A Project Report On Consumer Satisfaction Towards Amul Milk and Milk Products at Udaipur City
A Project Report On Consumer Satisfaction Towards Amul Milk and Milk Products at Udaipur City
A Project Report On Consumer Satisfaction Towards Amul Milk and Milk Products at Udaipur City
Submitted in Partial fulfillment for the Award of degree of Master of Business administration
2 0 07 -2 0 0 9
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Preface
The Research project on Amul Milk and Milk Products at Udaipur city has been accomplished for the fulfillment of my 4th semester of M.B.A. course at Pacific Institute of Management, Udaipur. The subject undertaken during this Research is mainly related with management subjects. The company at which the Research is undertaken is engaged in Dairy Industry development since 1946. The exposure through this research project has helped me to understand more on the subject. It has reduced the gap between the classroom learning experiences and its application in the field and their experience, largely.
Acknowledgement
I express my sincere thanks to my project guide, Dr. Harshita Shrimali, Associate Professor, Strategy and marketing, for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her for extending her valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the staff of Pacific Institute of Management, for their help and cooperation throughout the project.
Vijay Paliwal
Executive Summary
As a part of my M.B.A. Curriculum I completed my Research project on Consumer satisfaction Towards Amul Milk and Milk Products at Udaipur City Firstly I obtained Knowledge Regarding the Amul milk and their products, market share segmentation in dairy industry and the competitors. In first phase of my studies I had gone through a detailed understanding of dairy industries in India and it scope. From these studies I have learned more about different type of companies and type of products As there are different types of companies and brand present, I want to know that how customer prefers a particular brand of dairy products in Udaipur City. Amul is one of major brand of dairy products in Udaipur city. So I have taken Amul as a brand to study the preference and the major factor that have make amul as a strong brand in Udaipur. I want to know about the level of satisfaction derived by the customer from various amul products so objectives of my studies
To Identify the factors responsible to purchase products, To know the quality perception of the respondent To know the consumer awareness about products chapter that is sixth
consists of the Bibliography & References. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the datas have been well analyzed with the help of charts and graphs.
Contents
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S.no. 1 2 3 4 5 6 7 8
Chapter Overview of the Industry Profile of companies Need of the study consumer behavior Research Methodology Data Analysis & Interpretation Findings Conclusion Recommendations Appendix
Page No. 7 12 40 44 51 72 73 74
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Industry Profile
Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million liters per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005.
This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005,
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the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000 mn.
Milk Production from 1950 to 2020 1950 1996 1997 17 million tones 70.8 million tones 74.3 million tones
(Projected) 2020 240 million tones Expected to reach- 220 to 250 mt 2020
India contributes to world milk production rise from 12-15 % & it will increase up to 3035% (year 2020)
The research and development need to the dairy industry to develop and Survives for long time with better status. The various institute and milk dairy companies R&D results provide base for todays industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread world wide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also.
Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.
The development of India's milk industry has many lessons for multinational corporations. The transformation began around 1946, when the Khira District Milk Cooperative, located in the state of Gujarat, set up its own processing plant under the
leadership of Varghese Kurien and created the brand Amul, today one of the most recognized in the country Unlike the large industrial dairy farms of the West, in India, milk originates in many small villages. Villagers may own only two to three buffaloes or cows each and bring their milk twice a day to the village collection center. They are paid every day for the milk they deliver, based on fat content and volume. Refrigerated vans transport the milk to central processing plants, where it is pasteurized. Railroad cars then transport the milk to major urban centers. The entire value chain is carefully managed, from the village-based milk production to the world-scale processing facilities. The Khira District cooperative provides such services to the farmers as veterinary care and cattle feed. The cooperative also manages the distribution of pasteurized milk, milk powder, butter, cheese, baby food, and other products. The uniqueness of the Amul cooperative is its blending of decentralized origination with the efficiencies of a modern processing and distribution infrastructure. As a result, previously marginal village farmers are earning steady incomes and being transformed into active market participants. Twenty years ago, milk was in short supply in India. Today, India is the world's largest producer of milk. According to India's National Dairy Development Board, the country's dairy cooperative network now claims 10.7 million individual farmer member owners, covers 96,000 village-level societies, includes 170 milk-producer unions, and operates in more than 285 districts. Milk production has increased 4.7 percent per year since 1974. The per capita availability of milk in India has grown from 107 grams to 213 grams per day in 20 years.
