Project of Consumer Behavior on Milk and Products

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INTRODUCTION

“Marketing is a total system of business, an ongoing process of:
1.     Discovering and translating consumer needs and desires into the products services (planning and producing the planned products).
2.     Creating demand for this product and services (through promotion and pricing)
3.     Serving the consumer demand through planned and physical distribution) with the help of marketing channels and then I turn.
4.     Expanding the market even in the place of keen competition.”

The modern marketer is called upon to set the marketing objectives, develop the marketing plan, organize the ,marketing function, implement the marketing plan or programme ( marketing mix) and control the marketing programme to ensure the accomplishment of the set marketing objectives. The marketing programme covers producer planning or merchandising, price, promotion and distribution.
In short, modern marketing begins with the customer, not with production cost, sales, technological landmarks and it ends with the customer satisfaction and social well-being. Under the market- driven economy buyer or customer is the boss.
Marketing has been viewed as an ongoing or dynamic process involving a set of interacting activities dealing with a market offering by producers to consumers on the basis of reliable marketing anticipation.
Marketing is a matching process by which a process by which a producer provides a marketing mix that meets consumer demands of a target markets within the limits of society. The process is based on corporate goals and corporate capabilities. Marketing process brings together producers and consumers the two main participants in exchange. Each producer or seller has certain goals and capabilities in making and marketing his products. He uses marketing research as a tool to anticipate market demand. Then he provides a marketing mix in order to capitalize marketing opportunity. An exchange or a transaction takes when market offering is acceptable to the customer who is prepared to give something value I return against the product so bought.

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 litres 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 Japan’s $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, 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 –                   17 million tonnes
1996 –                   70.8 million tonnes
1997 –                   74.3 million tonnes
(Projected) 2020 –           240 million tonnes
Expected to reach-   220 to 250 mt – 2020
India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020)

World's Major Milk Producers                                                 (Million MTs)

Country
2002-03
2003-04 (Approx.)
India
81
84.5
Brazil
75
77
Russia
34
33
Germany
27
27
France
24
24
Pakistan
21
22
USA
71
71
UK
14
14
Ukraine
15
14
Poland
12
12
New Zealand
11
12
Netherlands
11
11
Italy
10
10
Australia
9
10

Research and Development in Dairy Industry

          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 today’s 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.

Development of Food Processing Industry

          The food processing industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government of accorded it is a high priority, with a number of fiscal relieves and incentives, to encourage commercialization and value addition to agriculture produce, for minimizing harvest wastage, generating employment and export growth.

          Food processing industry is providing backbone support to the milk industry. The development food products by using milk can give good market opportunities to produces milk.

Products and Industry Status

          Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk etc.. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally.
Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.

Investment Potential in Milk Products

          At the present rate of growth, India is expected to overtake the US in milk production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being largely imported, manufacture of casein and lactose has good scope in the country.

          Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr.

Production of Milk in India

The facts and figures here shown are calculated on the basis of percentage increases pear year.
Year
Production in million MT
1993-94
61.2
1994-95
63.5
1995-96
65.0
1996-97
68.0
1997-98
71.0
1998-99
74.5
1999-00
78.0
2000-01
81.51
2001-02
85.17
2002-03
89.0
2003-04
93.0
2004-05
97.65
2005-06
102.45
2006-07
107.58

Company profile of Amul

Name
Karia district co-operative milk producer’s ltd, widely known as “Amul”
From
Co-operative sector registered under the co-operative society act
Location
Amul dairy, nr, railway station, Amul dairy road, Anand Gujarat , India
Registration
14th December, 1946
Registered
Kaira district co-operative milk producer’s ltd, Anand -388 001. Gujarat
Size
Production of different products on large scale, collecting 9 to 15 lakh liters milk everyday & producing milk products.
Plant
There are 4 plants
1)     Amul Plant                      2) Kanjari Plant
3) Mogar Plant                      4) Khatraj Plant
Banker
1.     The Kaire District Center Co-Operative Bank Ltd.
2.     UTI bank              4. Bank of Baroda
3.     SBI                       5. Corporation bank   6. Bank of Maharashtra
Working
10:45 am to 5:45 pm
Founders
1.     Shri Tribhuvandas K. Patel
2.     Shri Sadar Vallabhbhi Patel
3.     Shri Morarji Desai
4.     Shri Verghese Kurien
5.     Shri Harichand M. Dalaya

Brief History of Amul:
                     Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. ”The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand.

