Inroduction: Chapter - 1

A study on comparative analysis of different UHT milk brands available in Cochin
with special reference to AMUL
CHAPTER - 1
INRODUCTION
Marthoma College of Management And Technology, Perumbavoor -1-

1.1 INTRODUCTION
The project is undertaken to make a comparative analysis of different UHT milk brands
mainly in comparison with Amul UHT milk. That aim to identify the various competing
brands of Amul and identify the factors that considered by the customer while purchasing
milk. The customer satisfaction as an individual’s feeling of pleasure or disappointment
resulting from comparing products perceived performance in relation to his or her
expectations. The satisfaction is based on the customer’s experience with the product’s various
factors such as quality, price, availability, brand, use etc. Satisfaction can be experienced in a
variety of situations and connected to both goods and services. To another extent, satisfactions
as a highly personal assessment that is greatly influenced by individual expectations.
individual element as powerful force to create satisfaction.
The project tries to made a comparative study of different UHT milk brands available in
Cochin city. Ultra-high temperature processing (UHT), ultra-heat treatment, or ultra-
pasteurization sterilizes food by heating it above 135 °C the temperature required to kill
bacteria in milk. UHT is most commonly used in milk production. UHT milk packaged in a
sterile container, if not opened, has a typical unrefrigerated shelf life of six to nine months.
The comparison is the analysis of two or more objects or situations in order to find
similarities or differences. the comparison is not limited to the physical characteristics. The
comparison is not between two or more objects or a process that makes the human being in
order to identify the different aspects that are related through a physical analysis. Its main base
is detailing the similarities or differences. The comparative analysis of UHT milk brands is to
understand the customers and retailors attitude and perception towards various milk brands.
The comparative analysis figure that why and how people prefer one brand and why people
could not prefer a brand.
The comparative analysis is help to the business people for the success of organization in
the present days. Due to the increase in heavy competition in every product line it become
difficult for the companies to retain the customers for longer time. So to retain the customer
for longer time the marketer has to do identify the customer taste, preference and why people
prefer a particular brand.

1.2 NEED FOR THE STUDY

The purpose of the study is to make a comparative analysis of different UHT (Ultra High
Temperature treated) milk brands available in Cochin. Comparative analysis is a study that
compares and contrasts two or more things.
The study is being conducted at Amul (Gujarat Co-operative Milk Marketing Federation
Limited). This study is aimed to find the crucial differences and similarities between various
UHT milk brands in comparison with Amul UHT milk. The study will help to understand how
people are differentiating one brand from the other. And also it will help to provide
information to the company to make new market strategies and excel the new market
opportunities.
1.3 OBJECTIVES OF THE STUDY
Primary Objective:
 To make a comparative analysis of different UHT (Ultra High Temperature treated)
milk brands available in Cochin city.
Secondary Objectives:
 To identify the satisfaction level of customers with various UHT milk brands.
 To identify the various factors which are considered by customers when they
purchase a product.
 To understand the availability of various UHT milk brands and distribution reach of
the product.
 To provide information and suggestions to the company to identify the new market
opportunities.
1.4 SCOPE OF THE STUDY
The scope of the study is limited in Cochin city and various retailers and customer that
they are using UHT milk especially in city. Efforts are made to make to identify the customer
and retailer satisfaction level with the product and product availability and distribution reach
of various UHT milk brands in comparison with Amul. The study is based on the information
obtained from the heads of the organization and data that are get from primary sources.

1.5 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose
of making decisions. The methodology may include publication research, interviews, surveys
and other research techniques, and could include both present and historical information.
The study is mainly conducted to made comparative analysis of different UHT milk
brands, for better completion of the study the brand comparison done through collecting data
from various respondents with the help of questionnaire. A questionnaire is a research
instrument consisting of a series of questions and other prompts for the purpose of gathering
information from respondents.
1.5.1 Research Design
Research design is a detailed outline of how an investigation will take place. A research
design will typically include how data is to be collected, what instruments will be employed,
how the instruments will be used and the intended means for analyzing data collected.
Descriptive research used in this study is to gain valuable information. It is to ensure

results accuracy. This stems from limiting bias and error in surveying design and research
method. The research is a conceptual structure with in which the research is conducted. A
research design will typically include how data is to be collected, what instruments will be
employed, how the instruments will be used and the intended means for analyzing data
collected. Descriptive research was used for this study.
Descriptive research is conclusive in nature, as opposed to exploratory. This means that

descriptive research gathers quantifiable information that can be used for statistical inference
on your target audience through data analysis. As a consequence, this type of research takes
the form of closed-ended questions, which limits its ability to provide unique insights.
However, used properly it can help an organization better define and measure the significance
of something about a group of respondents and the population they represent.
1.5.2 Sampling Method
Sampling method was used to collect the primary data, the respondents were selected
using random sampling. The study was conducted with the customers and retailers of Amul
and other UHT milk brands available Cochin.

1.5.3 Sample Size
Questionnaire was created to collect the primary data, from the 170 respondents of UHT
milk users.
50 retailers
120 Customers
1.5.4 Sampling Technique
The respondents were selected by using convenient sampling from the selected
respondents.
1.5.5 Sources of Data
Data is one of the most important and vital aspect of any research studies. Researchers
conducted in different fields of study can be different in methodology but every research is
based on data which is analyzed and interpreted to get information
There are two sources of data collection techniques. Primary and Secondary data
collection techniques, Primary data collection uses surveys, experiments or direct
observations. Secondary data collection may be conducted by collecting information from a
diverse source of documents or electronically stored information, census and market studies
are examples of a common sources of secondary data
 Primary Data
Primary data are first-hand information. This information is collected directly from the
source by means of field studies. Primary data are original and are like raw materials. It is the
crudest form of information. The investigator himself collects primary data. In this study, the
primary data was collected through structured questionnaire. Questionnaire was employed to
collect the primary data from 50 retailors and 120 customers of UHT milk.
 Secondary Data
Secondary data are the Second hand information. The data which have already been
collected and processed by some agency or persons and are not used for the first time are

termed as secondary data. These secondary data may be obtained from many sources,
including literature, industry surveys, compilations from computerized databases and
information systems, and company web site, etc.
Tools for data collection
Questionnaire was the main tool for collecting the data. Hence, pain has been taken to
construct the questionnaire in a systematic way by converting adequate in and relevant
questions to ensure in achieving the research objectives.
Data analysis
The data collected from the primary source were arranged sequentially and tabulated in the
systematic order.
Tools for analysis
Data collected through questionnaire were presented in a master table. From the master table,
sub-tables were prepared. In order to analysis and interpretation of the data simple statistical
tools like
1. Percentage analysis.
Percentage analysis
The Percentage method is the widely used method to analysis the data collected. It is done by
calculating the Percentage of the corresponding number in each category in total of all the
members, the Percentage of respondents is calculated as follow:
1.6 LIMITATIONS OF THE STUDY
 Subjective response from respondents
 Lack of time and money for the study was limited to small sample size.
 Change in customer attitude, taste and preference.

CHAPTER - 2
GENERAL
INFORMATION

2.1 INDUSTRY PROFILE
The Fast Moving Consumer Goods (FMCG) industry is the one of the largest sectors in
the country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and
food & beverages. The FMCG industry is largely classified as organized and unorganized.
This sector is also buoyed by intense competition. Besides competition, this industry is also
marked by a robust distribution network coupled with increasing influx of MNCs across the
entire value chain. This sector continues to remain highly fragmented.
The FMCG industry is volume driven and is characterized by low margins. The products
are branded and backed by marketing, heavy advertising, slick packaging and strong
distribution networks. The FMCG segment can be classified under the premium segment and
popular segment. The premium segment caters mostly to the higher/upper middle class which
is not as price sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural areas who are not
particularly brand conscious. Products sold in the popular segment have considerably lower
prices than their premium counterparts.
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bars, Ice Creams. A subset of FMCGs
is Fast Moving Consumer Electronics which include innovative electronic products such as
mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced
more frequently than other electronic products. White goods in FMCG refer to household
electronic items such as Refrigerators, T. Vs, Music Systems, etc. The middle class and the
rural segments of the Indian population are the most promising market for FMCG, and give
brand makers the opportunity to convert them to branded products. Most of the product
categories have potential for growth is huge. The Indian Economy is surging ahead by

leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising
per capita income. The big firms are growing bigger and small-time companies are catching
up as well.
2.1.1 Indian Scenario
The Indian FMCG sector is the fourth largest sector in the economy. It has a strong MNC
presence and is characterized by a well-established distribution network, intense competition
between the organized and unorganized segments and low operational cost. Availability of
key raw materials, cheaper labor costs and presence across the entire value chain gives India
a competitive advantage. Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc. in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly the middle class and
the rural segments, presents an opportunity to makers of branded products to convert
consumers to branded products. Growth is also likely to come from consumer 'upgrading' in
the matured product categories. With 200 million people expected to shift to processed and
packaged food by 2010, India needs around US$ 28 billion of investment in the food-
processing industry.
India FMCG sectors’ significant characteristics can be listed as strong MNC presence,
well established distribution network, intense competition between the organised and
unorganized players and low operational cost. Easy availability of important raw materials,
cheaper labour costs and presence across the entire value chain gives India a competitive
advantage. Products which have a swift turnover and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG items are those which generally get replaced
within a year. Examples of FMCG commonly include a wide range of repeatedly purchased
consumer products such as toiletries, soap, cosmetics, oral care products, shaving products
and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper
products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products etc. Penetration level and per capita consumption in many product
categories is very low compared to world average standards representing the unexploited
market potential. Mushrooming Indian population, particularly the middle class and the rural
segments, presents the huge untapped opportunity to FMCG players. Growth is also likely to

come from consumer 'upgrading' in the matured product categories like processed and
packaged food, mouth wash etc. A distinct feature of the FMCG industry is the presence of
international players through their subsidiaries (HLL, P&G, Nestle), which ensures innovative
product launches in the market from their parent's portfolio. Our country has a varied agro-
climatic condition which enables to offer extended raw material base suitable for many FMCG
sub sections like food processing industries etc. India is the one of the major producer of
livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of
rice, wheat and fruits & vegetables. Similarly, India has an abundant supply of caustic soda
and soda ash, the chief raw materials required in the production of soaps and detergents, which
enables the household section of the industry to excel and grow. The accessibility of these raw
materials gives India the locational advantage.
Labour cost in India is amongst the lowest in emerging Asian countries. Easy raw material
availability and low labour costs have resulted in a lower cost of production. Many multi-
nationals have set up large low cost production bases in India to outsource for domestic as
well as export markets. A distinct feature of the FMCG industry is the presence of most global
players through their subsidiaries (HLL, P&G, Nestle), which ensures new product launches
in the Indian market from the parent's portfolio.
Some of the critical operating rules in Indian FMCG sector includes heavy launch costs
on new products on launch advertisements, free samples and product promotions, majority of
the product classes require very low investment in fixed assets, existence of contract
manufacturing, marketing assumes a significant place in the brand building process, extensive
distribution networks and logistics are key to achieving a high level of penetration in both the
urban and rural markets, factors like low entry barriers in terms of low capital investment,
fiscal incentives from government and low brand awareness in rural areas have led to the
mushrooming of the unorganized sector and providing good price points is the key to success.
2.1.2 Major segments of the FMCG industry
 Household Care
The detergents segment is growing at an annual growth rate of 10 to 11 percent during

