UNIVERSITY OF MUMBAI

PROJECT REPORT ON
STRATEGY MANAGEMENT OF AMUL COMPANY

SUBMITTED BY
AMRUTA R. PATIL

ROLL NO.
M.COM (Part I)
1ST SEMESTER

UNDER THE GUIDANCE OF:

PROF. ANITA MADAM

M.COM IN BUSINESS MANAGEMENT IN COURSE OF MARKETING

STRATEGIES AND PLANS
ACADAMIC YEAR
2015-2016

DNYANSADHANA COLLEGE OF ARTS, SCIENCE AND COMMERCE ,

NEAR ETERNITY MALL, OF EASTERN EXPRESS HIGHWAY, THANE
(WEST)
4000604
1

CERTIFICATE
I, PROF. ANITA MADAM HERE BY CERTIFY THAT AMRUTA R. PATIL OF
DNYANSADHANA COLLEGE OF ARTS, SCIENCE AND COMMERCE OF
M.COM -BUSINESS MANAGEMENT (PART I) HAS COMPLETED PROJECT
ON STRATEGY MANAGEMENT OF AMUL COMPANY

DURING

ACADEMIC YEAR 2015-2016. THE INFORMATION SUBMITTED IS TRUE

AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.

DATE :

SIGNATURE OF INTERNAL GUIDE

SIGNATURE OF PRINCIPLE

DECLARATION

I, AMRUTA R. PATIL OF DNYANSADHANA COLLEGE OF ARTS, SCIENCE

AND COMMERCE OF M.COM -BUSINESS MANAGEMENT (PART I), HEREBY
DECLARE

THAT I

HAVE

COMPLETED

PROJECT

ON

STRATEGY

MANAGEMENT OF AMUL COMPANY IN THE ACADEMIC YEAR 20152016, AS PER THE REQUIREMENT OF THE UNIVERSITY OF MUMBAI AS A
PART OF MASTERS IN COMMERCE -BUSINESS MANAGEMENT (PART I)
PROGRAMME. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL
TO THE BEST OF MY KNOWLEDGE.

PLACE

SIGNATURE OF THE STUDENT

DATE

ACKNOWLEDGMENT

I OWE A GREAT MANY THANKS TO A GREAT MANY PEOPLE WHO

HELPED AND SUPPORTED ME DURING THIS PROJECT.
MY DEEPEST THANKS TO THE GUIDE OF THIS PROJECT PROF.
ANITA MADAM, FOR GUIDING AND CORRECTING VARIOUS DOCUMENTS
OF MINE WITH ATTENTION AND CARE. HE HAS TAKEN PAIN TO GO
THROUGH THE PROJECT AND MAKE NECESSARY CORRECTION AS AND
WHEN NEEDED.
I WOULD ALSO THANK MY INSTITUTION AND MY FACULTY
MEMBERS WITHOUT WHOM THIS PROJECT WOULD HAVE BEEN A
DISTANT REALITY. I ALSO EXTEND MY HEARTFELT THANKS TO MY
FAMILY AND WELL WISHERS.

INDEX

Sr.

PARTICULARS

No.

Page
No.

Executive Summary

Amul Organization Profile

Introduction

History of Amul Organization

Amul and Co-Operation

10

GCMMF

11

Strategic Management

13

Strategy Planning Process

14

Levels of Strategy

16

Types of Strategy

20

PEST Analysis Amul

25

10

4 Ps

26

11

Conclusion

33

12

Bibliography

35

Executive Summary
AMUL is a co-operative sector. It is the institution of the farmers, for the
farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the
own price, which was not possible in earlier years. This union was born on 14th
December 1946. The union provides facilities to its members like more return,
satisfactory price, insemination, first aid, group Insurance, cattle food at confessional
price etc.
I have done case analysis on HRIS of AMUL and from that I have come to
know how organization operates and how the functions have been carried in the
organization. From this is case I have come to know how a wide organization like
AMUL manages its
AMUL dairy has five main departments like finance, personnel, commercial,
milk procurement and production. The finance department does the clerical work and
takes care of inflow and outflows of the cash. The other work of finance Department
is to audit of annual work.
The personnel department handles the work regarding personnel like
appointment, recruitment, promotion, transfer, dismissal, demotion, performance
appraisal etc.

Organization Profile

Name

: Kaira District Co- Operative Milk Producers

Union Limited, Anand.

