1

CHAPTER 1

INTRODUCTION

This is an organization study about the Gujarat Cooperative Milk Marketing

Federation Ltd. (GCMMF), is India's largest food product marketing organization with
annual turnover (2016-17) US$ 4.1 billion. Its daily milk procurement is approx 18
million lit per day from 18,700 village milk cooperative societies, 18 member
unions covering 33 districts, and 3.6 million milk producer members.

It is the Apex organization 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 organization 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.
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1.1 OBJECTIVE OF STUDY

 To understand the organization structure of AMUL

 To understand the product profile of AMUL
 To understand the functional areas of the firm
 To understand the organization structure

1.1.1 SCOPE OF THE STUDY

The world of business is changing very rapidly. Dairy industry is growing day
by day and it is an area of great opportunities. This organization study in AMUL
exposes to the practical side of the business enterprise. This study helps to understand
the history, structure, activity and the products of the company and its contribution to
the dairy industry. This study exposes to various products, distribution pattern and
market competition faced by the organization.

1.1.2 METHODS OF DATA COLLECTION

Data required for the study is obtained through primary and secondary sources.

Primary data:

Primary data is collected directly from the employees, department heads and the
organization study guide in the company. It is collected through observation and direct
interview methods.

Secondary data:

The secondary data is collected from journals, company files, department manuals and
website of the company.
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1.1.3 LIMITATIONS OF THE STUDY

As the study was conducted during a short period as a part of the course
curriculum, so a detailed study of all the functions in the organization could not be
completed within this period.

The company’s authorities could not disclose matters relating to some functional areas.
Hence some areas could not be studied extensively.

1.2 INDUSTRY PROFILE

India had tremendous milk production in 40 years and has become the
world's largest milk producing nation with a gross output of 84.6 million tons in 2001.
The Indian Dairy Industry has achieved this strength of a producer owned and
professionally managed cooperative system, despite the facts that a majority of dairy
farmers are illiterate and run small, marginal operations and for many farmers, selling
milk is their sole source of income. More than 10 million dairy farmers belong to
96,000 local dairy cooperatives, who sell their products to one of 170 milk producers'
cooperative unions who in turn are supported by 15 state cooperative milk marketing
federations. In India dairy business has been practiced as rural cottage industry over the
years. Semi commercial dairy started with the establishment of military dairy farms and
cooperative milk unions throughout the country towards the end of the 19th century.
Since Independence this Industry has made rapid progress. A large number of modern
milk and milk product factories have since been established. The organized dairies in
India have been successfully engaged in the routine commercial production of
pasteurized bottled milk for Indian dairy products.

The growth of Indian Dairy Industry during the last three decades has been
impressive, at more than 5% per annum; And in the 90's the country has emerged as the
largest producer of milk. This is not a small achievement when we consider the fact that
dairying in India is largely stringent that farmers in general keep dairy animals in
proportion to their free crop and also are available for family labour with little or no
purchased inputs and a minimum of marketed outputs. The existence of restrictive trade
 4

policy milk in the Diary Industry and the emergence of Amul type cooperatives have
changed the dairy farming practices in the country. Farmers have gained the favourable
price for their milk and for their production which was essentially a self-reliant one is
which is now being transformed into a commercial proposition. In India Milk
production is dominated by small and marginal landholding farmers and also by
landless labourers who in aggregate own 70% of the national milk animal herd. And as
the crop production on 78% of the agricultural land still depends on rain, which is prone
to both drought and floods, rendering agricultural income is very much uncertain for
most of the farmers. Dairying, as a subsidiary source of income and occupation, is real
relief to most of the farmers in the society. Usually one or two milk animals enable the
farmers to generate sufficient income to break the vicious subsistence agricultural debt
cycle.

1.2.1 GLOBAL SCENARIO

Dairy foods and beverages, being an essential part of our diets, have been
witnessing tremendous demand and are expected to continue to do so over the forecast
period. As a number of manufacturers have been addressing the needs of the health
conscious populace worldwide, a number of low fat, lactose free, and cholesterol free
dairy products have entered the market. By type of product, the global market for dairy
products can be segmented into butter, cheese, milk, cream, yoghurt, buttermilk, ice
cream, and lactose free dairy products. The report includes a clear, succinct description
of the various factors propelling and restraining the growth of the market. The recent
technological developments, growth opportunities, and market projections are included
in the report. The Porter’s Five Force Analysis has been leveraged to determine the
nature of competition among the leading market players. An assessment of the major
segments of the market, alongside a detailed understanding of the competitive scenario
has been provided in the report.
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1.2.2 INDIAN SCENARIO