the past five years. The local and unorganized players account for a major share of the total
volume of the detergent market. The preference is given to detergents in urban area compared

to bars. Household care segment is featured by intense competition and high level of
penetration. With rapid urbanization, emergence of small pack size and containers, the
demand for the household care products is booming. In washing powder segment, HUL is the
leader with 38 percent of market share. Other major players are Nirma, Henkel and Proctor &
Gamble.
 Personal Care
Personal care segment includes personal wash products, hair care products, oral care
products, cosmetics etc. It is dominated by HUL, Colgate Palmolive, Gillette India and
Godrej. The coconut oil market accounts for 72 per cent share in the hair oil market. The hair
care market can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair
gels. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the
leading players. Sachet makes up to 40 per cent of the total shampoo sale. Again the market
is dominated by HUL with around 47 per cent market share; P&G occupies second position
with market share of around 23 per cent. Personal wash can be further segregated into three
segments namely Premium, Economy and Popular. Here also, HUL is the leader with market
share of 53 per cent; Godrej occupies second position with market share of 10 per cent.
Swelling disposable incomes of the Indian consumers, growth in rural demand and upgrading
to the premium products are the key drivers for future demand growth in major FMCG
categories.
The skin care market is at a primary stage in India. With the change in life styles, increase
in disposable incomes, greater product choice and availability, people are becoming more alert
about personal grooming. The major players in this segment are Hindustan Unilever with a
market share of 54 per cent, followed by Cavin Kare with a market share of 12 per cent and
Godrej with a market share of 3 per cent. The oral care market can be segmented into
toothpaste - 60 per cent; toothpowder - 23 per cent; toothbrushes - 17 per cent. This segment
is dominated by Colgate-Palmolive with market share of 49 per cent, while HUL occupies
second position with market share of 30 per cent. In toothpowders market, Colgate and Dabur
are the major players.

 Food and beverages
This segment comprises of the food processing industry, health beverage industry, bread
and biscuits, chocolates & confectionery, Mineral Water and ice creams. The three largest
consumed categories of packaged foods are packed tea, biscuits and soft drinks. Indian hot
beverage market is a tea dominant market. The major share of tea market is dominated by
unorganized players. Leading branded tea players are HUL and Tata Tea. Major players in
food segment are HUL, ITC, Godrej, Nestle and Amul.
2.1.4 Policies related to FMCG industry.
India has enacted policies aimed at attaining international competitiveness through lifting
of the quantitative restrictions, reduced excise duties, automatic foreign investment and food
laws resulting in an environment that fosters growth. 100 per cent export oriented units can
be set up by government approval and use of foreign brand names is now freely permitted.
2.1.5 FDI Policy
Automatic investment approval (including foreign technology agreements within

specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas
Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except
malted food, alcoholic beverages and those reserved for small scale industries (SSI). 24 per
cent foreign equity is permitted in the small-scale sector. Temporary approvals for imports for
test marketing can also be obtained from the Director General of Foreign Trade. The evolution
of a more liberal FDI policy environment in India is clearly supported by the successful
operation of some of the global majors like PepsiCo in India. Removal of Quantitative
Restrictions and Reservation Policy
The Indian government has abolished licensing for almost all food and agro processing
industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils
etc., and items reserved for the exclusive manufacture in the small scale industry (SSI) sector.
Quantitative restrictions were removed in 2001 and Union Budget 2004-05 further identified
85 items that would be taken out of the reserved list. This has resulted in a boom in the FMCG
market through market expansion and greater product opportunities.

2.1.6 Key growth drivers to the Industry are as follows:
Over the years, demand for consumer durables has increased with rising income levels,
double-income families, changing lifestyles, availability of credit, increasing consumer
awareness and introduction of new models. Products like air conditioners are no longer
perceived as luxury products. The biggest attraction for MNCs is the growing Indian middle
class. This market is characterized with low penetration levels. MNCs hold an edge over their
Indian counterparts in terms of superior technology combined with a steady flow of capital,
while domestic companies compete on the basis of their well-acknowledged brands, an
extensive distribution network and an insight in local market conditions. With companies
opting for information technology a reduction in inventory levels and an improvement in the
working capital cycle is likely. This will benefit companies by controlling costs and improving
margins. In the context of the positives and the negatives, investing in FMCG stocks is a tricky
prospect. Given this, one has to be active with FMCG stocks and should book profits as soon
as the targeted returns are reached. Unlike earlier times, nowadays, one cannot afford to buy
an FMCG stock and forget about it for a long time. It is unlikely that the government's
initiatives will boost the sector overnight. The ongoing price wars mean that company
earnings will continue to be volatile. Hence, in the short term, one should look at individual
companies' prospects rather than the overall sector's prospects. This means that it is better to
leave mutual funds that concentrate on FMCG companies and instead buy shares depending
upon the company. It is not necessary that an MNC will be better than an Indian company.
One should look at a company's profile and analyses its prospects before investing in its
shares. It is not that you will lose out by buying FMCG stocks. But, in buying an FMCG stock,
it will be ideal to cash in during short bursts of activity. Some of the key FMCG industry
growth drivers are:
 Robust growth in India’s GDP
 Growing urbanization
 Evolving consumer life style
 Increased income in rural areas
 Spending Pattern

 Changing Profile and Mind Set of Consumer
 Growth of modern retail
 Shift from unorganized to organized
 Rise in per capita category consumption
 Increase in penetration
 Increased in rural consumption
The FMCG sector has a great opportunity for growth in the country, with the growing
population, the rising disposable incomes, education, urbanization, the advent of modern
retail, and a consumption-driven society. There is a potential for all the FMCG companies as
the per capita consumption of almost all products in the country is very low compared to world
standards, thee exist their huge untapped opportunities.
2.1.7 PEST Analysis of Indian FMCG Industry
PEST analysis of FMCG sector in India is carried out on political, economic, social and
technological aspects. It is explained below:
 Political:
 Tax exemption in sales and excise duty for small scale industries.
 Transportation and infrastructure development in rural areas helps in distribution

network.
 Restrictions in import policies.
 Help for agricultural sector.
 Economical:
 The GDP rate of Indian economy is comparatively better. It is expected in future it

would be better only in comparison with other countries.
 Inflation rate is increasing across the world and India is also no exception. The
government and Reserve Bank of India both are trying to control the inflation rate with
the help of different measures.

 Increase in disposable income has taken place due to higher GDP rate. The per capita
income is increasing so the customers are having more income to spend for various
reasons.
 Indian FMCG sector recorded 16% sales growth in last fiscal year and it is expected it
would further improve in the forthcoming years.
 The FMCG sector is a 4th largest sector of Indian economy with market size of more
than 60,000 crores.
 The Indian Territory is very large and number of customers is also very high.
 Social:
The Indian culture, social & life styles are changing drastically. The total population is
nearly 115 crores and population includes rich, poor, middle class, male, female, located in
rural, urban and sub urban areas, different level of education etc.
 Technology:
 Technology has been simplified and available in the industry. Where technology is not
available then it is brought from foreign countries to meet FMCG sector requirements.
 Foreign players help in high technological development. With research and

development facilities the new technologies are developed alone or with the help of
foreign players.
2.1.8 SWOT Analysis of Indian FMCG Industry
SWOT analysis of this sector is carried as follows:
 Strengths:
 Well-established distribution network extending to rural areas.
 Strong brands in the FMCG sector.
 Low cost operations
 Favorable Government policies
 Weaknesses:

 Low export levels.
 Small scale sector reservations limit ability to invest in technology and achieve
economies of scale.
 Several "me-too’’ products.
 Opportunities:
 Large domestic market.
 Export potential
 Increasing income levels will result in faster revenue growth.
 Untapped rural market
 High Consumer spending
 Threats:
 Removal of import restrictions resulting in replacement of domestic brands.
 Tax and regulatory structure
 Slowdown in rural demand
2.1.9 Future trends and Outlook
India has 17% of the world's population and that half of these people are below the age
of 25. With a median age of 25 years, increasing numbers are joining the Indian workforce.
India's share in world consumer spending is set to enlarge from 1.9% in 2005 to 3.1% in 2020.
(Source: Techno Pak) Income in the hands of younger consumers with a higher propensity to
spend, is providing optimism to the economy while opening up new categories in the FMCG
space. India is under changing phase as more women are joining India's workforce, FMCG
players are finding opportunities to introduce products in the convenience and health foods
segments. While spending on women's personal care products is also becoming far more
acceptable. Distribution of smaller pack sizes, innovations like single use sachets to reach out
to the rural and lower section of the economy is gaining demand. Innovative products to cater
to regional or local tastes and the needs of niche consumers is also benefiting in growth of the
industry. Huge investments in promoting brands, setting up distribution networks and intense

competition are what FMCG companies face. Creating strong brands is important for FMCG
companies and they will have to devote considerable money and effort in developing brands.
Given the fragmented nature of the Indian retailing industry and the problems of
infrastructure, FMCG companies also need to develop extensive distribution networks to
achieve a high level of penetration in both the urban and rural markets. This will require a lot
of resources. The unorganized sector has a presence in most product categories of the FMCG
sector. Small companies from this sector have used their locational advantages and regional
presence to reach out to remote areas where large consumer products have only limited
presence. Their low cost structure also gives them an advantage. And this will only lead to
price wars, which, though good for consumers, will affect the bottom lines of companies
India is the world’s largest producer of dairy products by volume, accounting for more
than 13% of world’s total milk production, and it also has the world’s largest dairy herd. As
the country consumes almost all of its own milk production, India was neither an active
importer nor an exporter of dairy products prior to year 2000. However, since the
implementation of Operation Flood Programme, the situation changed significantly and
imports of dairy products reduced to very small quantities. From 2001, India has become a
net exporter of dairy products and after 2003 India’s dairy import has dipped while exports
have increased at a fast rate. Yet the country’s share in global dairy trade still remains at minor
levels of 0.3 and 0.4 percent for exports and imports respectively. This is due to the direct
consumption of liquid milk by the producer households as well as the demand for processed
dairy products that has increased with the growth of income levels, which have left little dairy
surpluses for export. Nevertheless, India consistently exports specialty products such as casein
for food processing or pharmaceuticals. The Indian dairy sector is also different from other
dairy producing countries as India places its emphasis on both cattle and buffalo milk. In 2010,
the government and the National Dairy Development Board have drawn up a National Dairy
Plan (NDP) that proposes to nearly double India’s milk production by 2020. This plan will
endeavor to increase the country’s milk productivity, improve access to quality feeds and
improve farmer access to the organized market. These goals will be achieved through
activities that focus on increasing cooperative membership and growing the network of milk
collection facilities throughout India.

