The Kaira District Cooperative Milk Producers Marketing Essay

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23 Mar 2015

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Indias modern dairy sector has expanded rapidly. India is recognized as a biggest and fastest growing market in the world for milk and milk products. Indias dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for Chocolate. The bulk of the demand for Chocolate is among the Rural areas whose requirement is large.

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; so all the countries are looking at Indian dairy industry markets for exports. As per GATT agreement the export subsidy is reduced. Because of this India is expecting major changes in dairy industry of North America, Europe and Australia. It may also get some advantage in this situation. After reduction in subsidies given by other countries India would be able to compete with their products efficiently on price in international markets. At present India has a negligible export to international markets.

Both public and private sector have contributed to the dairy industry growth in India. Government dairy distributes 90% of its milk in sachets or in containers while remaining 10% is marketed as butter, ghee etc. On contrary, private sector only markets 20% of milk and remaining 80% of milk is made into preparations suitable for exports. Amul have Chocolate as their main product.

Though India is No. 1 in milk production, it is unfortunate that we are importing milk products from other countries. Since we do not have good technology for production of skim milk powder we are forced to import them from Europe and New Zealand.

Overview of the company

GENERAL INFORMATION

INTRODUCTION TO THE UNIT

Name of the unit:

The kaira district co-operative milk producers' union ltd, Anand (AMUL)

Form of the unit:

A co-operative sector registered under co-operative society Act.

Size of the unit:

It is a large scale organization.

Registered office:-

The Kaira District co-operative Milk Producers' Union Ltd, Anand.

Date of registration: -

14 December 1946

Brand name:

AMUL

Location:

Amul diary, Nr. Railway station, Amul diary road. ANAND-GUJARAT

Phone No.:

+91-2692-256124

Fax No.:

+91-2692-240225

Website:

www.amul.com

Board of Directors:

Shri Ramsinh Parmar- chairman

Shri Rajendrasinh D. Parmar-vice chairman.

Shri Dhirubhai A. Chavada

Shri Mansinh K. Chauhan

Shri Maganbhai G. Zala

Shri Sivabhai M. Parmar

Shri Pravinsinh F.Solanki

Shri Bhaijibhai A. Zala

Shri Ranjitbhai K .Patel

Shri B.M Vyas

Auditors:

Special auditor Milk union, Anand

Bankers:

The Kaira District Central Co-operative Bank Ltd.

Axis Bank Ltd.

State Bank of India

Bank of Baroda

Corporation Bank

Bank of Maharashtra

HDFC Bank Ltd.

Initial promoters:

Shri. T. k Patel

Shri. Vallabh bhai Patel

Shri. Morarjibhai Desai

Dr. Vergheese Kurien

Shri. H. M Dalaya

Quality of milk:

The union has obtained ISO 9001-2000 and HACCP certificate. It focuses on quality.

2.1 HISTORY AND DEVELOPMENT

In the year 1946 the first milk union was established. This union was started with 250 litres of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION LTD. This union selected the brand name AMUL in 1955.

The brand name AMUL means "AMULYA-. This word derived from the Sanskrit word "AMULYA" which means "PRICELESS". A quality control expert in Anand had suggested the brand name "AMUL". Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Arnul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as "ANAND PATTERN").

In the early 40's, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Poison dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates' farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village cooperative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

At the initial stage only 250 litres of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakh litres of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr. Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

SYMBOL OF AMUL

The symbol of AMUL is ring of four hands circled the words Kaira Distric Co-operative Milk Producers Union Ltd. I his essence of this symbol is the co-ordinated efforts of the four group of people that is:

• First hand of farmers

• Second hand of the producers

• Third hand of the marketer

• Fourth hand of the customer

This truly defines the reason behind the success of AWL.

AMUL MOTTO

The main Motto of Amul is to help farmers. AMUL system works under objective at highest possible price to the milk produces and lowest possible price to consumers. Farmers are paid money in cash payment for the milk. Milk gives them money for daily necessities. Milk is the one who started using their profit for the milk producer's common goal.