India is the world’s largest milk producer, accounting for around 17% of
the global milk production. Besides, it is one of the largest producers as well as
consumers of dairy products. Due to their rich nutritional qualities, the consumption of
dairy products has been growing exponentially in the country, and considering such
facts and figures, our study anticipates that the milk production in India will grow at a
CAGR of around 4% during 2011-2015.With the rising use of dairy products, the
secondary market for dairy products has also been flourishing, our report observed. For
this, we have included the analysis of secondary market for dairy products, including
tea, coffee, infant nutrition, malted foods, and bakery products. Covering the necessary
aspects of the Indian dairy industry, the study facilitates knowledge about its current
market scenario and future growth.

Analysing the past and current state of the industry, the report tries to find out
how trends like the entry of international companies and safe packaging are attracting
more consumers and leading to further growth in the market. This way, it presents a
clear picture of the direction, in which the industry is likely to proceed in the coming
years. India’s dairy sector is expected to triple its production in the next 10 years in
view of expanding potential for export to Europe and the West. Moreover with WTO
regulations expected to come into force in coming years all the developed countries
which are among big exporters today would have to withdraw the support and subsidy
to their domestic milk products sector. Also India today is the lowest cost producer of
per liter of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s
$2.8 dollars. Also to take advantage of this lowest cost of milk production and
increasing production in the country multinational companies are planning to expand
their activities here. Some of these milk producers have already obtained quality
standard certificates from the authorities. This will help them in marketing their
products in foreign countries in processed form. The urban market for milk products is
expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500
crores by year 2005. This growth is going to come from the greater emphasis on the
processed foods sector and also by increase in the conversion of milk into milk
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products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00,000
million. Presently the market is valued at around Rs7,00,000 mn.

1.2.3 INDIAN DAIRY INDUSTRY IN 2015-2016

With an annual output of 130 MT, India is the largest producer of the milk in
the world. It also has the largest milk producing Animal population of over 118 million.
According to the National Dairy Development Board, demand for milk is expected to
increase at a compound annual growth rate or CAGR of 5% from 138 million tons in
2014 to 200 million tons in 2022. The move towards value added dairy products, offer
higher margins than liquid milk for the Indian Milk Industry. According to a report by
CARE Ratings, the share of value added products in the milk and milk derivatives
segment in India is growing at around 25% every year and is expected to grow at the
same rate until 201920. Almost 7580% of the Indian dairy market is still unorganized
and even in the organized sector; large part of the market is occupied by liquid milk.
However, there is a clear shift from unorganized to organized industry and also a shift
from liquid milk to products.

1.2.4 MILK MARKET DYNAMICS

Out of the 400 million liters of milk that India produces per day, 160 million
liters per day (48 per cent) is retained by the producers for their own consumption. The
surplus milk that is available for sale is around 240 million liters per day (52 per cent)
and out of that only 70 million liters per day is being used by the organized sector -
consisting of co-operatives such as Amul, Mother Dairy (wholly-owned subsidiary of
NDDB) and Nandini (a brand owned by the Karnataka Cooperative Milk Producers
Federation (KMF), as well as private sector players such as Nestle and Danone. Over
170 million liters of the surplus milk continues to be with the unorganized sector,
comprising traditional doodhwalas. In value terms, the Indian milk economy is worth
Rs 5 lakh crore, growing at a CAGR of 15-16 per cent, out of which the organized milk
economy, is worth Rs 80,000 crore.
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CHAPTER 2

ORGANIZATIONAL ANALYSIS

2.1 COMPANY PROFILE

2.1.1 ORIGIN OF THE ORGANISATION

The seeds of this unusual saga were sown more than 65 years back in Anand, a
small town in the state of Gujarat in western India. The exploitative trade practices
followed by the local trade cartel triggered off the cooperative movement. Angered by
unfair and manipulative practices followed by the trade, the farmers of the district
approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised
them to get rid of middlemen and form their own co-operative, which would have
procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed
down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders
like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in
1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd.
began with just two village dairy co-operative societies and 247 liters of milk and is
today better known as Amul Dairy. Amul grew from strength to strength thanks to the
inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr Verghese Kurien, who was entrusted the task of running the dairy
from 1950.
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The then Prime Minister of India, Lal Bahadur Shastri decided that the same
approach should become the basis of a National Dairy Development policy. He
understood that the success of Amul could be attributed to four important factors. The
farmers owned the dairy, their elected representatives managed the village societies and
the district union, they employed professionals to operate the dairy and manage its
business. Most importantly, the co-operatives were sensitive to the needs of farmers and
responsive to their demands.