AMUL: The origin

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

The Start of a Revolution

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

Amul's Secret of Success

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to:
  • Provide a support system to the milk producers without disturbing their agro-economic systems
  • Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Amul is an example par excellence, of an intervention for rural change.
  • Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment
  • Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its roles and limitations
  • Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and
The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. The village society also facilitates the implementation of various production enhancement and member education programs undertaken by the Union. The staff of the village societies has been trained to undertake the veterinary first-aid and the artificial insemination activities on their own.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

Members:
13 district cooperative milk producers' Union
No. of Producer Members:
2.7 million
No. of Village Societies:
13,141
Total Milk handling capacity:
10.21 million liters per day
Milk collection (Total - 2007-08):
2.69 billion liters
Milk collection (Daily Average 2007-08):
7.4 million liters
Milk Drying Capacity:
626 Mts. per day
Cattlefeed manufacturing Capacity:
3090 Mts per day
Sales turn over from 1994 to 2008:
Sales Turnover
                              Rs (million)
1994-95
11140
1995-96
13790
1996-97
15540
1997-98
18840
1998-99
22192
1999-00
22185
2000-01
22588
2001-02
23365
2002-03
27457
2003-04
28941
2004-05
29225
2005-06
37736
2006-07
42778
2007-08
52554

Ownership Pattern of Amul

Amul is a co-operative sector & it is having 22 total numbers in societies. In addition to this there is total 1800 manpower in organization.
Gujarat co-operative milk marketing federation ltd. widely known as GCMMF faces through competition in the Indian market by different companies. So that by advertising and promoting its product GCMMF has become one of the leading dairies in India. In western of India, GCMMF shares most of the market while in other parts of India it is next so. But slowly and surely GCMMF is growing in sharing the market with other competitors industries.
Now there is machinery around Rs. 1500 lakh which is to be in expansion with higher advanced machinery to Rs. 1600 lakhs.
Accumulated members share capital in union is Rs. 553,935,000 this share capital is deposited in Amul bank account in the name respective member dairy co-operative societies.

Information about Competitors

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

According to Product Categories
For Liquid Milk: 
Ø     Gayatri Milk
Ø     Super Milk
Ø     Payal Milk
Ø     Sardar Milk
Ø     Samrrudhi Milk
Ø     Sagar Milk

For Ice-Cream Product
Ø     Gokul Ice-Cream
Ø     Dairy –Den Ice-Cream
Ø     Quality Walls Ice-Cream
Ø     Havmor Ice-Cream
Ø     Max
Ø     Vadilal Ice-Cream

For Ghee Product
Ø     Gopi Ghee
Ø     Gayatri Ghee
Ø     Krishna Ghee
Ø     A’bad Ghee
Ø     Nestle

For Chocolate
Ø     Cadbury
Ø     Max
Ø     Dairy Milk
Ø     Five Star

Butter
Ø     Nature butter
Cheese
Ø     Britannia
Ø     Lebon





Theoretical Background of This Study

STATEMENT OF THE PROBLEM

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

OBJECTIVES OF THE STUDY

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

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

METHODOLOGY

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

PRIMARY DATA

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

TOOLS USED TO COLLECT THE PRIMARY DATA

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

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

SAMPLING UNIT

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

SAMPLE SIZE

          It refers to the number of people surveyed for this topic, in the study 100 people were surveyed and responses drawn.

