A PROJECT REPORT ON FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS AMUL BUTTER IN COMPARISON TO GOWARDHAN BUTTER AT PUNE CITY

WITH REFERENCE TO GUJARAT COOPERATIVE MILK MARKETING FEDERATION LIMITED, , PUNE Project Report submitted to University of Pune, Pune In partial Fulfillment for the Award of Degree of MASTER OF BUSINESS ADMINISTRATION Submitted By

Under the Guidance of

MBA (Marketing & HR), BBA Through JSPMS INSTITUTE OF MANAGEMENT & RESEARCH , PUNE

(2010-12)
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DECLARATION

I, the undersigned, hereby declare that the Project Report entitled FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS AMUL BUTTER IN COMPARISON TO GOWARDHAN BUTTER AT PUNE CITY written and submitted by me to the University of Pune, in partial fulfillment of the requirements for the award of degree of Master of Business Administration under the guidance of Prof. is my original work and the conclusions drawn therein are based on the material collected by myself.

Place: Pune Date:

Research Student

ACKNOWLEDGEMENT

My first thanks to all those people who helped me during the training and completion of this project report. The list of such people is indeed exhaustive but a need special mentioning. Iam thankful to (Sales Executive), who helped me in challenging my thoughts for the keen interest shown during the preparation of this report and thankful for giving me an opportunity to work in their esteemed organization. Also thankful to (Sales), who helped me during the project preparation. I take this opportunity to extend my gratitude for co-operation; professional guidance and useful help tips provided to me by guide Prof. (Director, ) Iam thankful to all my friends for their valuable advice and guidance during preparation of this project. without whose help the project would not have been completed. I would like to express my profound gratitude to Dr.

EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitors existing in the market so that we can plan our each activity according to that. It is also necessary to retain the existing customers apart from attracting the new customers. The Project is concern with the market analysis of consumer buying behaviour towards Amul butter in comparison with Gowardhan butter in Pune city the project included as part of MBA programme and the project is done from 8th May to 8th July 2011. The title of the project is FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS AMUL BUTTER IN COMPARISON TO GOWARDHAN BUTTER AT PUNE CITY from Gujarat Co-operative Milk Marketing Federation (GCMMF), Wagholi, Pune.Primary objective of study was to find factors affecting consumers buying behaviour towards Amu butter. And the secondary objective was tomake a comparative analysis between Amul and Gowardhan butter with reference to other players in the market, to find out the reasons for purchasing butter, to know the usage of butter and to know the frequency and source of information for purchasing Amul butter. Research type was descriptive. The research was done through consumer survey. I have collected the primary data through questionnaire which was filled by me with questions to customers. Questions were both open and close ended. Most of the secondary data was collected from website www.amul.com and www.gowardhanindia.com. Sampling done is nonprobability sampling. The type of sampling method was convenience sampling In Pune region there are around more players in of butter manufacturer. Those are like Amul, Gowardhan, Britannia, Nutralite, etc. and many other local brands. As per the findings Amul is the Market leader and having more than 75% market share. Awareness
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of Amul butter among the consumers is high because it brand awareness in the public from to many years. The data analysis has done area wise. It gives idea about the competitors of Gowardhan butter. It gives information regarding their market share. It was concluded that Amul butter has a high potential in the market and it is the known to its customers but still its acceptance is comparatively good as other competitors present in the market, because perception of customers towards the product is best, most of the consumer continuously using other brand and they use mostly in their day to day breakfast like to use butter on bread and to make pavbhaji.

INDEX
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CHAPTER NO.

TITLE

PAGE NO.

1. 2. 3. 4. 5.

INTRODUCTION COMPANY PROFILE OBJECTIVES & SCOPE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION

1 8 26 28 36

6. 7. 8. 9. 10.

FINDINGS CONCLUSION SUGGESTIONS LIMITATIONS ANNEXURES BIBLIOGRAPHY QUESTIONNAIRE

52 54 55 56

INTRODUCTION
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Concept:
FOOD INDUSTRY The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. A health food and health food supplement is another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious. The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: Local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities Education: Academic, vocational, consultancy
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Research and development: Food technology Financial services: Insurance, credit Manufacturing: Agrichemicals, seed, farm machinery and supplies, agricultural construction, Agriculture: Raising of crops and livestock, seafood Food processing: Preparation of fresh products for market, manufacture of prepared food products Marketing: Promotion of generic products (e.g.milk board), new products, public Opinion, through advertising, packaging, public relations, etc. Wholesale and distribution: Warehousing, transportation, logistics Retail: Supermarket chains and independent food stores, direct -to-consumer, restaurant, and food services. Indian Dairy Industry -- A Profile: India is the world leader in milk production with total volume of 115 million tons. Driven by steady population growth and rising income, milk consumption continues to rise in India. Dairy market is currently growing at an annual growth rate of around 7 per cent in volume terms. The market size of Indian dairy industry stands at around US$ 45 billion. Since Indias population is predominantly vegetarian; milk serves as an important part of daily diet. Indians use milk in various preparations such as in brewing tea and coffee, in making yogurt or curd and in preparing many Indian dishes. For most households, milk is also a popular beverage due to its nutritional value.