Form

: Co-Operative Sector under the Co- Operative Society Act.

Reg.Office

: Kaira District Co-Operative Milk Producers Union Ltd,

Anand -3881001. Gujarat, India.

Promoters

(1) Shri Tribhuvandas Patel

(2) Shri Morarji Desai
(3) Shri Vallabh Bhai Patel

(4) Dr. Varghese Kurien

Auditors

: Special Auditors (Milk), Milk Audit Office Anand.

Socities

: 1113.

Members

: 6, 31,333.

Office Time

: 10:00 A.M To 06:00 P.M.

Premises

: 49.55 Acres.

Registration

: 14th December, 1946.

Introduction
AMUL means priceless in Sanskrit. A quality control expert in Anand
suggested the brand name AMUL from the Sanskrit word Amoolya variants, all
meaning priceless are found in several Indian languages. Amul products have been
used in millions of home since 1946.
Today Amul is a symbol of many things; of high quality products sold at reasonable
prices; triumph of indigenous technology; of the marketing savvy of a farmers
organization and proven model for dairy development.
The topic To study about Strategy and Market Share of Amul chocolates
highlights on the market share of Amul Chocolates Pune city in comparison to
existing player in the Milk chocolate Market. The market share can be found with the
help of retailers. As the competitors are concerned there are only two of them i.e.
Cadbury and Nestle
The study is also concerned to find out the various reasons due to which the
retailers do not prefer to sell Amul Chocolates. Moreover the study also helps in
knowing the best medium for creating the awareness about the Amul Chocolates. To
know the Market share and problems faced by retailers is very important for every
organization for their promotion, expansion and development.
The main motto of AMUL is to help farmers. Farmers were the foundation
stone of AMUL. The system works only for farmers and for consumers, not for profit.
The main of AMUL is to provide quality products to the consumers at minimum cost.
The goal of AMUL is to provide maximum profit in terms of money to the farmers.
Vision of AMUL is to provide and vanish the problems of farmers (milk producers).
The AMUL apparition was to run the organization with co-operative of four main
parties, the farmers, the representatives, the marketers, and the consumers.

History
In early 1940s a farmer in Kaira district, as elsewhere in India, derived his
income almost entirely from seasonal crops. The income from milk was paltry and
could not be depended upon. The main buyers were milk traders of Polson Ltd.-a
privately owned company that enjoyed monopoly for supply of milk from Kaira to
the Government Milk Scheme Bombay. The system leads to exploitation of poor and
illiterate farmers by the private traders.
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 cooperative union, instated of supplying milk to private
traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Cooperation and help. Shri Dasai held a meeting at Samrkha village near Anand, on
January 4, 1946. He advised the farmers to from a society for collection of the milk.
These village societies would collect the milk themselves and also decided prices for
that which would be profitable for them. The district union was also from to collect
the milk from such village cooperative societies and to sell them. It was also resolved
that the government should asked to buy milk from the union.
However, the government did not seem to help farmer by any means. It gave
the negative response by turning down the demand for the milk. To respond to this
action of government, farmer of Kaira district went on a milk strike. For 15 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. Finely he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at village and district level to
collect and sell milk on a cooperative basis, without the intervention of government.
Mr. Verghese Kurien had main interest in establishing union who was supported by
Shri Tribhuvandas Patel who convinced farmers in forming the cooperative unions at
the village level. The Kaira District Co-operative Milk Producers Union was thus
established in Anand and was registered formally under section 10 of Bombay Act
VII of 1925 on December 14, 1946. Since then farmers are selling all the milk in
Anand through cooperative union. In 1955 it was commonly decided the sell milk
under the brand name Amul.
At the initial stage only 250 liters of milk was collected every day. But with
the growing awareness of the benefits of the co-cooperativeness the collection of milk
increased. Today Amul collect 50, 00,000 liters of milk every day. As the milk is
perishable commodity it became difficult to preserve milk for a 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 to develop the chilling
unit at various junctions, which would collect the milk and could chill so as preserve
it a for a longer period. Thus, today Amul has more than 168 chilling centers in
various villages. Milk is collected from almost 1097 societies.
With the financial help from UNICEF, assistance from the government of
New Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory
milk powder and butter. Dr. Rajendara Prasad, the president of India laid the
foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the prime minister
of India declared it open at Amul dairy on November 20, 1955.
A plant to manufacture balanced cattle feed was formally commissioned on
October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the
request of the government of India, a new dairy with a capacity to manufacture 40
tons of milk powder and 20 tons of butter a day was completed in 1963. This was
meant to meet the requirement of Indias defense forces. The dairy was declared open
by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union setup a plant to
10