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

LIMITATION OF THE STUDY

1.     Total coverage of the study is limited to the few customers for collecting AMUL milk and milk products at Anand, Baroda, and Vidhyanagar & at some small village.
2.     Sample size of the study is restricted to 100 customers only.
3.     Most of the respondents hesitate to give information but how ever an attempt is made to collect the data systematically.
4.     Time is the one constraint of the survey.

THEORITICAL DISCUSSION

INTRODUCTION

          The term “market” is derived from the Latin word ‘Marcatus’ which means to trade or place of business. So in the literal sense and in the ordinary language, the term ‘Market’ refers to a certain place, where buyers and sellers personally meet each other and make their purchase and sales. In short, it means a certain place where goods are bought and sold.

          However in commerce the term ‘Market’ is used in the economic sense. In the economic sense the term ‘Market’ does not refer to any particular place where buyers and sellers meet face to face and make their purchase and sales, but covers the whole of any region, where the buyers and sellers are in such free intercourse, that is contract or communication with one another that a single price prevails for a certain commodity at a certain point of time through the region.

          In short, it means the getting together of buyers and sellers in person or any by mail telephone, telegraph of through any other means of communication.

Marketing
          The meaning of the term ‘marketing’ can be studied under two heads. They are,
                   1. Traditional or old view of marketing
                   2. Modern of customer oriented marketing
Definition
          According to the American Marketing Association, “Marketing is the performances of business activities that direct the flow of goods and services from producer to customer or user”

Five Stages of Customer Bonding

This bond results from effective one-on-one communication, mutually-beneficial interaction, the company's genuine interest and involvement in the customer's life and lifestyle, a combination of customer allegiance and company advocacy, and a shared sense of purpose.
Customer loyalty develops from personal relationships and trust between the company and the customer over time. This includes keeping customers involved throughout the product lifecycle as well as developing products and/or services to meet changing customer needs and desires.

AWARENESS
·        The art of earning customer "share-of-mind" involves creating an impression of personal identification with the company's products and/or services.
·        This first stage, awareness, represents the weakest aspect of a relationship because it is non-interactive and depends entirely on the customer's perception

IDENTITY
·        The identification stage occurs when a potential customer asks the question, "What's in it for me?"
·        A customer identifies a product of service as meeting one or more important personal needs, such as self-fulfillment, status, or belonging.
·        A customer may perceive the company as having values and preferences similar to his own and begin to form a relationship with the company.

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

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

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

Market Segmentation
          The process of talking the total heterogeneous market for a product & dividing it in to several sub markets each which tend to be homogeneous in all significances.
There are few bases for segmentation markets,
·        Customer characteristics
·        Consumer responses
The major segmentation variables for consumers markets are,
o       Geographic segmentation (nation, state, country, city)
o       Demographic segmentation (age, family, religion, generation, nationality, social class)
o       Psychographic (life style, personality & status class)
o       Behavioral (occupation, benefits, users,  loyalty, )
These variables can be used singly or in combination, business marketer use all these variable as along with operating variables, purchasing approaches, substantial, accessible, differentiable, & actionable.

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

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

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

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

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

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


Feedback
          Many of the companies are entrusting their customers to give a feedback & use this as a means of maintaining regular contact & dialogue, having realized the importance of obtaining a feedback the consumers. Rather than avoiding comment, companies are encouraging their customers to talk, as mention above, feedback helps them, market firm to get on idea of the customers view point on their product or services & more important is that this information will help them to take action & deal with any problem immediately.

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

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

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

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

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

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

                             Classification of Customers Based On Sex
Sex
No. of respondents
Percentage %

Male
35
35
Female
65
65
total
100
100
                                      Sources: Primary Data
                                      Table no 5.1
Interpretation
          35% of the respondents are male and 65% of the respondents are female. From the above table we can conclude that, the majority of the respondents were belongs to female group.

