The Taste of India

CUSTOMER SATISFACTION OF AMUL

PRODUCTS

TANISHA KOTHARI
TYBMS

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Index

Chapter Title Page no.

no.
1 General Introduction 5

• Introduction to the Topic 5

• Profile of the Industry 6

• Company Profile 9

• Product Profile 16

2 Theoretical Background of the Study 24

3 Design of the Study 26

4 Analysis & Interpretation 33

5 Findings, Suggestions & Conclusions 52

Annexure:
a) Bibliography 56
b) Questionnaire

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List of Tables:

Table no. Contents Page no.

5.1 Classification of Customers Based On Sex 33

5.2 Analysis of Occupation of the Respondents 35

5.3 Analysis of Monthly Income of the Respondents 36

5.4 Analysis of Factors to Buy AMUL Milk and Milk 38

Products

5.5 Opinion of the Respondents Regarding Quality 39

5.6 Analysis of Consumption of Average Milk per Day 41

5.7 Analysis of Purchase Duration of the AMUL Milk 43
& Milk Products
5.8 Analysis of Rating Towards AMUL Milk & Milk 45
products

5.9 Analysis of problems in Amul Milk Products 47

5.10 Analysis of Availability of Products from Dealers 48

5.11 Analysis of Value for Money Paid by the 49
Respondents
5.12 Analysis of Recommendations 51

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List of Graphs:

Graph no. Contents Page no.

5.1 Classification of Customers Based On Sex 34

5.2 Analysis of Occupation of the Respondents 35

5.3 Analysis of Monthly Income of the Respondents 37

5.4 Analysis of Factors to Buy AMUL Milk and Milk 38

Products

5.5 Opinion of the Respondents Regarding Quality 40

5.6 Analysis of Consumption of Average Milk per Day 42
5.7 Analysis of Purchase Duration of the AMUL Milk 44
& Milk Products

5.8 Analysis of Rating Towards AMUL Milk & Milk 46

products

5.9 Analysis of problems in Amul Milk Products 47

5.10 Analysis of Availability of Products from Dealers 48

5.11 Analysis of Value for Money Paid by the 50
Respondents

5.12 Analysis of Recommendations 51

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INTRODUCTION

Marketing is basically your interaction with your consumer. This interaction with your
consumer is done so that you can get the consumer to purchase your product or service.
Basically that is what marketing is all about, getting the customer to purchase your product
or service!
There is a tendency to confuse “marketing” with other terms like “advertising” or
“publicity” etc. However, advertising is only a small part of marketing. Advertising is one
of the ways in which you can get the customer to purchase your product or service. There
are many other ways. Like "publicity" though newspapers will increase awareness about
your product or service and thus may get the customer to purchase your product or service.
The point is that marketing is a mixture of all the activities of advertising, promotion,
publicity, deciding the look and feel of the product, how it will be sold and sent to the
consumer etc. All of these are the different parts of marketing. They are not marketing.
Marketing can be thought of as a mixture of all these activities that will get the consumer to
buy your product. In fact, this gives us one of the important terms related to marketing
called "marketing mix". Marketing mix, as stated above is a mixture of all the above stated
activities designed to get a particular set of consumers to buy your product.
the marketing strategy is dependent on the target market. This basically means that the:
• Product
• Price
• Place
• Promotion
are all to be designed to appeal to the selected target market. In the following pages we have
tried to show you how the perfect marketing mix is to be designed for your target market.

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INDUSTRY PROFILE

The dairy industry plays an important role in the socio-economic development of India. The
dairy industry in India is instrumental in providing cheap nutritional food to the vast
population of India and also generates huge employment opportunities for people in rural
places.

The Department of Animal Husbandry, Dairying, and Fisheries, which falls under the
central Ministry of Agriculture, is responsible for all the matters relating to dairy
development in the country. This department provides advice to the state governments and
Union Territories in formulating programmes and policies for dairy development. It also
looks after all the matters relating to production and preservation of livestock farms (cattle
and sheep). To keep focus on the dairy industry a premier institution known as the National
Dairy Development Board was established. This institution is a statutory body that was
established in 1987. The main aim to set up the board was to accelerate the pace of dairy
development in the country and attract new investments.

India is a wonderland for investors looking for investment opportunities in the dairy
industry. The dairy industry holds great potential for investment in India and promises high
returns to the investors.

The reasons why the industry has huge potential for attracting new foreign investment are:

1. There is a basic raw material need for the dairy industry; that is, milk is available in
abundance.
2. India has a plentiful supply of technically skilled labourers.
3. There is an easy availability of technological infrastructure.
4. India has all the key elements required for a free market system.

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There are different sectors within the dairy industry that promise great business investment
opportunities:

• Biotechnology:
1. The Indian cattle yield less milk as compared to their foreign counterparts. The Indian
cattle breeders are on the lookout for ways to improve their milk yield through cross-
breeding. Thus, there is a huge potential available for foreign investors to invest in dairy
cattle breeding of high-quality buffaloes with hybrid cows.
2. There is also great scope for investment in different dairy cultures, including dairy
biologics, enzymes, probiotics, and other colouring materials for food processing.
3. Producing bio preservative ingredients based on dairy fermentation, such as pediococcin,
acidophilic, bulgarican, and Nisin contained in dairy powder, also promise great investment
opportunity.

• Dairy/Food Processing Equipment:

Great potential lies for foreign investment for manufacturing and marketing of cost-
effective, top-quality food processing machinery.