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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 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 1000tones a year in 1966 to over 25,000tones 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 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.
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Fourth hand is of customers, without whom the products would have not carried on.
Amul Butter
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Kool Koko
Cooking Butter
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Amul Ice-Cream
Amul Shrikhand
Amul Lasse
Amul Dahi
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These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.
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. Amul has demonstrated that farmers cooperatives can employ professionals, make use of modern technology, and harness market forces to serve their ends without disturbing the agro-system. To be a small producer is no more a disadvantage. In co-operative dairying there is a greater chance of rural development leading to the empowerment of the poor and the lowly. Education: - The Union maintains a constant link with rural producers specially women. The Union published a newsletter twice a month which carries write- ups in simple Gujarati on animal husbandry, quality control of milk and the co-operative movement. The Union continually guides and supervises the societies so that they remain efficient, viable and strong. Welfare Activities: -Two scholarships are given every year to outstanding children of members or the union staff for professional courses. Under the Group Garmin Personal Accident Policy the member and spouse are insured by the Union.
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The union operates a continuous Co-operative Development programmed to upgrade the knowledge of the members management committee, members of where the main as well as satellite villages participate. Women participation is encouraged. The Union has also developed an Internal Consultant Group which educates the members, the management committee members and the staff at the village co-operatives in modern systems of operating rural business, maintenance of hygiene at all levels. Likewise they also established a Sabhasad Kalyan Fund to meet the emergent needs of the community especially at the time of natural calamities. A Larger Responsibility :- The Kaira District Co-operative Milk Producers Union is the pioneer. And it succeeded. It came to be regarded as a model. With this recognition came larger responsibilities. When milk producers in other districts of Gujarat started their co-operatives, planning and execution. The Ahmadabad Municipal Dairy (which has been taken over by the Gujarat Dairy Development Corporation), the Gujarat Governments Rajkot Dairy (which is now being managed by the District Co-operative Union) and dairies of the Mehsana District Cooperative Milk Producers Union Limited, Baroda district Co-operative Milk Producers Union Limited were among the projects executed with Kaira Unions technical help. The Kaira Union also started a training programme for dairy and animal husbandry personnel. The National Dairy Development Board (NDDB) was thus set up at Anand in 1965. NDDB drew up the programme Operation Flood to replicate Anand Pattern in various milk sheds of the country. Implementation of the programme started in 1970-71. Heavy reliance was placed on the expertise of the Kaira Union. In each area NDDB deployed a spearhead team consisting of specialists who
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the village
cooperatives and its staff members. Regular Gram Sabhas are organized in villages
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turned to Kaira Union for help and guidance. They drew on Anand experience in project
were fully conversant with the Anand Pattern. The liaison between the NDDB spearhead teams and the workers of the project area invariably started with a training programme at Amul The creation of more Anands was recommended under World Bank projects in Karnataka, Madhya Pradesh and Rajasthan also. In these projects as well, Kaira Union served as a live laboratory and NDDB as the multiplier. The Anand Pattern of co-operative dairying is now being replicated in all the States and Union Territories of India. By March 31, 1999, there were 81,668 Village dairy cooperatives established in 170 milk sheds, with a total membership Of 10.21 million farmers. Similar co-operatives are being established for oilseed cultivators, fruit and Vegetable farmers and for small-scale salt makers and tree growers. Amul is an embodiment of faith faith in the ability of our farmers to break the shackles of poverty and oppression and to create a socio-economic revolution in rural India. At the same time, it had multidimensional impact on rural economy and society: generating higher income and employment opportunities, facilitating education, enhancing nutrition levels, addressing gender issues and contributing to village-level social amenities. Through the Anand Pattern diary cooperatives, our farmers demonstrated to the world, the key to successful Management of Development. Diary cooperatives have provided the farmers, a steady source of income, enhancing their earning and enabling them to improve their standard of living.
Plants of Amul
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.
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Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.
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to form some sort of an organization. This realization is whatvled 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.