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

Analysis of Occupation of the Respondents
Occupation
No. of. respondents
Percentage
%
Business
20
20
Employee
10
10
House wife
65
65
Others
05
05
Total
100
100
                                      Sources: Primary Data
                                      Table no.5.2

Interpretation
          20% of the respondents are business, 10% of the respondents are employees, and 65% of the respondents are house wives, 05% of the respondents are others group.
                                         
Income

          Income decided the purchasing power of the customer. If the income is high then, they go for high quality irrespective of price of the product. Hence in this research I like to collect the data how income is influence to purchase Amul Milk and Milk products.

                   Analysis of Monthly Income of the Respondents
Monthly income
No. of respondents
Percentage %

Below 5000
38
38
5001-10000
30
30
10001-15000
21
21
15001 & above
11
11
Total
100
100
                                      Sources: Primary Data
                                      Table No: 5.3
Interpretation
          As per the data 38% of the respondents earn per month below 5000, 30% of the respondents earn 5001 to 10000, 21% of the respondents earn above 10001 to 15000. 11% of the respondents earn 15000 & above. From the above table we can conclude that majority of the respondents’ monthly income group of below 5000 and more than 5000 to 10000.
                                    
Purchasing Factor
                      Identification of various factors plays a vital role in consumer behavior study. The various factors such as quality, price easy available etc. is influencing lot and influences positively. The following data reveals how various factors are influencing to buying of Amul Milk and Milk products.
                     
                       Analysis of Factors to Buy AMUL Milk and Milk Products
Factors
No. of  Respondents
Percentage %
Quality
38
38
Brand image
28
28
Price
20
20
Easy availability
14
14
Others
Nil
Nil
Total
100
100
                                               Source: Primary Data
                                                    Table no: 5.4
         
Interpretation
          38% of respondents buying AMUL Milk & Milk products for its Good Quality, 28% of respondents use for its Band Name,20% of its Price consideration, 14% of its easy availability of respondents buying AMUL Milk & Milk products.

Quality
          Company has two responsibility in a quality centered. First, they must participate in formulating strategies and policies designed to help the company win through total quality excellence. Second they must deliver marketing quality alongside production quality. This helps to company to attract more number of customers to their products. Hence I try to collect information related to quality of AMUL Milk & Milk products.

Opinion of the Respondents Regarding Quality
Opinions
No. of  Respondents
Percentage ( % )
Thickness
35
35
Freshness
45
45
Taste
20
20
Others
Nil
Nil
Total
100
100
                                      Sources: Primary Data
                                      Table no: 5.5

Interpretation
          As per the data, 35% of the respondents buy the milk due to Thickness, 45% of the respondents for Freshness, and 20% of respondents for Taste.
          Quality takes vital role in every organization. From the above table we can conclude that majority of the respondents expressed that AMUL Milk & Milk products have Thickness.
                            
Respondents Consumption Quality
          Consumption quality is varying with various respondents. Some of customer they buy less quantity and some them huge quantity depends upon requirement and number of people in their houses. The data is collected to know the various consumption patterns.
                  
Analysis of Consumption of Average Milk per Day
Consumption
No. of Respondents
Percentage (%)
1 Liter
70
70
2-4 Liter
10
10
More than 4 Liters
20
20
Total
100
100
                                       Sources: Primary Data
                                      Table no: 5.6
                            
Interpretation
          70% of the respondents are consuming one liter per day. 10% of the respondents are consuming two to four liter per day. 20% of the respondents are consuming more than four liters per day.
          From the above table we can conclude that majority of the respondents were consuming one liter per day.

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

Analysis of Purchase Duration of the AMUL Milk & Milk Products
Duration
No. of Respondents
Percentage (%)
6 Months
05
05
1-2 Years
15
15
3-4 Years
20
20
More than 4 years
60
60
Total
100
100
                                      Sources: Primary Data
                                      Table no: 5.7

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

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

                   Analysis of Rating towards AMUL Milk & Milk products
Ratings
No. of Respondents
Percentage (%)
Excellent
25
25
Good
48
48
Average
22
22
Poor
05
05
Total
100
100

                                      Source: Primary Data
                                                Table no: 5.8
Interpretation
          25% of the respondents rated that AMUL Milk & Milk products are Excellent. 48% of the respondents rated as good, 22% of the respondents rated as Average Quality. 05% of the respondents rated that AMUL Milk & Milk products are Poor.
          From the above table we can conclude that majority of the respondents rated AMUL Milk & Milk products are of Good Quality.