• Food Packaging Instruments:

There is a tremendous investment opportunity for foreign investors in the manufacturing of
both machinery and packaging materials that aid the development of brand loyalty and gives
a clear edge in the marketing of dairy products.

• Retailing:
Retailing of dairy products also promises great investment opportunities for standardization
and upgrading dairy products in the main metropolitan cities.

• Manufacture of Ingredients:
Several ingredients are involved in the making of different dairy products like ghee,
condensed milk, and cheese. Manufacturing of ingredients for these products offers a great
potential for foreign investment in India.

• Finished Products:
There is a great scope for investment in the manufacturing of finished dairy products such
as cheese sauce and cheese powders.

• Technically Advanced Manufacturing Units:

There is a great opportunity for foreign investors to invest in establishing manufacturing

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units for dairy products. The investors can build world-class manufacturing units and let
them for hire. Building manufacturing units supports specialized dairy-related activities,
such as cheese slicing, cheese packaging, butter printing, and dicing lines, which hold
greater potential over other activities.

Thus, the dairy industry in India has huge investment opportunities in a variety of sectors.
The investors are all set to gain profitable returns on their investment.

India is one of the fastest emerging economies today. With the government encouraging
foreign Investments in India, it has become easier for foreign companies to foray into
the Indian Markets.

Company profile
Company Profile of Amul:

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 found in several Indian languages. Amul products have been in use in

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millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 52.55 billion in
2007-08). Today Amul is a symbol of many things. Of high-quality products sold at
reasonable prices.

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a
year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it.
All because a thumb-sized girl climbed on to the hoardings and put a magical spell on the
masses

AMUL stands for,

A= Anand
M = Milk
U = Union
L = Limited.

Milestone of Amul:
Name Karia district co-operative milk producer’s ltd, widely known as “Amul”
From Co-operative sector registered under the co-operative society act
Location Amul dairy, nr, railway station, Amul dairy road, Anand Gujarat , India
Registration 14th December, 1946
Registered Kaira district co-operative milk producer’s ltd, Anand -388 001. Gujarat
Size Production of different products on large scale, collecting 9 to 15 lakh liters
milk everyday & producing milk products.

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Plant There are 4 plants

1) Amul Plant 2) Kanjari Plant
3) Mogar Plant 4) Khatraj Plant
Banker 1. The Kaire District Center Co-Operative Bank Ltd.
2. UTI bank 4. Bank of Baroda
3. SBI 5. Corporation bank 6. Bank of Maharashtra
Working 10:45 am to 5:45 pm
Founders 1. Shri Tribhuvandas K. Patel
2. Shri Sadar Vallabhbhi Patel
3. Shri Morarji Desai
4. Shri Verghese Kurien
5. Shri Harichand M. Dalaya

Amul (Anand milk union ltd.) is abased on four hands, which are coordinated with each
other. The actual meaning of this symbol is co-ordination of four hands of different people
by whom this union is at the top position in Asia.
○ First hand is of farmers, without whom the organization would not have existed.
○ Second hand is of processors, who process the row material (milk) into finished
goods.
○ Third hand is of marketer, without whom the product would have not reached the
customers
○ Fourth hand is of customers, without whom the products would have not carried on.

Brief History of Amul:

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organization, Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
some 2.6 million milk producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in

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the state of Gujarat, especially the highly successful one known as AMUL, will naturally
wonder what combination of influences and incentives is needed to multiply such a model a
thousand times over in developing regions everywhere. ”The Amul Pattern has established
itself as a uniquely appropriate model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest producer of milk and milk products in
the world. It is also the world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres per day. Besides India, Amul
has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market
in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets.
Other potential markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.

AMUL: The origin

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of the
Himalayas. Similar is the story of Amul which inspired Operation Flood and heralded the
'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per
day, nothing but a trickle compared to the flood it has become today. Today Amul collects
processes and distributes over a million liters of milk and milk products per day, during the
peak, on behalf of more than a thousand village cooperatives owned by half a million
farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha,
Amul too has become a symbol of the aspirations of millions of farmers.Creating a pattern
of liberation and self-reliance for every farmer to follow.

The Start of a Revolution

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The revolution started as awareness among the farmers that grew and matured into a protest
movement and the determination to liberate them. Over four decades ago, the life of a
farmer in Kaira District was very much like that of his counterpart anywhere else in India.
His income was derived almost entirely from seasonal crops. The income from milch
buffaloes was undependable. The marketing and distribution system for the milk was
controlled by private traders and middlemen. As milk is perishable, farmers were compelled
to sell it for whatever they were offered. Often, they had to sell cream and ghee at
throwaway prices. In this situation, the one who gained was the private trader. Gradually,
the realization dawned on the farmers that the exploitation by the trader could be checked
only if marketed their milk themselves. In order to do that they needed to form some sort of
an organization. This realization is what led to the establishment of the Kaira District
Cooperative Milk Producers' Union Limited (popularly known as Amul) which was
formally registered on December 14, 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An
assured market proved a great incentive to the milk producers of the district. By the end of
1948, more than 400 farmers joined in more village societies, and the quantity of milk
handled by one Union increased from 250 to 5,000 liters a day.

Amul's Secret of Success

The system succeeded mainly because it provides an assured market at remunerative prices
for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the system ensured
that the profit goes to the participants for their socio-economic upliftment and common
good.

Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere. Amul has been able to:

• Provide a support system to the milk producers without disturbing their agro-
economic systems

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• Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense, Amul is an example par excellence, of an intervention for
rural change.

• Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment

• Produce an appropriate blend of the policy makers farmers board of management and
the professionals: each group appreciating its roles and limitations

• Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producers and

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies.The village
society also facilitates the implementation of various production enhancement and member
education programs undertaken by the Union. The staff of the village societies has been
trained to undertake the veterinary first-aid and the artificial insemination activities on their
own.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives 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.

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13 district cooperative milk producers'

Members:
Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million liters per day
Milk collection (Total - 2008-09): 2.69 billion liters
Milk collection (Daily Average 2008-09): 7.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3090 Mts per day
Sales turn over from 1995 to 2009:

Sales Turnover Rs (million)

1995-96 11140
1996-97 13790
1997-98 15540
1998-99 18840
1999-2000 22192
2000-01 22185
2001-02 22588
2002-03 23365
2003-04 27457
2004-05 28941
2005-06 29225
2006-07 37736
2007-08 42778
2008-09 52554

Ownership Pattern of Amul:

Amul is a co-operative sector & it is having 22 total numbers in societies. In addition to this
there is total 1800 manpower in organization.
Gujarat co-operative milk marketing federation ltd. widely known as GCMMF faces
through competition in the Indian market by different companies. So that by advertising and
promoting its product GCMMF has become one of the leading dairies in India. In western
of India, GCMMF shares most of the market while in other parts of India it is next so. But
slowly and surely GCMMF is growing in sharing the market with other competitors
industries.
Now there is machinery around Rs. 1500 lakh which is to be in expansion with higher
advanced machinery to Rs. 1600 lakhs.

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Accumulated members share capital in union is Rs. 553,935,000 this share capital is
deposited in Amul bank account in the name respective member dairy co-operative
societies.

Information about Competitors:

The Indian market is dominated by a large number of small local manufacture and
regional players.
There are an estimated 150 manufactures in the organized segment which account for 30-
40% of sales and about 1000 units in the unorganized segment of the market.
They have also competitor in the market. They felt very tuff competition in our country and
outing countries.

According to Product Categories

For Liquid Milk: For Ice-Cream Product
➢ Gayatri Milk ➢ Gokul Ice-Cream
➢ Super Milk ➢ Dairy –Den Ice-Cream
➢ Payal Milk ➢ Quality Walls Ice-Cream
➢ Sardar Milk ➢ Havmor Ice-Cream
➢ Samrrudhi Milk ➢ Max

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➢ Sagar Milk ➢ Vadilal Ice-Cream

For Ghee Product For Chocolate

➢ Gopi Ghee ➢ Cadbury
➢ Gayatri Ghee ➢ Max
➢ Krishna Ghee ➢ Dairy Milk
➢ A’bad Ghee ➢ Five Star
➢ Nestle

Butter Cheese
➢ Nature butter ➢ Britannia
➢ Nutralite ➢ Lebon

Achievements \ awards:
Amul a co-operative society and its co-operation has led many different awards in its favor.
Magsaysay award for community leadership presented in manila, Philippines to Shri
Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
1964: “Padmabhusan” award given to Shri T.K. Patel
1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of
India
1987: “Best Productivity” awarded by national productivity council for the year 1985-86
awarded to Amul dairy.
1988: “Best Productivity” awarded for the second successive year 1986-87 by the president
of India, Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self sustaining co-operative worldwide ICA
regional office for Asia and pacific, New Delhi, 1996.
1999: G.B.Birla award.

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Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP
Certificate and effects are got to obtain ISO 14000.

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List of Products Marketed:

Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low
Delicious Cholesterol Bread
Spread
Delicious Table
Margarine
The Delicious way
to eat healthy

Milk Drinks
Amul Kool Millk Amul Kool
Shaake

Amul Kool Cafe Kool Koko

A delight to
Chocolate Lovers.
Delicious Chocolate
taste

Nutramul Energy Amul Kool

Drink Chocolate Milk
A drink for Kids -
provides energy to
suit the needs of
growing Kids

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Amul Kool Amul Kool

Flavoured Bottled Flavoured Tetra
Milk Pack

Amul Masti Spiced Amul Kool Thandai

Buttermilk
Amul introduces the
Best Thirst
Quenching Drink

Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk Powder
Still, Mother's Milk is A dairy in your home
Best for your baby

Sagar Skimmed Sagar Tea Coffee

Milk Powder Whitener
Which is especially
useful for diet
preparations or for
use by people on low
calorie and high
protein diet.

Amulya Dairy
Whitener
The Richest, Purest
Dairy Whitener

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Fresh Milk
Amul Fresh Milk Amul Gold Milk
This is the most
hygienic milk
available in the
market. Pasteurised in
state-of-the-art
processing plants and
pouch-packed for
convenience.

Amul Taaza Double Amul Lite Slim and

Toned Milk Trim Milk

Amul Fresh Cream Amul Shakti Toned

Milk

Amul Calci+

Cheese
Amul Pasteurised
Processed Cheese
100% Vegetarian Cheese
made from microbial
Amul Cheese Spreads
Tasty Cheese Spreads in 3
great flavours..