manufacture high-protein weaning food, chocolate and malted food at Mogar, about 8
km south of Anand.
In September, 1981, the second cattle feed plant at Kanjari were started. The
succesion of the co-generation project on September 11, 1985, marked a milestone on
the energy front when two gas turbine generators of 1.5 MW each based on natural
gas, were commissioned. On October 31, 1992, Dr. V. Kurien chairman, National
Dairy Development Board, laid the foundation of Kaira Unions third dairy with a
processing capacity of 6.5 lakh liters of milk a day. Work on the third dairy and
cheese plant at Khatraj with capacity for 20 Metric Ton of cheese per day, began in
February, 1994. Also in 1994, Kaira Union put up bread spread plant at Mogar with
the assistance from National Dairy Development Board.

Amul and Co-Operation

11

The CEO, Mr. B M Vyas, said that. Amul is not a food company; it is an IT
company in the food business. In saying this he was recognizing that the most
efficient way of building links between milk producers and consumers so as to
provide the best returns for the both is through IT innovation.
Thus is why Amul has embraced the ideas behind coop with such enthusiasm.
Not only will the TLD enable consumers in India to recognize an established brand
they can trust online, it will enable Amul to begin trading competitively throughout
the world, reaching markets, which have hitherto been inaccessible.
The CIO, Mr. Subbarao Hegde said, Information Technology is the most
effective tool we have in communicating with our members and the millions of
consumers who purchase Amul products throughout India every day. Coop not only
reflects the cooperative values which shape our own organization democratically
dynamic, it will also give us a vital business advantage as we seek to develop the
Amul brand throughout the world.
AMUL means priceless in Sanskrit. The brand name Amul, from the
Sanskrit Amoolya,was suggested by a quality control expert in Anand. Variants, all
meaning priceless, are foundin several Indian languages. Amul products have been
in use in millions of home since 1946.Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramaul, Amul Milk and Amulya have made Amul a leading food brand in India.
(Turnover: Rs. 29 billion in 2004). Today Amul is a symbol of many things. Of highquality products sold at reasonable prices.

12

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION

(GCMMF)
An Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is Indias largest
food products marketing organization. It is state level apex body of milk cooperative
in Gujarat 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.
Members

: 12 district cooperative milk producers Union

No. of Producers Members

: 2.36 million

No. of Village Societies

: 11,333

Total Milk handling capacity

: 6.9 million liters per day

Milk collection (Total 2002-03)

:1.86 billion liters

Milk collection (Daily Average (2003-04) : 4.97 million liters

Milk Drying Capacity

: 511 metric Tons per day

Cattle feed manufacturing

: 2340 Mats per day

13

Strategic Management
Although the term strategic management is bantered around a lot in the
businesses world, it is not understood very well by most people. Essentially strategic
management answers the questions of where do you want your business to
go(goals), how is your business going to get there (strategy) and how will you
know when you get there (evaluation). A strategic management analogy is taking a
trip during your vacation. First you decide where you want to go the natural beauty
of Yellowstone or the bright lights of Las Vegas. Then you develop a strategy of how
to get there take an airplane (which flights), drive your car (which highways), etc.
This will be influenced by the amount of money, time and Other resources you have
available. Then you monitor your trip to see if your strategy takes you to your
destination and how your strategy worked (missed Flights, poor road conditions, etc.).
Below are concepts to help expand your understand of strategic management for a
business. These will help sharpen your focus for using Strategic Management for a
Value-added Farm Business.

Global Strategic Management

During the last half of the twentieth century, many barriers to international trade fell
and a wave of firms began pursuing global strategies to gain a competitive advantage.
However, some industries benefit more from globalization than do others, and some
nations have a comparative advantage over other nations in certain industries. To
create a successful global strategy, managers first must understand the nature of
global industries and the dynamics of global competition.