In India, rural households consume almost 50 percent of total milk production. The remaining 50 percent is sold in the domestic market. Of the share of milk sold in the domestic market, almost 50 percent is consumed in fluid form, 35 percent is consumed as traditional products (cheese, yoghurt and milk based sweets), and 15 percent is consumed for the production of butter, ghee, milk powder and other processed dairy products (including baby foods, ice cream, whey powder, casein, and milk albumin). Most dairy products are consumed in the fresh form and only a small quantity is processed for value addition. In recent years, however, the market for branded processed food products has expanded. Although only around 2 per cent food is processed in India, still the highest processing happens in the dairy sector, where 35 per cent of the total produce is processed, of which only 13 per cent is processed by the organized sector. Key facts

65 per cent of the milk is sold in loose form Only 5 per cent of the milk is sold through retail chains 70 per cent is delivered to the homes by milk agents Carton milk or packaged milk has been growing at 24 per cent annually Most branded FMCG companies are keen on launching flavored dairy products whose market size is pegged at US$ 166 million Co Operative Unions: Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. 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 agrosystem 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
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cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Recently the Indian cooperative movement got a much needed facelift. With competition snapping at its heels, the sector which has been governed by arcane laws until the recent past will see a special provision inserted in the companies Act, 1956. All the cooperative unions will be re- christened cooperative companies; they will come under the purview of the registrar of companies, instead of the registrar of cooperatives. Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk producers cooperative unions, which federate into 15 state co-operative milk marketing federations. The dairy board's programme and activities seek to strengthen the functioning of dairy co- operatives, as producer-owned and controlled organizations. NDDB supports the development of dairy co-operatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned confidence. customer

Some of the major dairy cooperative federations include:-

Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF)

Bihar State Co-operative Milk Producers Federation Ltd (COMPFED)

Gujarat co-operative Milk Marketing Federation Ltd (GCMMF)

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 Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF)

Karnataka Cooperative Milk Producers Federation Ltd (KMF)

Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)

Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)

Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh)

Orissa State Cooperative Milk Producers Federation Ltd (OMFED)

Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)

Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)

Rajasthan Cooperative Dairy Federation Ltd (RCDF)

Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) The Dairy Cooperative Network

Includes 170 milk unions

Operates in over 338 districts

Covers nearly 1, 08574 village level societies

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 Is owned by nearly 12 million farmer members. Apart from making India self sufficient in milk, these dairy co-operatives have established our country as the largest milk-producing nation in the world. Dairy Processing The Dairy Technology Society of India was constituted to promote the linkage between academia and industry aimed at exchanging views and providing a forum for championing the cause of Dairy Education & Research at national and international levels. Dairying is an instrument for change in social and economic status of people in a country like India. Over the last four decades, there have been tremendous changes in the dairy sector of this country. India now occupies 1st position in milk production in the world. In the process of attaining this distinction the Dairy Technologists of the country have played a monumental role. In this age of liberalization and globalization, there will be renewed focus on product diversification, value addition, quality improvement and export promotion which will define a more challenging role for the professionals engaged in the pursuit of Dairy Technology and allied sciences. Success in various developmental plans by various states and national agencies have resulted in the modernization and building up a vibrant dairy industry in India. Availability of large number of milch animals and milk at the competitive prices provides India certain strategic advantages globally. With the liberalization of economy and access to better prices in the world market newer opportunities would be emerging in the immediate future. Though we have occupied 1st position in milk production in the world, our contribution to world trade is negligible. The gap can be bridged by value addition and product diversification. The demand for value added foods is being driven by the growing public understanding of the linkage between diet and health, and the interest in self- health maintenance, rising healthcare costs and advances in food
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technology and nutrition. Increasingly, medical and nutritional researchers have been linking food component to disease prevention and health enhancement. Due to the todays upward consumer awareness and interest to follow healthy nutrition and dietary strategy for achieving health benefits from foods beyond their basic nutritional value, the market for value added foods has expanded manifolds. Todays consumers are increasingly seeking functional foods for their health and well being as means of nutritional intervention in disease prevention. Dairy products enriched with the health attributes of functional ingredients would be safe and viewed as potential novel foods for health promotion in the next few years.

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PROFILE OF THE ORGANIZATION

Name: Gujarat Co-Operative Milk Marketing Federation Limited, Wagholi, Pune. Address: Wagholi Warehousing, 2347. Pune Nagar Road, Wagholi, Pune 412207 Vision: GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long over life with customer focus and IT integrated. The network would consist of 100 offices, 7500 stockiest covering at leastevery Taluka. Head quarter

servicing nearly 10 lakh outlets with a turnover of `.10, 000 Cr and serving several
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co-operatives. countries. Mission:

GCMMF shall also create markets for its products in neighboring

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through co-operative networking, we are committed to offering quality product that provides best value for money. History: The brand name Amul means AMULYA. This word derived form the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested the brand name AMUL. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as ANAND PATTERN). AMUL is based in Anand, Gujarat and has been an example of a co-operative organic actions success in the long term. It is one of the best examples of co-operate e achievement in the developing economy "Anyone who has seen. The dairy cooperatives in 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."

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The Amul Pattern has established itself as 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 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 Unions making up GCMMF have 2.8 million producer members with milk collection average of 10.16 million liters 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 did not succeed, but now it has fresh plans entering the Japanese markets.