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rennet

Amul Emmental Cheese Amul Pizza Mozzarella

The Great Swiss Cheese Cheese
from Amul, has a sweet- Pizza cheese...makes
dry flavour and hazelnut great tasting pizzas!
aroma

Gouda Cheese

For Cooking
Amul / Sagar Pure Ghee Cooking Butter
Made from fresh cream.
Has typical rich aroma
and granular texture. An
ethnic product made by
dairies with decades of
experience.

Amul Malai Paneer Utterly Delicious Pizza

Ready to cook paneer to
make your favourite
recipes!

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Mithai Mate Masti Dahi

Sweetened Condensed
Milk - Free flowing and
smooth texture. White to
creamy color with a
pleasant taste.

Desserts
Amul Ice Creams Amul Shrikhand
Premium Ice Cream made A delicious treat,
in various varieties and anytime.
flavours with dry fruits
and nuts.

Amul Mithaee Gulab Amul Chocolates

Jamuns The perfect gift for
Pure Khoya Gulab someone you love.
Jamums...best served
piping hot.

Amul Lassee Amul Basundi

Health Drink

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Nutramul Amul Shakti Health

Malted Milk Food Food Drink
made from malt Available in Kesar-
extract has the highest Almond and
protein content among Chocolate flavours.
all the brown
beverage powders
sold in India.

Theoretical Background of This Study

A. STATEMENT OF THE PROBLEM

Many companies are aiming for high satisfaction because customers who are just satisfied
still they 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 Products

B. OBJECTIVES OF THE STUDY

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This project is based on consumer satisfaction towards Amul Milk and Milk products in
Anand. Objectives of study are;
1. To know the customer behavior and to identify the level of customer satisfaction
towards Amul
2. To offer pragmatic suggestion for growth and development of Amul products.
3. To know the various marketing mix that influence the customer behavior.

A. SCOPE OF THE STUDY

Customer satisfaction is an important element in the marketing activity. This customer
satisfaction decides the fate of the product and organization. There is various factors
influence to the customer satisfaction. These factors are, Post purchase behavior,
Reputation, Product availability, Branding, and convenient etc.

B. METHODOLOGY
The study is mainly concerned with behaviors of the customers’ satisfaction towards
AMUL products and Milk products. Hence various data and methodology is considered in
my report preparation. The main data sources are:

PRIMARY DATA
The primary data refers to original information gathered for a specific purpose and
provides up to date, accurate and relevant information and it is gathered in an investigation
according to the needs of the problem.

TOOLS USED TO COLLECT THE PRIMARY DATA:

The primary data is collected on the basis of survey method with the help of
questionnaires, and interviews, personal observation, direct consultation with consumers
and dealers. Both open and closed end questions are used in the questionnaire.

METHODS:
The survey method is used to collect the primary data with the help of
questionnaire based on explorative and conclusive research.

SAMPLING UNIT:

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It refers to the individuals who are to be surveyed in the study and it is the customer
who is consuming or using or who has bought AMUL milk and milk products are surveyed.

SAMPLE SIZE:
It refers to the number of people surveyed for this topic, in the study 40 people were
surveyed and responses drawn.

SECONDARY DATA:
The secondary data can be defined as data collected by someone else for purposes
other than solving problem being investigation and previously meant for another purpose. A
secondary data is collected from the books, periodical journals, magazines, papers, company
records, internet and other publication.

C. LIMITATION OF THE STUDY:

1. Sample size of the study is restricted to 40 customers only.
2. Most of the respondents hesitate to give information but how ever an attempt is made
to collect the data systematically.
3. Time is the one constraint of the survey.

THEORITICAL DISCUSSION

INTRODUCTION:
The term “market” is derived from the Latin word ‘Marcatus’ which means to trade
or place of business. So in the literal sense and in the ordinary language, the term ‘Market’
refers to a certain place, where buyers and sellers personally meet each other and make their
purchase and sales. In short, it means a certain place where goods are bought and sold.
However in commerce the term ‘Market’ is used in the economic sense. In the
economic sense the term ‘Market’ does not refer to any particular place where buyers and
sellers meet face to face and make their purchase and sales, but covers the whole of any

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region, where the buyers and sellers are in such free intercourse, that is contract or
communication with one another that a single price prevails for a certain commodity at a
certain point of time through the region.
In short, it means the getting together of buyers and sellers in person or any by mail
telephone, telegraph of through any other means of communication.
Marketing:
The meaning of the term ‘marketing’ can be studied under two heads. They are,
1. Traditional or old view of marketing
2. Modern of customer oriented marketing
Definition:
According to the American Marketing Association, “Marketing is the performances
of business activities that direct the flow of goods and services from producer to customer
or user”

Five Stages of Customer Bonding

This bond results from effective one-on-one communication, mutually-beneficial

interaction, the company's genuine interest and involvement in the customer's life and
lifestyle, a combination of customer allegiance and company advocacy, and a shared sense
of purpose.

Customer loyalty develops from personal relationships and trust between the company and
the customer over time. This includes keeping customers involved throughout the product
lifecycle as well as developing products and/or services to meet changing customer needs
and desires.

AWARENESS

• The art of earning customer "share-of-mind" involves creating an impression of

personal identification with the company's products and/or services.
• This first stage, awareness, represents the weakest aspect of a relationship because it
is non-interactive and depends entirely on the customer's perception

IDENTITY

• The identification stage occurs when a potential customer asks the question, "What's
in it for me?"

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• A customer identifies a product of service as meeting one or more important personal

needs, such as self-fulfillment, status, or belonging.
• A customer may perceive the company as having values and preferences similar to his
own and begin to form a relationship with the company.