2.1.2 MILE STONES

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. 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 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 organization to win topmost International Dairy Federation
Marketing Award for robotic 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.
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Table 2.1: History

Year of Establishment 1973

18 District Cooperative Milk Producers'

Members
Unions

No. of Producer Members 3.6 Million

No. of Village Societies 18,549

Total Milk handling capacity per day 30 Million liters per day

Milk Collection (Total - 2016-17) 6.44 billion liters

Milk collection (Daily Average 2016-17) 17.65 million liters

Cattle feed manufacturing Capacity 7800 Mts. per day

Sales Turnover -(2016-17) Rs. 27043 Crores (US $ 4.1 Billion)

2.1.3 ORGANISATION STRUCTURE AND DESIGN

The Amul Model of dairy development is a three-tiered structure with the dairy
cooperative societies at the village level federated under a milk union at the district
level and a federation of member unions at the state level. 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 program. It is
known as the ‘Amul Model’ or ‘Anand.
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 Establishment of a direct
linkage between milk
producers and
consumers by
eliminating middlemen

 Milk Producers (farmers)

control procurement,
processing and
marketing

 Professional
management

Figure 2.1: Collection process 01

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Figure 2.2: Distribution network

2.2.1 VISION

GCMMF endeavour to satisfy the taste and nutrition requirements of the

customers, of the world through excellence in marketing by their committed team.
Through co-operative networking, they are committed to offer quality products that
provide best value for money
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2.2.2 VISION STATEMENT

“Amul’s vision is to provide more and more satisfaction to the farmers, their
customers, employees and distributors.

2.2.3 ACTIVITIES

2.2.3.1 Entrepreneurship Development Program for Dairy Farmers:

They have conducted 50 programs under Entrepreneurship Development Program

for Dairy Farmers based on different segmentation and have trained 3316 milk
producers. Such milk producers are trained, through interactive group workshops to
better understand farm economics and develop management plans for increasing income
and reducing operating costs.

2.2.3.2 Safeguarding the interests of Indian dairy farmers

One of the reasons why dairy cooperatives have flourished and prospered,
especially in Gujarat, because the Government of Gujarat and the Government of India
have in their wisdom, always safeguarded the interests of Indian dairy farmers. In
Gujarat specifically, dairy cooperatives have always been given the freedom to take the
most appropriate business decisions in the interests of their farmer-members. Our
policy-makers have been proactive in keeping the interests of dairy farmers at the fore-
front, in view of the tremendous contribution that dairy cooperatives have made towards
socio-economic transformation of rural India. In fact, Government of India readily
acknowledged the stellar role played by farmer-owned dairy cooperatives in rural
development.
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2.2.3.3 Co-operative development program

During the year, we have also continued to provide support to Milk Unions of
Saurashtra and Kachchh region, to organize farmers to build and develop cooperatives
and increase milk production and procurement. We have developed a dedicated
initiative to improve animal health services, by conducting health camps and veterinary
routes in Saurashtra and Kutch region.

2.2.3.4 Stepping up our efforts in cooperative development

During the last sixteen years, our Member Unions are implementing Internal
Consultant Development (ICD) for developing self-leadership among member
producers and thereby enabling them to manage their dairy business efficiently leading
to their overall development and enabling them to implement the total quality
management at Village Dairy Cooperative Societies (VDCS) and milk producer level

2.3 PRODUCT PROFILE

2.3.1 Amul Bread Spreads Ranges

Amul has varieties of Bread Spreads ranges and are preferred by many consumers on a
daily basis. These are outlined below.

 Amul Butter

Amul Butter is made up of pure milk fat. It consists of 100g, 500g, 50g,
20g, and 8.1g packing. It can be eaten with bread, paratha, roti, nans, and
sandwiches
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 Amul Lite

Amul Lite is a low cholesterol, low calorie and low fat bread spread. It is
available in 100g, 500g, and 200g packing. It is been used for topping on
parathas, pav-bhaji, and also for preparation of cakes.