COMPANY INFORMATION: The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organization of India. It is the apex organization of the Dairy Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 2.8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers' Unions at the District level and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless laborers and include a sizeable population of tribal folk and people belonging to the scheduled casts. The turnover of GCMMF (AMUL) during 2008 -09 was 67.11 billion. It markets the products, produced by the district milk unions in 30
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dairy plants, under the renowned AMUL brand dairy plants having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia - Mother Dairy, Gandhinagar, and Gujarat - which can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. During the last year, 3.1 billion liters of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products are manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001 -2000, ISO 22000 and HACCP certified. GCMMF (AMUL)'s Total Quality Management ensures the quality of products right from the starting point (milk producer) through value chain until it reaches the consumer. Ever since the movement was launched fifty-five years ago, Gujarat's Dairy Cooperatives have brought about a significant social and economic change to our rural people. The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our rural producers benefit, the community and nation benefits as well. The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary - the farmer - but eventually contributes to the development of the village community. This is the most significant contribution the Amul model co -operatives has made in building Nation. Organizational Chart: Organization Structure is divided into two parts:
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 External Organization Structure Internal Organization Structure

External Organization Structure

External Organization Structure is the organization structure that affects the organization from the out side.

State Marketing Level Federation

District Milk Product Union Ltd. Village Milk

Product Union Ltd.

Villagers As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co- operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk
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producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages.

Internal Organization Structure: The following is internal organization chart of Amul: Organization Structure Chart Chairman Managing Director General Manager Asst. General Manager

Finance Dept.

Production Dept.

Marketing Dept.

Sales & Purchase Dept.

Personnel Dept.

Senior Manager

Senior Manager

Senior Manager
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Senior Manager

Senior Manager

Finance Manager

Production Manager

Marketing Manager

Sales Manager

Personnel Manager

Accountant

Officer

Marketing Executive

Officer

P.R.F

Officers

Supervisor

F.S.R.

Salesmen

Executive

A systematic & well-defined organization structure plays a vital role & provides accurate information to the top-level management. An organization structure defines a clear-cut line of authorities & responsibilities among the employees of GCMMF. The Organization structure of Amul is well-arranged structure. At a glance a person can completely come to know about the organization structure. Amul is leaded by the director under him five branches viz. Factory, Marketing, Accounts, Purchase, Human Resources Department. Factory department has a separate general manager under him there are six braches viz. Production, Stores, Distribution, Cold Storage, Quality, and Deep-freezing. This department takes care of the factory work. Marketing department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of Amul. Accounts department takes care regarding accounts i.e. day-to-day work. Under the accountant there is one clerk. Purchase department takes care regarding the purchase of raw materials and many other things.

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Current status of the organization: Taste of India crosses 2 billion dollar milestone

GCMMF which markets the popular Amul brand of milk and dairy products crosses yet another landmark in its long and illustrious history. The results of the apex body of the dairy cooperatives in Gujarat were declared on 21st June 2011, in the 37th Annual General Meeting of GCMMF. The organization which symbolizes taste of India achieved a historical milestone by crossing the 2 billion dollar mark. During the financial
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year 2010-11, GCMMF registered impressive topline growth of 22.1%, achieving turnover of ` 9774 crores. While commenting on the results, Shri Parthibhai G. Bhatol, Chairman,

GCMMF informed that this performance is even more remarkable, when viewed from the perspective that the organization was able to achieve 1 billion dollar turnover in the 33rd year of its formation while it took only just four more years to add another 1 billion dollar to its turnover. Turnover of GCMMF registered CAGR of 23% during the last 4 years. During the year 2010-11, GCMMF paid ` 8345 crores to its 30 lakhs farmer members. Payout to farmers also registered 23% CAGR in last 4 years.

Different product profiles of the company.

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Future Plans of the Amul:

Expansion of distribution network, creative marketing, consumer education and product innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers.

Tapping the rising demand for new value -added products.

Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4%.

Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies.
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 Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush season.

Satellite dairies with combined processing and liquid milk packaging capacity of

5O KPD will be established in major metro market

We plan to double to processing capacity of our dairy plants to 2O.7 million kg per day, by 2O2O

Milk drying capacity will also be enhanced by 2OO MT's per day

Plan to expand our cattle feed manufacturing capacity, more than four times to

12, OOO MT's per day, by 2O2O.

Total investments envisaged for creating all the required infrastructure would be `.

2,6OO crores (26 billion) till the year 2O2O

We are expanding our processing and packaging capacity to meet growing demands. For starters, we are setting up additional processing facilities in Delhi and Mumbai. Currently, we lead the pack with the production of 50 lakh liters per day." Awards of Amul: AMUL - THE TASTE OF INDIA (GCMMF) RECEIVES INTERNATIONAL CIO 100 AWARDS FOR RESOURCEFULNESS
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GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world that excel in positive business performance through resourceful IT management and best practices. This CIO International IT excellence Award has recognized the Cooperative Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India, whos main Motto is to build Indian Society economically & literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end consumers and good returns to the farmer members. This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and bridge the digital divide through proper training, retraining so as to bring radical change & benefit to the Indian society. It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction "GCMMF as IT Company in Food business". It has also inspired all the employees of GCMMF Enterprise to sustain the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also motivated the each & every member dairy, Amul's wholesale distributors, retailers, transporters and suppliers who have supported whole-heartedly the IT initiatives of GCMMF.