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

                   Analysis of problems in Amul Milk Products
Opinions
No. of Respondents
Percentage (%)
Yes
10
10
No
90
90
Total
100
100
                                      Sources: Primary Data
                                      Table no: 5.9
Interpretation
          Only 10% of the respondents said that that there is no problem is AMUL Milk & Milk products. 90% of the respondents are said that no problems in AMUL Milk & Milk products.
          From the above table we can conclude that majority that the respondents are not having
any problems in AMUL Milk & Milk products.
                  
Purchasing Place
          Purchase place is also important to know where users choose their purchase point. This helps to marketer to design various promotion and distribution programmes. The data is collected to know the various purchase place and availability.

Analysis of Availability of Products from Dealers
Easily Available
 No. of Respondents
Percentage (%)
Yes
95
95
No
05
05
Total
100
100

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

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

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

Analysis of Value for Money Paid by the Respondents
Response
No. of Respondents
Percentage (%)
Yes
96
96
No
04
04
Total
100
100

                                      Sources: Primary Data

                                      Table no: 5.11
Interpretation
          96% of the respondents feel that they get the value for money they paid. Only 04% of the respondents feel that they are not getting the value for money what they paid.
          From the above table we can conclude that majority of the respondents are agreed that
they are getting the value for money they paid.

Influence to Others to Buy Products
          Post experience & benefits will help organization in obtaining the additional sale. In this connection feedback its act as an influence to others to adopt the product the user survey has conducted to identify what an extent user recommends to others. The data has been extracted & it is as follows.

                                      Analysis of Recommendations
Recommended
No. of Respondents
Percentage (%)
Yes
95
95
No
05
05
Total
100
100

                                      Sources: Primary Data
                                      Table no: 5.12
Interpretation
          95% of the respondents were recommended verka milk and milk products, 05% of the respondents were not recommended verka milk and products to others.
           From the above table we can conclude that majority of the respondents were recommended verka milk and milk products.

Table no: 5.12
Interpretation
          95% of the respondents were satisfies with the AMUL Milk & Milk products. 05% of the respondents were not satisfies with the AMUL Milk & Milk products.
          From the above table we can conclude that majority of the respondents were satisfied with the AMUL Milk & Milk products.

          FINDINGS, SUGGESTIONS AND CONCLUSIONS
FINDINGS
          This chapter is including in my survey findings, suggestions and conclusions of my study. First I would like to present my survey findings. The main findings of my survey are as follows:
1.     It is findings in the survey that females are the main decision maker for the milk and milk products. As per the data, 65% of female and 35% of male makes purchase decision.
2.     Based on the occupation of the customer, it is found in the survey that 65% are the housewives and 35% are from various occupations such as a businessman, employee, farmers, etc for the Amul Milk & Milk products.
3.     Incomes less than 5000 to 10000 are more attracted to Amul Milk & Milk products. As per the data, 79% of the respondents’ income is under this group.
4.     The main purchasing factors for the Amul Milk & Milk products are Quality and Brand image. The data reveals that 42% influences on Quality and 32% influenced for the Brand.
5.     88% of the total respondents are using product since from a long time. The majority of the respondents are using Amul Milk & Milk products from more than 3 years.
6.     Overall opinion of the product performance data reveals that Amul product satisfies 70% of the respondent and 30% respondent’s opinion is average.
7.     It is found in the survey that 32% of the total respondents are dissatisfied on dealer’s services.
8.     It is found in the survey that customer are influencing through Word of Mouth.