Operation flood
The strategy for organized dairy development in India was actually conceived in the late 1960s, within a few years after the National Dairy Development Board (NDDB) was founded in 1965. It rested on the Operation Flood programme, which was conceived by the NDDB and endorsed by the government. Operation Flood is a unique approach to dairy development. During the 1970s, dairy commodity surpluses were building up in Europe, and Dr Verghese Kurien, the founding chairman of NDDB, saw in those surpluses both a threat and an opportunity. The threat was massive exports of low-cost dairy products to India, which, had it occurred, would have tolled the death-knell for India's staggering dairy industry. The large quantities that India was already importing had eroded domestic markets to the point where dairying was not viable. The opportunity, on the other hand, was built into the Operation Flood strategy. Designed basically as a marketing project, Operation Flood recognized the potential of the European surpluses as an investment in the modernization of India's dairy industry. With the assistance of the World Food Programme, food aid - in the form of milk powder and butter oil - was obtained from the countries of the European Economic Community (EEC) to finance the programme. It was the first time in the history of economic development that food aid was seen as an important investment resource. Use of food aid in this way is anti-inflationary, it provides a buffer stock to
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stabilize market fluctuations and it can be used to prime the pump of markets that will later be supplied by domestic production. The overriding objective of all aid is, or rather should be, the elimination of the need for aid. The use of food aid as an investment is the most effective way of achieving this objective . Operation Flood is a programme designed to develop dairying by replicating the Anand Model for dairy development, which has stood the test of time for almost half a century. The first phase of Operation Flood was launched in 1970 following an agreement with the World Food Programmed, which undertook to provide as aid 126000 tones of skim milk powder and 42000 tones of butter oil to finance the program me. The programme involved organizing dairy cooperatives at the village level; creating the physical and institutional infrastructure for milk procurement, processing, marketing and production enhancement services at the union level; and establishing dairies in India's major metropolitan centres. The main thrust was to set up dairy cooperatives in India's best milksheds, linking them with the four main cities of Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk market was to be captured. In achieving that goal, the first phase of Operation Flood laid the foundation for India's modern dairy industry, an industry that would ultimately meet the country's need for milk and milk products. The second phase of the programme was implemented between 1981 and 1985. Designed to build on the foundation laid in the first phase, it integrated the Indian Dairy Association-assisted dairy development projects being implemented in some Indian states into the overall programme About US$150 million was provided by the World Bank, with the balance of project financing obtained in the form of commodity assistance from the EEC. The current, third phase of Operation Flood aims at ensuring that the cooperative institutions become self-sustaining. With an investment of US$360 million from the World Bank, commodity and cash assistance from the EEC and NDDB's own internal resources, the programme envisages substantial expansion of the dairy processing and
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marketing facilities; an extended milk procurement infrastructure; increased outreach of production enhancement activities; and professionalization of management in the dairy institutions. Operation Flood, which was perhaps, worlds largest development programme, was based on the rich experience gained from the Amul model, also popularly known as Anand Pattern. Anand Pattern is an innovative three-tier organisation structure combines the productive genius of farmers with professional management and modern technology. The facilities at all levels are entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create value-added processing. Prompt and remunerative payment for produce of good quality has ensured the best incentive for the farmer to increase production and quality The three-tier Anand Pattern structure consists of a Cooperative Society at village level affiliated to a Milk Union at District level and they are further federated into a Milk Federation at State level. The above three-tier structure was formed in order to delegate responsibilities at various levels such that there is no internal competition and economics of scale is achieved The Village Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village (approximately 200 member milk producers per village) and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers. The main function of this cooperative society is to collect surplus milk from the milk producers of the village and make payment based on quality and quantity. It also provide support services to the members like Veterinary First Aid, Artificial Insemination Services, Cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry and Dairying, etc. The district-level Milk Union is the second tier under the three-tier structure. It has membership of Village Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The main function of the Milk Union is to process milk into various milk and milk products as per the market requirement. The Union procures milk from the Village Societies of the District
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and arranges for the transportation of raw milk from the villages to the Milk Union. It also provides input services to the producers and other support to the village level societies. The State-level Federation is the apex tier under the three-tier structure. It has membership of Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The main function of the Federation is to market the milk and milk products, manufactured by Milk Unions. The Federation establishes distribution network for marketing of milk and milk products and maintains the supply chair network. It also provides support services to the Milk Unions and members like Technical Inputs, Management support and Advisory services As a direct consequence of Operation Flood and the Amul model, India is now the leading milk producer in the world, with a milk production of 91 million MTs/ annum. The cooperative structure now touches the lives of 11 million farmer households across India. In Gujarat itself, 2.4 million farmer households form a part of the large Amul family. Dairying has now become an attractive source of livelihood; bring prosperity and economic development to rural India.