Despite its huge production volume, India nevertheless faces a milk supply gap due to
increasing demand from a growing middle class population. Estimation suggests that Indian
dairy production is growing at a rate of about four percent per year, yet consumer demand is
growing at approximately double that rate. Apart from the rapidly increasing demand for milk
and dairy products, other reasons such as the increased cattle feed cost and low availability of
dairy farm labour in the rural areas have also resulted in increase in the cost of production. On
the other hand, the strong pressure from EU to open up its market as well as the proposed free
trade agreement with Australia and New Zealand may also put India’s dairy sector in the risk
of being jeopardized. In order to maintain the development of its dairy industry, focus needs
to be placed on several areas. First, cost of production has to be reduced through increasing
productivity of animals, improve animal health care and breeding facilities and management
of dairy animals. Second, Indian dairy industry needs to further develop proper dairy
production, processing and marketing infrastructure, which is capable of meeting international
quality requirements. Third, India can focus on buffalo milk based specialty products, such as
Mozzarella cheese, in order to meet the needs of the target consumers.
Background Information
India is the world’s largest producer of dairy products by volume and has the world’s
largest dairy herd. The country accounts for more than 13% of world’s total milk production
and is also the world’s largest consumer of dairy products, consuming almost all of its own
milk production. Dairying has been regarded as one of the activities that could contribute to
alleviating the poverty and unemployment especially in the drought‐prone and rain‐fed areas.
In India, about three‐fourth of the population live in rural areas and about 38% of them are
poor. Therefore, among these people, as well as the large vegetarian segment of the country’s
population, dairy products provide a critical source of nutrition and animal protein to millions
of people in India. 1 2
Prior to year 2000, India was not noticed by most international dairy companies, as the
country was neither an active importer nor an exporter of dairy products. Although India has
imported some milk powder and butter oils as aid between 1970 and 1990, exports from India
were insignificantly small and it was not until 2000 onwards, when Indian dairy products
started having more presence in global markets. 3

Milk production in India has developed significantly in the past few decades from a low
volume of 17 million tons in 1951 to 110 million tonnes in 2009. Currently, the Indian dairy
market is growing at an annual rate of 7%. Despite the increase in production, a demand supply
gap has become imminent in the dairy industry due to the changing consumption habits,
dynamic demographic patterns, and the rapid urbanization of rural India. This means that there
is an urgent need for the growth rate of the dairy sector to match the rapidly growing Indian
economy.
Trade
Despite having the world’s largest milk production, India is a very minor player in the
international market. Prior to the 1970s, India was primarily an import dependent country and
anhydrous milk fat, butter and dry milk powders were imported to meet the needs of urban
consumers. However, with the implementation of Operation Flood Programme in 1971 (see
“Key Players and Ownership” section), the situation changed significantly and imports of
dairy products reduced to very small quantities. In the 1990s imports and exports kept edging
each other out, and from 2001, India has become a net exporter of dairy products. After 2003,
India’s dairy import has dipped while exports have increased at a fast rate, yet the country’s
share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for exports and
imports respectively. This is due to the direct consumption of liquid milk by the producer
households as well as the demand for processed dairy products that has increased with the
growth of income levels, which have left little dairy surpluses for export. Nevertheless, India
consistently exports specialty products such as casein for food processing or pharmaceuticals.
In 2009, around half of India’s total dairy import by volume consist of butter and other
dairy derived fats, followed by lactose (33 percent), and milk powder (eight percent). Import
of milk and milk products is permitted without any quantitative limitations, although tariff
rate quotas apply and import permits are required. On the other hand, in terms of exports, milk
powders and baby food constituted more than 40 percent of India’s total dairy exports by
volume, followed by casein, milk and cream, butter and other fats, and other processed dairy
products in 2009 (See Figure 1 for Indian dairy exports by product types). Almost all of India’s
dairy exports are meant for Asian and African countries. In Asia, neighboring countries in
South Asia and the Middle East are the main buyers. Around half of India’s exported dairy

products are shipped to Bangladesh, the United States, U.A.E, and Singapore (see Figures 2
and 3 for Indian dairy export volume and value by destination). Despite many efforts, India
has not been able to breach the European markets, while the market in South America remains
untapped. Export figures clearly illustrate that the Indian dairy export is still developing and
the surpluses are not systemic nor consistent. However, there future outlook for export of
Indian dairy products is rather positive, as indigenous milk products and desserts are becoming
popular with the ethnic population spread all over the world and there is a strong likelihood
that the export demand for these products will grow.
Key Players and Ownership
Production Policy and Regulation of Dairy Products
Dairy production in India runs on a low input‐low output system, in which individual
producers typically own less than five cattle or buffalo and use locally available feeds. This
has resulted in yield levels that are below international averages but also the world’s lowest
production costs. As dairy product prices and income from milk collection continue to
increase, farmers are slowly growing herd sizes and increasing their specialization. In
addition, interests from private sector investors have also facilitated construction of larger
dairies through partnering with dairy processors.
Through implementing various incentive schemes, Indian policy makers are aiming to
increase the country’s dairy output. Examples of these schemes include the Ministry of
Agriculture’s research programs, imports of bovine semen and embryos, the National Project
for Cattle and Buffalo Breeding, which focuses on improving Indian indigenous breeds with
an allocation of USD 255 million. On the other hand, support is also offered by the private
sector through activities such as artificial insemination services, training for veterinary care
and other livestock management skills.
In 2010, the government and the National Dairy Development Board have drawn up a
National Dairy Plan (NDP) that proposed an expenditure of around USD 378 million to nearly
double India’s milk production by 2020. This plan will endeavor to increase the country’s
milk productivity, improve access to quality feeds and improve farmer access to the organised

market. These goals will be achieved through activities that focus on increasing cooperative
membership and growing the network of milk collection facilities throughout India.
In addition, the new Food Safety and Standards Authority of India has consolidated
various previous policies that set the sanitary requirements for food safety, machinery,
premises, quality control, certification, packing, marking and labelling standards for all food
products, including milk and milk products and aims to regulating food safety in India through
one overarching regulation. The forthcoming regulation, named The Food Safety and
Standards Regulation, is implemented in 2011. Although the Food Safety and Standards
Authority of India sets the safety standards for both domestically produced and imported milk
and dairy products, the Ministry of Agriculture’s Department of Animal Husbandry, Dairying
and Fisheries is the entity that is responsible for issuing sanitary permits for the import of
livestock and dairy products into India.
Cooperative Movement in Dairying
Immediately after India gained independence in 1947, the Milk Control Board was
established to control the dairy supply and distribution chains. However, a number of issues
emerged. First, the middlemen got hold of the sales profit and the share of producers in the
sales declined. Second, as processing units were set up in cities, it became difficult for the
milk to be procured and transported the production centers in the rural areas. Consequently,
the yield of milk declined and imports of milk powder went up.
While the government was trying to deal with these problems, a cooperative was set up
in the village of Kaira in Gujarat to collect, process and market milk. Subsequently, the Kaira
Cooperative Union established a marketing agency named Gujarat Cooperative Milk
Marketing Federation, which follows a three‐layer structure that collects, processes and
markets dairy products at village, district and state levels. The district units also provide
technical support to the milk producers and a range of services such as feed, veterinary care,
artificial insemination, education and training. These milk cooperatives of Gujarat today own
the GCMMF, the largest food products business in India. GCMMF is also the largest exporter
of dairy products from India and owns the brand Amul. The foundation of Indian dairy
industry’s cooperative movement was thus set and federal and egalitarian structure of these

cooperatives ensured social and economic equity. The government then set up the National
Dairy Development Board (NDDB) in 1965, which prepared a blueprint for a dairy revolution
across the country. The revolution was known as Operation Flood,
Operation Flood Era
India’s dairy sector witnessed a spectacular growth between 1971 and 1996; the period
was known as the Operation Flood era. An integrated cooperative programme aimed at
developing the dairy industry was implemented in three phases, with The National Dairy
Development Board designated by the Government of India as the implementing agency. The
major objective was to provide an assured market round the year to the rural milk producers
and to establish linkage between rural milk production and urban market through modern
technology and professional management. The Operation Flood was one of the world’s largest
rural development programmes which ran for 26 years and eventually helped India to emerge
as the world’s largest milk producer. As part of the programme, around ten million farmers
were enrolled as members of about 73000 milk cooperative societies. Since the
implementation of this programme, milk production increased from 21 million tons in 1970
to nearly 69 million tons in 1996, at the compound growth rate of 4.5 per cent. By 1996, milk
cooperatives attained a dominating share of the Indian dairy market ‐ butter 96%, pasteurized
liquid milk over 90%, milk powder 59% and processed cheese 85%. India was reckoned as a
major threat in the dairying world. In retrospect, it was by no means an easy task.
Industry Structure
While it is estimated that around 40 to 50 percent of Indian dairy farmers are employed
by the organized sector, approximately 65 percent of milk in India is consumed (in fluid or
processed forms) on farm or by the unorganized sector including local milk vendors,
wholesalers, retailers, and the producers themselves. Of the total milk distributed jointly by
both the organized and unorganized sector, around 46 percent of the milk is consumed in fluid
form and the rest is processed into various milk products such as butter, yogurt and milk
powder.
India’s milk processing industry is small compared to the large amount of raw milk
produced every year. Almost 55 percent of the milk produced is consumed by the producer

household. Of the remaining, two‐third is sold in informal markets and 15‐16 percent of the
total milk produced in India is processed by the organized market, including dairy
cooperatives and the private sector. During 1999‐2000, there were around 770 dairy
processing units in the organized sector. Vendors and milk dealers dominate the informal
market where the former generally procures milk from producers and sells them to urban
households, while the latter supplies to private processing units. Of the milk that enters the
formal and informal market, almost 45 percent is consumed in the raw form while the
remaining is processed to produce ghee, khoa, butter, curd, milk powders, cottage cheese, etc.
Please see below (Table 1) for an overview of India’s milk production volume by State.
Production
The Indian dairy sector is different from other dairy producing countries as India places
its emphasis on both cattle and buffalo milk. Out of all bovine population in India, 40 percent
are indigenous cows, 46 percent are buffaloes and 14 percent are imported European or North
American cattle crossbreeds. Out of the nation’s total milk production, about 55 percent comes
from buffaloes, and the remainder from dairy cows (See Table 2 for India’s dairy product mix
and Table 3 for dairy livestock population by species). Traditionally, buffalo milk has been
preferred for its high milk fat content. However, as the organized sector procures more milk,
dairy cattle becoming more popular due to their increased yields and shorter dry periods.
Consumption growth and industry response
Despite its huge production volume, India nevertheless faces a milk supply gap due to
increasing demand from a growing middle class population. Estimation suggests that Indian
dairy production is growing at a rate of about four percent per year, yet consumer demand is
growing at approximately double that rate. In response to increasingly strong demand for milk
products, the Indian dairy industry is growing its milk production in several ways. For
example, dairy farmers have responded to increasing dairy prices by increasing herd sizes. In
addition, those farmers working directly with buyers from the organized sector generally have
access to modern extension services, which provide support for the dairy farmers to improve
management, feeding, fertility and veterinary care. Many of these extension service providers
offer artificial insemination services that aim to further improving milk yields with new dairy