THREE TIER MODEL OF AMUL

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 further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions; milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale are achieved. As the above structure was first 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 Pattern of Dairy Cooperatives .Responsible for Marketing of Milk & Milk Products Responsible for Procurement &Processing of Milk Responsible for Collection of Milk Responsible for Milk Production.

Village Dairy Cooperative Society (VDCS)

 

The milk producers of a village, having surplus milk after own consumption, come together and form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers based on the principle of one member, one vote. The village society further appoints a Secretary (a paid employee and member secretary of the Management Committee) for management of the day-to-day functions.

It also employs various people for assisting the Secretary in accomplishing his /her daily duties. The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village & payment based on quality & quantity

Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc.

Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk   producers and assisted by the District Milk Union.

District Cooperative Milk Producers¶ Union (Milk Union)

The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The Milk Union further appoints a professional Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his / her daily duties. The main functions of the Milk Union are as follows:

Procurement of milk from the Village Dairy Societies of the District

Arranging transportation of raw milk from the VDCS to the Milk Union

Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.

Conducting training on Cooperative Development, Animal Husbandry &Dairying for milk producers and conducting specialized skill development &Leadership Development training for VDCS staff & Management Committee members.

Providing management support to the VDCS along with regular supervision of its activities.

Establish Chilling Centers & Dairy Plants for processing the milk received from the villages.

Selling liquid milk & milk products within the District.

Process milk into various milk & milk products as per the requirement of State Marketing Federation.

Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members.

 

State Cooperative Milk Federation

The Milk Unions of a State are federated into a State Cooperative Milk Federation. The Federation is the apex tier under the three-tier structure. It has membership of all the cooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints a Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions.

Establish distribution network for marketing of milk & milk products.

Arranging transportation of milk & milk products from the Milk Unions to the market.

Creating & maintaining a brand for marketing of milk & milk products (brand building).

Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services

Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.

Arranging for common purchase of raw materials used in manufacture / packaging of milk products.

Decide on the prices of milk & milk products to be paid to Milk Unions.

Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same.

Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.

Arranging Finance for the Milk Unions and providing them technical know-how.

2.2 PRODUCTS:

Breadspreads

Amul Butter, Armul Lite, Delicious Table Margarine

Chess Range

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese,Arnul Emmental Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza

Fresh Milk

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul Cow Milk

UHT Milk Range

AMU1 Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Milk Powder

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener

Milk Drink

Amul Kool Flavoured Milk, Amul Kool CafAC, Amul Kool Koko,Amul Kool Millk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Health Drink

Stamina Instant Energy Drink

Brown Beverage

Nutramul Malted Milk Food

Curd Products

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul Lassee, Amul Flaavyo Yoghurt

Pure Ghee

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed Milk

Amul Mithaimate

Mithaee Range

Amul Shrikhand, AmulMithaee Gulabiamuns, Amul Basundi, Avsar Ladoos

Ice-cream

Sundae Range, probiotic,sugarfree and probiotic

Chocolate and Confectionery

Chocolate & Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Confectionery Chocozoo, Arnul Bindass, Amul Fundoo

3.1 HUMAN

RESOURCE

DEPARTMENT

INTRODUCTION

The dairy industry is moving forward by leaps and bounds. Aided and supported by extensive R&D, emergence of new state of the art Dairy plants, training programs conducted by NDDB and quality control measures that make sure the end consumer gets optimum value for money. Each new dairy plant is a step forward. An added advantage to an industry looking towards the future.

Facilities: MEDICAL ASSISTANCE SCHEME:

The society has a comprehensive medical benefit scheme for its employees. The employee and his dependent family members are eligible for reimbursement of medical expenses in respect of any ailment, disease, injury, or disability suffered by them. For routine medical treatment the ceiling is as under: No. Of family members For 2 family members For 3 family members Ceiling for routine Medical Treatment (per annum) Rs. 2250 Rs. 4500

In case of chronic diseases, specialized treatments, hospitalization, pathological and radiological tests special medical sanctions are given at actual.

We have full fledged dispensaries at our factories manned by doctors, nurses and paramedical staff who provide Medicare facilities to the employees and their dependents. Besides this, most of the good hospitals and nursing homes in the vicinity are on the approval panel of AMUL, where the employees and their dependent family members can be referred for treatment, according to requirement. Employees and their family members are periodically examined and the report is given to them with doctor's suggestions for remedial action.