Provide a support system to the milk producers without disturbing their agroeconomic system. 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
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.
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. Now there is machinery around Rs. 1500 lakh which is to be in expansion with higher advanced machinery to Rs. 1600 lakhs. 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.
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Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. We have created Amul parlors at some prominent locations in the country, which are run by the company or its wholesale dealers. Amul Utterly Delicious" parlors are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, Company have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO)
Criteria for selecting APO 1. The criteria for selection of APOs would be a. Visibility - How prominent is the location of your shop? b. Shop area: 100 - 300 sq. ft. c. Good Business potential
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d. Exclusive Amul outlet - no other products e. Willingness to sell the entire range of Amul Products
f. Creditworthiness and past business experience.
On inquiry - our Field force would visit your site. He/She would fill the APO proposal form with your passport size photograph. You would require: i. ii. iii. Shops and Establishment license Layout of the shop and frontage - The layout of the shop designed by a local architect/local contractor. 2 Passport size photographs
Renovation Work of the Shop to give it a standard look - would be done to meet the design and specifications at your cost. The cost of renovation of a typical shop would normally be between Rs. 60,000 to Rs. 1 lack.
1. Branding- The APOs would be branded as "Amul Utterly Delicious". The cost of
the signage fabrication and installation would be borne by GCMMF office operating in your region.
2. Equipment- You would require the following equipment:
a. 1or 2 deep freezers can be purchased through Hamara Apna Deep Freezer Scheme b. 1 Refrigerator through Hamara Apna Refrigerator Scheme c. 1 pizza oven d. 1 Chest Milk Cooler for Pouch Milk. e.
3. Security Deposit- You would be required to furnish an interest free refundable
security deposit of Rs. 25,000 to us. An amount of Rs. 5000/- would be deducted
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towards refurbishing the signage, in the event of closure of APO before 3-year of operation.
4. Supplies- The delivery of products would be done through our wholesale dealers 5. We feel that the shop has good potential, and needs support in the initial days,
we can offer additional margins up to maximum of 1% on dairy products and 2% on Ice cream. The additional margin shall be target based and shall be given in kind. The support at best would be given only for he first year of business.
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
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. 1987: Best Productivity awarded by national productivity council for the year 1985-86 awarded to Amul dairy.
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.
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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AWARENESS The art of earning customer "share-of-mind" involves creating an impression of personal identification with the 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?" 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.
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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. company; word-of-mouth advertising flourishes. now can encourage buyer-get-a-buyer programs through appropriate incentives, it must be prepared to follow through professionally to make new recruits feel as valued as the advocates who recommended them.
Consumer Behaviour
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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, 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 orservices 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
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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 & arewilling 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 consumers satisfaction & profit maximization.
Who buys products or services? How do they buy products or services? Where do they buy them? How often they buy 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 consumers behaviors are: Market size
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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 firms 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 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 organizations most valuable assets.
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Brand Loyalty: It has been proclaimed by some to be the ultimate goal of marketing. In marketing, brand loyalty consist of a consumers 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 dont give it as much effort as I should because it does take a lot of energy and effort.
Research Methodology
OBJECTIVES
1)
To identify the factors responsible to purchase products. To know the quality perception of the respondents To know the consumer awareness about products.
2) 3)
Research Methodology
Research design 43
Exploratory
Sample Size Data Collection Method Research Instrument Types of Questions Area Covered Data Collections Primary Data Primary data are collected from questionnaire Secondary Data
Research Methodology
The objective of present study can be accomplished by conducting a systematic market research. Market research is the systematic design ,collection, analysis and reporting of data and finding that are relevant ton different marketing situation facing the company the marketing research process that will be adopted in the present study will consist of following stages.
What is research?
Research is a common parlance which refers to search for knowledge . One can define research as a scientific ans systematic search for per pertinent. Research is of great importance to find out the nature extent and cause of the research issue under study.
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Research methodology is the process in which various steps that are generally adopted by a research are out lined.
RESEARCH PROCESS
Setting of Objective Setting the area under the study Design the method of data Defining the sample size Collection of data Interpretation and analysis of collection data Deduction and conclusion
Exploratory Research
Exploratory Research is the study which is also termed as formularize research studies. The main purpose of study is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view.
While doing conclusion oriented research a researcher is free to pick up a problem redesign the enquiry as he proceed and is prepared to conceptualize as he wishes .