cattle genetics. Artificial insemination services are expected to grow in the future, as the
government of India continues to develop protocols for imported genetics products. Finally,
commercial dairies are also continuing with strengthening their presence in India.
Development and Future Outlook
While the decade of 2000‐10 has seen positive level of dairy exports from India, the next
decade is predicted to be different and signs of change are already visible. Due to low global
dairy prices and high domestic costs, India is finding it difficult to sustain exports of dairy
products. On the other hand, factors such as the reintroduction of subsidies by European
Union, devaluation of currency of New Zealand (a major dairy exporting country), combined
with continuing global economic downturn, have made dairy imports into India attractive. It
is predicted that dairy commodities will be the first large‐scale imports and will be used by
Indian dairy cooperatives and companies to make reconstituted milk and other branded dairy
products. This may be followed by Imports of branded dairy products.
In the past, India has not been permitting free import of dairy products. As the country’s
dairy sector employs 90 million people, India has advocated that milk and cheese be excluded
from the scope of free trade agreement under negotiations with the European Union. However,
despite Indian government’s fear about how small dairy farmers could suffer from import
liberalization, India is now facing strong pressure to open up its market to dairy products from
Europe. There are arguments suggesting that removing such tariff would leave India’s farmers
unable to withstand competition from European imports. Often these imports have been highly
subsidized and can be sold at lower prices than domestically produced goods.
Other than the strong pressure from EU to open up its market, India’s dairy sector may
also become jeopardized by the proposed free trade agreement with Australia and New
Zealand. India had entered into a Free Trade Agreement with South Korea and ten other
countries in 2009. Currently the plan is to also reduce the tariff rate for New Zealand and
Australia to encourage trade. It is feared that entering into a free trade agreement with
Australia and New Zealand would bring adverse effects to the dairy sector in India, as the cost
of milk production in Australia and New Zealand is far lower than in India due to their pastoral

system. In contrast, in India dairy animals are raised by concentrate feed and fodder, therefore
the cost of production is much higher.
Supply and Demand
A recent survey has revealed that on average, an Indian family allocates 17 per cent of
the household food expenditure on milk and milk products, with rural families allocating 15
per cent and families in the urban area allocating over 18 per cent. As income continues to
increase, it is predicted that the demand for milk is going to rise faster than seen in the previous
decade. Moreover, the overall demand is growing rapidly compared to milk production. The
higher GDP growth rate, enhanced income of rural households and the farm debt waiver are
influencing the demand for milk both in the rural and urban areas.
Apart from the rapidly increasing demand for milk and dairy products, other reasons such
as the increased cattle feed cost and low availability of dairy farm labour in the rural areas
have also resulted in increase in the cost of production. It is estimated that the demand for
milk will grow at 7% per annum at current rate of income growth, while the growth in milk
production is likely to continue at the present rate of 4.4% in the near future.
A number of suggestions to the future development of India’s dairy industry have been
proposed by Karmakar & Banerjee (2006):
1. Production Cost Reduction: In order to increase the competitiveness of Indian dairy

industry, efforts should be made to reduce cost of production. This can be achieved through
increasing productivity of animals, improve animal health care and breeding facilities and
management of dairy animals. The Government and dairy industry will need to play a vital
role in this direction.
2. Strategy and Infrastructure Development: Indian dairy industry should further

develop proper dairy production, processing and marketing infrastructure, which is capable of
meeting international quality requirements. A comprehensive strategy for producing quality
and safe dairy products should also be formulated with suitable legal backup.

3. Focus on Specialty Products: Dairy industry in India is unique with regard to the
availability of buffalo milk. In this case, India can focus on buffalo milk based speciality
products, such as Mozzarella cheese, in order to meet the needs of the target consumers.
COMPANY PROFILE
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. 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.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of Sardar
Patel. As a result, Kaira District Milk Union Limited was born in 1946. Tribhuvandas became
the founding chairman of the organization which he led till his last day of his life. He hired
Dr. Kurien three years after the white revolution. He convinced Dr.Kurien to stay and help
with the mission rest was history in the dairying industry.
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 foodbrand in India and has
ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006),
is credited with the success of Amul.
History
Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere
else in India. His income was derived almost entirely from seasonal crops. Many poor farmers
faced starvation during off-seasons. Their income from milch buffaloes was undependable.
The milk marketing system was controlled by contractors and middlemen. As milk is
perishable, farmers were compelled to sell their milk for whatever they were offered. Often
they had to sell cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system under which contractors
could buy their produce at a low price and arrange to sell it at huge profits was just not fair.

This became more noticeable when the Government of Bombay started the Bombay Milk
Scheme in 1945. Milk had to be transported 427 kilometers, from Anand to Bombay. This
could be done only if milk was pasteurized in Anand.
After preliminary trials, the Government of Bombay entered into an agreement with Polsons
Limited to supply milk from Anand to Bombay on a regular basis. The arrangement was
highly satisfactory to all concerned – except the farmers. The Government found it profitable;
Polsons kept a good margin. Milk contractors took the biggest cut. No one had taken the
trouble to fix the price of milk to be paid to the producers. Thus under the Bombay Milk
Scheme the farmers of Kaira District were no better off ever before. They were still at the
mercy of milk contractors. They had to sell their milk at a price the contractors fixed. The
discontent of the farmers grew. They went in deputation to Sardar Patel, who had advocated
farmers’ co-operatives as early as 1942 Sardar Patel reiterated his advice that they should
market their milk through a co-operative society of their own. This co-operative should have
its own pasteurization plant. His advice was that the farmers should demand permission to set
up such a co-operative. If their demand was rejected, they should refuse to sell their milk to
middlemen.
Sardar Patel pointed out that in undertaking such a strike there should be some losses to the
farmers as they would not be able to sell their milk for some time. If they were prepared to
put up with the loss, he was prepared to lead them. The farmers’ deputation readily accepted
his proposal.
Sardar then sent his trusted deputy, Mr. Morarji bhai Desai, to Kaira District to organize milk
co-operative – and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village
on January 4, 1946. It was resolved that milk producers’ co-operative societies should be
organized in each village of Kaira District to collect milk from their member-farmers. All the
milk societies would federate into a Union which would own milk processing facilities. The
Government should undertake to buy milk from the Union. If this wasn’t done, the farmers
would refuse to sell milk to any milk contractor in Kaira District.
The Government turned down the demand. The farmers called a ‘milk strike’. It lasted 15
days. Not a drop of milk was sold to the milk merchants. No milk reached Bombay from

Anand, and the Bombay Milk Scheme almost collapsed. After 15 days the milk commissioner
of Bombay, an Englishman, and his deputy visited Anand, assessed the situation and accepted
the farmers’ demand.
This marked the beginning of the Kaira District Co-operative Milk Producers’ Union Limited,
Anand. It was formally registered on December 14, 1946. Its objective was to provide proper
marketing facilities for the milk producers of the district. The Union began pasteurizing milk
in June 1948, for the Bombay Milk Scheme – just a handful of farmers in two village co-
operative societies producing about 250 liters a day.
An assured market proved a great incentive to the milk producers in the district. By the end
of 1948, 432 farmers had joined village societies, and the quantity of milk handled by the
Union had increased to 5000 liters a day. In the early stages, rapid growth brought in its wake
serious problems. Their solution provided the stimulus for further growth. For example, as the
co-operative movement spread in the district, it was found that the Bombay Milk Scheme
could not absorb the extra milk collected by the Union in winter, when buffaloes yielded an
average of 2.5 times their summer yield. Thus by 1953, the farmer-members had no regular
market for the extra milk produced in winter. They were again forced to sell a large surplus at
low rate to middlemen.
The only remedy was to set up a plant to process the extra milk into products like butter and
milk powder. The logic of this step was readily accepted by the Government of Bombay and
the Government of India, except for a few doubting Thomases. The government of India
helped the Union to get financial help from UNICEF and assistance from the Government of
New Zealand under the Colombo Plan. Technical aid was provided by F.A.O. A Rs.50 – lakh
factory to process milk powder and butter was blueprinted. Its foundation stone was laid by
the then President of India the late Dr. Rajendra Prasad on November 15, 1954. The project
was completed by October 31, 1955, on which day the late Pandit Jawaharlal Nehru, the then
Prime Minister of India, declared it open. The new dairy provided a further fillip to the co-
operative movement among milk producers. The union was thus enabled to organize more
village co-operative societies and to handle more and more milk each year. This event also
brought a breakthrough in dairy technology as the products were made processing buffalo
milk for the first time inthe world. Kaira Union introduced the brand “Amul” for marketing

its product range. The word “Amul” is derived from Sanskrit word ‘Amulya’ which means
‘priceless’ or precious’. In the subsequent years Amul made cheese and baby food on a large
commercial scale again processing buffalo milk creating a history in the world.
1964 was the turning point in the history of dairy development programme in India. Late Shri
Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31s October for
inauguration of Amul’s Cattle Feed Plant, having spent a night with farmers of Kaira and
experiencing the success wished and expressed to Mr Kurien, then the General Manager of
Amul that replicating Amul model throughout our country will bring a great change in the
socio-economic conditions of the people. In order to bring this dream into reality, 1965 The
National Dairy Development Board (NDDB) was established at Anand and by 1969-70
NDDB came out with the dairy development programme for India popularly known as
“Operation Flood” or “White Revolution”. The Operation Flood programme, even today,
stands to be the largest dairy development programme ever drawn in the world. This saw
Amul as model and this model is often referred in the history of White Revolution as “Anand
Pattern”. Replication of “Anand Pattern” has helped India to emerge as the largest milk
producing nation in the world.
Amul- coperative registered on 14 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in
the small city distances to deliver milk, which often wentsour in summer, to Polson. The prices
of milk were arbitrarily determined. Moreover, the government had given monopoly rights to
Polson to collect milk from mikka and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson
(who did the same but gave them low prices). He sent Morarji Desaito organise the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 1–2 liters of milk per day. Cooperatives
were formed for each village, too

The cooperative was further developed and managed by Dr.Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time
in the world) and a little later, with Kurien's help, making it on a commercial scale, led to the
first modern dairy of the cooperative at Anand, which would compete against established
players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of
attending to the finer points of marketing, including the creation and popularization of a brand.
This led to the search for an attractive brand name. In a brainstorming session, a chemist who
worked in the dairy laboratory suggested Amul, which came from the Sanskrit word "amulya",
which means "priceless" and" denoted and symbolised the pride of swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira
Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty) and
Dr Feryll (former student of Dr Verghese Kurien), visited the Amul factory at Anand as a
research team headed by Dr. Bheemsen & Shivdayal Pathak (ex-director of the SardarPatel
Renewable Energy Research Institute) in the 1960s. A milk pasteurization system at the
Research Centre of Punjab Agricultural University (PAU) Ludhiana was then formed under
the guidance of Kashyap. The technological developments at Amul have subsequently spread
to other parts of India.
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation
for products under the brand name of Amul and Sagar. Over the last five and a half decades,
dairy cooperatives in Gujarat have created an economic network that links more than

3.1million village milk products with millions of consumers in India. Gujarat Cooperative
Milk Marketing Federation Ltd.
GCMMF Gujarat Cooperative Milk Marketing Federation Ltd.(GCMMF), is India's largest

food product marketing organisation with annual turnover (2015-16) US$ 3.5 billion. Its daily
milk procurement is approx. 16.97 million lit per day from 18,545 village milk cooperative
societies, 18 member unions covering 33 districts, and 3.6 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
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. Amul’s 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.
GCMMF - An Overview
Year of Establishment-1973
Members -18 District Cooperative Milk Producers' Unions
No. of Producer Members -3.6 Million
No. of Village Societies -18,545
Total Milk handling capacity per day -28 Million litres per day
Milk Collection - (Total - 2015-16) 6.2 billion litres
Cattle feed manufacturing Capacity -7800 Mts. per day Sales
Turnover -(2015-16) -Rs. 22972 Crores (US $ 3.5 Billion)
Courtesy
(CRISIL Rating for GCMMF Milk Purchase Price)

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. 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
18. Porbandar District Cooperative Milk Producers’ Union Ltd, Porbandar.