 Delicious Table Margarine

Delicious Table Margarine is the substitute of butter. Margarine is

prepared from vegetable oils and fats. It contains zero cholesterol and fortified
with vitamin A & D. 100g, 500g, 200g tub & Single serve pack are available.

2.3.2 Amul Beverage Range / Milk Drink

 Amul Kool Milk Shaake

Amul Kool Millk Shaake comes with four awesome flavors which are
Banana, Mango, Strawberry and Badam. The price of this is Rs. 22 for 220 ml
can. These are also sold in tetra pack in three flavors i.e. Mango, Strawberry and
Banana. The price of this is Rs 15 for 180 ml tetra brick. It is rich in nutrients
and is the healthiest drink against any other soft drinks.

 Amul Kool
Amul Kool is very tasty and healthy drink and come with five flavour i.e
Kesar, Elaichi, Rose, Mango, and Strawberry. Available in 200ml Glass Bottle,
200ml Tetra Pack, 250ml Can, and 1 Litre Tetra Pack.

 Amul Kool Café

Amul Kool Café is tonned milk flavoured with coffee. It is very good
and convenient for parties, picnics, etc. Available in 200ml Glass Bottle, 200ml
Tetra Pack, 250ml Can.
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 Amul Kool KoKo

Amul Kool Koko is a Chocolate Flavour Milk. Available in 200 ml Glass
Bottle, 250 ml Can, 200 ml Tetra pack.

 Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Bottled Milk comes in four flavours which are
Elaichi, Kesar, Rose, and Badam. It is very delicious and healthy drink. It is also
available in 200 ml Tetrapak.

 Amul Kool Flavoured Tetra Pack

Amul Kool Flavoured Tetra pack comes in four flavours which are
Elaichi, Kesar, Rose, and Badam. It is very delicious and healthy drink. It is also
available in 200 ml Pet Bottle & Glass Bottles.\

 Amul Masti Spiced Buttermilk

Amul Masti Spiced Buttermilk is a 100% natural drink and free from
artificial Colour, preservatives, acids and sugar. It is available in 200ml Tetra,
500ml and 1 litre Tetra.The price of this is Rs. 8, Rs. 15, Rs. 30 respectively.

 Amul Kool Lasse

Amul Kool Lassee is refreshing milk natural drink. It can be served at
any convenient place like parties, picnic and during hot summer.

 Amul Kool Thandai

Amul Kool Thandai is also 15lavoured milk with flavour of traditional
Thandai. It is available in 200 ml Glass Bottle, 200 ml & 1 litre Tetra pack.

 Amul Stamina Can

Amul Stamina is an energy drink which contains electrolytes, vitamin C,
minerals, calcium, milk proteins. It is essential for body growth and muscle
building. It is available in 200 ml Tetra Pack and 250 ml can.
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 Amul Prolife Probiotic Lassee

Amul Prolife Probiotic Lassee is a flavoured drinking yogurt made up of
natural ingredients. It comes in four flavours i.e. Rose, Cumin, Mango, and
Pineapple.

 Amul Prolife Butter Milk

Amul Prolife Butter Milk contains probiotic bacteria which help in
improving immunity and digestion. It is natural drink and very good for health.

2.3.3 Amul Powder Milk Range

 Amul Spray Infant Milk Food

Amul Spray is used as an infant milk substitute for feeding bottles. It is
made from partially skimmed milk. It contains Vitamins A, D, K, B, C and
minerals, Calcium, Magnesium, Phosphorus, Iron, Copper, Iodine, Manganese
and Zinc.

 Amul Instant Full Cream Milk Powder

Amul Instant Full Cream Milk Powder is made from toned milk. It has
more milk fat as compared to normal milk powder.

 Amul Sagar Skimmed Milk Powder

Sagar Skimmed Milk Powder is made from skimmed milk. It is non-fat
and rich in protein. Sagar Tea Coffee Whitener
Sagar Tea Coffee Whitener is made from Milk Solids, Sugar and Hydrogenated
Vegetable Oils. It is mainly used for making tea and coffee
 Amulya Diary Whitener
Amulya Diary Whitener is made from partially skimmed milk and sugar.
It is used in preparing Tea, Coffee, Sweets, Curd, Cakes, etc.
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 Amul PRO
Amul PRO is a malt based milk additive. It is very easy to make and
suitable for people of all ages, especially kids, who need milk and nutrients. It is
to be consumed by adding directly to the hot or cold milk.