Amul Bags International Dairy Federation Award:

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When we are about to celebrate Swarnim Gujarat, Amul has brought one more laurel not only for Gujarat, but for whole of India At a celebratory gala dinner at the Knight's Hall, Residenz Palace, Salzburg, Austria on 28 April 2010, attended by over 150 dairy industry representatives from all over the world Mr. Richard Doyle, President, International Dairy Federation, presented an award to Shri Parthibhai Bhatol, Chairman, and Dr. S. T. Desai, General Manager (Cooperative Services and Administration), GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd.). The award was given to GCMMF (Amul) for the best environmental initiative in the "sustainability category" during the 4th Global Dairy Conference held from 27th April to 29th April 2010 at Salzburg Congress Centre, Austria. IDF, every year gives dairy innovation awards to its members in various categories like brand and products, nutrition and health, sustainability, packaging, ingredients and marketing. The inaugural awards programme attracted over 170 entries from 29 countries in 12 categories, designed to reward and champion innovation and excellence in the global dairy industry. The award has been given to Amul by IDF for its environmental initiative for tree plantation. . As a first step on 15th August 2007 the milk producers of more than 15,000 village dairy cooperative societies planted 18.9 lakh tree saplings across 19 districts of Gujarat, after the flag hoisting ceremony. Initially "One member, one tree
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plantation" was the basis. Inspired by the thumping success, they carried out similar exercise on 15th August 2008 on "one member, three tree plantation" basis, in which 52.74 lakh tree saplings were planted.

Rival:

Gowardhan, founded by Parag milk Foods Pvt. Ltd. in 1992, is one of India's largest private dairies, with an output capacity of 1,000,000 liters per day. Located in a lush green village called Manchar in Maharashtra (60 km from Pune), we pride ourselves on owning the largest cow farm in India as well as Asia's largest cheese plant.

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Gowardhan manufactures dairy products that are not just 100% natural, but also lighter and rich in calcium. That's because the milk, procured from its own cow farm - the largest in Asia - is 100% natural cow's milk. What's more, the use of latest European technology in our manufacturing units ensures superior quality and freshness of our products, giving them the unique Gowardhan taste and flavor. We are an ISO 9000 and AGMARK certified company, committed to international standards of product quality. Our product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee, Processed Cheese, Butter, Dahi, proprietary foods like Dairy Whitener and Gulab Jamun Mix powder under the brand names of "Gowardhan" and 'Go' ,all made from 100% fresh cow milk. Infrastructure & Technology: Our commitment to quality and innovation has resulted in huge investments in infrastructure and technology. Our integrated dairy and cow farm at Manchar, is rapidly scaling up to cater to the ever expanding circle of customers in India, who seek allnatural, wholesome and delicious dairy products. Dairy Plant, Manchar, Pune The extensive range of our products is processed at this ultra modern dairy. Our dairy plant is fully automated, of international standards and equipped with the best European technology. Right from reception of milk to the finished product, we maintain strict no-human-contact through the entire manufacturing process. Our plant churns out 1,000,000 litres of milk per day, has an output capacity up to 10 MT of butter, 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk powder. Motilal Oswal Venture invested `600mn in Parag Milk Foods

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Funds managed and advised by Motilal Oswal Venture Capital Advisors Private Limited (MOVCAPL) and its associates, have invested Rs. 600 million in Parag Milk Foods Pvt. Ltd (Parag/ Gowardhan), one of the fastest growing dairy in the country and selling under the brand Gowardhan. Parag, based out of Maharashtra, is one of the few players that use 100% cow milk for all their products. Its product portfolio includes liquid milk and various dairy products such as milk powder, cheese, ghee, butter, cream, curd, butter milk and gulab jamun mix. Parag has a state-of-the-art Bhagyalaxmi dairy farm spread over an area of 30 acres and equipped with the latest rotary parlour for milking cows. This has been a path breaking initiative by the company and will put the Company in the league of global dairy companies once scaled up. According to Mr. Raamdeo Agrawal, Chairman of MOVCAPL, India is rapidly moving from a USD 1 trillion economies to a USD 2 trillion economy with steadily increasing disposable incomes. Rising population coupled with increasing consumerism will boost demand for dairy products. Following the global trends, Cow milk is also gaining importance in India for its better nutritional value. Companies like Parag, which have established strong procurement practices and internationally accepted quality products, will hugely benefit from this upsurge in consumerism. Investment in the company offers MOVCAPL an opportunity to participate in an unfolding story of excellence in entrepreneurship in the fast growing dairy space. The amount will be utilized by Gowardhan for its capacity expansion along with branding & marketing initiatives. According to Mr. Devendra Shah, Chairman of Parag, Company would be investing around Rs 160 crores over the next 2-2.5 years expanding its capacity to procure and process around 20 LLPD and Rs 50 crores lending to farmers for Backward Integration as well as for development of the Cow & the Dairy Farm. Gowardhan would concentrate on expanding its value added product portfolio across India. This investment from funds managed by MOVCAPL will further propel the growth of Gowardhan. Dairy industry in India has come a long way from dependence in
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1960s & 1970s to self-reliance. India is the largest milk producing country in the world, followed by USA, Russia, Germany and France. According to Dairy Book 2007, Milk production in 2005 was around 94 mn tonnes and is estimated to be over 100 mn tonnes currently with an annual growth rate of 4%. Cow milk constitutes about 41% of total annual milk production inIndia and has started to create a strong niche as compared to buffalo or mixed milk. Mumbai based Investment Bank - Ladderup Corporate Advisory Private Ltd. acted as the exclusive financial advisors to Parag for the deal.