CANTEEN:

Canteens have been provided at our factories, which provide lunch, tea and snacks. Canteen management committees consisting of the employees also monitor the menus, cleanliness, quality of food. Canteen Subsidy is paid @ 7% of the basic pay to officers and @ 5% of basic pay to workmen.

TRANSPORT FACILITIES:

AMUL is providing bus facility to its employees for coming to their workplace at there factories.

SALES PROMOTION AND ADVERTISEMENT

There is no necessary for direct advertisement in the market because the product itself is the advertisement for dairy. There is several part of AMUL dairy so it advertised its product by the television and posters etc.

The product of "Amul" and "Mother" symbol has been approved by the government it does not means that Amul dairy cannot do anything increasing sales. They take part in the industrial exhibition minimum two times per day. They also advertised for the after the service of the dairy which are the best in the dairy and available very less and cheaper rate in other competitors.

RESEARCH AND DEVELOPMENT

The Amul dairy is having independent research & development department. Dairy has to maintenance the quality of the product so person have to measure the fat, pasteurization and also quality. The Amul dairy research its product at every two hours dairy has a milk reception lab it has a SNF.

Central lab for quality assurance is found a quality every two hours in a day because the test of the product is depended on a quality and milk is a finish good so it cannot be maintained for the long time so Amul dairy research every hours to maintained the sweet test of the product.

TRAINING & DEVELOPMENT CENTER

The training to the worker in necessary part in every large organization this dairy has its "personnel training center" and its provide training to its employee the training is necessary to operate and control the machinery and operational information, information about near and latest technology and computerized machine are to near provided though technology. Thus, dairy is taking steps for training and development of the employee.

3.2 FINANCE

DEPARTMENT

INTRODUCTION

Any organization, whether it is small or large scale, clears with financing every businessman keeps separate records of financial matters. Finance and account department of the business depends upon the financial policy of the firm

The scope of financial management comprises traditional approach on procurement of funds rather than its allocation and use. While modern approach covers not only acquisition but also allocation and utilization of funds. The firm may have any objectives but financial management has the objectives of profit maximization or weather maximization. Keeping in mind this particular objectives only major 3 decision are taken that are:

Investment Decision

Financing Decision

Dividend Policy Decision

FINANCIAL PLANNING

Planning is pre-requisite for managing any little things too. When we think about fund, financial planning comes at first

Head office deals with the arrangement of raising the funds and provides funds required by any of four plants. In AMUL, they make weekly forecast of funds in which requirement of each department is mentioned. After that the proposal is sent to head office and got sanction from there. So, financial planning has a significant place for making decision of requirement and utilization of funds.

AMUL is co - operative organization therefore there is nothing like market value of share one of the source of capital acquisition for AMUL is share capital. AMUL are issue share for member of society only and not for the others. Capital structure of AMUL would be clear from some of the figure given below.

WORKING CAPITAL

The basic goal of working capital management is to manage is to manage and current liabilities so as achieve a satisfactory level of working capital. The need for working capital arises because the production sales and cash flows are not Instantaneous. In almost all the firm 50% to 60% of the total capital forms the working capital. Different views on working capital can be classified into two groups.

In AMUL there is no credit with the federation. GCMMF is owned by 11 union members and wholesale dealers. Requirement of working capital in winter season is much higher and availability of fund is lesser. To meet with this working capital requirement, AMUL has got certain provision and short - term investments. From the monthly sale, GCMMF gives returns to AMUL from which it covers up its short - term expenses.

MANAGEMENT OF INVENTORIES

Inventory consists of raw materials, goods in progress, finished good and other Stores and spares. The prime objectives of inventory management are:

To minimize possibility of disruption in production schedule of firm.

To keep down capital investment in inventories.

Since AMUL is working on continuous basis it is bound to have enough amount of inventory in stock to ensure smoothness in production without any interruption. AMUL brings milk from 1028 villages surrounding the kaira district. To store milk AMUL has provided chilling centers at co - operatives unions. To store the processed milk AMUL has developed eight milk storing towers. The milk is sold in kaira district and remaining Stock is used for producing other milk products.