The three-tier "Amul Model"
The Amul Model is a three-tier cooperative structure. This structure consists of a dairy
cooperative society at the village level affiliated to a milk union at the district level which in
turn is federated into a milk federation at the state level. Milk collection is done at the village
dairy society, milk procurement and processing at the District Milk Union and milk products
marketing at the state milk federation. The structure was evolved at Amul in Gujarat and
thereafter replicated all over the country under the Operation Flood programme. It is known
as the 'Amul Model' or 'Anand.
Product
Amul's product range includes milk powders, milk, butter, ghee, cheese, dahi, yoghurt,
buttermilk, chocolate, ice cream, cream, shrikhand, \paneer, \gulab jamuns, flavoured milk,
basundi and others. Amul PRO is a recently launched brown beverage. In January 2006, Amul
launched India's first sports drink, Stamina. Amul offers Mithai Mate which competes with
Milkmaid by Nestle.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low-calorie thirst
quenching drink; Masti Butter Milk; and Kool Cafe, ready to drink coffee. Amul's ice creams
are made from milk fat, instead of from vegetable fat. Amul's sugar-free Pro-Biotic Ice-cream
won The International Dairy Federation Marketing Award for 2007.
UHT products and impact
Over the years Amul has been witnessing growth in this portfolio, with the segment growing
at 53%, Long life UHT products for urban populations, like Amul Taaza, which are packed in
Tetra Pak cartons, which undergoes UHT treatment to remove all harmful micro-organisms
while retaining the nutrition in the milk. Amul sells around 4-500,000 litres of UHT milk and
other value added products per day and forecast this demand to continue growing at 25%. The
UHT products have enabled Amul to position itself as the market leader in packaged milk
segment without the need of maintaining cold supply chains.

Any Time Milk (ATM) Machine Amul has installed a "Any Time Milk" machine which
dispenses a milk pouch, at Anand's Amul Dairy. Amul plans to install six such ATMs in
Anand. According to Dr. K Rathnam, MD of Amul Dairy, Amul wants to add a whole range
of dairy products, which could be dispensed through these machines.
Advertising
In 1966, Amul hired Sylvester da Cunha, then managing director of the advertising agency
AS to design an ad campaign for Amul Butter. Da Cunha designed a campaign as series of
hoardings with topical ads, relating to day-to-day issues. It was popular and earned a Guinness
world record for the longest running ad campaign in the world. In the 1980s, cartoon artist
Kumar Morey and script writer Bharat Dabholkar had been involved with sketching the Amul
ads; the latter rejected the trend of using celebrities in advertisement campaigns. Dabholkar
credited chairman Verghese Kurien with creating a free atmosphere that fostered the
development of the ads.
Despite encountering political pressure on several occasions, da Cunha's agency has made it
a policy of not backing down. Some of the more controversial Amul ads include one
commenting on the Naxalite uprising in West Bengal, on the Indian Airlines employees strike,
and one depicting the Amul butter girl wearing a Gandhi cap.
In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that 'freedom of
choice' died in '2013', in opposition to the Supreme Court of India overruling the judgment of
Delhi High Court and criminal listing homosexuality again.
On October 17, 2016, Amul butter Girl celebrated 50 years when she first appeared in the
topical ad titled "Thorough bread". The Ad showed a jockey holding a slice of bread during
the horse race season in 1966.The impish Amul missy had appeared for the first time even
before that, with Eustace Fernandez showed her offering bed-time prayers with a wink and a
lick of lips, saying “Give us this day our daily bread: with Amul butter”. But the topical hits
started flowing in since 1966.

In popular culture
The establishment of Amul is known as White Revolution.
The White Revolution inspired the notable Indian film-maker Shyam Benegalto base his film
Manthan (1976) on it. It starred Smita Patil, Girish Karnad, Naseeruddin Shahand Amrish
Puri. The film was financed by over five lakhs (half a million) rural farmers in Gujarat who
contributed Rs 2 each to its budget. Upon its release, these farmers went in truckloads to watch
'their' film, making it a commercial success. Manthan was chosen for the 1977 National Film
Award for Best Feature Film in Hindi.

CHAPTER – 3
REVIEW OF
LITERATURE

REVIEW OF LITERATURE
Review of literature is the effective evaluation of selected literature on a research topic.

It is an essential part of the research process. It provides a background to the study being
proposed. Review of literature describes, compares, contrasts and evaluates the major
theories, arguments, themes, methodologies, and approaches in the scholarly literature on a
research subject. It also connects compares and contrasts these arguments, themes and
methodologies etc., with the concerns of a proposed piece of research. The literature review
is not an annotated bibliography or a summary of the sources listed one by one or just a
descriptive summary of the historical background to the research subject.
In a literature review, the central focus is on examining and evaluating what has been
said before, on the research subject, and establishing the relevance of this information to the
present research. It enables the researcher to identify what has not been said in the literature
on a subject (this is called ‘a gap in the literature’). It also permits the researcher to discuss
the methodologies that have been used in the literature and how these relate to the chosen
method. A review of literature is designed to identify related research, to set the current
research work within a conceptual and theoretical context. Review of literature is the
important step in a research work, which has to be done adequately in order to reveal the
significance of the study. In this chapter a detailed review of literature has been done by
reviewing the previous studies relating to the core area of the research. These studies have
been taken from published journals, articles and Ph.D. thesis.
A literature review is a text of a scholarly paper, which includes the current knowledge
including substantive findings, as well as theoretical and methodological contributions to a
particular topic. Literature reviews are secondary sources, and do not report new or original
experimental work. Most often associated with academic-oriented literature, such reviews are
found in academic journals, and are not to be confused with book reviews that may also appear
in the same publication. Literature reviews are a basis for research in nearly every academic
field. A narrow-scope literature review may be included as part of a peer-reviewed journal
article presenting new research, serving to situate the current study within the body of the
relevant literature and to provide context for the reader. In such a case, the review usually
precedes the methodology and results sections of the work.

According to American Marketing Association (AMA), Marketing is “an

organizational function and a set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.”.
Marketing is a social and managerial process, by which individuals and groups obtain
what they need and want, through creating and exchanging product and value with others.
(Kotler, 2012)
Similarly, according to Palmer “marketing is essentially about marshaling the

resources of an organization so that they meet the changing needs of the customer on whom
the organization depends.”
In the words of Theodore Levitt, “marketing is getting and keeping the customer.”
The comparative analysis is defined as the “The item-by-item comparison of two or

more comparable alternatives, processes, products, qualifications, sets of data, systems, or the
like. In accounting, for example, changes in a financial statement's items over several
accounting periods may be presented together to detect the emerging trends in the company's
operations and results. See also comparability analysis”.
Comparative Analysis
The comparative method is often used in the early stages of the development of a
branch of science. It can help researcher to ascend from the initial level of exploratory case
studies to a more advanced level of general theoretical models, invariances, such as causality
or evolution.
Influence of need for uniqueness on consuming behaviours is always an important

research perspective for researchers, which overturns traditional theory of interpersonal
attraction and reveals influences of perceptive similarity on customer choice for unique
products. It is shown from theory of interpersonal attraction that level of similarity among
people decides their relations, the higher the level of similarity is, the higher the acceptance
level will be, that is, birds of a feather flock together. Therefore, individuals will increase level
of similarity to blend in the group through herd behaviour. However, positive relationship

between level of similarity and acceptance level is denied by theory of uniqueness. According
to theory of uniqueness, when individuals find their social environments are highly similar to
others, they will attempt to reshape their own self-esteem through self-distinguished
behaviours in order to reduce negative emotions. Need for uniqueness is stimulated in such
condition and affects choice behaviours of consumers.
Product distinctiveness evaluation is the ability of consumers to perceive products

different from competitors. Information concern and processing are the primary processes to
evaluate product distinctiveness. Due to limitations of cognitive resources, information
processing ability of consumers is restricted, thus it is hard for them to make decisions in the
complete information situations, but they will choose some information to be processed and
deduced. Therefore, it is essential that what kind of information consumers will choose to
assist in decision making. According to the opinion of selective processing, consumers will
firstly pay attention to the information in accordance with their own targets, that is, the concern
of consumers to specific product information is goal-driven. When consumers are driven by
need for uniqueness, they need to purchase products which can represent uniqueness to show
their differences. When processing information, consumers shall firstly pay attention to the
product information which can realize individual need for uniqueness and the product
information to represent uniqueness is the focus of selective processing by consumers. Thus,
consumers’ evaluation for product distinctiveness is firstly the selective processing process of
cognitive resource allocation, and secondly the process to dispose information and evaluate
product uniqueness.
Difference and uniqueness are derived from comparison. In the process of consumer’s
choice, their judgments and preference are almost completed by comparison, thus comparison
is a basic psychological process for evaluation and choice of consumers. However, in the
comparative process, attribute comparison is an important constituent part. Scholars focus on
two parts for researches of attribute comparison. One kind is product attribute comparison
information based on choice set with the same attribute but different attribute values so that
difference and uniqueness can be represented. According to scholars’ current researches,
choice sets can be divided into two types, namely, binary and multiple choice sets. In addition,
unique and divergence attributes in these two kinds of choice sets are respectively represented

as distinctiveness information of products. The other is the attribute comparison information

unrelated to choice set, which means the product possesses attributes that other candidate
products don’t have, that is novel attribute and product distinctiveness also can be reflected
by novel attribute.
Since product distinctiveness evaluation based on need for uniqueness is a complicated

process including selective processing and activation of external cues, there are different
factors to affect product distinctiveness evaluation aimed at various types of feature
comparison. The paper analyzes and summarizes the factors of consumers to affect product
distinctiveness evaluation driven by need for uniqueness from perspective of consumers’
feature comparison, which is beneficial for enterprises to adjust relevant strategies according
to their own product features and market environment. By integration of relevant researches
on feature comparison, we find the expansion is not enough by scholars related to complicated
choice situations with introduction of complex feature combination and new variables. In
addition, cross influence mechanism of kinds of influence factors is required to be profoundly
explored. Driven by need for uniqueness, influence factors need to be further excavated when
consumers are faced with diverse external situations and complicated feature comparison.
(Kariyawasam, Jayasinghe-Mudalige, & Weerahewa, 2006) studied consumer attitude

and perception towards a milk product in Sri Lanka. The results indicated that consumers
tended to purchase tetra pack considering the attributes included in value and package subsets
mainly, including purity, appearance, size, convenience, and informational labeling etc.
However, consumers did not believe that it enhanced those attributes included in “food safety”
and “nutritional” subsets. The statistical outcome showed that age, gender, level of education
and income had a significant impact on this behavior.
(Kilic, Akbay, & Tiryaki, 2009) analyzed unpacked and packed milk preferences in
Samsun province of Turkey. The results indicated that better educated household head, higher
income households, younger and female household head and people who agreed with
“unpacked milk is not healthy” consumed more packed fluid milk than did others. Moreover,
consumers who agreed with statement “price of packed milk is expensive compare to
unpacked milk” were less likely to consume packed fluid milk than did others.