14

The Strategic Planning Process

In today's highly competitive business environment, budget-oriented planning
or forecast-based planning methods are insufficient for a large corporation to survive
and prosper. The firm must engage in strategic planning that clearly defines objectives
and assesses both the internal and external situation to formulate strategy, implement
the strategy, evaluate the progress, and make adjustments as necessary to stay on
track.
A simplified view of the strategic planning process is shown by the following
diagram:
The Strategic Planning Process
The Strategic Planning Process
Mission &Objectives
Environmental Scanning Strategy Formulation Strategy Implementation
Evaluation & Control

Environmental Scan
The environmental scan includes the following components:
Internal analysis of the firm
Analysis of the firm's industry (task environment)
External microenvironment (PEST analysis)
The internal analysis can identify the firm's strengths and weaknesses and the
external analysis reveals opportunities and threats. A profile of the strengths,
weaknesses, opportunities, and threats is generated by means of a SWOT analysis.

15

Strategy Formulation
Given the information from the environmental scan, the firm should match its
strengths to the opportunities that it has identified, while addressing its weaknesses
and external threats. To attain superior profitability, the firm seeks to develop a
competitive advantage over its rivals. A competitive advantage can be based on cost
or differentiation. Michael Porter identified three industry-independent generic
strategies from which the firm can choose.

Strategy Implementation
The selected strategy is implemented by means of programs, budgets, and
procedures. Implementation involves organization of the firm's resources and
motivation of the staff to achieve objectives. The way in which the strategy is
implemented can have a significant impact on whether it will be successful. In a large
company, those who implement the strategy likely will be different people from those
who formulated it. For this reason, care must be taken to communicate the strategy
and the reasoning behind it. Otherwise, the implementation might not succeed if the
strategy is misunderstood or if lower-level managers resist its implementation
because they do not understand why the particular strategy was selected.

Evaluation & Control

The implementation of the strategy must be monitored and adjustments made
as needed. Evaluation and control consists of the following steps:
1.Define parameters to be measured
2.Define target values for those parameters
3.Perform measurements
4.Compare measured results to the pre-defined standard
5.Make necessary changes

16

Hierarchical Levels of Strategy

Strategy can be formulated on three different levels:
corporate level
business unit level
functional or departmental level.
While strategy may be about competing and surviving as a firm, one can argue
that products, not corporations compete, and products are developed by business
units. The role of the corporation then is to manage its business units and products so
that each is competitive and so that each contributes to corporate purposes. Consider
Textron, Inc., a successful conglomerate corporation that pursues profits through a
range of businesses in unrelated industries. Textron has four core business segments:
Aircraft - 32% of revenues
Automotive - 25% of revenues
Industrial - 39% of revenues
Finance - 4% of revenues.
While the corporation must manage its portfolio of businesses to grow and
survive, the success of a diversified firm depends upon its ability to manage each of
its product lines. While there is no single competitor to Textron, we can talk about the
competitors and strategy of each of its business units. In the finance business
segment, for example, the chief rivals are major banks providing commercial
financing. Many managers consider the business level to be the proper focus for
strategic planning.

17

Corporate Level Strategy

Corporate level strategy fundamentally is concerned with the selection of
businesses in which the company should compete and with the development and
coordination of that portfolio of businesses. Corporate level strategy is concerned
with:
Reach - defining the issues that are corporate responsibilities; these might include
identifying the overall goals of the corporation, the types of businesses in which the
corporation should be involved, and the way in which businesses will be integrated
and managed.
Competitive Contact - defining where in the corporation competition is to be
localized. Take the case of insurance: In the mid-1990's, Aetna as a corporation was
clearly identified with its commercial and property casualty insurance products. The
conglomerate Textron was not. For Textron, competition in the insurance markets
took place specifically at the business unit level, through its subsidiary, Paul Revere.
(Textron divested itself of The Paul Revere Corporation in 1997.)
Managing Activities and Business Interrelationships - Corporate strategy seeks to
develop synergies by sharing and coordinating staff and other resources across
business units, investing financial resources across business units, and using business
units to complement other corporate business activities. Igor an off introduced the
concept of synergy to corporate strategy.
Management Practices - Corporations decide how business units are to be governed:
through direct corporate intervention (centralization) or through more or less
autonomous government (decentralization) that relies on persuasion and rewards.

18

Business Unit Level Strategy

A strategic business unit may be a division, product line, or other profit center
that can be planned independently from the other business units of the firm. At the
business unit level, the strategic issues are less about the coordination of operating
units and more about developing and sustaining a competitive advantage for the
goods and services that are produced. At the business level, the strategy formulation
phase deals with:
positioning the business against rivals
anticipating changes in demand and technologies and adjusting the strategy to
accommodate them
influencing the nature of competition through strategic actions such as vertical
integration and through political actions such as lobbying.