2.3.4 Amul Fresh Milk Ranges

Amul has varieties of fresh milk ranges and are preferred by many consumers on a daily
basis. These are outlined below.

 Amul Fresh Milk

 Amul Gold Milk
 Amul Taaza Double Toned Milk
 Amul Lite Slim and Trim Milk
 Amul Fresh Cream
 Amul Shakti Toned Milk
 Amul Calci+
 Amul Buttermilk

2.3.5 Amul Cheese Range

Amul has varieties of cheese ranges and are preferred by many consumers on a
daily basis and are used mainly on bread, cooking, pizza etc. It can be eaten with bread,
paratha, roti, nans, and sandwiches.

The cheese types are outlined below.

 Amul Emmental Cheese

 Amul Pizza Mozzarella Cheese
 Gouda Cheese
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2.3.6 Amul Cooking Range

Ghee stimulates muscle movements, strengthens the sense organ, nourishes the
skin and improves complexion. Ghee is good source of energy and provides vitality to
human body.

The Ghee types are outlined below.

 Amul /Sagar Pure Ghee

Amul Pure Ghee is made from fresh cream and it is a loved by all the
consumers which provides strength to human body.

 Amul Ghee
Amul Ghee is made from fresh cream and it is a good source of energy
and provides vitality to human body.

 Amul Yellow Cow Ghee

Amul Cow Ghee is made from fresh cream and it has typical rich aroma
and granular texture. Amul Cow Ghee is an ethnic product made by dairies with
decades of experience, and rich source of Vitamin A, D, E and K.
 Amul Cooking Butter
Amul cooking Butter is used and is preferred by many consumers on a
daily basis and is used mainly for cooking, making sweets, garnishing etc. It can
be spread with bread, paratha, roti, etc.

2.3.7 Amul Dhai Range

 Amul Flaavyo Frozen Yoghurt

Amul Flaavyo Frozen Yoghurt is made from natural ingredients and
fortified with vitamins. It contains probiotic bacteria which helps digestion and
immunity improvement. It comes in five flavours i.e; Mango, Pineapple,
Strawberry, Vanilla and Misti Doi.
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 Amul Masti Dahi

Masti Dahi is made from Pasteurized Toned Milk and no preservatives.
It is rich in nutrition as it contains all goodness of milk. It can be consumed
directly or can make Lassee, Dahi Rice, Dahi Wada, etc.
 Pro-biotic Dahi
Pro-biotic Dahi helps to improve immune function of the body and
maintain healthy digestion system. It also helps to build stronger bones and
teeth.

2.3.8 Amul Mithai / Desserts Range

 Amul Shrikhand
Amul Shrikhand is prepared from fresh curd. It comes in many flavours
namely Elaichi, Kesar, Mango, Badam Pista, Amrakhand, Rajbhog, Butter
Scotch, Strawberry, Pineapple, etc. It also contains fruits, nuts, cardamom, and
saffron. Amul Shrikhand is available at cheapest rate and the quality is very
good for taste and it is very hygienic. It is the only pasteurized Shrikhand
available in the country.

 Amul Mithaee Gulab Jamoon

Amul Mithaee Gulab Jamoon is made from Pure Khoa. It is available in
1 kg & 500gm and its packing is convenient and also easy to open.

 Amul Basundi
Amul Basundi Kesar Elaichi is a traditional Gujarati dessert which is
made from condensed milk. It can be consumed directly or used for preparing
Kheer, Kulfi, Milk Shakes, etc. This is available in 500 ml & 1 Litre Tetra pack.
 20

 Amul Avsar Ladoo

Amul Avsar Ladoo is made from high nutrious besan and pure amul
ghee. It is very useful during any occasion or festival.

 Amul Mithai Mate

Amul Mithai Mate is a Sweetened Condensed Milk made from pure milk
fat. It can used to prepare Kheer, laddoo, Rasmalai, Baked Products, Cakes,
Toppings etc. For household consumption 400gm tins are available. It is made
from pure milk solids, sugar and contains no preservatives. It can used to
prepare Ice Creams, Toffees, Biscuits and Sweets, etc.

 Amul Mithaee Kulfi Mix

Amul Mithaee Kulfi Mix is a Sweetened Condensed Milk made from
pure milk fat.

2.3.9 Amul Health Drink

 Nutramul
Nutramul is made from malt extracts, Milk Solids, Sugar & Cocoa
Powder. It contains Vitamins, Proteins, Carbohydrates and Minerals. It is very
healthy drink and to be consumed directly adding to milk.

