amul introduction

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Amul is an Indian dairy cooperative, based at Anand at  Anand in the state of Gujarat of Gujarat,, India. India. The [3] word Amul (  ), meaning invaluable. invaluable. The co    ) is derived from the Sanskrit wordAmulya (      ),

operative is also sometimes referred to by the unofficial backronym: Anand Milk Union Limited . Formed in 1946, it is a brand managed by a cooperative body, body, the Gujarat Co-operative Milk Marketing [4] Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat. Gujarat.  Amul spurred India's White Revolution , which made the country the world's largest producer of milk and [5] milk products. products. In the process Amul became the largest food brand in India and has also ventured into markets overseas. Dr Verghese Kurien, Kurien, founder-chairman of the GCMMF for more than 30 years (1973-2006), is credited [6] with the success of Amul. Amul. Contents [hide hide]]

1 History 2 Company info 3 The Three-tier "Amul Model" o

3.1 Village Dairy Cooperative Society (VDCS)

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3.2 District Cooperative Milk Producer's Union (Dugdh Sangh)

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3.3 State Cooperative Milk Federation (Federation)

4 Impact of the "Amul Model" 5 Achievements of the "Amul Movement" 6 Achievements of GCMMF o

6.1 The Amul brand

7 Products 8 Mascot 9 Advertising 10 In popular culture 11 References 12 External links

[edit edit]]History The Kaira District Co-operative Milk Producers' Union Ltd. was registered on December 1, 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, [7] the Polson (brand) dairy, in the small town of  Anand  Anand (in Kaira District of Gujarat of Gujarat)). Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices

of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given [8][9] monopoly rights to Polson to collect milk from Anand and supply it to Bombay city.  Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of  [10] Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect [9] and process milk. Milk collection was also decentralized, as most producers were marginal farmers who [11] could deliver atmost 1 –2 litres of milk per day. Cooperatives were formed for each village too. The Cooperative was further developed and managed by Dr . Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world [12] and a little later, along with Kurien's help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which would successfully compete against established players in the market. The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts – Mehsana, Banaskantha, [9] Baroda, Sabarkantha and Surat were set up. In order to combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of  these district cooperatives was set up in 1973. The Kaira Union which had the brand name of  Amul with it [13] since 1955, transferred it to GCMMF. [edit]Company

info

The GCMMF is the largest food products marketing organisation of India. It is the apex organization of the Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of  [citation needed ] [citation needed ] consumers in India . These cooperatives collect on an average 9.4 million litres of  milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the [citation needed ] scheduled castes. The turnover of GCMMF (AMUL) during 2010 –11 was 97.74 billion (US$1.78 billion). It markets the products, produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 2.5 million [citation needed ] litres of milk per day and process 100 MTs of milk powder daily. On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman of  [14] GCMMF, following a court's intervention. [edit]The

Three-tier "Amul Model" This section needs additional citations for verification . Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2012)

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated

into a Milk Federation at the State level. The above three-tier structure was set up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under  the Operation Flood Programme, it is known as the „Amul Model‟ or „Anand Pattern‟ of Dairy

Cooperatives. 

Responsible for Marketing of Milk & Milk Products

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Responsible for Procurement & Processing of Milk

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Responsible for Collection of Milk

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Responsible for Milk Production

[edit]Village

Dairy Cooperative Society (VDCS)

The main functions of the VDCS are as follows: 

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Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing 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 & Dairying, etc.

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Selling liquid milk for local consumers of the village

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Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union. [edit]District

Cooperative Milk Producer's Union (Dugdh Sangh)

The main functions of the Union are as follows: 

Procurement of milk from the Village Dairy Societies of the District

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Arranging transportation of raw milk from the VDCS to the Milk Union.

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Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattlefeed sales, mineral mixture sales, fodder & fodder seed sales, etc. Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members.

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Providing management support to the VDCS along with regular supervision of its activities.

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Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.

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Selling liquid milk & milk products within the District

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Process milk into various milk & milk products as per the requirement of State Marketing Federation.

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Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members.

[edit]State

Cooperative Milk Federation (Federation)

The main functions of the Federation are as follows: 

Marketing of milk & milk products processed / manufactured by Milk Unions.

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Establish distribution network for marketing of milk & milk products.

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Arranging transportation of milk & milk products from the Milk Unions to the market.

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Creating & maintaining a brand for marketing of milk & milk products (brand building).

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Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services.

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Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

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Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.

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Arranging for common purchase of raw materials used in manufacture / packaging of milk products.

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Decide on the prices of milk & milk products to be paid to Milk Unions.

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Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same.

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Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.

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Arranging Finance for the Milk Unions and providing them technical know-how.

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Designing & Providing training in Cooperative Development, Technical & Marketing functions.

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Conflict Resolution & keeping the entire structure intact.