(Aayaz, Badar, & Ghafoor, 2011) conducted a study amongst 120 consumers of
packed milk in 3 cities of Pakistan. The results of the study indicated that consumers mostly
perceive packed milk relatively better due to its various quality attributes. The estimated
ordered logistic regression model revealed that younger, married and male consumers
irrespective of education level had greater preferences for packed milk.
(Yayar, 2012) investigated packed and unpacked fluid milk consumption and
preference amongst Turkish households using consumer survey. Empirical results indicated
that better educated household heads, higher income and larger households, and households
with children under seven years of age consumed more packed milk than others. A similar
result was found for unpacked milk consumption, except for a negative effect of education,
working wife and income.
(Sivasankaran & Sivanesan, 2013), in their study, found that quality, packaging, price,
availability and advertisement were the factors that affected the preference of branded milk in
rural and urban areas and affected the consumption pattern.
(Ahmed, Pramar, & Amin, 2014) conducted a research to assess the impact of
packaging on product purchase. According to the finding of the research study, it was
observed that the packaging was the most important factor. It was further concluded that the
packaging elements like its Color, packaging material, Design of Wrapper and innovation
were more important factors when consumers making any buying decision. Finally, it has also
been concluded that the Packaging is one of the most important and powerful factor, which
influences consumer’s purchase decision.
(Mousavi & Jahromi, 2014) conducted a research in Shiraz city with 193 samples
using questionnaire. The results of the study indicated that packaging elements such as color,
context image, packaging material, style of writing, cover design, printed information and
innovation had positive and significant relationship with consumer buying behavior.
(Sumathi, 2015) in his study of consumer’s perception towards different brands of

packaged milk concluded that, “despite the technological advancement resulting in several
variety of packaged milks in market, there is a strong felt need for the marketing managers to
focus on creating high degree awareness among consumers regarding their product range”.

(Elangovan & Gomatheeswaran, 2015) found in their study in Tamil Nadu that people
preferred retail outlets for purchasing branded milk and milk products and most of the
respondents were influenced by the family members for purchase of particular brand of milk.
Customer satisfaction
Customer satisfaction it refers to the degree to which customer expectations of a

product or service are met or exceeded. It is stated that corporate and individual customers
may have widely differing reasons for purchasing a product or service and therefore any
measurement of satisfaction will need to be able to take into account such differences.
Customer satisfaction measures how well the expectations of a customer concerning a product
or service provided by your company have been met.
Customer satisfaction is the most fundamental requirement for being in business.

Therefore, every organization should plan the right strategies for dealing with customers,
communicating with them, providing pleasant services and retaining them forever with
specially chosen customer contact employees, all leading to their delight. Since most of the
quality problems arise due to misunderstood requirements, it is essential to take steps to
correctly understand, both the stated and implied requirements of the customers. The
organization should not only fulfill the contracted requirements, but also make it appoint to
provide unanticipated additional services to delight the customers and retaining them forever.
The most important point is that organizations should provide comfort to the customers while
serving them. Thus, the business should be oriented towards satisfying customers.
In ‘Journal of Retailing ’Volume 76, Issue 2, Summer 2000, Pages 193–218 written
by J. Joseph Cronin Jr , Michael K Brady, G .Tomas M Halt of Florida State University,
College of Business, Tallahassee, FL 32306-1110, USA and Boston College, The Carroll
School of Management, Chestnut Hill, MA 02167-3808, USA the topic “Assessing the effects
of quality, value, and customer satisfaction on consumer behavioral intentions in service
environments” was presented and the literature says that, The study both synthesizes and
builds on the efforts to conceptualize the effects of quality, satisfaction, and value on
consumers’ behavioral intentions. Specifically, it reports an empirical assessment of a model
of service encounters that simultaneously considers the direct effects of these variables on

behavioral intentions. The study builds on recent advances in services marketing theory and
assesses the relationships between the identified constructs across multiple service industries.
Several competing theories are also considered and compared to the research model. A
number of notable findings are reported including the empirical verification that service
quality, service value, and satisfaction may all be directly related to behavioral intentions
when all of these variables are considered collectively. The results further suggest that the
indirect effects of the service quality and value constructs enhanced their impact on behavioral
intentions.
Customer Satisfaction – Definitions
Satisfaction has been broadly defined by Vavra, T.G. (1997) as a satisfactory post-
purchase experience with a product or service given an existing purchase expectation.
Howard and Sheth (1969) define satisfaction as, “The buyer’s cognitive state of being
adequately or inadequately rewarded for the sacrifices he has undergone”
According to Westbrook and Reilly (1983), customer satisfaction is “an emotional

response to the experiences provided by, associated with particular products or services
purchased, retail outlets, or even molar patterns of behavior such as shopping and buyer
behaviour, as well as the overall market place”.
Oliver (1981) put forward a definition as, “the summary psychological state resulting
when the emotion surrounding disconfirmed expectations is coupled with the consumers’
prior feelings about the consumption experience”
The definition offered by Hunt (1977) is “an evaluation rendered that the
(consumption) experience was at least as good as it was supposed to be”
Customer/consumer satisfaction is “an evaluation that the chosen alternative is

consistent with prior beliefs with respect to that alternative” – Definition by Engel and
Blackwell (1982)

Tse and Wilton (1988) define as, “the consumer’s response to the evaluation of the
perceived discrepancy between prior expectations (or some other norm of performance) and
the actual performance of the product/service as perceived after its consumption”
Berry and Parasuraman (1991) argue that since customers’ satisfaction is influenced
by the availability of customer services, the provision of quality customer service has become
a major concern of all businesses. Customer satisfaction is typically defined as a post
consumption evaluative judgement concerning a specific product or service. It is the result of
an evaluative process that contrasts pre-purchase expectations with perceptions of
performance during and after the consumption experience. Oliver (1981) defines customer
satisfaction as a customer’s emotional response to the use of a product or service.
Anton (1996) offers more elaboration: “customer satisfaction as a state of mind in which the
customer’s needs, wants and expectations throughout the product or service life have been
met or exceeded, resulting in subsequent repurchase and loyalty”.
Merchant Account Glossary points out that, “Customer satisfaction is an ambiguous

and abstract concept and the actual manifestation of the state of satisfaction will vary from
person to person and produce/service to produce/service”
Schiffman and Kanuk (2004) defines customer satisfaction as “The individual’s perception
of the performance of the product or service in relation to his or her expectations”.
According to Hung (1977), “…. satisfaction is a kind of stepping away from an

experience and evaluating it … One could have a pleasurable experience that caused
dissatisfaction because even though it was pleasurable, it wasn’t as pleasurable as it was
supposed to be. So satisfaction / dissatisfaction isn’t an emotion, it’s the evaluation of the
emotion”.
Woodruff and Gardian (1996) define “Satisfaction, then, is the evaluation or feeling
that results from the disconfirmation process. It is not the comparison itself (i.e., the
disconfirmation process), but it is the customer’s response to the comparison. Satisfaction has
an emotional component.”

Oliver (1977) defines “Satisfaction is the consumer’s fulfilment response. It is a

judgment that a product or service feature, or the product of service itself, provided (or is
providing) a pleasurable level of consumption- related fulfilment, including levels of under-
or over-fulfilment”.
Some of the definitions available from web are compiled below: “Customer
satisfaction, a business term, is a measure of how products and services supplied by a company
meet or surpass customer expectation “Customer satisfaction is an ambiguous and abstract
concept and the actual manifestation of the state of satisfaction will vary from person to person
and product/service to product/service”.
“Comparison of expectations versus perception of experience”. “A customer’s

perception of the degree to which their requirements have been fulfilled.” According to
Business Dictionary, customer satisfaction is, “Degree of satisfaction provided by the goods
or services of a firm as measured by the number of repeat customers.”
These definitions suggest that an evaluative process is an important element underlying

customer satisfaction.

CHAPTER – 4

4.1 consumer data analysis and interpretation
4.1.1 Gender wise category
Gender No of Respondents Percentage

Male 47 39%
Female 73 61%
Total 120 100
(Table 4.1.1)
Gender wise category
Male 39%
Female
61%
(Figure 4.1.1)
Interpretation:
In the above figure shows that the 61% of the respondents are females and rest of the
39% of the respondents are male customers.

4.1.2 Occupation wise category
Occupation No of Respondents Percentage

Self Employed 8 7%
Professional 21 18%
Working 63 53%
Homemaker 18 15%
Other 10 8%
TOTAL 120 100%
(Table 4.1.2)
Occupation wise category

60
53
50
40
30
20 18
15
7 8
10
0
Self Employed Professional Working Homemaker Other
(Figure 4.1.2)
Interpretation:
In the above figure shows that the 53% of the respondents of the working, 18% of the
users are professionals, 15% of respondents are house wife, 7% of them are self-employed
and 8% peoples are come under other category.

4.1.3 UHT milk brands used by customers
Brands No of Respondents Percentage

Good Life 47 39
Amul 52 43
Britannia 13 11
Nestle 8 7
Total 120 100
(Table 4.1.3)
UHT milk brands used by customers

50
43
39
40
30
20
11
10 7
0
Good Life Amul Britannia Nestle
(Figure 4.1.3)
Interpretation:
In the above figure shows the various brands of UHT milk used by the customers. 43%
of the respondents using Amul, 39% of respondents using Good Life, 11% of them are using
Britannia and 7% using Nestle no one of the respondents are using Mother Dairy.

4.1.4 Factors considering while purchasing UHT milk
Factors Weightage Rank

Brand 379 2
Convenience 278 5
Availability 357 3
Quality 440 1
Price 346 4
(Table 4.1.4)
Factors considering
500
1
450
400 2
3 4
350
300 5
250
200
150
100
50
0
Brand Conveniance Availability Quality Price
(Figure 4.1.4)
Interpretation:
In the above figure, most of the respondents consider quality is most important factor,
second importance given to brand, then they consider the availability and price last consider
the convenience of the product.

4.1.5 How long customers using UHT milk
Used Period No of Respondents Percentage

0-6 Month 29 24
6Month to 1Year 52 43
1Year to 2Year 22 18
2Year to 3Year 12 10
3Year and above 5 4
Total 120 100
(Table 4.1.5)
Percentage
3 Year and above 4
2 Year to 3Year 10
1 Year to 2Year 18
6 Month to 1Year 43
0-6 Month 24
0 10 20 30 40 50
(Figure 4.1.5)
Interpretation:
In the above figure shows that how long the customers are using UHT milk, 43% of
the respondents using UHT milk for a period of six months to one year, 24% of the customers
using less than six months, 18% of the respondents used for a period of one to two years, 10%
of them are using UHT milk for two to three years and rest of the 4% of the respondents used
for more than three years.