 Amul Shakti White Milk Food

It is healthy drink consumed during morning or evening. It contains
Vitamins, Proteins, Carbohydrates and Minerals.
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2.3.10 Amul Chocolates

Amul Chocolates are made from Sugar, Cocoa Butter, Milk Solids and
Chocolate mass. These are made from rich creamy milk & delicious cocoa. Amul
chocolate syrup in bottle and Jar are available. It can be used on ice cream, cakes..

Amul has varieties of chocolates ranges and are preferred by many consumers
on a daily basis

These are outlined below.

 Amul Fruit ‘n’ Nut Chocolate Congrats Pack

 Amul Fundoo Milk Chocolate
 Amul Chocozoo
 Amul Cooking Chocolate – Dark Choco Slab and Milk Choco Slab
 Amul Rejoice Assorted Chocolate
 Amul Wafer Chocolate –Bindaaz
 Amul Chocolate Syrup

2.3.11 Amul Ice creams

Amul Ice creams are made from fresh milk and are available in different
flavours. It can be used to prepare sundaes, shakes, etc. Ice-creams are much preferred
by kids and also all generations. It is very nice to consume them during anytime,
anywhere. Some of them are outlined below.

 Simply Delicious Range

 Nature’s Treat
 Sundae Range
 Cassatta
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2.3.12 Amul’s New Products

Amul is a symbol of many things of the high-quality products sold at reasonable

prices. Recent new products is outlined below

 Amul Avasar Kaju Katri

 Amul Bhaji Pav

2.4 SWOT ANALYSIS

2.4.1 Strength

1. Amul has a high brand equity and top of the mind brand recall

2. Strong network of over 3 million milk producers are associated with Amul

3. It is the world’s largest manufacturer of pouched milk

4. India’s largest food brand: Amul is trusted for its quality

5. Number of popular milk products are offered like ice cream, ghee, butter,
paneer, dahi, milk, etc.

6. Products available at affordable prices

7. In India, It is a market leader in butter segment

8. Amul is responsible for white revolution in India

9. Successful advertising and marketing campaigns has enhanced the brand

presence.

10. Strong network of retail outlets, stalls and parlous.

11. A popular mascot in the Amul girl

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2.4.2 Weakness

1. Low market share in chocolates segment for Amul

2. Strong competition from international & domestic players in the ice cream
segment means limited market share

2.4.3 Opportunities

1. Amul can introduce new products in the chocolate segment

2. To tap the untapped market, it can increase its reach in rural markets

3. Rise in purchasing power of Indian people

4. Amul can tie-up with hotels, resorts, restaurants etc

2.4.4 Threats

1. Strong competition from international players can reduce the market share
of Amul
2.Economic slowdown and inflation can affect business

2.5 Financial analysis

For the financial year 2015-16, Gujarat Co-operation Milk Marketing Federation
(GCMMF), the body that markets dairy products under the brand name Amul, has
achieved a provisional turnover of Rs 23,005 crore, which is 11% higher than the
previous year’s sales turnover of Rs 20,733 crore.
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GCMMF plans to achieve sales turnover of Rs 30,000 crore by 2017-18, and enhance
Amul’s milk processing capacity from its current level of 281 lakh liters per day to 380
lakh litres per day in the next five years.

Gujarat-based dairy giant, among top 15 global dairy outfits in terms of milk
processing, Gujarat Cooperative Milk Marketing Federation Ltd (which markets the
popular Amul brand of milk and dairy products) today said its provisional turnover for
2015-16 fiscal is Rs 23,005 crore, up 11% from last year. The figure assumes
significance when we pitch this against the turnovers of the food giants in the country.
Britannia posted a turnover of Rs 7,175.99 crore for 2014-15, while Nestle clocked a
turnover of Rs 8,175.31 crore. ITC and HUL’s food businesses posted turnovers of Rs
6,411 crore and Rs 5,522 crore respectively last fiscal
 25

Figure 2.3: Balance Sheet

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CHAPTER 3

POSITIONING OF THE INTERN & HIS/HERROLE

3.1 ORGANISATION STRUCTURE

Figure 3.1: Organisation structure

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3.2. ROLE OF THE INTERN

3.2.1 DUTIES AND RESPONSIBILITIES ASSIGNED TO THE INTERN:

 Do a project on the topic ‘GAP ANALYSIS OF AMUL PRODUCTS VIS-A-

VIS COMPETITORS’
 Visit stores in Thrissur, Chalakudy,Irinjalakud and kodakara
 Collect information using relevant tools
 Interact with floor managers and suppliers
 Prepare project report with collected data
 Assist distribution department in project.