Products:

Competition to Amul

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OBJECTIVES & SCOPE OF STUDY

Objective of the study: Primary Objective: To find out factors affecting consumers buying behaviour towards Amul butter. Secondary Objectives:

To make a comparative analysis between Amul and Gowardhan butter with reference to other players in the market.

To find out the reasons for purchasing butter.

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 To know the usage of butter.

To know the frequency and source of information for purchasing Amul butter. Scope and limitation of the study: The scope of the study is limited solely to the markets visited by the researcher for the purpose of research; this may hence not be a total reflection of the penetration of AMUL products for all the retail outlets in Pune. Assumptions:

A major section of the Indian population consumes packaged butter.

The consumer segment for packaged butter is primarily urban and ranges from the middle to upper classes.

Amul, Gowardhan and Britannia are the key players of the Indian butter market with Amul capturing 80% of the market share.

Butter is bought and used on a monthly basis in most Indian households

Butter is used more as bread spread over any other form of use. While doing research project I came across the following limitations Lack of proper experience on the part of the researcher in conducting such studies in the past.

Time frame required was not enough to survey more number of outlets.
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 Inadequate information, misleading answers that might affect our conclusion

RESEARCH METHODOLOGY
1. Research Methodology: The research was conducted from 9 th May to 8th July 2011. The researches include meetings with the consumers. It included preparation of the questionnaire to be answered by above people for knowing the competitive position of Amul in the market. The views of the parties were recorded in the research as per the questionnaire set by me. 2. Data Collection Method: I have used survey method for data collection. Survey is the most commonly used method.
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3. Data Sources A) Primary Data: The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher. Herein, Face-to face interviews were conducted between our research executive and a respondent. Data was collected through a survey. The questionnaire was prepared considering various parameters and thus had a mix of o pen and close-ended questions using various scales to measure the responses and draw easy conclusions from the study. The research would leave very little room for any discrepancy or misinterpretation of the asked questions since researcher would interview the respondents face -to-face and so also give an insight into their body language of the respondents making use of observation technique along with the survey method. Also observation technique was used to study consumer behaviour patterns as retail outlets. B) Secondary Data: I collected data from magazines, newspaper and different websites. The secondary sources were used only for collecting information regarding the sample; they were however not used for analysis. Sampling: Step 1: Defining the population: In case the research in conducted in Pune only. Considering the city and its huge population, I my have selected our population from the Chandan Nagar to Kharadi, covering all strata's of society. I have segmented it further on to have a very
35

specific sample group covering all the decision -makers in the case of butter. Step 2: Specify the Sampling frame: The sample frame in my case is Map of the city. A sample of specific suburbs is taken covering all the directions of the city from only Pune-North-East. Step 3: Specify the Sampling unit: In my case I have considered 4 sample units to be studied- Home-makers, bachelor students, working professionals and senior citizens. I have undertaken random sampling in the selected areas and defined our sample units in the said criteria. Step 4: Specify the Sampling method: Convenience sampling was adopted in where I approached to home makers, working professional, bachelors students, senior citizens as per the convenience of the researcher. Step 5: Determination of Sample size: The sample size for our study is l00 sample units for consumer's survey. Areas covered: For Consumers survey: Chandan Nagar Bhaji Market Chandan Nagar Kharadi Road Kharadi Gaon
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Population Covered: For Customers survey: Home-makers Working professionals (male and female) Bachelor students (male and female) Senior citizen (male and female) Tools Utilized

Percentage Analysis Graph Chart

4. Research Instrument A) Questionnaire Method: The research instrument was the structured questionnaire designed for the respondents. The questionnaire was for the consumers there was a different set of questionnaire. There were also the area maps. Types of Question:

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The second important aspect in the designing a question is to decide which types of question are to be used. Question can be classified in various ways. Questionnaire contains following type information-

Open-ended question Multiple-choice Question

Phrasing of Question: In questionnaire, I try to phrase the question in logical way. For example I arrange question in sequence as personal information, income, product preferences, and finally related to feedback. Both the questionnaire consists of all three types of question. Mostly all questions are multiple type questions. There is only one open-ended type question. Personal Interview: It is direct form of investigation, involving face-to-face communication with free feedback information. It offers a sense of participation. It is more flexible form of data collection. Use of unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible. Complex questions can be asked. The interview can have questions to secure more information. Observation approach can be combined to verify age, income, status, standard information. Visual aids in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of responder.

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Product for Which Survey Was Condu cted:Amul Butter

Product Details:
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Product Name: Description: Packing: Product Specifications: Composition : Milk FAT, Min : 80% Moisture Mix : 16% Salt, Max : 3% Curd, Max : 1%

Amul Butter Amul Butter (Made of pure milk FAT) 100g, 500g, 50g, 20g, 8.1g

Nutritional Information* Amount per 100 g Energy, kcal Energy from Fat, kcal Total Fat, g Saturated fat, g C holesterol, mg Sodium, mg Total C arbohydrate, g Sugar, g Protein, g Vitamin A, mcg Not a significant source of Dietary fiber, Sugars, Vitamin C , calcium and Iron. * Approx Values # Not Detectable 722 720 80 51 180 836 0 0 0.5 65

Market Analysis and Type of Industry Market share of Amul butter is around 86% Market presence - available in over 500,000 retail outlets across India. Amul butter is made from- butter, common salt, permitted natural color (annatto) Amul comes under FMCG sector.