RELATIONSHIP

• At this stage, the customer receives the benefit of products and/or services tailored
specifically to his individual needs (at least as nearly as the company can provide).
• Once a customer interacts with the company, repeated experiences of individual
customer satisfaction take on significant importance.
• Customers expect that products will work and that they will receive good service.
Customer delight results largely from how a product is sold and is serviced as well as how
the company responds to inquiries and solves problems.

COMMUNITY

• Customer bonding requires high levels of effective interaction. When the company
integrates its products and services into the life and lifestyle of its customers, communal
bonding occurs.
• The community relationship stage achieves an integration of values, preferences and
priorities between customer and company where each derives mutual benefit. Companies
that achieve this type of loyalty consistently delight their customers.

ADVOCACY

• At this advanced level of customer bonding, the company services as an advocate for
the customer, and the customer shows an allegiance to the company; word-of-mouth
advertising flourishes. Because the company now can encourage buyer-get-a-buyer
programs through sappropriate incentives, it must be prepared to follow through
professionally to make new recruits feel as valued as the advocates who recommended
them.

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Market Segmentation:

The process of talking the total heterogeneous market for a product & dividing it in
to several sub markets each which tend to be homogeneous in all significances.
There are few bases for segmentation markets,
• Customer characteristics
• Consumer responses

The major segmentation variables for consumers markets are,

○ Geographic segmentation (nation, state, country, city)
○ Demographic segmentation (age, family, religion, generation, nationality, social class)
○ Psychographic (life style, personality & status class)
○ Behavioral (occupation, benefits, users, loyalty, )
These variables can be used singly or in combination, business marketer use all these
variable as along with operating variables, purchasing approaches, substantial, accessible,
differentiable, & actionable.

Customer Behavior:
The term consumer behavior refers to the behavior that consumer displays in reach
for purchasing using, evaluating & disposing of products & services that they except will
satisfy their needs.

Consumer Research:
Consumer research is the methodology used to study consumer behavior research
offer set diverse to identify consumer needs it is used to identify both felt & unfelt needs, to
learn how consumers. Perceive product & brand & stores. What their attitudes are before
and after promotional campaigns & how & why they make their consumption decision.

Consumer Satisfaction:
All business firms have realized that marketing is a core element of management
philosophy & the key to its success lies in focusing more & more on the customers. That is,

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it will be the customer who will decide where the firm is heading. Thus the challenge before
the marketer is to ensure that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers to the
buyers state of being adequately rewarded in a buying situation for the sacrifices he has
made one the customer purchase & use the product they may then become either satisfy or
dissatisfied.
The result of satisfaction to customer form the purchase of the product or services is
that more favorable post-purchase attitude, higher purchase intention & brand loyalty to be
exhibited that the same behavior is likely to be exhibited in a similar purchasing situation.
The term ‘consumer’ is a typically used to refer to someone who regularly purchase from a
particular store or company.
Customers are people who are happy with the product & services & are willing to
come back & pay for it again.
Today the firms aim to give satisfaction to the customer through marketing concepts. The
firm try to help the buyers in the solving the problem then competitors. The marketers must
see that consumers with purchasing power constitute a potentials buyers are identified. It is
essential for the marketer to carry out the business in such a way that they give satisfaction
to consumers needed. When a firm markets a product or service it should aim to enjoy
consumer’s satisfaction & profit maximization.

Concept & Need for Studying Consumer Behavior:

Consumer behavior can be said to be the study of how individual make decision on
how to spend their available resources (time, money, effort) on various consumption related
items. This simple definition of consumer behavior tells the markets to resolve every
activity around the ultimate consumers & gauge their behavior by specially focusing on:
○ Who buys products or services?
○ How do they buy products or services?
○ Where do they buy them?
○ How often they buy them?
○ Why do they buy them?
○ How often they use them?

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These questions will help in understanding better what factors influences the decision
making process of the customers. The decision making process identifies the number of
people who are involve in this process & describes a role to them like users, decides,
influences & buyers.
It is believed that consumers or customers make purchase decision on the basis of
receipt of a small number of selectivity chosen pieces of information. Thus it will be very
important to understand what & how mush them to evaluate the goods & services offerings.

Customer Expectation:
Customer expectation through look realistic is very often build upon on a very high
platform. Then the quality of the product or services may not match the expectation. This
again will affect the consumer satisfaction level.
So as to reduce the level of dissatisfaction among the customers, the marketing
decision maker could adopt approaches wherein he can classify market in relation to the
degree of opportunity to deliver customer satisfaction. He could establish itself common
factors & them evaluate each market opportunity against these. The most probable factors
which influence consumer’s behaviors are:
○ Market size
○ Rate of growth of the market
○ Stability or demand
○ The due importance attached to price by the consumers before making a purchase
decision
○ Consumer emphasis & the due importance given to the quality aspect
○ The consumers desire for product innovation
○ The level of competition (inclusive of both existing & potential competitors)
○ The firm’s competitive strengths in terms of price & product
○ Expectations at the general level like are quality, durability, reliability, style, etc.

Feedback:
Many of the companies are entrusting their customers to give a feedback & use this
as a means of maintaining regular contact & dialogue, having realized the importance of
obtaining a feedback the consumers. Rather than avoiding comment, companies are

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encouraging their customers to talk, as mention above, feedback helps them, market firm to
get on idea of the customers view point on their product or services & more important is
that this information will help them to take action & deal with any problem immediately.