3.2.2 DEPARTMENT ALLOTTED AND REPORTING TO THE INTERN:

 Department allotted: Marketing Department

 Reporting to whom : Arun Joshy

3.2.3 BRIEF DETAILING ABOUT THE WHOLE INTERNSHIP

Got a chance to familiarize the practical side of marketing while working in

Amul. Learned about the products and their movement in market, problems faced by
marketing department, market and competition in the field. Understood the work culture
of Amul.
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CHAPTER 4

DETAILS ABOUT INTERNSHIP

Table 4.1: Weekly report 1

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Table 4.2: Weekly report 2

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Table 4.3: Weekly report 3

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Table 4.4: Weekly report 4

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Table 4.5: Weekly report 5

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Table 4.6: Weekly report 6

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Table 4.7: Weekly report 7

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Table 4.8: Weekly report 8

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4.2. CONTRIBUTION OF THE INTERN TO THE ORGANISATION

4.2.1. INITIATIVES AND RESPONSIBILITIES TAKEN BY THE INTERN:

I got the chance to work in marketing and distribution department. Major task
was to conduct survey in various places ,but before that I decided to study about the
current marketing strategies and techniques followed by Amul , then only I can
understand in which area I have to do survey and what should I contribute. So I
collected information about current strategies followed by Amul.

Study Marketing strategy of Amul

Distribution strategy in the Marketing strategy of Amul

4.2.1.1Marketing strategy of Amul

The Marketing strategy of Amul covers various aspects of the business right
from segmentation and targeting to the overall mission and vision of the company and
the various parameters which the company executes to become the top brand that it has
in the market

4.2.1.2 Segmentation, targeting, positioning in the Marketing strategy of Amul

The segmentation of Amul is the mass population and in general, you will
find people of all different age groups and demography enjoying Amul products. This is
because Amul is not only present in Ice cream, but also in Milk, Butter, Cheese and
other such products.

As it has a very deep product portfolio, it does not differentiate in its

customers but uses a mass marketing principle. And till date, this principle has worked
very well for the marketing strategy of Amul. Similarly, the target audience is the
regular middle class people.

This is because higher end customers do have a lot of high end products as an
alternative in ice cream. However, for other products like Butter and cheese, both high
end and low end customers are the target. In terms of positioning, Amul has top of the
 37

mind positioning because it is the first brand which comes in mind when talking of Ice
cream, milk, cheese, butter or any other milk based products.

4.2.1.3 Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It

supplies in huge amounts to its C&F, who is required to have the right arrangements to
store Amul products in bulk. This C&F then transfers the products to distributors who in
turn give it to retailers. Furthermore, Amul has a direct sale team too which sells to
modern retail. Besides this, the company has exclusive Amul stores which sell all
products of Amul brand. Thus, in the marketing strategy of Amul, distribution is
another strength of the brand.

4.2.1.4 Division of marketing dept

HEAD OFFICE

ZONAL OFFICE

DEPOT OFFICE

CARRYING & FORWARDING AGENTS (C & F)

WHOLESALE DEALERS

RETAILERS

CONSUMERS

Figure 4.1: Divisions of marketing department

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The FMCG market is highly competitive in nature and is known to have a

combination of organized players as well as unorganized players. Similarly, in FMCG,
direct competition is equally important as indirect competition. For example – During
winters, ice cream and cold milk products will not sell, whereas butter and cheese will
sell equally well.

But on the other hand, during summers the demand of ice cream shoots up so much so
that companies are not able to meet demands. Thus, when we analyze the market of
Amul, in some cases Amul is the clear market leader, whereas in other products it is a
competitor in the market.

4.2.2 TASK ACCOMPLISHMENT MADE

4.2.2.1 CONDUCT SURVEY IN THRISSUR, CHALAKUDY &

IRINJALAKUDA.

Major task assigned to me was to conduct survey in super markets regarding the
availability of Amul products. Also to find the products that replaces Amul. I decided to
do the survey in major cities such as Thrissur, Chalakudy and Irinjalakuda. I went to
many shops to check the availability of various types of amul products, then I got data
regarding the competitors which replace amul in that segment.

For the survey I made a table format to correctly identify the various products and
their availability in various packets.