Functional Level Strategy

The functional level of the organization is the level of the operating divisions
and departments. The strategic issues at the functional level are related to business
processes and the value chain. Functional level strategies in marketing, finance,
operations, human resources, and R&D involve the development and coordination of
resources through which business unit level strategies can be executed efficiently and
effectively. Functional units of an organization are involved in higher level strategies
by providing input into the business unit level and corporate level strategy, such as
providing information on resources and capabilities on which the higher level
strategies can be based. Once the higher-level strategy is developed, the functional
units translate it into discrete action-plans that each department or division must
accomplish for the strategy to succeed.

19

Horizontal Integration
The acquisition of additional business activities at the same level of the value
chain is referred to as horizontal integration. This form of expansion contrasts with
vertical integration by which the firm expands into upstream or downstream
activities. Horizontal growth can be achieved by internal expansion or by external
expansion through mergers and acquisitions of firms offering similar products and
services. A firm may diversify by growing horizontally into unrelated businesses.
Some examples of horizontal integration include:
The Standard Oil Company's acquisition of 40 refineries.
An automobile manufacturer's acquisition of a sport utility vehicle
manufacturer.
A media company's ownership of radio, television, newspapers, books, and
magazines.

20

Types of Strategy
Research and development strategy
Businesses cannot grow and survive without new products. It is the role of R&D
specialists to generate new product ideas, nurture them carefully and develop them
fully into commercially viable propositions. Where innovation proves to be a costly
exercise imitation could also be tried as a fruitful option. Many Japanese electronics
companies were quite successful in copying American technology and by avoiding
R&D costs, improved their competitive strength significantly.

Operations Strategy:
This strategy outlines steps to keep costs under check and improve operational
efficiency. The focus is on arriving at decisions regarding plant layout, plant capacity,
production processes, inventory management etc.

Financial strategy
It deals with financial planning, evaluating investment proposals securing funds for
various investments and controlling financial resources. Thus raising funds, acquiring
assets, allocating funds to operations, using funds efficiently etc are all part of the
strategy.

Marketing Strategy
It deals with strategies relating to product pricing, distribution and promotion of a
companys offering important issues here cover what type of products at what prices
through which distribution channel and by the use of which promotional tool and
sales force etc.

21

Human Resources strategy

HR strategy deals with hiring, training, assessing, developing rewarding motivating
and retaining the number and types of employees required to run the business
effectively, internal (union contracts, productivity indices, labor turnover, absenteeism
accidents etc) and external factors (labor laws, son of the soil, reservation, equal
employment opportunity, employment of children and women etc) need to be
carefully evaluated while formulating HR strategies.

Constraints and strategic choice

Viewed collectively the R&D strategy should encourage innovation; marketing
should stress brand loyalty and reliable distribution channels of production should
maintain long production runs, cost reduction, finance should focus on cash flows and
positive returns and HR department should develop strategies for retaining and
developing a stable workforce. Of course organizations do come across constraints
while formulating functional level strategies in several forms, how to finance the
proposals what kind of risk to be taken, how to combine suppliers and make channel
partners happy, how to encounter competitive retaliation etc. In any case while
selecting appropriate strategies at corporate business and functional level the
following criteria should be kept in mind.
Strategy selection criteria
1)

They are responsive to the external environment.

2)

The offer a sustainable competitive advantage.

3)

They are consistent with order strategies in the organization.

4)

They provide adequate flexibility for the business and the organization.

5)

They conform to the organizations mission and long term objectives.

6)

They are organizationally flexible.

22

Strategy Implementation:
Strategy implementation is the process of translation of strategies and policies into
action through the development of programs, budgets and procedures It is typically
conducted by the middle and lower level management but is reviewed by the top
management. However, programs and procedures are simply more detailed plans for
the eventual implementation of strategy. Unless the corporation is appropriately
organized, programs are adequately staffed and activities are properly directed these
operational plans fail to deliver the goods. To be effective a strategy must be
implemented through the right organization structure and appropriate management
practices. In addition, management must also ensure that there is progress towards,
objectives according to plan by instituting a rigorous process of control over
important activities. The following figure would help in understanding the process of
strategy implementation.