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Market Presence Demographi cs Age-5 yrs - 80 yrs. Sex - No bar Income- Low to high Occupation -Any sector (not necessary) Education - Lower to higher

Psychographi cs Personality - No discrimination. Life style - A basic normal life to high class living standard Buying Motives - It is generic with butter category, renowned butter available in market, loved by all consumers.

Product Analysis Product Specification Meets AGMARK standards and BIS specifications. No.IS:l3690:l992. Product personality - It is a unisex product. USP- is its taste. Amul butter is made from fresh cream by modern continuous butter making machines (purely vegetarian).

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DATA ANALYSIS AND INTERPRETATION

Q 1: Which company butter do you purchase? Table No. 1 Customers Response on Butter Purchased

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S. No. 1. 2. 3. 4. 5. 6. Total

Brand of Butter Amul Gowardhan Britannia Nutralite Home Made Others

No. of Customers 48 28 7 9 2 6 100

Percentage (%) 48 28 7 9 2 6 100

Graph No: 1

Interpretation:

The above graph shows that from the 100 respondents 48 customers purchase Amul, 28 Gowardhan, 7 Britannia, 9 Nutralite, 2 Home Made and 6 Others butter like Mother Dairy, Chetna Etc.

Most of the customers purchase Amul butter.

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Q 2: Why do you prefer particular brand? Table No. 2 Brand Preference on Mentioned Parameters

Brand Name / Parameters

Amul

Gowardhan

Britannia

Nutralite

Others

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Price Taste Variety Nutritional Value No. of Respondents (100)

9 34 3 2 48

10 14 1 3 28

6 1 1 1 9

3 5 1 1 10

1 2 1 1 5

Graph No. 2

40 35 30 25 20 15 10 5 0

Price Taste Variety Nutritional Value

Interpretation:

34 consumers said that they prefer Amul butter because of taste, 9 consumers prefer price.

14 consumers said that they prefer Gowardhan butter because of taste and 10 consumers because of prick.

Customers did not find more variety amongst the butter.

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Q 3: How do you come to know about this product? Table No. 3 Source of Awareness about the Product Butter

46

S. No. 1. 2. 3. 4. 5. Total

Source of Awareness Advertisement News Paper Sample Magazines Others

No. of Customers 52 32 2 6 8 100 Graph No. 3

Percentage (%) 52 32 2 6 8 100

Interpretation:

The graph shows that 52% of the total customers are aware about the butter because of advertisement. 32% of the customers aware of the butter because of newspaper. It shown that Advertisement is the most powerful medium. Q.4: From which place do you normally buy Butter? Table No. 4
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Place of Amul Butter Purchase Customers 100 Retail Market 42 Local Market 58 Percentage (%) 100

Graph No.4

Interpretation:

Graphs clearly shows that 58 customer purchased butter from local market rather than retail market.

42 customer purchased butter from retail market.

Q 5: Which quantity do you normally buy?

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Table No.5 Purchase of Butter quantity Sr. No. 1 2 3 4 Butter Quantity 100 gm 500 gm 1 kg 1 kg Total No. of Customers 58 22 11 9 100

Graph No. 5

Interpretation:

58 customers prefer to buy 100 gm butter from small use like spread on roti or butter

22 customers likes to use 500 gm butter for dosa etc

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9 customers use 5 kg of butter pack for the business purpose.

Q 6: How many times do you buy Amul Butter? Table No.6 Frequency of purchasing butter Frequency of purchasing Customers 2 Times in week 28 On a special occasion 6

1 time in week 12 Graph No. 6

Other 4

30 25 20 15 10 5 0 2 Times in week 1 time in week On a special occasion Other

Customers

Interpretation:

From the above graph it is clear that 28 customers purchase Amul butter

twice in a week for the purpose of to spread on the bread.

6 customers purchase butter on special occasion.

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12 customers buy butter one time in a week.

Q 7: For what purpose do you use butter mostly? Table No.7 Purpose of use

Purpose of Use Customers

Roti 6

Pav Bhaji 37 Graph No. 7

Bread 47

Dosa 10

Interpretation:

The above graph shows that most customers like to use butter on bread.

37% customer like use butter in Pav Bhaji.

Only 6 % customer use butter on Roti.

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Q 8: At what time you see more no. of Advertisements on Amul & Gowardhan? Table No.8 Timing of advertisement

Time Morning Afternoon Evening Night

Amul Advertisement 7 times 11 times 4 times 17 times

Gowardhan Advertisement 8 times 3 times 10 times 2 times Graph No.8

Interpretation:

Amul: 17 customers saw more number of Amuls advertisements in Night after that in Afternoon also. But according to customer in Evening they saw very less number of Amuls advertisement.

Gowardhan: 10 customers said that, they saw more numbers of Gowardhans

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advertisements in evening and 8 in morning.

Amul has strong advertisement promotions on television than Gowardhan. Q 9: What difference you see in both the product? Table No.9 Difference in the butter of Amul and Gowardhan

Difference Quality Quality Promotion price Total

Customers 19 31 36 14 100 Graph No. 9

Percentage (%) 19 31 36 14 100

Interpretation:

Above graph shows that Quantity is main factor which affected purchasing power
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of customer.