3.3 PRODUCTION

DEPARTMENT

INTRODUCTION

Production department is very important for every manufacturing unit. The life of the organization depends upon the production plant. Regular scrutiny and updating the production plant is also equally important. Amul has the following number of plants:

Plant of AMUL:

First plant

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and butter milk. It is establish in 1973

Second plant

Second plant is at MOGAR, which engaged in manufacturing chocolate, Nutramul, Amul Ganthia and Amul Bite. This plant establish in 1973. It is situated on Anand - Vadodara Highway No. 8

Third Plant

This plant is engaged in the production of Dan. Dan is basically the cattle food. It is situated between Nadiad and ,near Kanajari railway station.

Fourth Plant

KHATRAJ:-

This plant manufactures raw cheese. This plant is located between Nadiad and Mehmadavad.

Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

Production capacities of different plants at the Anand plant are:

Milk About 2260 to 2500 crates per day.

Butter 50 to 60 tonnes per day.

Flavored Milk , 40,000 bottles per day.

Powder plant (L&T) 70 tonnes per day.

Powder plant (F35) 60 tonnes per day.

Powder plant (F60) 30 tonnes per day.

Products produced at their respective plants are counted and are sent to the godown and are dispatched to GCMMF as per the orders placed. At regular intervals, repairs and maintenance work is done for up keeping the life of the machineries. Since Milk is the basic raw material that the organization procures, we shall first study the process flow chart for pasteurizing milk.

3.4 MARKETING

DEPARTMENT

ORGANISATION STRUCTURE OF MARKETING

Marketing activity of AMUL is performed by GCMMF (Gujarat Co- operative Milk Marketing Federation). Total 90% of AMUL's products marketed by except for liquid milk. Till 1960 AMUL was marketing their product on its own. But there were many problems against such direct marketing and therefore the idea of marketing federation was turned into establishment of GCMMF. Thus the federation was established in 1972 for marketing the product of all dairies in Gujarat.

GCMMF does all the function of marketing for AMUL. GCMMF sends monthly market requirements data to the unit and accordingly the unit works for the fulfillment of the order. AMUL daily the amount of production of ghee, cheese, butter, milk powder are sent to the commercial department by production department at 10:00 o'clock. These production data are utilized for dispatching the order to federation. These dispatched orders are sending to concerned state by federation. The price of product is fixed by a programmer committee and members of this committee are as follows:

Two Members of Federation.

Two Member of AMUL.

Two Members of NDDB.

DISTRIBUTION NETWORK

300 stock keeping units,

46 sales offices,

3,000 distributors,

1,00,000 retailers with refrigerators and

5,00,000 non-refrigerated retail outlets...

Channels

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.

GCMMF - An Overview

Year of Establishment

1973

Members

Members 17 District Cooperative Milk Producers' Unions (15 Members & 2 Nominal Members)

Members 17 District Cooperative Milk Producers' Unions (15 Members & 2 Nominal Members)

No. of Producer Members

3.18 Million

No. of Village Societies

16117

Total Milk handling capacity per day

13.67 Million litres per day

Milk Collection (Total - 2011-12)

3.88 billion litres

Milk collection (Daily Average 2011-12)

10.6 million litres(peak 13 million)

Cattlefeed manufacturing Capacity

3690 Mts. per day

Sales Turnover -(2011-12)

Rs. 11668 Crores (US $2.5 Billion)

4 .PRIMARY

STUDY

4.1 CONSUMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the buyer's expectations. Satisfaction is person's feelings of pleasure or disappointment resulting from comparing product's perceived performance or outcome in relation to his or her expectations.

The performance of the product exceeds the expectations, the consumer is highly satisfied and if the performance is below the expectations, the consumer is highly dissatisfied.

Many companies are aiming for high satisfaction because consumers who are just satisfied still find it easy to switch to other products. Those who are highly satisfied are much less heady to switch. Thus consumers should be highly satisfied with the products they purchase.

