Amul Butter Brand Analysis

An Insight into the Indian Butter industry
AN INSIGHT INTO
THE INDIAN
BUTTER INDUSTRY
360 Research Agency , Mumbai.
February 15, 2010
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ACKNOWLEDGEMENT
We are thankful to Mr.Sameer Virani for giving us an opportunity to improve our learning
skills through this research activity. Apart from gaining knowledge on many important
things, it also made us more aware of market trends in the butter industry.
We are thankful to all our respondents for patiently answering our questions. We are also
thankful to the staff at Reliance Fresh and Subhiksha-Mira road, More and A1 Super Bazaar-
Borivali, Dmart and Food Bazaar-Malad, Mega Mart and Reliance Fresh-Andheri, Nature’s basket and
BM Bazaar- Bandra, Ambika stores and Big Bazaar- Worli, Big Bazaar and Reliance Fresh- Churchgate,
Janata stores and Colaba Super market-Colaba, Dmart and Shoprite Hyper-Mulund, Dmart and Haiku
Supermarket- Powai for their co-operation.
This research helped us to build team spirit and working on this project was a delightful
experience. In all it has taught us a lot and brought out our analytical and statistical skills.
GROUP MEMBERS
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01 Trupti Abhyankar
03 Shruti Amin
08 Riti Bahel
41 Richa Kabra
52 Shikha Kumar
54 Nidhi Laddha
57 Neha Majithia
ADVERTISING AND MARKETING RESEARCH
SEMESTER VI
TYBMM
USHA PRAVINGANDHI COLLEGE OF MANAGEMENT
VILE PARLE (W)
ABSTRACT
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This research is an attempt at understanding the Indian butter industry and the various
consumer needs that have arisen or changed over a period of time. It studies the
commercialization of dairy products, primarily butter and the various factors that have led
to the presence of strong brands like Amul in this sector. It also includes a detailed study of
consumer needs, expectations and feedback with a view to find out the dominating brand in
the Indian butter market.
CONTENTS
STATEMENT OF PROBLEM.....................................................................................................................6
PURPOSE...............................................................................................................................................6
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STATEMENT OF HYPOTHESIS.................................................................................................................6
ASSUMPTIONS.......................................................................................................................................6
LIMITATIONS.........................................................................................................................................6
REVIEW OF RELATED LITERATURE.........................................................................................................8
RESEARCH DESIGN...............................................................................................................................14
SAMPLING...........................................................................................................................................15
METHODS AND INSTRUMENTS OF DATA GATHERING.........................................................................18
MAJOR FINDINGS................................................................................................................................30
SUMMARY...........................................................................................................................................33
CONCLUSIONS.....................................................................................................................................34
RECOMMENDATIONS FOR FURTHER INVESTIGATION.........................................................................35
END NOTES..........................................................................................................................................36
WEBLIOGRAPHY..................................................................................................................................37
APPENDIX............................................................................................................................................38
STATEMENT OF PROBLEM
As India’s population becomes more and more health conscious, butter manufacturers are
now looking at a way to fit their products successfully into their consumer’s healthy lifestyles. This
has given an entirely new perspective on packaged butter as the calorie-laden substance will now
have to be modified to become healthy. There is also a small but significant demand in the market
for various other modifications like unsalted or cholesterol free variants.
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PURPOSE
a) To identify the most commonly used brand of butter
b) What influences people to buy a particular brand of butter?
c) The penetration level of the market leader
d) Identifying the customer needs.
STATEMENT OF HYPOTHESIS
Most Indian consumers buy commercially packaged butter, with Amul dominating the
Indian butter market.
ASSUMPTIONS
a) A major section of the Indian population consumes packaged butter.
b) The consumer segment for packaged butter is primarily urban and ranges from the
middle to upper classes.
c) Amul, Mother Diary and Britannia are the key players of the Indian butter market
with Amul capturing 85% of the market share.
d) Butter is bought and used on a monthly basis in most Indian households
e) Butter is used more as bread spread over any other form of use.
LIMITATIONS
a) Inadequate information, misleading answers that might affect our conclusion
b) Biases and prejudice
c) Lack of proper experience on the part of the researcher in conducting such studies in the
past.
d) Time frame required was not enough to survey more number of outlets.
DETERMINE EXPECTED VALUE OF PERFECT INFORMATION
Greater the information available the better the management is poised to take a decision.
However care should be taken to note that the sourcing of the information should not cost
the Management greater than the value of the information generated.
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Our agency has taken the following measures to ensure that the research data is authentic
and cost effective.
 The sample audience would be selected as per a structured pattern based on the age
groups, gender, occupation and location of the respondents in order to ensure
maximum accuracy of information.
 Measures will be taken to ensure that while the respondents are being interviewed
they are enthusiastic and forthcoming.
 Face to face interviews will be conducted to gauge the facial expressions and
behavioural responses of the respondents.
 Efforts will be taken to judge the level of risk aversion
 The cost of the information in terms of time and money will be decided.
 It will be decided whether outside help is needed.
 A date will be decided in order to commence the research.
The research conducted is in a time frame of 3 months from November 15, 2009 to
February 15, 2010
The Budget allocated is Rs 10,000 because it is a local research conducted in Mumbai