Directing
People should be motivated to implement a new strategy in desired ways. It is not
sufficient merely to have people who can do the job; it is necessary to have people
who want to do the job the way you need it done. In addition to traditional
motivational techniques managers should also make use of modern techniques in
order to inspire people to perk performances.

23

The Factors That Shape Strategy

Organizations do not exist in a vacuum. Many factors enter into the forming
of a company's strategy. Each exists within a complex network of environmental
forces. These forces, conditions, situations, events, and relationships over which the
organization has little control are referred to collectively as the organization's
environment.
In general terms, environment can be broken down into three areas: the macro
environment, or general environment (remote environment) - that is, economic,
social, political and legal systems in the country; operating environment - that is,
competitors, markets, customers, regulatory agencies, and stakeholders; and the
internal environment - that is, employees, managers, union, and board directors. In
formulating a strategy, the strategic decision makers must analyze conditions internal
to the organization as well as conditions in the external environment, which are
described in the following sections.

Strategy Planning Environmental Analysis

The 1st step of the strategy management process is environmental analysis. An
organization can only be successful if it is appropriately matched to its environment.
Environment analysis is the study of the organizational environment to pinpoint
environmental factors that can significantly influence organizational operations.
Managers commonly perform environmental analyses to help them understand what
is happening both inside and outside their organizations and to increase the
probability that the organizational strategies they develop will appropriately reflect
the organizational environment. In order to perform an environmental analysis
efficiently and effectively, a manager must thoroughly understand how organizational
environments are structured.
For purposes of environmental analysis, the environment of an organization is
generally divided into 3 distinct levels:
24

 General Environment
Operating Environment
Internal Environment
Managers must be well aware of these 3 organizational environmental levels,
understand how each level affects organizational performance and then formulate
organizational strategies in response to this understanding.
The General Environment:
The components normally considered part of the general environment are:

Economic
Social: Including Demographics and Social Values
Political
Legal
Technological

The Operating Environment:

The operating Environment includes various components like:

Customer
Competition
Labour
Supplier
International Issues

The Internal Environment:

The level of an organizations environment that exists inside the organization
and normally has immediate and specific implications for managing the organization
is the internal environment. It includes marketing, finance and accounting, planning,
organizing, influencing and controlling within the organization.

Pest Analysis of Amul

P
25

1) Since the budget range is decontrolled, no political effects are envisaged.

E
1) Increasing per capita income resulting in higher disposable income
2) Growing middle class/urban population increase in demand.
3) Low cost of production better penetration.
S
1) Per capita consumption expected to increase fashion.
2) Increasing gifts culture increase in demand.
3) Lower cholesterol than Mithais (sweet meat) substitute demand
T
1) Will have to reinforce technology to international levels once India is a free
economy

4 PS OF MARKETING

26

The marketing mix, which is set of four elements or four P of marketing are as
follow
1. Product
2. Price
3. Place
4. Promotion
Same as four P there is also four C of marketing.
1. Customer solution
2. Cost
3. Convenience
4. Communication

Product :
A product is anything that satisfies needs or wants and can be offered to the
market for exchange. A product can be goods, services without product there is no
marketing. This includes product variety, product design, packaging, quality, brand
name, size etc. AMUL produces and sell i.e. Milk; it has to plan its product very
carefully so that the consumer gets only good quality products. There are various
products marketed by GCMMF
.
Price :The prices of products of Amul are also decided by the GCMMF. The
GCMMF conducts the market survey to check the validity and feasibility of prices in
the market and accordingly decides the prices of Amul products. The price of the
products of Amul are also decided by the Gcmmf .The Gcmmf conducts the market
survey to check the validity and feasibility of prices in the market and accordingly
decides the price of Amul products .
However, the price is inclusive of several elements like:
27

Labour cost

Processing cost

Packaging cost

Advertising cost

Transportation cost

Sales promotion cost

The GCMMF considers all this cost. Aspects and set them up in pricing structure to
decide the selling price of milk and milk products.
Setting the price based upon prices of the similar competitor products.Amuls
new launch Choco Crunch Pricing is based on three types:1) Product is lasting distinctiveness from competitor's product.
Here we can assume
a) The product has low price elasticity.
b) The product has low cross elasticity.
c) The demand of the product will rise.
2) Products have perishable distinctiveness from competitor's
product, assuming the product features are medium distinctiveness.
3) Products have little distinctiveness from competitor's product.
Assuming that:
a) The product has high price elasticity.
b) The product has some cross elasticity.
c) No expectation that demand of the product will rise. Price is the factor
that beats out all other chocolates in the competition.