4.1.6 Customer opinion on preferring other brand.
Opinion No of Respondents Percentage

Yes 83 69
No 37 31
Total 120 100
(Table 4.1.6)
Customers opinion on prefering other brand.
31%
69%
Yes No
(Figure 4.1.6)
Interpretation:
In the above figure, the customer’s opinion on will they go for another brand when
their preferred brand will not available. 69% of the customers are choose another brand if the
regular brand not available but 31% of the customers are not willing to use another brand.

4.1.7 Second preference of the customers

Good Life 34 41
Amul 30 36
Britannia 9 11
Nestle 10 12
Total 83 100
(Table 4.1.7)
Second preference of the customers

45 41
40 36
35
30
25
20
15 11 12
10
5
0
(Figure 4.1.7)
Interpretation:
In the above figure shows that the customers second opinion on UHT milk brands.
41% of people are choose good life as their second option, 36% of people preferring Amul as
their second option, 12% respondents prefer Nestle, 11% people prefer Britannia.

4.1.8 Why customers prefer UHT milk
Factors No of Respondents Percentage

Packaging 15 13
Long expiry 46 38
Convenience 59 49
Total 120 100
(Table 4.1.8)
Percentage
13%
49%
38%
Packaging Long expiry Convenience
(Figure 4.1.8)
Interpretation:
In the above figure shows the reason for using the UHT milk by its customers. 49% of
people use the product because of its convenience like shelf life, keep it without refrigeration,
38% people use because of long expiry it has six months of expiry than loos milk. 13% people
choose it for its packaging.

4.1.9 Sources of information about the product.
Sources No of Respondents Percentage

Display 44 37
Advertisement 39 33
Suggestions 19 16
Retailer 15 13
Other 3 3
Total 120 100
(Table 4.1.9)
Sources of information
40 37
35 33
30
25
20 16
15 13
10
5 3
0
Display Advertisement Suggestions Retailer Other
(Figure 4.1.9)
Interpretation:
In this figure shows the sources the knowledge about the product to its customers. 37%
of people find its from its store display, 33% of respondents get knowledge from
advertisement, 16% of the respondents get information about the product from friend and
family suggestions, 13% of respondents from retailer’s reference and 3% from other sources.

4.1.10 Satisfaction level on UHT milk
Highly Highly
Brands Satisfied Satisfied Neutral Unsatisfied Unsatisfied
Amul 10 30 12 0 0
Good Life 8 25 14 0 0
Britannia 7 3 3 0 0
Nestle 2 4 2 0 0
(Table 4.1.10)
Brands Weightage Max. weightage Percentage Rank

Amul 206 260 79 3
Good Life 182 235 77 4
Britannia 56 65 86 1
Nestle 32 40 80 2
(Table 4.1.10)
Customer satisfaction of each brand

88
1
86
84
82
2
80 3
78 4
76
74
72
Amul Good Life Britannia Nestle
(Figure 4.1.10)
Interpretation:
In this figure shows the satisfaction level of UHT milk customers Britannia have the
most satisfied customers followed by Nestle, Amul and Good Life

4.1.11 Customer satisfaction on Amul UHT Milk

Highly Satisfied 10 19
Satisfied 30 58
Neutral 12 23
Unsatisfied 0 0
Highly Unsatisfied 0 0
Total 52 100
(Table 4.1.11)
Customer satisfaction on Amul UHT Milk

70
58
60
50
40
30 23
19
20
10
0 0
0
Highly Satisfied Neutral Unsatisfied Highly
Satisfied Unsatisfied
(Figure 4.1.11)
Interpretation:
In this figure shows the satisfaction level of Amul UHT milk customers. 19% of the
respondents are highly satisfied, 58% of the respondents are satisfied, 23% the respondents
are neutral in their satisfaction. No one can unsatisfied or highly unsatisfied.

4.1.11 Customer satisfaction on Good Life UHT Milk

Satisfied 25 53
Neutral 14 30
Unsatisfied 0 0
Total 47 100
(Table 4.1.12)
Customer satisfaction on Good Life UHT Milk

60 53
50
40
30
30
20 17
10
0 0
0
(Figure 4.1.12)
Interpretation:
In this figure shows the satisfaction level of Good Life UHT milk customers. 17% of
the respondents are highly satisfied, 53% of the respondents are satisfied, 30% the respondents

4.1.13 Customer satisfaction on Nestle UHT Milk

Satisfied 4 50
Neutral 2 25
Unsatisfied 0 0
Total 8 100
(Table 4.1.13)
Customer satisfaction on Nestle UHT Milk

60
50
50
40
30 25 25
20
10
0 0
0
(Figure 4.1.13)
Interpretation:
In this figure shows the satisfaction level of Nestle UHT milk customers. 25% of the
respondents are highly satisfied, 50% of the respondents are satisfied, 25% the respondents

4.1.14 Customer satisfaction on Britannia UHT Milk
Britannia No of Respondents Percentage

Satisfied 3 23
Neutral 3 23
Unsatisfied 0 0
Total 13 100
(Table 4.1.14)
Customer satisfaction on Nestle UHT Milk

60 54
50
40
30 23 23
20
10
0 0
0
(Figure 4.1.14)
Interpretation:
In this figure shows the satisfaction level of Britannia UHT milk customers. 54% of
the respondents are highly satisfied, 23% of the respondents are satisfied, 23% the respondents

4.1.15 Customer opinion on satisfaction with sales promotion activities.

Yes 46 38
No 74 62
Total 120 100
(Table 4.1.15)
Percentage
Yes 38%
No
62%
(Figure 4.1.15)
Interpretation:
In this figure shows the customers opinion on are they satisfied with sales promotion
activities. Most of the respondents are not satisfied with the sales promotion activities of the
companies.

4.1.15 Most noticed advertisement

Good Life 28 23
Amul 32 27
Britannia 33 28
Nestle 27 23
Total 120 100
(Table 4.1.16)
Most noticed advertisement

30 27 28
25 23 23
20
15
10
0
(Figure 4.1.15)
Interpretation:
In this figure shows the which brands advertisement will be most noticed by
customers, 28% of the respondents noticed advertisement by Britannia, 27% of respondents
noticed the Amul advertisement, and Good Life and Nestlé’s advertisement noticed by 23%
each.

4.2 Retailer data analysis and interpretation
4.2.1 Brands available in retail shops
Brands Frequencies Percentage

Amul 46 92
Good Life 43 86
Britannia 15 30
Nestle 7 14
(Table 4.2.1)
Brands available in retail shops

100 92
90 86
80
70
60
50
40 30
30
20 14
10
0
(Figure 4.2.1)
Interpretation:
In this figure shows the various brands of UHT milk available in stores. Amul is most
available brand it is available in 92% of the stores, Good Life is available in 86% of the stores,
Britannia available in 30% of the stores, and Nestle available in 14% stores.

4.2.2 Demand of various brands in store
Brands Weightage Rank

Amul 211 1
Good Life 195 2
Britannia 44 3
Nestle 21 4
(Table 4.2.2)
Demand of various brands in store

250
1
2
200
150
100
3
50
4
0
(Figure 4.2.2)
Interpretation:
In the above figure shows the demand of brands in the store, Amul have rated top
selling brand and next one is good life, Britannia hold the third position in demand and Nestle
hold the fourth position in demand.

4.2.3 Customer satisfaction in retailer’s point
Opinion No. of Responses Percentage

Yes 48 96
No 2 4
(Table 4.2.3)
Customers Satisfaction
4%
Yes
No
96%
(Figure 4.2.3)
Interpretation:
In this figure shows the customers satisfaction with the retailer’s view, 96% of
customers are satisfied and 4% of customers are not satisfied.

4.2.4 Retailers satisfaction on margin
Opinion No. of Responses Percentage

Yes 44 88
No 6 12
(Table 4.2.4)
Margin
12%
Yes
No
88%
(Figure 4.2.4)
Interpretation:
In this figure shows the retailers satisfaction on margin. 88% of the respondents
satisfied with their margin, 12% of them are not satisfied.

4.2.5 Retailers satisfaction on supply
Opinion No. of Responses Supply

Yes 50 100
No 0 0
(Table 4.2.5)
Retailers satisfaction on supply

0%
100%
Yes No
(Figure 4.2.5)
Interpretation:
In this figure shows the retailers satisfaction on supply. All retailers are satisfied with
supply they get.

4.2.6 Retailers satisfaction on supply
Brands Very Good Good Average Poor Very Poor

Amul 16 27 2 1 0
Good Life 24 17 0 0 0
Britannia 3 7 5 0 0
Nestle 2 4 1 0 0
(Table 4.2.6.1)
Brands Weightage Max. Weightage Percentage Rank

Amul 196 230 85% 2
Good Life 188 205 92% 1
Britannia 58 75 77% 3
Nestle 29 35 83% 4
(Table 4.2.6.2)
Satisfaction level on supply

95%
1
90%
2
85% 3
80% 4
75%
70%
(Figure 4.2.6)
Interpretation:
In this figure shows the satisfaction rating of different UHT milk given by the
retailers, respondents say that Good Life were best in supply, followed by Amul, Nestle and
Britannia.

4.2.6 Supply rating on Amul
Opinion No of response Percentage

Very Good 16 35
Good 27 59
Average 2 4
Poor 1 2
Very Poor 0 0
Total 46 100
(Table 4.2.7)
Supply rating on amul

70
59
60
50
40 35
30
20
10 4 2 0
0
Very Good Good Average Poor Very Poor
(Figure 4.2.7)
Interpretation:
In this figure shows the supply rating of Amul given by the retailers, 35% of
respondents says Amul provide very good supply, 59% of respondents says good supply, 4%
retailer says average supply, 2% retailers get poor supply.

4.2.7 Supply rating on Good Life

Very Good 24 59
Good 17 41
Average 0 0
Poor 0 0
Very Poor 0 0
Total 41 100
(Table 4.2.8)
Supply rating on Good Life

70
59
60
50
41
40
30
20
10
0 0 0
0
(Figure 4.2.8)
Interpretation:
In this figure shows the supply rating of Good Life given by the retailers, 59% of
respondents says Good Life provide very good supply, 41% of respondents says good supply.

4.2.8 Supply rating on Britannia
Opinion No of retailers Percentage

Very Good 3 20
Good 7 47
Average 5 33
Poor 0 0
Very Poor 0 0
Total 15 100
(Table 4.2.9)
Supply rating on Britannia

50 47
40
33
30
20
20
10
0 0
0
(Figure 4.2.9)
Interpretation:
In this figure shows the supply rating on Britannia given by the retailers, 20% of
respondents says Britannia provide very good supply, 47% of respondents says good supply,
33% get an average supply.

4.2.9 Supply rating on Nestle
Opinion No of retailers Percentage

Very Good 1 14
Good 4 57
Average 2 29
Poor 0 0
Very Poor 0 0
Total 7 100
(Table 4.2.10)
Supply rating on Nestle

60 57
50
40
29
30
20 14
10
0 0
0
(Figure 4.2.10)
Interpretation:
In this figure shows the supply rating on Nestle given by the retailers, 14% of
respondents says Nestle provide very good supply, 57% of respondents says good supply,
29% get an average supply.