alone. The expenses include Travelling, Wages to executives, Printing, Analytical costs,
Fees offered to respondents and other miscellaneous expenses.
REVIEW OF RELATED LITERATURE
India is the world’s largest butter producer
Date of posting: 21-06-07
A European Commission report predicts that India will maintain high growth rates in the
milk products’ output and consumption in the coming years till 2016. Annual growth rate of
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butter production in India is 12% and the output has increased by 4.4 lakh tonne since 1991.
Further the report says that India will be able to sustain self-sufficiency in butter production.
India is the world’s largest butter producing country. Russia would remain the biggest butter
importer, it said. The report also said EU’s butter export market share will drop by 16% to
22% by 2015 from 38% in 2005. “The EU’s dairy exports continue to contract as a result of
fixed production quotas and increasing internal consumption,” the report said.
On the skimmed milk powder (SMP), whose export is banned in India till September, the
report said EU will lose the global market share from around 25% in 2004 to 15% by 2014,
while there is a divergent view on the US share.
Commenting on the prospects of the overall dairy products sector, it said: “Globally, the
sector is expected to grow moderately over the next 10 years.”
Mother Dairy
Mother Dairy, a subsidiary company of the National Dairy Development Board

(NDDB).Mother Dairy offers a wide range of dairy products like milk, flavoured milk, ice
creams, curd, butter, lassi (buttermilk) and paneer (cottage cheese) The company markets
more than 2.2 million litres of milk daily in Delhi and the surrounding areas of Western UP
and Haryana, Mumbai and Hyderabad. Mother Dairy milk has a market share of 66 per cent
in the branded sector in Delhi.. For most Delhiites, milk and Mother Dairy go together.
Today, far from being the capital's biggest milk supplier, the wholly-owned NDDB co-
operative is the third-largest dairy player in the country (after Amul and Nestle with a well-
diversified product portfolio - not only a range of milk-based products, but also edible oils,
frozen vegetables and fruit juices
In a nutshell, Mother Dairy wants to get into bigger markets and have bigger shares in those
markets. The co-operative is also expanding its product portfolio further to match rival
offerings - particularly those of Amul. For the first 22 years of its existence, liquid milk was
the only dairy product that Mother Dairy offered.It was in 1996 that it came up with ice-
creams. But the real spurt came about four years ago, when it introduced curd, flavoured
milk, lassi and mishti doi. It introduced butter a year-and-a-half ago; ghee and UTH milk a
year ago; and cheese, about 10 months ago. And under its frozen foods and vegetables
brand Safal, besides the introduction of corn and mixed vegetables, it has plans to come out
with frozen potato-based snacks in a few months.
Mother Dairy has plans for reach out to newer markets - but the strategy here is more
product-specific. It primararily concentrates only on four markets - Delhi, its home ground;
the Junagarh region and Ahmedabad in Gujarat; Mumbai, which it entered a year ago; and
Hyderabad, where it moved in a little more than a year ago.
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In the case of butter and cheese, it's present across north India, Mumbai and Kolkata, and
has plans to enter Bangalore by year-end. In UTH milk, it has entered Mumbai and the milk-
short areas of West Bengal and north-east. For ghee, although the current focus is the
northern region, it has plans for a nationwide presence.
While Mother Dairy still may not have a product portfolio as large as Amul, which is also
expanding across the country in a big way and is a much bigger player, it's doing its bit.
Mother Dairy says the idea is not just to enter new markets, but to do well in those markets
- which mean bigger market shares in the different product categories in whichever market
it is present.
The drivers will be value created through quality of the offerings as well as innovations in
products. This will, of course, be backed by relevant marketing and promotion campaigns.
As far as products such as butter, cheese and ice creams go, the campaigns have been
created around "taste". For butter again, the focus is on children. "Amul butter may be
selling the most, but the advertising and promotions are almost always targeted at adults,"
points out an analyst citing Amul's popular Utterly-Butterly campaigns.
Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids,
the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy
jovial cow (a cartoon character) has been made its brand ambassador.
While Mother Dairy has been carrying out school programmes - games and activities -
involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata
as well. It also runs a gaming website on the character to attract children.
AMUL
About the Company
 AMUL- Anand Milk Union Limited formed in 1946 is a dairy co-operative