SUGGESTIONS

1.     Milk and milk product purchase decisions are more decided by women rather than male, because she act as a invigilator, execute her decision and influence the same to the purchase while ascertaining the quality, freshness and price. Hence, I suggest Amul co-operative society to concentrate more on the women and men suggestions for designing the marketing strategy, because women’s role in the house is dominant, even in the various decisions.
2.     Occupation of the user influences the purchase decisions. The particular occupation plays a vital role in deciding the product or services. Women segment are influencing more on milk and milk products. Therefore, an occupation is the factor influencing the product.
3.     Income of the people decides the purchasing power. The high income prefers to purchase product with the quality, freshness, thickness, etc. and vice versa. So I suggest Amul to concentrate also on low income segment to capture market and position themselves in the minds of the customer with required quality and quality milk and milk products.
4.     Quality and Brand Image plays a dominant role. Milk and milk products move in the market due to its quality and brand. Therefore it should maintain the same.
5.     Since Amul is having loyal customer it should concentrate more on this factor through various potential programmes such as campaign, premium packs, offers etc., this helps to increase the loyalty towards the Amul products.
6.     As only 30% 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.
7.     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.
8.     Customer is influential, hence I suggest Amul to look after the dealers issue with due care.
9.     When product possesses quality and other important attributes naturally they propaganda about product through word of mouth and vice versa. Therefore if the quality and attributes are fine tuned according to the needs will help the Amul to get reputation and addition market.
10.  Introduction of various economic products lies may help Amul to attract the existing and new customers and may attract all income level groups. Hence I suggest management to introduce new product line which can satisfy the entire group.


Conclusions

          From the survey conducted it is observed that Amul milk and Milk products has a good market share.
          From the study conducted the following conclusions can be drawn. In order the dreams into reality and for turning liabilities into assets one must have to meet the needs of the customers.
          The factors considered by the customer before purchasing milk are freshness, taste, thickness and easy availability.
          Finally I conclude that, majority of the customers are satisfied with the Amul milk and Milk products because of its good quality, reputation, easy availabilities. Some customers are not satisfied with the Amul Milk & Milk products because of  high price, lack of dealer services, spoilage and low shelf life etc. therefore, if slight modification in the marketing programme such as dealers and outlets, promotion programmers, product lines etc., definitely company can be as a monopoly and strong market leader.
Amul has also to take care of its competitors into consideration and more importantly it’s customers before making any move.

Customer Response – Questionnaire

Saiyed Sohelahmed, student of second year MBA of the H M S Institute of Technology, Tumkur, Karnataka, he is doing main project on “Customer Satisfaction Towards AMUL Milk & Milk products” at AMUL, Anand, Gujarat as a part of study. I request you to provide the required information for the completion of my study.
Promise that the information is used exclusively for academic purpose only.
                                   
1.      personal profile:        A. Name:
                               
                                B. Address:




C:     Sex:      Male:    [     ]     Female [     ]       

G:     Age:     [    ]

E:     Occupation:

                    1. Self-employed:  [      ]           3.Professional: [      ]

                        2. House wife:   [      ]           4. Student:         [      ]

2.      Which product you are buying?

3.      What is the most important factor that matters while buying an Amul product?

        a. Quality: [     ]            b. Price: [     ]               c. Service:  [     ]

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

                                                a. By friends/family: [     ]          b. Direct mailers:            [     ]

                                                c. Press Ads:              [     ]       d. Reference website:  [      ]

                                                e. T.V. Ads:               [     ]


5.      Which configuration would you decide on while buying an Amul product?
                        a. Intermediaries:        [     ]                   b. Standard: [     ]        

                        c. Latest / Advanced: [      ]

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

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

7.      Do you think the price of Amul product is high / low compared to
competitor’s product?          
                                                a. Very good:  [      ]                 b. High:  [     ]              

                                                c. Average:       [      ]                d. Same: [     ]

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

                                                a. Daily:     [     ]           b. Monthly:        [      ]

                                                c. Weekly: [      ]          d. Occasionally: [      ]

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

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

          10. Do the various schemes / promotional activities affect your purchase plans?

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

                                  11. Suggestion (if any):
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