After Quantity 31% shows that customer do or not buy butter because of Quality difference between Amul and Gowardhan. Q 10: Can you recall latest Amul or Gowardhan advertisement? Table No.10 Recall of advertisement

Recall of Advertisement Yes No

Amul 26 21 Graph No.10

Gowardhan 13 19

Interpretation: Graph shows that 26 customers remembered Amuls advertisement and 13 customers remembered Gowardhans advertisement.

21 customers did not remember Amuls advertisement and 19 customers did not
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remember Gowardhans advertisement.

As compare to Gowardhan Amul has strong media awareness.

Q 11: Who will be the better competitor to Amul? Table No.11 Competitor to Amul butter

Competitor to Amul Thinking of Customer

Gowardhan

Britannia

Nutralite

Other

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32

15

Graph No. 11

Interpretation: Above graph shows that Gowardhan is main competitor to Amul. And after Gowardhan, Britannia is second competitor to Amul in market.

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12: If Amul comes with low cholesterol will you accept it? Table No.12 Responses for cholesterol factor in the butter

Customer response 79 Customers

Yes 60 Graph No. 12

No 19

70 60 50 40 30 20 10 0 Yes No

Interpretation: From the above graph, i can conclude that if Amul comes with low cholesterol 60 customers said that, they will definitely purchase it but 19 customers are not ready
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to buy butter with low cholesterol.

Q 13: Do you think that the present cost of product which you prefer is costly? If yes (What will be your ideal price range for 100gm butter pack?) Table No.13 Price range of 100gm butter

Price Range Customers

Rs 26-28 25

Rs 23-25 51

Rs 19-22 24

Graph No.13

Interpretation:

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 Above graphs shows that 51 customer thinks that the present price of butter is costly so they are ready to pay ` 23 to ` 25 for Amuls butter.

25 customers think that the currant price of butter is normal and they are ready to pay ` 26 to ` 28.

23 customers are not satisfied the currant price of butter they are ready pay from ` 19 to ` 22 which is the lowest price. Q 14: Why do you feel Gowardhan brand is not as well, dairy product in market as Compare to Amul? Table No. 14 Customer responses

Sr. No. 1 2 3 4 5

Factors Low quality Small size High price Less promotion Packing problem Total Graph No.14

Consumer of Gowardhan butter 1 11 18 55 15 100

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Interpretation:

Above graph shows that 55 customer think that Gowardhan butter is lacking behind compare with Amul butter because of less promotion and 18 customer think that because of high price.

FINDINGS
1. As per my research, the consumption of butter is predominant in almost every household with the handful exception of a few who cited health issues like cholesterol, hyper tension etc. 2. When asked what first came to their mind on mentioning the word butter. Most of the respondents recalled Amul because of its taste and generic brand status. Also it was seen that health issues like calories, fat, cholesterol was a major concern amongst a substantial number of health conscious and the middle -aged consumers. Respondents also recalled the various products they associated/consumed butter with.

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3. My survey indicated that majority of our respondents were Amul loyalists. Gowardhan which is a substitute of butter seems to be penetrating the market at a rapid level, the major reason being that it's considered healthier. Britannia seemed to have a small yet very loyal customer segment. Most associated mother diary with dairy products rather than butter. 4. When the respondents were asked to mention what they associated their brand with most Amul loyalists seemed to recall the mascot, followed by the slogan, taste and advertising campaigns (especially the paper advertising). Gowardhan was associated with health by its consumers. And Britannia received mixed responses like taste, packaging and pricing by its consumers. 5. The taste and the brand name were the influencing factors behind the purchase of butter. The advertising and the price emerge second. 6. When the various parameters of butter as a product were researched, our findings showed Amul to be the clear winner followed by Gowardhan, Nutralite and Britannia respectively. However, most consumers found the Amul packaging to be dissatisfactory and gave Gowardhan better score on the packaging front. Nutralite lost out on the taste factor, as most consumers gave it the lowest score as far as taste is concerned. 7. In most households butter was purchased on a weakly basis along with the other groceries. The households who reported a comparatively lower consumption bought it on a monthly/fortnightly basis as and when needed. 8. A dominant segment of respondents purchased the 100gm pack as it was more economical and a once in a month purchase. The smaller packs were bought by students and for convenience purposes.

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9. Most

respondents

were

relatively

unaware

about

the

exact

amount

spent specifically on butter as it was a part of the monthly groceries. Majority stated that they spent Rs 50 -l00 on butter monthly. 10. When asked about their brand experience, the respondents who cited very good as a response were dominantly Amul consumers, while responses who cited Good and neutral were consumers of other brands like Britannia, Gowardhan and Nutralite. 11. When asked about additional features in their brand, lower calorie levels were the dominating response. Also, better packaging (in the case of Amul), lower prices and unsalted variants were the other factors that emerged. 12. Awareness levels about the substitutes for butter were divided. Nutralite and Gowardhan were the primary responses that came to the respondents mind, while the others included imported substitutes and other spreads. 13. The consumption of Butter in households was primarily as a spread, followed by a small margin of households who used it for cooking and baking purposes.