Today, there are around 176 cooperative dairy Unions formed by 1.25 lakh dairy cooperative societies, having a total membership of around 13 million farmers on the same pattern, who are processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or a Nandini in Karnataka. This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers‟ institutions. These cooperatives today collect approximately 23 million kgs. of milk per day and pay an aggregate amount of more than Rs.125 billion to the milk producers in a [citation needed ] year  . [edit]Impact

of the "Amul Model"

The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of India‟s milk production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to more than 60 MMT at the end of  Operation flood Programme. Thus, an incremental return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as India‟s milk production continues to increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has not been drop in the prices of milk during the period and has continued to grow. Due to this movement, the country‟s milk production tripled bet ween the years 1971 to 1996. Similarly,

the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic development of the rural society of  India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian

society. Very few industries of India have such parallels of development encompassing such a large population. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy with their agriculture. This has also provided a definite source of income to the women leading to their economic emancipation. The three-tier „Amul Model‟ has been instrumental in bringing about the White Revolution in the country.  As per the assessment report of t he World Bank on the Impact of Dairy Development in India, the „ Anand Pattern‟ has demonstrated the followin g benefits: 

is has multi-dimensional impacts

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importance of getting government out of commercial enterprises

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importance of market failure in agriculture

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power & problems of participatory organisations

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importance of policy correct

[edit] Achievements

of the "Amul Movement"

1. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. 2. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership. [edit] Achievements

of GCMMF

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3.1 million milk producer member families

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15,760 village societies

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15 District Unions

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9.4 million liters of milk procured per day

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150 million (US$2.73 million) disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual turnover of (US$964.6 million)

53 billion

The Govt. of India has honoured Amul with the “Best of all categor ies Rajiv Gandhi National Quality  Award”.

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Largest milk handling capacity in Asia

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Largest cold chain network

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48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets

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Export to 37 countries worth

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Winner of APEDA award for eleven consecutive year s

[edit]The

150 crore (US$27.3 million) [15]

Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers. [16]

 Amul became the world's largest vegetarian cheese

and the largest pouched-milk brand.

 AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter the Japanese market in 1994 did not succeed, [17] but it plans to venture again. In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find [18] out Asia's top 1000 Brands. In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand Trust [19] Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands: Amul is No. 1" [edit]Products  Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer , gulab jamuns, flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown beverage just like bournvita and horlicks offering whey protein, DHA and essential nutrients to kids along with its chocolatty taste. In January 2006, Amul launched India's first sports drink Stamina, which competes with Coca [20] Cola's Powerade and PepsiCo's Gatorade .  Amul also offers mithaimate which successfully competes with milkmaid by nestle by offering more fat% at lower price. In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina.  Amul's Icecreams are made from m ilk fat and thus are icecreams in real sense of the word, while many brands in India sell frozen desserts made from vegetable fat. Amul cares for its consumers and tries to offer them the best products at best price.  Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for  [citation needed ] 2007. [edit]Mascot [21]

Since 1967  Amul products' mascot has been the very recognisable "Amul baby" or  Amul girl (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul .The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other  product like ghee and milk. [edit] Advertising

 An Amul butter ad on Pakistan's Kargil War f iasco. The image shows the "Amul baby" in between George Fernandes and Atal Bihari Vajpayee.

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to design a new ad campaign for Amul Butter. daCunha designed an ad campaign as series of hoardings with topical [22] ads, relating to day-to-day issues. The campaign was widely popular and earned a Guinness world record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and script writer Bharat Dabholkar had been involved with sketching the Amul ads; the latter rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien with [23] creating a free atmosphere that fostered the development of the ads. Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of  not backing down. Some of the more controversial Amul ads include one commenting on Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and the one depicting the Amul butter  [22] girl wearing a Gandhi cap  Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream. [edit]In

popular culture

The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film's budget. Upon its release, these same [24][25] farmers went in truckloads to watch 'their' film, making it a commercial success., the film was chosen for the 1977 National Film Award for Best Feature Film in Hindi.

Four Ps: the producer-oriented model The marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been used [1] by marketers throughout the world. 

Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible

good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are themotor car and the disposable razor . A less obvious but ubiquitous mass produced service is a computer operating [1] system.

Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage.

[1]

The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies. 

[1]

Price – The price is the amount a customer pays for the product. The price is very important

as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that [1] complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of  competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account. 

[1]

Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises [1] elements such as:advertising, public relations, personal selling and sales promotion.

 Advertising covers any communication that is paid f or, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above). 

[1]

Place - refers to providing the product at a place which is convenient for consumers

to access. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of  [1][3] the marketing mix. 

Corporate social responsibility (CSR) has been defined as the “commitment of business to

contribute to sustainable economic development working with employees, their families, the local community, and society at large to improve their quality of life, in ways that are both good for business and good for development.” 