4.2.10 Types of people preferring UHT milk
Type of people Frequency percentage

Homemaker 36 31
Family 20 17
Professionals 11 9
working 45 39
Students 4 3
Total 116 100
(Table 4.2.11)
Types of people using UHT milk

45
39
40
35 31
30
25
20 17
15
9
10
5 3
0
Homemaker Family Professionals working Students
(Figure 4.2.11)
Interpretation:
In this figure shows the which categories of people using UHT milk. 39% of the
working people using the product. 31% of the customers are Homemakers, 17% of Families
using this product, 9% of professionals, and 3% of students.

4.2.11 Satisfaction on credit facilities

Yes 46 92
No 4 8
Total 50 100
(Table 4.2.12)
Satisfaction on credit facilities

8%
Yes
No
92%
(Figure 4.2.12)
Interpretation:
In this above figure shows that the retailers satisfaction with credit facilities provided
by the 92% of the respondents satisfied with the credit facilities, and 8% retailers are not
satisfied.

4.2.12 Rating of credit facilities offered by the company
Brands Rating 1 Rating 2 Rating 3 Rating 4 Rating 5

Amul 30 9 1 2 0
Good life 39 2 0 0 0
Britannia 13 2 0 0 0
Nestle 7 0 0 0 0
(Table 4.2.13.1)
Brands Weightage Max. Weightage Percentage Rank

Amul 193 210 92 4
Good life 203 205 99 2
Britannia 73 75 97 3
Nestle 35 35 100 1
(Table 4.2.13.2)
Rating of credit facilities offered by the company

102
1
100 2
98 3
96
94
4
92
90
88
Amul Good life Britannia Nestle
(Figure 4.2.13)
Interpretation:
In this figure shows the brands rated by the retailers on the basis of credit facilities
offered by the company. Nestle is in the top position by providing credit facilities, Good life
is in the second position, followed by Britannia and Amul.

4.2.13 Retailer’s satisfaction on incentives.

yes 8 16%
no 42 84%
Total 50 100%
(Table 4.2.14)
Satisfaction with incentives

16%
84%
yes no
(Figure 4.2.14)
Interpretation:
In this figure, the retailer’s satisfaction on incentives that provided by the companies.
84% of the respondents are not satisfied with the incentives, and 16% of the retailers are
satisfied with incentives.

4.2.14 In store advertisement helps on sales

Yes 32 64
No 18 36
Total 50 100
(Table 4.2.15)
In-store advertisement helps on sales
36%
64%
Yes No
(Figure 4.2.15)
Interpretations:
In the figure, retailer’s opinion in store advertisement helps on advertisement. 64% of

the respondents says that in-store advertisement helps the sale of the product. And 36% of the
respondents says in-store advertisement could not help sale of the product.

CHAPTER – 5

5.1 FINDINGS
5.1.1 Findings from customers
1. 61% of the respondents are females

2. 53% of the respondents are working, others are professionals (18%), homemakers
(15%), self-employed (7%).
3. The large number of respondents using Amul UHT milk (43%), followed by Good
Life (39%), Britannia (11%), Nestle (7%).
4. Majority of the respondents give prior importance to quality of the product, followed
by brand, availability, price, convenience.
5. 83% of the respondents choose another brands if preferred brand is not available.
6. The second preference of the customers is good life (41%), followed by Amul (36%),
Britannia (11%) and Nestle (12%).
7. The customers use UHT milk because of its convenience (49%), followed by expiry
(38%), and packaging (13%)
8. 37% of the customers get information about the product from the store display,
followed by advertisement (33%), suggestions from friend and family (16%), retailer
reference (13%) and other sources (3%).
9. 58% of the Amul UHT milk customers are satisfied with the product, and 19% of the
customers are very satisfied and 23% of them are neutral in their opinion.
10. 53% of the Good Life UHT milk customers are satisfied with the product, and 30%
of the customers are neutral in their satisfaction followed by 17% highly satisfied.
11. 50% of the Nestle UHT milk customers are satisfied with the product and 25% of the
customers are very satisfied and 25% of them are neutral in their satisfaction.
12. 54% of the Britannia UHT milk customers are highly satisfied with the product and
23% of the customers are satisfied and 23% neutral in their satisfaction on product.
13. 62% of the customers are not satisfied with the sales promotion activities of the
product.
14. 28% noticed advertisement by Britannia followed by Amul (27%), Nestle (23%),
Good life (23%).

5.1.2 Finding from retailers
1. Amul is the available in 92% of the retail store followed by good life (86%), Britannia
(30%) and nestle (14%).
2. Highest demanded brand in the store is Amul and followed by Good life, Britannia,
Nestle.
3. In the retailer’s view 96% of the UHT milk customers are satisfied with the product.
4. 88% of the retailers are satisfied with the margin they get.
5. Respondents say that Good Life was best in supply, followed by Amul, Nestle and
Britannia
6. The Amul UHT milk supply is good in the 59% of the store, 35% of the retailers get
very good supply, and also 4% of the retailers get average and 2% poor supply.
7. The Good life UHT milk supply is very good in the 59% of the store, 41% is get good
supply.
8. The Britannia UHT milk supply is good in the 47% of the store, 20% of retailers says
they get very good supply and 33% of retailers get average supply
9. The Nestle UHT milk supply is good in the 57% of the store, 27% is get very average
supply and 17% of the retailers are get good supply.
10. 39% of workers used UHT milk followed by homemaker (31%), family (17%),
professionals (9%) and 3% of students purchase the product.
11. Most of the retailers are satisfied with credit facility they get.
12. Nestle is offering very good credit facilities, followed by Good life, Britannia. Amul
is least credit proving company.
13. 84% of retailers is not satisfied with the incentives they received.
14. 64% of the retailers says that in-store advertising will help to increase the sale of the
product.

5.2 SUGGESTIONS
 Amul is a well-known dairy brands in India. The customers give prior importance to
the quality of the product. So the company can give more focus on the quality of the
product to satisfy and attract new customers.
 Since availability is the one of the major attribute that affect the customer loyalty,
therefore company should take measures to improve the availability of preferred brand
in the retail outlet.
 As in UHT milk the company should take initiatives to increase the awareness level
of UHT milk trough different medias. In order to educate the customers and to create
brand awareness of the company. Because product awareness is low.
 As compare Amul with other competing brands, other brands will provide better
supply. So the company will make sure the better supply and availability of the product
in every distribution point.
 Retailers are very weak in suggesting the product to their customers, give necessary
guidelines to retailers that will make them to suggest the product to their customers.
 Since the companies credit offering is very low there for the company provide best
credit to retailers make them motivated and promote sale of the product.
 Company should provide better incentives to the retailers in order to promote the sale
of product.
 In this study some retailers are not satisfied with margin, the company may try to
provide better margin to retailers.
 In retailer’s opinion in-store advertising will help the sale of the product. So give more
attention on placing in-store display, product labels, product display. It will help the
sale of the product.
 The availability can improve in the kirana stores by increasing the supply through
different distribution networks.

5.3 CONCLUSION
Amul is a well-known diary industry in India, the brand name AMUL is managed by
Gujarat Co-operative Milk Marketing Federation Ltd. This study helps me to find the
various differences and similarities between different UHT milk brands in comparison with
Amul UHT milk. This study also helps the company to understand the attributes that affects
the market share of the UHT milk brands. This study further helps in focusing on the
different quality of brands that is available in UHT milk category. From the study it can be
concluded that availability is the one of the major attribute that affect the customer loyalty
as well as retailers’ satisfaction. It is being understood that credit offering also creating an
impact in the minds of the retailers. Thus this comparative analysis of UHT milk will help
the company to increase its market share and also to create loyal customers.

BIBLIOGRAPHY
 Kothari, C R and Gaurav Garg. Research Methodology, Methods and techniques,
New Age International Publisher, 3rd edition.
 Stephen. P. Robbins, Stephen, Mary Coulter and Neharika Vohra. Management,
Pearson, 10th edition.
 Kotler, Philip, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha.
Marketing Management, A South Asian Perspective, Pearson, 14th edition.
 K.Malhotra, Naresh and Satyabhushan Dash. Marketing Research, An applied
orientation, Pearson, 6th edition.
 S H H Kazmi. Marketing Management: Text and Cases, Excel Books, New Delhi.
 M S Raju, Dominique Xardel and Mohan Lal Agrawal. Consumer Behavior:
Concepts, Applications and Cases.
 Nargundkar Rajendra. Marketing research: Marketing strategies, The McGraw-
Hill Companies, 2005, Third edition.
 Schiffman, Leon G, Joseph Wisenblit and S.Ramesh Kumar. Consumer Behavior,
Pearson, 11th edition.
 Satish K Batra, Kazhmi, Consumer Behavior: Text and Cases, Excel Books, New
Delhi, first edition 2004.
WEBSITES
 www.google.com/
 www.amul.com/
 https://en.wikipedia.org/
 www.britannia.co.in/
 www.nestle.in/
 www.kmfnandini.coop/

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A study on comparative analysis of different UHT milk brands available in Cochin

with special reference to AMUL

Marthoma College of Management And Technology, Perumbavoor -1-

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1.2 NEED FOR THE STUDY

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1.5 RESEARCH METHODOLOGY

Descriptive research used in this study is to gain valuable information. It is to ensure

Descriptive research is conclusive in nature, as opposed to exploratory. This means that

1.5.2 Sampling Method

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1.5.3 Sample Size

1.5.4 Sampling Technique

1.5.5 Sources of Data

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Tools for data collection

Tools for analysis

1.6 LIMITATIONS OF THE STUDY

 Subjective response from respondents

 Change in customer attitude, taste and preference.

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2.1 INDUSTRY PROFILE

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2.1.1 Indian Scenario

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2.1.2 Major segments of the FMCG industry

The detergents segment is growing at an annual growth rate of 10 to 11 percent during

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 Food and beverages

2.1.4 Policies related to FMCG industry.

2.1.5 FDI Policy

Automatic investment approval (including foreign technology agreements within

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2.1.6 Key growth drivers to the Industry are as follows:

 Robust growth in India’s GDP

 Evolving consumer life style

 Increased income in rural areas

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 Changing Profile and Mind Set of Consumer

 Growth of modern retail

 Shift from unorganized to organized

 Rise in per capita category consumption

 Increased in rural consumption

2.1.7 PEST Analysis of Indian FMCG Industry

 Transportation and infrastructure development in rural areas helps in distribution

 Restrictions in import policies.

 Help for agricultural sector.

 The GDP rate of Indian economy is comparatively better. It is expected in future it

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 Foreign players help in high technological development. With research and

2.1.8 SWOT Analysis of Indian FMCG Industry

SWOT analysis of this sector is carried as follows:

 Well-established distribution network extending to rural areas.

 Strong brands in the FMCG sector.

 Low cost operations

 Favorable Government policies

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 Low export levels.

 Several "me-too’’ products.

 Large domestic market.

 Increasing income levels will result in faster revenue growth.