movement.
 Is based in Anand, Gujarat & has been a sterling example of a co-operative
organization’s success in the long term.
 Amul has spurred the white revolution of India.
 The turn over of Amul in 2007-08 was Rs.52.55 billion.
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History of the Company
 The first milk Union milk was established in 1946 with

250 liters of milk.
 Amul was established in 1955, in the year 1946 the
union was known as Kaira district co-operative milk
producers union. This union selected the name Amul.
 The word Amul is derived from a Sanskrit word
“AMULYA” which means priceless.
 Shri Pandit Jawaharlal Nehru, the then prime minister
of India declared it open at Amul dairy on Nov20th,
1955.
 Amul has more than 150 chilling centers in various villages.
Different products handled by Amul
Bread Spreads
Amul Butter Amul Lite Delicious Table Margarine
Market Analysis and Type of Industry
 Market share of Amul butter is around 86%

 Market presence – available in over 500,000 retail outlets across India.
 Amul butter is made from- butter, common salt, permitted natural color (annatto)
 Amul comes under FMCG sector.
Market Presence
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Demographics
Age-5 yrs – 80 yrs.

Sex - No bar
Income- Low to high
Occupation -Any sector (not necessary)
Education - Lower to higher
Psychographics
Personality - No discrimination.
Life style - A basic normal life to high class living standard
Buying Motives – It is generic with butter category, renowned butter available in market,
loved by all consumers.
Product Analysis
 Product Specification- Meets AGMARK standards and BIS specifications.

No.IS:13690:1992.
 Product personality- It is a unisex product.
 USP- is its taste. Amul butter is made from fresh cream by
modern continuous butter making machines (purely
vegetarian).
Product Life Cycle Stage
 Amul butter is in its Maturity stage, as it is the most profitable stage and definitely
Amul butter is making huge profits as it dominates the market with an overall share
of 86%.
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 The sale is definitely increasing but at a slower pace, has a very strong Brand
awareness and advertising expenditure thus reduced.
Competitor Analysis
Sampling before Re-launch
1. Sampling Technique: Probability sampling.
2. Sample Unit: People who buy butter available in retail outlets, Superstores etc.
3. Sample size: 50 respondents
4. Method: Direct interview through questionnaire.
5. Data analysis method: Random sampling method
6. Area of survey: Mumbai, location: western suburbs.
Sampling after Re-launch
1. Sampling Technique: Non-Probability sampling (A non-probability sampling technique is

that in which each element in the population does not have an equal chance of getting
selected)
2. Sample Unit: unmarried working class.
3. Sample size: 50 respondents
4. Method: self selection method.

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5. Data analysis method: Random sampling method
6. Area of survey: Mumbai, location: All Malad call centers.
Sales figures:
RESEARCH DESIGN
We have used Descriptive research.
Descriptive research is undertaken when the researcher desires to know the characteristics
of certain groups such as age, sex, occupation, income or education. The objective of
descriptive research is to answer the “who, what, when, where and how” of the subject
understudy/investigation.
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Under descriptive research we have used cross-sectional research. We have selected our
sample of elements from households, retail stores and super markets. We have used face-
to-face interviews to get our questionnaires answered for our analysis.
DATA COLLECTION:
Primary data:
We have used Face-to-face Interviews and observation to gather primary data.
Herein, Face-to face interviews were conducted between our research executive and a
respondent. Data was collected through a survey. The questionnaire was prepared
considering various parameters and thus had a mix of open and close-ended questions using
various scales to measure the responses and draw easy conclusions from the study. The
research would leave very little room for any discrepancy or misinterpretation of the asked
questions since our trained executives would interview the respondents face-to-face and so
also give an insight into their body language of the respondents making use of observation
technique along with the survey method. Also observation technique was used to study
consumer behaviour patterns as retail outlets.
Secondary data:
We have made use of previously conducted researches by various organisations to derive