The conclusive research is: 1. Survey method 2. Questionnaire method
Descriptive research:
Descriptive research includes surveys and fact findings enquiries of different kinds. The major purpose of Descriptive research is description of the state of affairs as it exists at present.
Data sources
PRIMARY DATA The primary data are those, which are collected for the first time
hence they are fresh and thus happens to be original in character. Primary data pertain to demographic and socioeconomic characteristics of the consumer, attitudes and opinion of the respondent, their awareness and knowledge and other similar aspect
The
primary data for the present research work was obtained through the
observation
SECONDARY DATA
research work and are applicable in the study the researcher has presently undertaken. The data collected from the websites and books was good enough to be included in the study analyzed and concluded.
Market Segmentation
The Market Segmentation was done keeping in mind that what types of customer were available in the market. These segments are namely:
Business Class Service Class
Business Class
All the people who are running their own business example owner of marble unit, Departmental store, Architecture and Agriculture business etc. were approached. Service Class
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All the people who are employed either by the central or state govt. of India or private sectors example employees who are working in P.W.D. MTNL, Educational department, students and professionals.
Sample Design: Sample Design refers to the technique as the procedure that a researcher would adopt in selective item for the sample
Target population
The size of the sample is an important element in the research process as it has a direct effect on the result of the research. As a size of sample increases, accuracy and reliability of the research result also increases.
Gender:
Gender play vital role in purchase decisions. Gender classified on sex basis i.e. male and female. Gender classification is required 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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Interpretation:
60% of the respondents are male and 40% of the respondents are female. From the above table we can conclude that, the majority of the respondents were belongs to male group.
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Occupation:
Occupation is also influences a persons 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.
Students Total 12 9 21 42 38 80
employed 18 8 26
Interpretation:
32.5% Respondents are self employed,22.5% are professionals,19% are house wifes and 26% are students.
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Purchase 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 impact of these factors which influence to the consumers to buy of Amul Milk and Milk products.
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Male 20 15 7 42
female 16 14 8 38
Total 36 29 15 80
Interpretation:
.
On the basis of gender: Regarding quality, 42 male respondents out of 20
respondents prefer quality. Out of 38 female respondents 16 prefer quality. Quality ranks 1st in sample. Regarding price, out of 42 male respondents out of 15 male prefer these products to its prices. Out of 38 female respondents 14 prefer to its prices. Regarding its location, 42 female respondents out of 7 male respondents prefer to its easy availability and 38 female respondents out of 8 female prefer to its easy availability.
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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.
Interpretation:
On the basis of gender: Regarding freshness, 42 male respondents out of 21 respondents says these products have freshness. Out of 38 female respondents 14 says these products have freshness. Freshness ranks 1st in sample. Regarding taste, out of 42 male respondents out of 12 male prefer these products to its taste. Out of 38 female respondents 14 prefer to its taste. Regarding its location, 42 female respondents out of 9 male respondents prefer to its thickness and 38 female respondents out of 8 female prefer to its thickness.
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Information:
Information of products should be reached to the customer ,for this companies use various options and customer also try to get knowledge from various sources.
Male 12 8 12 10 42
Female 8 6 16 8 38
Total 20 14 28 18 80
Interpretation:
As per data, 25% respondents get the information from friends/ family, 18% from Direct mailers, 35% from T.V. Ads and 22% respondents get information from press ads.
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Price:
Price is an important factor because when customers go for purchasing products they prefer those products that are qualitative and economic than compititors products.
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Male 8 14 12 8 42
Female 11 12 10 5 38
Total 19 26 22 13 80
Interpretation:
As per data here 24% respondents says that price of amul products are high than competitors products, 32.5% says prices are average, 27.5% says prices are same, and 16% says prices are less than competitors products.
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Purchase duration:
Repeat purchase will help to know the 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
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Purchase Duration of Amul Products Duratio n Daily Weekly Monthly Occasionaly Total 10 17 7 8 42 15 11 5 7 38 25 28 12 15 80 Male Female Total
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Interpretation:
As per the data gathered from 80 respondents, 42 male respondents out of 10 male respondents buy Amul products daily.38 female respondents out of 15 female respondents buy daily. 17 male respondents and 11 female respondents buy weekly. 8 male respondents and 7 female respondents buy occasionally.