Promotion

28

IT includes a variety of techniques including advertisement, sale promotion,

public relations and personal selling that are used to communicate with customers and
potential customers. Television is the best media for advertising in the local areas.
Hoardings designed on the creative basis attract the customers more.
A successful product or service means nothing unless the benefit of such a
service can be communicated clearly to the target market. An organizations
promotional strategy can consist of:
Advertising: Is any non personal paid form of communication using any form of
mass media?
Public relations: Involves developing positive relationships with the organization
media public. The art of good public relations is not only to obtain favorable publicity
within the media, but it is also involves being able to handle successfully negative
attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.
Pull Strategy and Push Strategy: Communication by the manufacturer is not only
directed towards consumers to create demand. A push strategy is where the
manufacturer concentrates some of their marketing effort on promoting their product
to retailers to convince them to stock the product. A combination of promotional mix
strategies are used at this stage aimed at the retailer including personal selling, and
direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is
based around the manufacturer promoting their product amongst the target market to
create demand. Consumers pull the product through the distribution channel forcing
the wholesaler and retailer to stock it, hence the name pull strategy. Organizations
tend to use both push and pull strategies to create demand from retailers and
consumers.

Place
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Place refers to marketing activities that make products available to consumers

at the right time in a convenient location. Place refers as distribution Channels .IT is
the process of moving products from the producer the consumer. Amul has developed
federation and Amul parlors located in several parts of country. Amul have managed
to create more than 2300. Amul have identified certain potential locations such as
Railway, Airports, universities, and shopping malls. The GCMMF handles the
workers relating to Managing of stocks and distributors to in the country. Thus
GCMMF looks offer the disbursement of products to the various Marketing channels.

Product
Cost
A strong emphasis on target costing, design-to-cost, value engineering,
and design for manufacturability. Minimum product variety. Significant
manufacturing and accounting involvement in development. Suppliers are
well-integrated into the development process. Factory uses high volume
equipment specifically oriented to the product; automated material handling.
Quality /Reliability /Dependability
A disciplined and rigorous product development process. Strong focus
on understanding customer needs and providing products that meet those
needs. Use of techniques like FMEA, FTA, FRACAS, DOE, Taguchi
Methods, poke-yoke, and reliability prediction. Heavy emphasis on testing
and qualification. Processes are oriented to self-checking and adjustment and
use of computer- aided inspection and test equipment.

Time-to-Market
Use of modular design approaches. Sufficient resources to undertake
development processes underway. Continuous surveillance of the marketplace
and understanding of customer needs. Well-defined development processes
based on tightly integrated design automation tools. Well-planned and
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managed programs with clear definition and acceptance of responsibilities.

Process equipment to handle a wide range of work envelopes; FMS; quick setup and changeover.
Innovativeness/ Technology
A technology plan and roadmap based on the business and product
strategy and plan. Effective technology management. Process to review new
technologies developed outside for applicability internally. Effective process
to deploy new technology to development programs. State-of-the-art design
and analysis tools to support requirements of new technology. Policies to
invest in training and development of personnel to master new technology.
Culture open to new ideas and taking risks. Investment in new process
technology.
A starting point is to define and understand the company's
marketplace, customer needs and competition. Based on this assessment, the
company's primary competitive dimensions can be selected and a strategy
defined to develop and enhance these competitive dimensions. Once this is
done, product and process design based on IPD can be oriented to implement
this strategy.

Positioning Strategy
When the list of target markets is made, a company might want to start on
deciding on a good marketing of a product. But an important step before developing
the marketing mix is deciding on how to create an identity or image of the product in
the mind of the customer. Every segment is different from the others, so different
customers with different ideas of what they expect from the product.