4.2 PROBLEM STATEMENT OF STUDY

Many companies are aiming for high satisfaction because customers who are just satisfied still it find it easy to switch when better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction creates an emotional bind with the brand not just a rational preference. The result is highly customer loyalty. Hence an attempt has been made to identify the customer attitude and satisfaction on Amul Milk

4.3 OBJECTIVES OF THE STUDY

I. To know which brand of Amul milk is most preferable by its consumer.

2. To know about average daily consumption of the Amul milk.

3. To know point of purchase of consumer.

4. To know satisfaction level of consumer towards Amul milk.

5. To know the problems consumers are facing with Amul milk.

5. RESEARCH

METHODOLGY

5.1 Research Design:

The research design which has been used in the project report is Exploratory research design.

5.2 SOURCES OF DATA

1. INTERNAL SOURCES

Internal source is the information which is available from the company's own records. These records provide sufficient information. Proper use can be made of the various information provided by the organization.

2. EXTERNAL SOURCES

When the internal records are insufficient the organization will have to depend on external sources. External sources are collected from outside. I prepared a questionnaire to find out the consumer satisfaction towards Amul milk.

5.3 DATA COLLECTION METHOD:

Sources of Data collection:-

1. Primary data collection: Information by consumer in Dakor by Questionnaire.

2. Secondary data collection: Information collected by the use of Internet, Referance books.

POPULATION

Population refers to the entire consumer from whom the information is to be collected. However it may not be possible and even necessary to seek answer from all respondents. Besides it may be very costly and time consuming. In this project, the population refers to the consumers of Amul milk of Dakor city. Population included respondents of all ages and also economic class.

SAMPLE SIZE

As the entire population cannot be covered, a small representative group is fixed which is called a sample. As part of my study, I took a sample size of 100 respondents who consume Amul milk. They were from Dakor city.

SAMPLING UNIT

Sampling unit are the consumers that buy Amul milk.

5.5 SAMPLING METHOD

Sampling method is used during the research is simple random sampling.

5.6 SAMPLING FRAME

Sampling frame is used at the time of research is public opinion.

5.7 DATA COLLECTION INSTRUMENT

During my research work I used questionnaires for data collection.

6.DATA

ANALYSIS

1. Do you consume Amul milk?

YES NO

Answer

Yes

No

Total

No of Respondent

100

0

100

Percentages

100%

0%

100%

Table: 6.1

Chart: 6.1

Here there are only two possibilities YES or NO. There is no any other alternative so one has to choose only one option from it.

If I get the answer YES then I can further go for the next question. Otherwise in case of getting answer NO I should stop the process from that question only. This question is important for the survey. It decided whether I should go further for the next question.

Here, the answer for all the respondents is yes because 1 considered only those respondents who are consuming Amul milk.

2. Scale the following criteria for Amul milk

A. Easy availability B. Good Quality

C. Reasonable price D. Good relation with retailer

CRITERIA

Easy availability

Good quality

Reasonable price

Good relation with retailer

PERCENTAGE

62%

20%

13%

5%

Table: 6.2

Chart: 6.2

As seen from the above table, out of 100 respondents, 62% have easy availability, 20% respondents have good quality, and 13% respondents have reasonable price 5% respondents have good relation with the retailer.

Thus the consumer buy Amul milk due to easy availability followed by good quality then reasonable price and last good relation with the retailer.

3. I purchase ………………………

A. Tea special B. Amul gold

C. Cow milk D. Amul shakti

The respondents have five options and from that they have to select one brand which they are using.

Brand

Tea Special

Amul Gold

Amul Shakti

Cow Milk

Total

Number of Respondent

09

22

63

06

100

Percentage

9%

22%

63%

6%

100%

Table: 6.3

Chart:6.3

It was found that 63% of respondents consume Amul shakti. It is the highest brand that is being consumed by most families in Anand. The least brand that is being consumed is Cow milk (6%). Amul Gold is less consumed compared to Amul Shakti because it is more expensive. The middle class families cannot always afford to buy Amul Gold.

4. How much milk does your family consume daily?

A. 0.5 litre B. 1 litre

C. 1.5 litre D.2 litre

E. Above 2litre

This question is especially useful to know the average daily consumption of milk of different families.