sales figures, history of the brand and other factual information regarding the company and
its objectives.
We have also made use of government statistics related to population density and other
social and employment surveys to select the sample elements in the selected areas.
However none of the secondary data has been used for analytical purposes.
SAMPLING
Step 1: Define the population
In our case the research in conducted in Mumbai only. Considering the city and its huge
population, we have selected our population from the suburb of Mira Road to Churchgate,
covering all strata’s of society. We have segmented it further on to have a very specific
sample group covering all the decision-makers in the case of butter.
Step 2: Specify the Sampling frame
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The sample frame in our case is Map of the city. A sample of specific suburbs is taken
covering all the directions of the city from North Mumbai to South Mumbai and West
Mumbai to East Mumbai.
Step 3: Specify the sampling Unit
In our case we have considered 3 sample units to be studied- Home-makers, bachelor

students and working professionals. We have undertaken random sampling in the selected
areas and defined our sample units in the said criteria.
Also we conducted a retailer’s survey through face-to face interviews in the said geographic
samples to find out the actual sales and penetration of our brand in the market.
Step 4: Specify the Sampling Methods
We have used Probability Sampling for our study. In probability we have used multi-stage
cluster sampling wherein we have divided our population into subpopulations using an area
specific approach. In the next stage we made random selection of our set sample units in
those areas and conducted a self administered survey on them.
Step 5: Determination of the Sample size
The sample size for our study is 100 sample units for consumer’s survey while we
interviewed 20 retailers for the retailer’s survey.
Step 6: Specify the Sampling Plan
The executives were divided into specific areas of the city for conducting research. Each
suburb was categorised into specific areas after a research conducted on the suburb’s
population density and considering areas which would have our prospects readily available.
A random sampling technique was employed herein so as to select prospects and questions
were asked by our executive thus leaving very little room for any discrepancy or
misinterpretation of the asked questions.
Step 7: Select the Sample
Research was conducted on the said suburbs so as to find the population density and the
accumulation of prospects in areas. And only then were the specific areas for research
selected. Also the research executives were trained so as to avoid any kind of mistakes in
the research findings and also misbehavior towards the prospects. They were provided with
call sheets to register the name and address of the person interviewed to keep a fair track
record of the sample group used for the research.
AREAS COVERED:
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Consumer’s survey:
Mira road- Srushti Complex
Borivali- Shanti Ashram
Malad- Bangur Nagar
Andheri- Seven Bungalows
Bandra- Pali hill
Worli- Nr Sea link
Churchgate- Near Railway station
Colaba- Near Causeway
Mulund-LBS marg
Powai- Hiranandani
Retail outlets:
Reliance Fresh and Subhiksha, Mira road
More and A1 super Bazaar, Borivali
Dmart and Food Bazaar, Malad
Mega Mart and Reliance Fresh, Andheri
Nature’s basket and BM bazaar, Bandra
Ambika stores, Big bazaar, Worli
Big bazaar and Reliance Fresh, Churchgate
Janata stores and Colaba super market, Colaba
Dmart and Shoprite hyper, Mulund
Dmart and haiku supermarket, Powai
Population covered:
For consumer survey:
Home-makers
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Working professionals (females)
Bachelor students (male and female)
For Retailers survey:
Local grocery stores (kirana stores)
Supermarkets
METHODS AND INSTRUMENTS OF DATA GATHERING