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To meet with the CSR it is expected that a business in its entire procurement-productionprocessing-marketing chain should focus on human development involving the producer, the worker, the supplier, the consumer, the civil society, and the environment. Indeed, a very tough task. Most businesses would certainly flounder in not being able to achieve at least one or many of those expectations. But AMUL has shown the way. CSR-sensitive Organisational Structure  AMUL is a three tier co-operative organisation. The first tier is the co-operative society at the village,of which; milk producers are voluntary members, managing the co-operative through a democratically elected 9-member managing committee, and doing business by purchasing milk from members and selling it to the district level co-operative. There are more than 11,000 co-operatives in villages of Gujarat. The second tier is the district co-operative that processes milk into milk products, markets locally and sells surplus to the state co-operative for national and international marketing. There are 12 district co-operatives each being managed by a 15-member board elected by the college comprising the nominated representatives or chairmen of the village cooperatives. Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products

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produced and sold to it. The GCMMF is managed by the board democratically elected by and from amongst the chairmen of the district co-operatives. The entire three-tier structure with the GCMMF at its apex, is a unique institution because it encompasses the entire chain from production of raw material to reaching the consumer with the end product. Every function involves human intervention: 23.60 lakh primary milk producers; 35,000 rural workmen in more than 11,400 village societies; 12,000 workers in 15 dairy pla-nts; 750 marketing professionals; 10,500 salesmen in distribution network and 600,000 sal-esmen in retail network. Accu-mulation of human capital is sine qua non for the development and growth of any enterprise or economy. The GCMMF is sensitive towards CSR. It believes that technology and capital are replicable inputs but not the human capital. Since men are the basis for achieving the CSR, the GCMMF lays emp-hasis on their  development into competent, courteous, credible, reliable, responsive communicators and performers. CSR-sensitive Business Philosophy The first step towards discharging the CSR is the business philosophy of the GCMMF. It is two-fold: one, to serve the interests of milk producers and second, to provide quality products to consumers as value for money. Evolution of an organisational system has ensured that the corporate social responsibility towards the primary milk producers, village and the ecological balance is fulfilled. The milk producers are paid for their milk in accordance with market forces and realisation of value for their produce. Invariably the price paid to the member-producers in Gujarat is

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higher by 15 per cent than the national average. CSR-orientation To Distributors & Retailers The GCMMF has identified the distributors and retailers are its important link in its vendor  supply chain. Through surveys the GCMMF found that 90% of the distributors do not get any opportunity of exposure to latest management practices. The GCMMF realised that it was a corporate social responsibility to strengthen the core business processes of its distributors so as to keep them in mainstream business and compete with those with formal training in management. The GCMMF has developed and trained all its distributors through ValueMission-Strategy Workshops, competence building, Amul Yatra, Amul Quality Circle meetings, computerisation, and electronic commerce activities. Competency Building Module of the GCMMF is meant to infuse professional selling skills by making the distributors and their salesmen aware of latest sales management tools and techniques; enhance their knowledge of products; positioning and segmentation strategies for various products. Under Amul Yatra the distributors and their salesmen are taken on a visit to Anand. During this visit they are shown dairy plants, their upkeep, international standards of hygiene and quality; the practices adopted for clean milk production, and above all the cooperative philosophy. Through one to one talk with the farmers, the distributors and salesmen realise AMUL is a large business of small farmers. The visit leaves an everlasting impression on their minds that by selling AMUL products, they are discharging a social responsibility towards a large number of poor farmers whose livelihood depends upon their  skill and integrity.

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They feel proud that they are participants in development of rural society and thus in nation building.  

Earnings Of GCMMF Nurturing its primary members - the milk producers - is the first mission of the GCMMF. Discharge of this responsibility is reflected in the manner in which the GCMMF conducts its business and shares its earnings. The milk from the vill age co-operatives is purchased at an interim price. So as to maximise the earnings of the milk producers the GCMMF changes the product profile during the fiscal and directs its sales and marketing activities towards those products that would bring in maximum returns. True! Every business organisation follows the same principle. But the GCMMF follows it with the central interest of the producers. During the fiscal, as the GCMMF finds that from its earnings it is possible to pay more to the producers for milk, the final price is declared higher than the interim price being paid. Before the GCMMF closes its financial accounts the co- operatives are paid ‟price difference‟, the amount between the interim price and the final price. Thus profit of the GCMMF is very low. The net profit (PADT) of the GCMMF during 2003-04 was Rs 7.31 crore against a turnover of  Rs 2,947 crore, a meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore was given as share dividend to the co-operatives. To fulfill its corporate social responsibility towards its milk producers and co-operatives the GCMMF works on razor thin profits and

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retention of funds.

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CSR-oriented To Staff The GCMMF hires and trains people to take advantage over its competitors. It has developed in-house modules for training and competence buil-ding to improve and up grade of their knowledge; communication skills to understand the customer, be responsive to customer requirements, and communicate clearly for trouble shooting of problems. They are expected to be courteous, frie-ndly, respectful, and considerate to the customer. To improve the credibility and trustworthiness of the managers it is important they perform consistently and accurately every time and at all times. The structure of salary and perquisites is altogether different. The first and foremost the staff must get satisfaction from the job they. They are recognised for their contribution (Climate Survey) CSR-AMUL WAY