Brands:
Brands were originally developed as labels of own ship: Name Term Design and
Symbol. However, they today it is what they for people that matters much more, powerful
brands can drive success in competitive and financial markets, and indeed become the
organization’s most valuable assets.

Brand Loyalty:
It has been proclaimed by some to be the ultimate goal of marketing. In marketing,
brand loyalty consist of a consumer’s commitment to repurchase the brand and can be
demonstrated by repeated buying of a product or service or other positive behaviors such as
word of mouth advocacy. True brand loyalty implies that the consumer is willing, st least on
occasion, to put aside their own desires in the interest of the brand.

Customer Focus:
Many companies today have a customer focus (or customer orientation). This
implies that the company focuses its activities and products on consumer demands.
Generally there are three ways of doing this: the customer driven approach, the sense of
identifying market changes and the product innovation approach.
In the consumer driven approach, consumer wants are the drivers of all strategic
marketing decision. No strategy is pursued until it passes the test of consumer research.
Every aspect of a market offering, including the nature of the product itself, is driven by the
needs of potential customers. The starting point is always consumer. The rationale for this
approach is that there is no point spending R&D funds developing products that people will
not buy. History attested to many products that were commercial failure in spite of being
technological breakthroughs.

Customer Loyalty:

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“It takes a lot less money to increase your retention of current than to find new ones
but I know I don’t give it as much effort as I should because it does take a lot of energy and
effort”

Analysis and Interpretation of the Data:

The collected data were not easily understandable, so I like to analyze the collected data in a
systematic manner and interpreted with simple method.
The analysis and interpretation of the data involves the analyzing of the collected
data and interpretation it with pictorial representation such as bar charts, pie charts and
others.

Gender:
Gender play vital role in purchase decisions. Gender classified on sex basis i.e. male and
female. Gender classification is requiring to marketer because different gender exhibit
different perception towards products. In classification of gender the following number is
used to know their perception.

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Classification of Customers Based On Sex

Sex No. of respondents Percentage %

Male 14 35
Female 26 65
Total 40 100
Sources: Primary Data
Table no 5.1

Interpretation:
35% of the respondents are male and 65% of the respondents are female. From the
above table we can conclude that, the majority of the respondents were belongs to female
group.

Graph no: 5.1

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Occupation:
Occupation is also influences a person’s consumption pattern. A blue collar worker
will buy work cloths, work shoes and lunch boxes. Similarly the Amul Milk and Milk
products are purchased by various occupants. The following occupants of the respondents
are classifies for the data collection.

Analysis of Occupation of the Respondents

Occupation No. of. respondents Percentage
%
Business 8 20
Employee 4 10
House wife 26 65
Others 2 05
Total 40 100
Sources: Primary Data
Table no.5.2

Interpretation:
20% of the respondents are business, 10% of the respondents are employees, and
65% of the respondents are house wives, 05% of the respondents are others group.
Graph No.5.2

Income:
Income decided the purchasing power of the customer. If the income is high then,
they go for high quality irrespective of price of the product. Hence in this research I like to
collect the data how income is influence to purchase Amul Milk and Milk products.
Analysis of Monthly Income of the Respondents
Monthly income No. of respondents Percentage %

Below 5000 15 37.5

5001-10000 12 30
10001-15000 9 22.5

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15001 & above 4 10

Total 40 100
Sources: Primary Data
Table No: 5.3

Interpretation:
As per the data 37.5% of the respondents earn per month below 5000, 30% of the
respondents earn 5001 to 10000, 22.5% of the respondents earn above 10001 to 15000. 10%
of the respondents earn 15000 & above. From the above table we can conclude that majority
of the respondents’ monthly income group of below 5000 and more than 5000 to 10000.

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Purchasing Factor:
Identification of various factors plays a vital role in consumer behavior
study. The various factors such as quality, price easy available etc. is influencing lot and
influences positively. The following data reveals how various factors are influencing to
buying of Amul Milk and Milk products.
Analysis of Factors to Buy AMUL Milk and Milk Products
Factors No. of Respondents Percentage %
Quality 15 37.5
Brand image 12 30
Price 8 20
Easy availability 5 12.5
Others Nil Nil
Total 40 100
` Source: Primary Data
Table no: 5.4
Interpretation:
37.5% of respondents buying AMUL Milk & Milk products for its Good Quality,
30% of respondents use for its Band Name,20% of its Price consideration, 12.5% of its easy
availability of respondents buying AMUL Milk.

Graph no 5.4
Quality:
Company has two responsibility in a quality centered. First, they must participate in
formulating strategies and policies designed to help the company win through total quality
excellence. Second they must deliver marketing quality alongside production quality. This
helps to company to attract more number of customers to their products. Hence I try to
collect information related to quality of AMUL Milk & Milk products.

Opinion of the Respondents Regarding Quality

Opinions No. of Respondents Percentage ( % )
Thickness 14 35
Freshness 18 45
Taste 8 20

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Others Nil Nil

Total 40 100
Sources: Primary Data
Table no: 5.5

Interpretation:
As per the data, 35% of the respondents buy the milk due to Thickness, 45% of the
respondents for Freshness, and 20% of respondents for Taste.
Quality takes vital role in every organization. From the above table we can conclude
that majority of the respondents expressed that AMUL Milk & Milk products have
Thickness.