We have made use of questionnaires for the sample units which include- home-makers,
bachelor students and working professionals and a separate questionnaire to fill in the
responses by the retailer’s to conduct a retailer’s survey. All surveys are conducted face-to-
face interviews to authenticate the collected data.
While devising our questionnaire, we have made use of the following type of questions:
Matrix questions - Identical response categories are assigned to multiple questions. The
questions are placed one under the other, forming a matrix with response categories along
the top and a list of questions down the side. This is an efficient use of page space and
respondents’ time.
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Scaled questions - Responses are graded on a continuum (Rate the qualities of the said
brand of butter on a scale from 1 to 5, with 5 being the maximum).
Examples of types of scales include the Likert scale, semantic differential scale, and rank-
order scale
Closed ended questions - Respondents’ answers are limited to a fixed set of responses.
Most scales are closed ended. Other types of closed ended questions include:
Dichotomous questions - The respondent answers with a “yes” or a “no”.
Multiple choices - The respondent has several options from which to choose.
Open ended questions - No options or predefined categories are suggested. The respondent
supplies their own answer without being constrained by a fixed set of possible responses.
We have made use of the following scales:
Rating
Estimates magnitude of a characteristic
Rating asks the respondent to estimate the magnitude of a characteristic, or quality, that an
object possesses. The respondent’s position on a scale(s) is where he or she would rate an
object.
Nominal Data
A set of data is said to be nominal if the values / observations belonging to it can be

assigned a code in the form of a number where the numbers are simply labels. You can
count but not order or measure nominal data. For example, in a data set males could be
coded as 0, females as 1; marital status of an individual could be coded as Y if married, N if
single.
Ordinal Scales
A set of data is said to be ordinal if the values / observations belonging to it can be ranked
(put in order) or have a rating scale attached. You can count and order, but not measure,
ordinal data. The categories for an ordinal set of data have a natural order, for example,
suppose a group of people were asked to taste varieties of biscuit and classify each biscuit
on a rating scale of 1 to 5, representing strongly dislike, dislike, neutral, like, strongly like. A
rating of 5 indicates more enjoyment than a rating of 4, for example, so such data are
ordinal. However, the distinction between neighbouring points on the scale is not
necessarily always the same. For instance, the difference in enjoyment expressed by giving a
rating of 2 rather than 1 might be much less than the difference in enjoyment expressed by
giving a rating of 4 rather than 3.
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Monadic Rating Scale
A Monadic Rating Scale asks about a single concept
Now that you’ve had your automobile for about 1 year, please tell us how satisfied you are
with its engine power and pickup.
Completely Very Fairly Well Somewhat Very
Satisfied Satisfied Satisfied Dissatisfied Dissatisfied
Constant sum scale
The constant sum scale requires the respondent to divide a constant sum, generally 10 or
100, among two or more objects or attributes on order to reflect the respondent’s relative
preference for each object, the importance of the attribute, or the degree to which an
object contains each attribute.
DATA ANALYSIS
1) Consumption of butter
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1%
Yes
No
99%
2) First thing that comes to mind on hearing the word ‘Butter’
50%
5%
17%
Health
Taste
54%
24% Eatables
Others
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3) Brands in the market
1% 13% Amul
11%
Britannia
Mother Dairy
75%
Others (Nutrilite)
4) Hearing your brand of butter
Amul 81%
9% Mascot- 31%
10% Slogan – 14%
Taste – 17%
Advertisement –
19%
81% Britannia 10%

Taste – 7%
Price – 3%
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5) Influences on the purchase
0% 2%
15%
Taste
44%
11% Brand
Advertising
Price
28%
Packaging
Health
6) Rank the following brands on a scale of 1-5 for the given parameters:
(1-minimum; 5-maximum)
 AMUL
 BRITANNIA
 MOTHER DAIRY
 ANY OTHER
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Amul
Taste
22%
30%
Price
Advertising
28% Packaging
20%
Britannia
Taste
25% 28%
Pricer
Advertising
20%
27%
Packaging
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Mother Dairy
Taste
25% 29%
Price
Advertising
20%
26%
Packaging
Others(Nutrilite)
Taste
28% 25% Price
Advertisin
g
18% Packaging
29%
7) Frequency of butter purchase
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11%
Weekly
37%
Monthly
52%
Fortnightly
Homemaker
8% 13% Weekly
Monthly
79% Fortnightly
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Bachelor Students
Weekly
9%
22%
Monthly
Fortnight
69%
ly
Working Women
7% 7% Weekly
Monthly
Fortnightl
86%
y
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8) Quantity purchased
26% 100 gm
48%
250 gm
26%
500 gm
9) Expenditure incurred on butter
26%
32%
Rs 20 - 50
Rs 50 - 100
42% Rs 100 -
150
10) Experience with their brand
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4%
33% Very Good
Good
63%
Neutral
11) Additional feature for butter
5% Fewer Calories
14%
40% Lower Pricing
16% Better Packaging
Unsalted
25%
Others
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12) Awareness of any substitutes to butter
47%
Yes
53%
No
13) Uses of Butter
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MAJOR FINDINGS
As per our Consumer survey, we have obtained the following findings:
1. As per our research, the consumption of butter is predominant in almost every