Milk

0.5 litres

1 litres

1.5 litres

2 litres

Above 2 litres

Total

Number of Respondent

10

40

14

28

08

100

Percentages

10%

40%

14%

28%

8%

100%

Table:6.4

Average Daily Consumption

Chart:6.4

From the above table, it is evident that 40% of the respondents consume 1 litre milk daily. 1 litre milk is mainly consumed by the nuclear families consisting of 4-5 members. Consumers who consume milk above 2 litres are mainly the large size families that is consisting of 8- 10 members and 0.5 litre is mainly consumed by the families consisting of 1-2 members.

5. Which size of package do you prefer?

A.200ml B. 500ml C. 1litre

Package size

200ml

500ml

1 litre

Number of Respondent

28

64

08

Percentage

28%

64%

8%

Table:6.5

Chart: 6.5

From the above analysis we can say that majority of the respondent prefer pouch of 500ml. 64% respondent purchase pouch of 500ml. 28% respondent purchase pouch of 200ml and 8% respondent purchase pouch of 1 litre.

6. From where do you purchase Amul milk?

A. Parlor B. Retailer

C. Morning Center D. Home Delivery

This question is important to know the point of purchase of the consumers that is from where do the consumers buy the Amul milk.

Place

Parlor

Retailer

Morning Center

Home delivery

Total

Number of Respondent

32

28

45

05

100

Percentages

32%

28%

45%

5%

100%

Table:6.6

Chart:6.6

Most of the respondents buy Arnul milk from the morning center (45%), parlor (32%) and retailers (28%). This is because of the accessibility of these places. Consumers can easily buy Amul milk from these places. There is less number of respondents who receive Amul milk through home delivery because few distributors provide this facility and it is available in few places.

7. Since how long are you consuming Amul milk?

A, 0-1 year B. 1-2 years

C. 2-3 years D.> 3 year

Years

0-1 years

1-2 years

2-3 years

3 years

Total

Number of Respondent

04

10

31

55

100

Percentages

4%

10%

31%

55%

100%

Table:6.7

Chart:6.7

Consumers are brand loyal toward Amul milk because 55% respondents have been purchasing Amul milk for more than 3 years. Only 4% respondents are purchasing Arnul milk for 0-1 years and the people falling under this category e the consumers who are new to the Dakor city

8. How far Amul milk is available from your place?

A.0-1 km B. 1-2 km

C.2-3 km D. >3km

Distance

0-1 km

1-2 km

2-3 km

>3 km

Total

Number of Respondent

88

10

2

0

100

Percentages

88%

10%

2%

0%

100%

Table:6.8

Chart:6.8

There is easy availability of Amul milk because 88% of the respondents have Amul parlors within 0-1 km. They can buy Amul milk whenever they want. There places are 0% respondents in >3km. This shows that Amul parlors are available in all places.

9. Have you faced any problem for availability of Amul milk?

YES No

Daily B. Sometimes C. Often

Table:6.9

Problem for availability

Yes

No

Total

Number of Respondent

12

88

100

Percentage

12%

88%

100%

Chart:9

Table: 6.9

From the above table 12% respondents are having a problem with availability of Amul milk and 88% respondents are not having a problem.

If Yes then,

Time of problem

Daily

Sometimes

Often

Number of Respondent

0

10

2

Percentage

0%

10%

2%Table: 6.9.1

Chart:6.9.1

From the 12% respondents who are facing the problem of availability of Amul milk, 10% respondents are facing the problem sometimes and 2% often. Consumer have problem of availability of Amul milk because of longer distance between Amul parlor and there home.

10. Evaluate the following factors using the following criteria Fully satisfied, Satisfied, indifferent. Dissatisfied, fully dissatisfied.

Factor

Fully satisfied

Satisfied

Indifferent

Dissatisfied

Fully dissatisfied

Taste

64%

30%

0%

2%

4%

Thickness

47%

26%

3%

22%

2%

Freshness

93%

6%

1%

0%

0%

Availability

89%

7%

4%

0%

0%

Price

8%

2%

32%

53%

5%Table;6.10

Chart:6.10

TASTE

64% respondents are full satisfied with the taste of Amul milk and only 4% are filly dissatisfied. Some respondents are dissatisfied with the taste of Amul milk because sometimes the milk smells bad when it is left open in a place and thus this spoils the taste.