Graph no.5.5

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Respondents Consumption Quality:

Consumption quality is varying with various respondents. Some of customer they
buy less quantity and some them huge quantity depends upon requirement and number of
people in their houses. The data is collected to know the various consumption patterns.

Analysis of Consumption of Average Milk per Day

Consumption No. of Respondents Percentage (%)
1 Liter 28 70
2-4 Liter 4 10
More than 4 Liters 8 20
Total 40 100
Sources: Primary Data
Table no: 5.6

Interpretation:
70% of the respondents are consuming one liter per day. 10% of the respondents are
consuming two to four liter per day. 20% of the respondents are consuming more than four
liters per day.
From the above table we can conclude that majority of the respondents were
consuming one liter per day.

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Graph no.5.6

Purchase Duration:

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Repeat purchase will help to know what customer loyalty towards Amul Milk &
milk products. When consumer repeatedly purchases the product, it is understood that they
are satisfied with the products. The following data show the various statuses of the
respondents.

Analysis of Purchase Duration of the AMUL Milk & Milk Products

Duration No. of Respondents Percentage (%)
6 Months 2 05
1-2 Years 6 15
3-4 Years 8 20
More than 4 years 24 60
Total 40 100
Sources: Primary Data
Table no: 5.7

Interpretation:
As per the data gathered, out of 100 respondents, 05% of the respondents buying
since last six months, 15% of the respondents from one to two years, 20 % of the
respondents from three to four years, 60% of the respondents buying AMUL Milk & Milk
products from more than four years.
From the above table we can conclude that majority of the respondents consuming
AMUL Milk & Milk products more than four years.

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Graph no: 5.7

Opinion towards Products:

The behavior of users after his commitment to a product has been collected with
respect product and terms of satisfaction with rating scale. The following are the data
obtained related to AMUL Milk & Milk products.

Analysis of Rating towards AMUL Milk & Milk products

Ratings No. of Respondents Percentage (%)
Excellent 10 25
Good 20 50
Average 8 20
Poor 2 05
Total 40 100

Source: Primary Data

Table no: 5.8

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Interpretation:
25% of the respondents rated that AMUL Milk & Milk products are Excellent. 50%
of the respondents rated as good, 20% of the respondents rated as Average Quality. 05% of
the respondents rated that AMUL Milk & Milk products are Poor.
From the above table we can conclude that majority of the respondents rated AMUL
Milk & Milk products are of Good Quality.

Graph no.5.8

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Common Complaints:
A customer centered organization makes it ways for its customer to deliver
suggestion and complaints. Many firms provide form for collecting feedback on products
and some time customer complaints and suggestion about products. In this survey, common
problems raised by the customer or not.

Analysis of problems in Amul Milk Products

Opinions No. of Respondents Percentage (%)
Yes 4 10
No 36 90
Total 40 100
Sources: Primary Data
Table no: 5.9
Interpretation:
Only 10% of the respondents said that there is a problem in AMUL Milk & Milk
products. 90% of the respondents are said that no problem in AMUL Milk & Milk products.
From the above table we can conclude that majority that the respondents are not
having any problems in AMUL Milk & Milk products.

Graph no: 5.9

Purchasing Place:
Purchase place is also important to know where users choose their purchase point.
This helps to marketer to design various promotion and distribution programmes. The data
is collected to know the various purchase place and availability.

Analysis of Availability of Products from Dealers

Easily Available No. of Respondents Percentage (%)
Yes 38 95
No 02 05
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Total 40 100

Sources: Primary Data

Table no: 5.10
Interpretation:
95% of the respondents said that they are getting AMUL Milk & Milk products
easily. Only 05% of the respondents disagree with the easy available of AMUL Milk &
Milk products.From the above table we can conclude that majority of the respondents
getting the AMUL Milk & Milk products easily from the dealers or retailers.

Graph no: 5.10

Opinions towards Products:
The behavior of user after his/her commitment to a product has been collected with
respect products terms of satisfaction with rating scale. The following are the data obtained
related to AMUL Milk & Milk products

Value for the Money:

Consumers always think while paying price to the products such as how much we
are paying towards products and how much we are getting. This data is gathered to know
what value they are receiving from the AMUL Milk & Milk products.

Analysis of Value for Money Paid by the Respondents

Response No. of Respondents Percentage (%)
Yes 38 965
No 02 05
Total 40 100

Sources: Primary Data

Table no: 5.11

Interpretation:
96% of the respondents feel that they get the value for money they paid. Only 04%
of the respondents feel that they are not getting the value for money what they paid.

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From the above table we can conclude that majority of the respondents are agreed
that they are getting the value for money they paid.

Graph no: 5.11

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Influence to Others to Buy Products:

Post experience & benefits will help organization in obtaining the additional sale. In
this connection feedback its act as an influence to others to adopt the product the user
survey has conducted to identify what an extent user recommends to others. The data has
been extracted & it is as follows.
Analysis of Recommendations
Recommended No. of Respondents Percentage (%)
Yes 38 95
No 02 05
Total 100 100

Sources: Primary Data

Table no: 5.12

Interpretation:
95% of the respondents were satisfies with the AMUL Milk & Milk products. 05%
of the respondents were not satisfies with the AMUL Milk & Milk products.
From the above table we can conclude that majority of the respondents were
satisfied with the AMUL Milk & Milk products.