Purchasing place:
Purchase place is also important factor to know where users choose their purchase point. This helps to marketer to design various promotion and Distribution programme. The data is collected to know the various purchase place and availability.
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Avalability of Amul Products At Dealor Shop Easy Available Yes No Total 37 5 42 30 8 38 67 13 80 Male Female Total
Interpretation:
84% of the respondents said that they are getting AMUL Milk & Milk products easily. 16% of the respondents disagree with the easy available of AMUL Milk & Milk products.
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From the above table we can conclude that majority of the respondents getting the AMUL Milk & Milk products easily from the dealers or retailers.
figur e 8
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Male 31 11 42
Female 25 13 38
Total 56 24 80
Interpretation:
70% of the respondents feel that they get the value for money they paid. 30% of the respondents feel that they are not getting the value for money what they paid. From the above table we can conclude that majority of the respondents are agreed that they are getting the value for money they paid.
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Promotional Activity:
Promotional activities are done by many companies because when they come with new products in the market or they want to go in new target market, they do promotional activities for captuering target market. Many customer buy products after watching these activities. Due to this activities companies can directly contact with their potential customer.
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Affect Promotional Activity for Purchasing Affect Yes No Total Male 18 24 42 Female 23 15 38 Total 41 39 80
Interpretation:
As per data gathered from 80 respondents, 52% respondents says that their purchasing affect from promotional activities, and 48% says that promotional activities does not affect their purchase.
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Rating of Amul Products Opinion Excellent Good Average Poor Total Male 11 20 8 3 42 38 Female 10 15 8 5 Total 21 35 16 8 80
Interpretation:
26% of the respondents rated that AMUL Milk & Milk products are Excellent. 44% of the respondents rated as good, 20% of the respondents rated as Average Quality. 10% 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
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Male 33 9 42
Female 30 8 38
Total 63 17 80
Interpretation:
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From above data 78% respondents are satisfied after buying amul products and 22% says that they are not satisfied.
conclusions of my study. First I would like to present my survey findings. The main findings of my survey are as follows:
It is findings in the survey As per the data, 40% of female and 60% of male makes purchase decision.
19% are the housewives and 22.5% are from various occupations such as a businessman, employee, etc. rest are the students. for the Amul Milk & Milk products.
The main purchasing factors for the Amul Milk & Milk products are
Quality and Brand image and price. The data reveals that 45% influences on Quality and 36% influenced for the price.
. 88% of the total respondents are using product since from a long time.. Overall opinion of the product performance data reveals that Amul
product satisfies 78% of the respondent and 22% respondents opinion is average.
It is found in the survey that 13% of the total respondents are
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SUGGESTIONS
Milk and milk product purchase decisions are more decided by male rather than
female, because he act as a invigilator, execute his 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 womens role in the house is dominant, even in the various decisions
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.
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.
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.
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.
As only 22% of the total respondents are dissatisfied which is quite a large
percentage and this may influence negatively and increase the rate of switch over. Hence I suggest management to concentrate on few product quality, shelf life, dealers approach, outlet maintenance etc. will help Amul to satisfy to a greater extent.
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.
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Conclusion:
From the survey conducted it is observed that Amul milk and Milk products has a
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,
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
APPENDIX
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Questionnaire
Vijay Paliwal, student of second year MBA (Marketing ) of the Pacific Institute of Management, I am doing research project on Customer Satisfaction Towards AMUL Milk & Milk products at Udaipur City. 1. Personal Profile A) Name
B) Address
c)
Sex
Male: (
Female: (
D)
Age:
E)
Occupation:
1) Self Employed [
2) Professional
2) House Wife
4) Student
3. What is the most important factor that matters while buying an Amul product?
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a) Quality
b) Price [
c) Service
4.
a) By friend / family [
b) Direct Mailers [
C ) Press Ads
d)
T.V. Ads
a) Intermediaries [ Advanced [ ]
b) Standard
] C) Latest /
a) Yes
b) No [
7. Do you think the price of Amul product is high / low compared to competitors Products ?
a) High [ [ ]
b) Average [
c) Same [
d) Law
a) daily [ ] occasionally [
b) weekly [ ]
c) monthly [
] d)
] ]
b) excellent d) Average
[ [
] ]
10. Do the various schemes / promotional activities affect your purchase plans? a) yes [ ] b) No [ ]
11.
Suggetion ( if any )
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