THICKNESS

From the above table 47% respondents are fully satisfied with thickness of Amul milk and 22% are dissatisfied. They are dissatisfied because these consumers think that there is a lot of fat in Amul milk.

FRESHNESS

93% respondents are fully satisfied with the freshness of Amul milk. 6% satisfied and 1% indifferent. This is because of the efficient channel of distribution and also proper storage system.

AVAILABILITY

From the above table, 89% of the respondents are fully satisfied with the availability of Amul milk, 7% satisfied and 4% indifferent. The consumers are fully satisfied because there is easy accessibility of Amul parlors and retailers at any place. There is rarely any shortage of Amul milk.

PRICE

53% respondents are dissatisfied with the price of Amul milk. This is because the middle class families cannot afford to buy Amul milk due to its price which is high. They prefer buying loose milk instead. Only the upper class families can afford to buy Amul milk daily.

11. Have you faced any problem with taste of Amul milk?

Problem for Taste

Yes

No

Total

Number of Respondent

09

91

100

Percentage

9%

91%

100%

Table:6.11

Chart:6.11

In the above table, it show that there are only 9 respondent have problem with the taste of Amul milk and 91 respondent are satisfied with taste of Amul milk.

Time of Problem

Daily

Sometimes

Often

Number of Respondent

0

03

06

Percentage

0%

3%

6%If, Yes than,

Table: 6.11.1

Chart:6.11.1

Out of 9% respondents who have a problem with the taste of Amul milk, 3% respondent faces the problem sometimes and 6% respondent often. They have a problem with the taste because in some place Amul milk is not properly stored, Thus the taste of the milk changes.

12. Do you purchase any other milk if Amul milk is not available?

YES NO

If yes, please specify ……………………

Purchase of other milk

Yes

No

Total

Number of Respondent

84

16

100

Percentage

84%

16%

100%

Table:6.12

Chart:6.12

84% respondents purchase other milk if Amul milk is not available. The milk mostly purchase is loose milk. 16% respondent do not purchase any other milk if Amul milk is not available

Purchase of other milk

Sardar Milk

Purchase on General Store

Total

Number of Respondent

34

50

84

Percentage

40%

60%

100%Table:6.12.1

Chart:6.12.1

34 respondent purchase Sardar milk if Amul milk is not available and 50 respondent purchase milk on general store.

13. Do you have any complaint for Amul milk?

YES NO

If yes, which of the following

A. Leakage B. Spoilage

C. Quality D. Any other

Complaint

Yes

No

Number of Respondent

12

88

Percentage

12%

88%

Table:6.13

Chart:6.13

88% respondents have no complaint for Amul milk and 12% respondents have complaints.

Complaint

Leakage

Spoilage

Quality

Any other

Number of Respondent

05

04

02

01

Percentage

5%

4%

2%

1%

Table:6.13.1

Chart:6.13.1

5% respondents have a complaint about leakage. 4% respondents have a complaint about spoilage. 2% respondents have a complaint about quality and 1% respondents with any other problem.

Some consumers have a problem with the leakage because some time while the goods are carrying to different place during that time few pouches are leakage. There is complaint of spoilage of Amul milk also because of poor storage facility.

14. Your views and suggestion about Amul milk?

The views and suggestion of the respondent:

Reduce the price of Amul milk

Increase the number of retailer in areas where they are few.

Increase the facility for home delivery

Keep complaint box at Amul parlor.

FINDINGS

The major findings of the study are as under:

The respondents buy Amul milk because respondents have ranked easy availability of compared to other factors like good quality; relation with the retailer o Amul shakti is most preferable by the respondents.

Amul shakti is most preferable by the respondent. 63% of Amul shakti is consumed by the respondent. 22% Amul gold, 9% tea special and 6% cow milk.