Graph no: 5.12

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FINDINGS, SUGGESTIONS AND CONCLUSIONS:

FINDINGS:
This chapter is including in my survey findings, suggestions and conclusions of my
study. First I would like to present my survey findings. The main findings of my survey are
as follows:
1. It is findings in the survey that females are the main decision maker for the milk and
milk products. As per the data, 26% of female and 14% of male makes purchase decision.
2. Based on the occupation of the customer, it is found in the survey that 65% are the
housewives and 35% are from various occupations such as a businessman, employee,
farmers, etc for the Amul Milk & Milk products.
3. Incomes less than 5000 to 10000 are more attracted to Amul Milk & Milk products.
As per the data, 67.5% of the respondents’ income is under this group.
4. The main purchasing factors for the Amul Milk & Milk products are Quality and
Brand image. The data reveals that 37.5% influences on Quality and 30% influenced for the
Brand.
5. 88% of the total respondents are using product since from a long time. The majority
of the respondents are using Amul Milk & Milk products from more than 3 years.
6. Overall opinion of the product performance data reveals that Amul product satisfies
70% of the respondent and 30% respondent’s opinion is average.
7. It is found in the survey that 05% of the total respondents are dissatisfied on dealer’s
services.
8. It is found in the survey that customer are influencing through Word of Mouth.

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SUGGESTIONS:

1. Milk and milk product purchase decisions are more decided by women rather than
male, because she act as a invigilator, execute her decision and influence the same to the
purchase while ascertaining the quality, freshness and price. Hence, I suggest Amul co-
operative society to concentrate more on the women and men suggestions for designing the
marketing strategy, because women’s role in the house is dominant, even in the various
decisions.
2. Occupation of the user influences the purchase decisions. The particular occupation
plays a vital role in deciding the product or services. Women segment are influencing more
on milk and milk products. Therefore, an occupation is the factor influencing the product.
3. Income of the people decides the purchasing power. The high income prefers to
purchase product with the quality, freshness, thickness, etc. and vice versa. So I suggest
Amul to concentrate also on low income segment to capture market and position themselves
in the minds of the customer with required quality and quality milk and milk products.
4. Quality and Brand Image plays a dominant role. Milk and milk products move in the
market due to its quality and brand. Therefore it should maintain the same.
5. Since Amul is having loyal customer it should concentrate more on this factor through
various potential programmes such as campaign, premium packs, offers etc., this helps to
increase the loyalty towards the Amul products.
6. Milk and milk product are having high demand and it is considered as a very essential
products. In present practice, purchase of milk and milk products is through dealers. In this
connection dealers approach towards the product.
7. Customer is influential, hence I suggest Amul to look after the dealers issue with due
care.

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8. When product possesses quality and other important attributes naturally they
propaganda about product through word of mouth and vice versa. Therefore if the quality
and attributes are fine tuned according to the needs will help the Amul to get reputation and
addition market.
9. Introduction of various economic products lies may help Amul to attract the existing
and new customers and may attract all income level groups. Hence I suggest management to
introduce new product line which can satisfy the entire group.

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Conclusions:

Learning’s from the survey:

• Amul milk and milk products has a good market share.
• In order to turn the dreams into reality and for turning liabilities into assets one must
have to meet the needs of the customers.
• The factors considered by the customer before purchasing milk are freshness, taste,
thickness and easy availability.

In short, majority of the customers are satisfied with the Amul milk and Milk products
because of its good quality, reputation, easy availabilities. Some customers are not satisfied
with the Amul Milk & Milk products because of high price, lack of dealer services, spoilage
and low shelf life etc. therefore, if slight modification in the marketing programme such as
dealers and outlets, promotion programmers, product lines etc., definitely company can be
as a monopoly and strong market leader.
Amul has also to take care of its competitors into consideration and more importantly its
customers before making any move.

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•
BIBLIOGRAPHY

Website Address:
www.amul.com

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Customer Response – Questionnaire

1. Personal profile: A. Name:

B. Address:

C: Sex: Male: [ ] Female [ ]

E: Age: [ ]

G: Occupation:
1. Self-employed: [ ] 3.Professional: [ ]
2. House wife: [ ] 4. Student: [ ]

2. Which product you are buying?

3. What is the most important factor that matters while buying an Amul product?
a. Quality: [ ] b. Price: [ ] c. Service: [ ]

4. How did you come to know about the Amul product?

a. By friends/family: [ ] b. Direct mailers: [ ]
c. Press Ads: [ ] d. Reference website: [ ]
e. T.V. Ads: [ ]

5. Which configuration would you decide on while buying an Amul product?

a. Intermediaries: [ ] b. Standard: [ ]
c. Latest / Advanced: [ ]

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6. Are you satisfied with the quality of the product?

a. Yes: [ ] b. No: [ ]

7. Do you think the price of Amul product is high / low compared to

competitor’s product?
a. Very good: [ ] b. High: [ ]
c. Average: [ ] d. Same: [ ]

8. How often do you buy this product of Amul?

a. Daily: [ ] b. Monthly: [ ]
c. Weekly: [ ] d. Occasionally: [ ]

9. What is your opinion about the performance of Amul product?

a. Outstanding: [ ] b. excellent: [ ]
c. Good: [ ] d. Average: [ ]

10. Do the various schemes / promotional activities affect your purchase plans?
a. Yes: [ ] b. No: [ ]

11. Suggestion (if any):

Date:
Place:

THANK YOU

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