distributors service

9.

Promotional activities

2. Can we provide goods and information?

As per your need?

3. Can we give your queries answer?

Immediately & satisfactory?

4. Can we give positive response to your

Question and suggestion?

5.
6.

10. Will you believe that we are working

Co-ordinatingly with you?

11. If there is any competitor near by your store &

which type of product they sales?

12. Customers response :

13. Suggestion for co.

81

SUGGESTIONS

MAKE SOUND MARKETING DEPARTMENT

GIVE IMPORTANCE TO THE DISTRIBUTOR AS WELL

AS DEALERS COMPLAINTS

KEEP WATCH ON RIVALS ACTIVITY

INCREASE ADVERTISENMENT BUDGET

INCREASE AVAILIBILITY OF PRODUCT

DIFFERNCIATE BOTH LOOSE MILK AND POUCH

MILK

INCREASE MARKETING STAFF

AVOID LATE VEHICLE PROBLEMS

INCREASE AREA DESTRIBUTOR AND MARGIN

INTRODUCE SALES PROMOTION SCHEME IN

COMPETITIORS AREA

PLACE OF PURCHASE MATERIAL SHOULD BE

PROVIDE

TIMELY VISIT OF MARKET BY MARKETING

MANAGER

82

BIBLIOGRAPHY

1. Books:

Kotlar Philip Marketing Management, Published by Pearson Education,

10th edition

K. Aswathappa, Human Resource And Personal Management 3 rd edition

C R Kothari, Research Methology

2. Websites:

www.nddb.com

www.amul.com

www.emediaplan.com/admunch/Brands/amul.asp

3. Search Engine

www.google.com

www.msn.com

www.yahoo.com

4. Magazines:

Review of Dairy Industry

83

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