Average daily consumption of Amul milk is 1 litre. The small size families consisting of 4-5 members consume this much milk on daily basis.

Majority of the respondents purchase Amul milk from the morning center. 45% respondents from morning center, 33% respondents from parlor and 28% from retailer and 5% respondents from home delivery.

The respondents are brand loyal towards Amul milk because 55% respondents are purchasing Amul milk for more than 3 years. This shows that they are satisfied with the Amul milk they are being provided with.

9% of the respondents have a problem with the taste of Amul milk. They face this problem often (6%). o If Arnul milk is not available, 16% of the respondents buy another type of milk. They buy loose milk.

The complaints the respondents have regarding Amu] milk is mainly spoilage and leakage. 4% of the respondents have a problem regarding with spoilage and 5% with leakage.

Most of the respondents prefer package of 500m1. 64% respondents prefer 500m1, 28% prefer 200m1 and 8% prefer 1 litre.

CONCLUSION

From the survey conducted it is observed that Amul milk has a good market share. From the study the following conclusions can be drawn.

The factors considered by the consumers before purchasing Amul milk are taste, thickness, freshness, availability and price.

From the survey I conducted, it is observed that most of the respondents are satisfied with Amul milk. Out of the 100 respondents I surveyed, only 12% of the respondents had complaints regarding Amul milk.

This shows that Amul is having a sound level of consumer satisfaction. Majority of the consumers are satisfied with Amul milk because of its easy availability and good quality. Some consumers are not satisfied with Amul milk because of its high price, spoilage and leakage.

Finally I conclude that Amul milk delivers value for money and consumers are satisfied with the milk. Amul also has to take care of its competitors into consideration and more importantly its customers before making any move.

LIMITATIONS

The limitations of the project are as follows:

1. The study was conducted in Dakor city only and so the limited area of the study may affect the conclusions.

2. Some of the respondents could not give their proper response due to lack of time. They at times tend to get biased and may have projected a rosy picture which may have affected the reliability and relevance of the study.

3. It might also be so that some respondents were not motivated enough to respond properly although full attempt to get proper response from them.

4. The duration and budget of the project was short, so the scope of more in-depth evaluation was not possible.

ANNEXURE

QUESTIONNARIES

1. Do you consume Amul milk?

YES NO

2. Scale the following criteria for Amul milk

A. Easy availability B. Good Quality

C. Reasonable price D. Good relation with retailer

3. I purchase ………………………

A. Tea special B. Amul gold

C. Cow milk D. Amul shakti

4. How much milk does your family consume daily?

A. 0.5 litre B. 1 litre

C. 1.5 litre D.2 litre

E. Above 2litre

5. Which size of package do you prefer?

A.200ml B. 500ml C. 1litre

6. From where do you purchase Amul milk?

A. Parlor B. Retailer

C. Morning Center D. Home Delivery

7. Since how long are you consuming Amul milk?

A, 0-1 year B. 1-2 years

C. 2-3 years D.> 3 year

8. How far Amul milk is available from your place?

A.0-1 km B. 1-2 km

C.2-3 km D. >3km

9. Have you faced any problem for availability of Amul milk?

YES No

If Yes then,

Daily B. Sometimes C. Often

Factor

Fully satisfied

Satisfied

Indifferent

Dissatisfied

Fully dissatisfied

Taste

Thickness

Freshness

Availability

Price

10. Evaluate the following factors using the following criteria fully satisfied, satisfied, and indifferent. Dissatisfied, fully dissatisfied.

11. Have you faced any problem with taste of Amul milk?

YES NO

If Yes then,

Daily B. Sometimes C. Often

12. Do you purchase any other milk if Amul milk is not available?

YES NO

If yes, please specify ……………………

13. Do you have any complaint for Amul milk?

YES NO

If yes, which of the following

A. Leakage B. Spoilage

C. Quality D. Any other

14. Your views and suggestions about Amul milk?

……………………………………………………………………………………………

PERSONAL INFORMATION

Name……………………………………………………………

Address……………………………………………………………………………………… …………………………………………………………………………………………….

Age………………………………………………….

Occupation……………………………………….

Family Size………………………………………..

Family Income…………………………………



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