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The Process of Positioning the Product of A Company:

Identifies the differential advantages in each segment. Decides on a different
positioning concept for each of these segments. This process is described at the
topic positioning; here different concepts of positioning are given. The processdata model shows the concepts resulting from the different activities before and
within positioning. The analyses done of the market, competitors and abilities of
the company are necessary to create a good positioning statement. When the
positioning statement is created, one can start on creating the marketing mix.
B2C and B2B
The process described above can be used for both business-to-customer as well as
business-to-business marketing. Although most variables used in segmenting the
market are based on customer characteristics, business characteristics can be
describe during the variables which are not depending on the type of buyer. There
are however methods for creating a positioning statement for both B2C and B2B
segments. One of these methods is MIPS: a method for managing industrial
positioning strategies by Muhlbacher, Dreher and Gabriel-Ritter (1994)

Distribution Strategy
In order to ensure a continuous & efficient distribution, an approximate figure
has to be arrived at for getting the initial orders & to ensure adequate supply so that
any delays or resultant losses are avoided. For this purpose, the company adopted the
consumer response hierarchy model so that, it is ensured that all the company enters
the market with a bang avoiding any problems of late or inadequate supplies. This is
highly essential to support the huge promotional budget, since if the supplies arent at
the right time, all other effort can be in vain.
Market Research Strategy
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Market research is discovering what people want, need, or believe. It can also
involve discovering how they act. Once that research is complete it can be used to
determine how to market your specific product. Whenever possible, try to reduce
risks at the earliest possible stage. For example you could carry out market research
early on and not wait until you are almost ready to enter the market. If early market
research reveals that your business idea has real potential, you can use this
information in planning the build-up of your business. For starting up a business there
are a few things should be found out through market research in order to know if your
business is feasible. These are things like:
Acquisitions and Integration
Buying companies is a popular strategic tool used to fuel growth strategies.
Buying or merging with an existing company can boost your organization's market
share, increase operational efficiency and grant you access to additional talent and
customers. When done right, acquisitions can be a win-win-win for the buyer, the
seller and the customers. When acquisitions do not work out, however, the buying
company can incur significant financial loss, often putting it in a worse financial
situation than it was before the acquisition. Companies should only acquire
organizations they fully understand, in whose industries they have sufficient
experience.

CONCLUSION

Competition will never end so let's not avoid it but face it confidently,
"For a chief executive, unless he knows where he is going no one can take him there".
What's the use of Marketing & Advertising if it does not reach the right people
and yield desired results? Therefore it is necessary for every individual who has
something to sell but no one to buy, to detect the problem areas and try to solve them.
But for this, knowing the right problem is extremely essential otherwise hitting the
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target in dark means nothing. Therefore, it is rightly said that a "well defined problem
is half done". Once you know your drawbacks only then you can correct it. Therefore,
to know your drawbacks you need to conduct a survey and get information right from
the ultimate users of your product. They should be asked to bring out your drawbacks.
This will help you to not only know your pitfalls but also what your customers want
and their likes and dislikes and while doing so build a good rapport with your
customers. While conducting such surveys you can also advertise your products
among those customers who are not much aware of it.
"There are three ways of doing a thing- the wrong way, the right way and
our way" whichever may be your way the ultimate aim is to achieve the results and
implement them to maximize customer satisfaction we all know competition is
intense then why not take it positively so that it helps us to improve our product
quality, makes customers loyal to us, helps us know our shortcomings and rectify
them. The best way to overcome your competitors is to give your customers what
they expect or probably more than that. To know the customers expectations towards
Amul, I had conducted a market Research of the existing customers, which helped me
to know the satisfaction, awareness and liking among customers for the products of
Amul and analyze the situation and provide them suggestion to improve the situation.
These suggestions if implemented would definitely yield results and
"Ultimately the results matter, how and who does it is immaterial".
As we know that Amul is very big organization and market leader in dairy
products. It has maximum market share in Milk, Butter and Cheese, which are its
main/core products. As we know Amul is a co-operative organization but chocolate
industry is a profitable industry we cant ignore it. With the help of research, company
can find out its week points in chocolate product and can increase its market share
through rectify mistakes. People have believed inAmuls product and they will accept
its chocolates also if effective actions were taken. The survey resulted into following
conclusions:

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Amul must come up with new promotional activities such that people become
aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.

Quality is the dominating aspect which influences consumer to purchase Amul

product, but prompt availability of other chocolate brands and aggressive
promotional activities by others influences the consumer towards them and
also leads to increase sales.

In comparison to Amul Chocolate, the other players such as Cadbury, Nestle,

are provide a better availability and give competition to the hilt.

People are mostly satisfied with the overall quality of Amul Chocolate, but for
the existence in the local market Amul must use aggressive selling techniques.

BIBLIOGRAPHY
1. www.amul.com
2. www.google.com
3. www.marketresearch.com
5.

www.dairy.com

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