4.2.2.2 FIND MAJOR COMPETITORS

Through the direct visit in super markets I could identify the different
competitors of amul. I identified various brand such as Milma, Brittania, Milky mist,
Nestle and Haldirams.

4.2.2.3 GAP ANALYSIS

Next task was to make a gap analysis by conducting the survey. I could identify
the market share of each brand and find the gap. By analyzing the availability of brands
I could find the gap analysis and the major shareholder in different cities.
 39

4.2.3 NEW IDEA.

From the survey I could understood that many suppliers are not supplying the
products in demand on time and that affect the sales, so I thing once in a month a
contact or a kind of survey with major shops could make a great difference

4.2.4 INVOLVEMENT IN MAJOR ASSIGNMENT

 I was told to assist in the project to find problems in distribution IN Aluva

region.
 Conducted survey in Thrissur
 Visited many stores with sales manager.
 I was been asked to study about the storage and distribution pattern in a week.
 I was asked to prepare table and graphs regarding the problems in late
distribution.

4.3 LEARNING FROM INTERNSHIP

4.3.1 OVERALL KNOWLEDGE GAINED FROM INTERSHIP

 Understood the work culture followed by AMUL.

 Got an idea about the working of company.
 Familiarized the dairy industry.
 Learned the importance of gaining experience.
 Understood how the theory learned in class room is made into practice.
 Learned who to do a survey, difficulties in collecting data ,etc
 Understood who to finish a work on time.
 Interacted with many experienced persons and they shared their problems while
doing the project.
 40

 Got real experience while visiting stores and interacting with people. Learned
how to collect data from people.
 Learned how to face problems while doing a project.
 Got an idea how a big project in done.
 Learned how to convert data into needed information.
 Understood the difficulties faced by marketing persons and department.
 Understood how distribution of products is done.
 Learned about the department and is importance.
 Apply theory in practical situation.
 Survey helped me to understand the real situation in market, got an idea about
the market share of different products.
 Learned how to handle a difficult situation.
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4.3.2 ANALYSIS OF OBJECTIVES VS ACHIEVEMENTS

Table 4.9: Objectives and achievements

OBJECTIVES ACHIEVEMENTS

1. Organizational analysis Gained knowledge about organization and

department.
2. Industry analysis Industry analysis is done

3. Swot analysis Internal as well as external characteristics of

Amul are understood.
4. Survey Survey is done to do gap analysis

5. Store visit Understood main competitors of Amul

6. Interaction with Good interaction with floor mangers gave an

managers idea about the demand of products.
7. Storage and distribution Storage pattern is understood.

8. Product identification Understood different products in detail.

9. To improve Improved communication skills

communication skills
10. To behave in Understood work culture in an organization
organization

11. Timely completion of Completed project on time with accuracy.

projects.
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4.3.3 MAJOR AREAS WHERE THE CONCEPT CAN BE PRACTICALLY

USED

 Knowledge and experience gained from internship will help to perform better in
various projects.
 Data collected from survey can be used in sales.
 Gap analysis helps to understand the reason for fall in sales.
 Data will help to understand the market share of Amul and the brands that
replace Amul.
 Can understand the cities having low sales of product.
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CHAPTER 5

CONCLUSION

Amul is success full firm in the dairy industry. Leading exporter of dairy
products. It has a long story of growth. Commitment and quality products are the pillars
of their success. From this internship study, the intern acquired knowledge from
accounting course and try to comply with the techniques procedure and systems
followed by the company.

The study helped in understanding how the key business processes are carried
out in an organisation and how information is used in an organisation for decision
making at different levels. Working under marketing department helped the intern to get
the knowledge on what and how the duties of the Marketing department is done. The
various responsibilities of the department is understood.

. During the training period, the intern had received criticism and advice from
engineers and management when mistakes were made. However, those advices are
useful guidance for the intern to change and avoid making the same mistakes again. In
sum, the activities that the intern had learned during internship really are useful in future
to face challenges in a working environment.
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BIBLIOGRAPHY

 Amul, Industry profile (.4 July 2017), Retrieved from:

http://www.amul.com/m/about-us

 Jones, S. (2009). Business-to-business internet marketing: Seven proven

strategies for increasing profits through internet direct marketing (5th edition).
Retrieved from http://www.maxpress.com/

 Amul, Gujarat Cooperative Milk Marketing Federation Ltd (.4 July 2017),
Retrieved from: http://www.amul.com/m/organisation