CONCLUSION
1. This research has been instrumental in finding the Indian consumers' response to the various brands of butter and in studying the butter industry of India in general. Despite health hazards, Indian kitchens continue to consume butter, however sparingly. Indian consumers who have tried low -fat / zerocholesterol butter substitutes have not found the taste satisfactory, and demand a product that tastes more like butter and does not have a distinct processed taste. 2. Also, the demand for unsalted butter is small but significant, as the high sodium content in packaged butters has been a source of worry for patients of high blood
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pressure. This could also be the result of experimenting with new cuisines as most baked desserts call for unsalted butter. In terms of brand recall, only two brands have so far made their presence felt in the Indian market. The former being Amul, which changed the concept of 'butter' through highly strategic advertising and the latter - 'Nutralite' and Britannia - the butter substitute that has occupied the place of pride on the tables of the lean and health-conscious. Most consumers associate 'Amul' with taste and 'Nutralite with 'health'. 3. While taste and pricing was the deciding factor for most consumers, a significant section commented on the poor packaging quality of some brands like Nutralite as compared to Gowardhan, which provides containers for the butter. Most consumers demanded a low - fat/low-cholesterol variant of their existing brand, thus confirming that the need of today's butter consumer's in India is a healthy yet tasty product, which makes it an open opportunity for a new brand to come and take over before the existing brands can reposition.

SUGGETIONS
1. Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season. 2. Amul should take care of their goodwill of company market any damage product sell in the open market it may be effect company reputation.

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3. Given the fact that margin offered to the retailer is not similar in the case of the competitors product. For this fact, the company should give good margin to the retailers than the competitors. 4. Company should also give the replacement offer to those outlets which is running with small business. 5. Only fresh product should be supply in the outlet. The main cause of the supply of fresh product is that customer always wants fresh product. They dont want to take 3 or 4 days old product. 6. Company should also target the consumer by offering discount coupons or pens /spoon free offer or some other innovative viable for attracting them.

LIMITATIONS
1. The survey is limited only for two wards Chandan Nagar and Kharadi. 2. Time period of the project was 8 weeks, which may not be enough to understand the whole market.

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3. The sample size of the taken was small, therefore it can be said that the chosen sample is not the representative of the whole population and this hindered quantitative research. 4. The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favorably. 5. Respondents may not have been true in answering various questions and may be biased to certain other questions. 6. Out of the whole research and analysis, only three major brands could be highlighted, leaving aside the other non-popular brands. 7. The questionnaire mostly contained multiple choice questions, therefore many respondents did not give a proper thought before up the questions, and some even ticked things, which were not applicable. Therefore, all this increased the bias. 8. During the course of survey some unavoidable error are faced such as no response, inaccuracy in response. 9. The findings are totally based on respondents prediction and hence can be biased to some extent.

ANNEXURE BIBLIOGRAPHY
1. Name of the book: Author Edition

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A. Marketing management

Kotler Philip, Keller Kevin, Koshy Abraham, Jha Mithileshwar

13th, South edition

B. Research Methodology

Kothari C.R

WEBLIOGRAPHY
Webliography: www.amul.com

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www.gowardhanindia.com www.indianfoodindustry.net www.wikipedia.org www.scibd.com www.amul.tv.com www.moneycontrol.com

QUESTIONNAIRE

Personal detail : Name : Address: Age :

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Gender: Occupation: Income p.a. : Total family member:

Questions: Q .1) what kind of butter you buy? Amul Nutralite Britannia Home made Gowardhan

Q.2) why do you prefer particular brand? Price Variety Taste Nutritional Value

Q.3) how you come to know about this product? Advertisement Sample Newspaper Magazines

Q.4) where do you normally buy Amul product from? Local market Retail market

Q .5) did you ever use any other Brand? Yes No

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Q .6) which quantity do you normally buy? 100 gm 1 kg 500 gm 5 kg

Q .7) how many times do you buy Amul Butter? 2 times in week On special occasion once in week others

Q .8) for what purpose do you butter mostly? On roti On bread On Bhaji On dosa

Q .9) Do you recall advertisement of Amul butter? Yes No

Q .10) at what time you see more no. of advertisement on Amul? Morning Evening Afternoon Night

Q .11) at what time you see more no. of advertisement on Gowardhan?

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Morning Evening

Afternoon Night

Q .12) what difference you see in both the product? Quality Size Quantity Price Promotion

Q .13) Can you recall latest Amul advertisement? Yes No

Q .14) who will be the better competitor to Amul? Gowardhan Nutralite Britannia Other

Q .15) Do you find that Amul butter having high cholesterol? Yes No

Q .16) If Amul come with low cholesterol did you accept it? Yes No
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Q. 17) Do you think that the present cost of product which you p refer is costly? If yes what will be your ideal price range for 100gm butter pack? 19 to 22 26 to 28 23 to 25

Q. 18) Would you prefer to switch to butter of anther brand if it is cheaper than your preferred brand without any change in quality & taste? Yes No

Q .19) is there anything that you feel lacking in your preferred brand Yes No

Q .20) Dou you fell that company should change their brand name? Yes No

Q .21) Amul product with the Red and yellow colure packing its work in the market or not? Yes No

Q .22) Why do you fell Gowardhan brand is not as well, dairy product in market as compare to Amul? Low quality Less promotion Small size Problem in packing
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High price

Q .23) If company gives 20%off to customers will it helps to growth of selling of company product? Yes No

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