household with the handful exception of a few who cited health issues like
cholesterol, hyper tension etc.
2. When asked what first came to their mind on mentioning the word butter. Most of
the respondents recalled Amul because of its taste and generic brand status. Also it
was seen that health issues like calories, fat, cholesterol was a major concern
amongst a substantial number of health conscious and the middle-aged consumers.
Respondents also recalled the various products they associated/consumed butter
with.
3. Our survey indicated that majority of our respondents were Amul loyalists. Nutralite
which is a substitute of butter seems to be penetrating the market at a rapid level,
the major reason being that it’s considered healthier. Britannia seemed to have a
small yet very loyal customer segment. Most associated mother diary with dairy
products rather than butter.
4. When the respondents were asked to mention what they associated their brand with
most Amul loyalists seemed to recall the mascot, followed by the slogan, taste and
advertising campaigns (especially the hoardings). Nutralite was associated with
health by its consumers. And Britannia received mixed responses like taste,
packaging and pricing by its consumers.
5. The taste and the brand name were the influencing factors behind the purchase of
butter. The advertising and the price emerge second.
6. When the various parameters of butter as a product were researched, our findings
showed Amul to be the clear winner followed by Brittannia, Nutralite and Mother
Dairy respectively. However, most consumers found the Amul packaging to be
dissatisfactory and gave Brittannia a better score on the packaging front. Nutralite
lost out on the taste factor, as most consumers gave it the lowest score as far as
taste is concerned.
7. In most households butter was purchased on a monthly basis along with the other
groceries. The households who reported a comparatively lower consumption bought
it on a weekly/fortnightly basis as and when needed.
8. A dominant segment of respondents purchased the 500gm pack as it was more
economical and a once in a month purchase. The smaller packs were bought by
students and for convenience purposes.
9. Most respondents were relatively unaware about the exact amount spent
specifically on butter as it was a part of the monthly groceries. Majority stated that
they spent Rs.50-100 on butter monthly.
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10. When asked about their brand experience, the respondents who cited very good as a
response were dominantly Amul consumers, while responses who cited Good and
neutral were consumers of other brands like Britannia, Mother Dairy and Nutralite.
11. When asked about additional features in their brand, lower calorie levels was the
dominating response. Also, better packaging (in the case of Amul), lower prices and
unsalted variants were the other factors that emerged.
12. Awareness levels about the substitutes for butter were divided. Nutralite and
Margarine were the primary responses that came to the respondents mind, while
the others included imported substitutes and other spreads.
13. The consumption of Butter in households was primarily as a spread, followed by a
small margin of households who used it for cooking and baking purposes.
Observational research in the form of Mystery shoppers was carried out by our agency in
order to gather data about the existent brands in the market, their pricing, packaging and
other offerings. People from our agency posed as customers and went to various malls like
Reliance Fresh and Subhiksha-Mira road, More and A1 Super Bazaar-Borivali, Dmart and Food
Bazaar-Malad, Mega Mart and Reliance Fresh-Andheri, Nature’s basket and BM Bazaar- Bandra,
Ambika stores and Big Bazaar- Worli, Big Bazaar and Reliance Fresh- Churchgate, Janata stores and
Colaba Super marke-Colaba, Dmart and Shoprite Hyper-Mulund, Dmart and Haiku Supermarket-
Powai and found out that most of the shops and super markets offered only three brands of
butter namely ‘Amul’, ‘Britannia’, ‘Mother Dairy’ and a substitute of butter ‘Nutralite’. The
prices were as follows:
Brand Cost of 100g(Rs) 500g
Amul 25 122
Britannia
Mother Dairy
Nutralite 97
Through observation research we also saw that As far as packaging was concerned Britannia
and Mother Dairy Packages were better than Amul and Nutralite.
As per our retailer’s survey:

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Ranking of the factors influencing the stocking decision:
Following is the sequential order in which the retailers ranked the factors that influence
their stocking decision.
i. Trust of the company is the most important point for its products.
ii. Credit offered by the distributor
iii. Distribution in supplying the products regularly
iv. Discounts provided by the company for its products.
 There is only few outlets where credit and discount available by the Amul company.
On the concern of distribution channel, most of the retailers agree that Amul has
good distribution channel.
 Amul gives the better replacement offer to the expired product than the other
company products. Replacement offer to the expired product is one of the most
important factors for influencing the stocking decision of the product.
Ranking of some other factors that influence the retailers stocking decision:
Following is the order in which the retailers ranked the other factors that influence their
stocking decision.
i. Consumer preference given by the company to the retailers of the product was raked 1st
ii. Promotional strategies of the company for promoting its products was ranked 2nd
iii. Offers for the product was ranked 3rd
iv. Packaging of the product was ranked only 4th
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SUMMARY
India’s consumption of dairy products was solely dependent on homemade produce like
curds, butter and ghee, until the dairy industry arose. Since the days of yore, India’s primary
agrarian background made it possible for most Indians to enjoy home-made dairy products.
Convenience took priority and very soon packaged dairy products made their way into the
Indian Kitchen. Butter was probably the product that was accepted the earliest and the
most, as Polson made its way only to be taken over by Amul, which entered the market and
stayed there with creative advertising and won over the consumers. This was followed by
Brittania and of late, substitutes like Nutralite. India has had a thriving butter market that
continued to provide slabs of creamy, salty butter until the health buzz took over India.
As cholesterol, blood pressure and arteriosclerosis became talk of the town, butter fans
began to think twice before they spread some more on their breakfast slices. Consumer
priorities switched from taste to health and the demand for butter began to fall until
companies like Amul came up with low-fat variants like Amul Lite. Another brand that
entered the market this time was Nutralite – a low-cholestrol butter substitute that has now
made its way to many Indian homes.
At present, more and more consumers are demanding a low-fat, low-sodium variant that
does not lose out on the taste factor – something that Nutralite seems to have overlooked.
Our research shows that health is gaining a steady priority over taste and that even a strong
brand like Amul might feel the need to reconsider its product offerings.
33 | P a g e
CONCLUSIONS
This research has been instrumental in finding the Indian consumers’ response to the
various brands of butter and in studying the butter industry of India in general. Despite
health hazards, Indian kitchens continue to consume butter, however sparingly. Indian
consumers who have tried low-fat / zero-cholesterol butter substitutes have not found the
taste satisfactory, and demand a product that tastes more like butter and does not have a
distinct processed taste.
Also, the demand for unsalted butter is small but significant, as the high sodium content in
packaged butters has been a source of worry for patients of high blood pressure. This could
also be the result of experimenting with new cuisines as most baked desserts call for
unsalted butter. In terms of brand recall, only two brands have so far made their presence
felt in the Indian market. The former being Amul, which changed the concept of ‘butter’
through highly strategic advertising and the latter – ‘Nuralite’ – the butter substitute that
has occupied the place of pride on the tables of the lean and health-conscious. Most
consumers associate ‘Amul’ with taste and ‘Nutralite with ‘health’.
While taste and pricing was the deciding factor for most consumers, a significant section
commented on the poor packaging quality of some brands like Amul as compared to
Britannia, which provides containers for the butter. Most consumers demanded a low-
fat/low-cholesterol variant of their existing brand, thus confirming that the need of today’s
butter consumer’s in India is a healthy yet tasty product, which makes it an open
opportunity for a new brand to come and take over before the existing brands can
reposition.
34 | P a g e
RECOMMENDATIONS FOR FURTHER INVESTIGATION
When conducting our Research we came across the following issues that need further
investigation in case of Amul as it emerged a clear Market leader:
 The sudden price hike in Amul Butter did not go down well with the consumers.
 The packaging for Britannia and Mother Dairy Butter was considered better than
Amul. So the packaging needs improvisation.
 The taste was appreciated by most respondents and was a major influence in the
purchase of Amul Butter.
 There should be launch of various flavours and lower calorie levels in the existing
variants of Butter. Also there could be a launch of Unsalted Butter for baking
purposes which is not readily available in the Indian market.
35 | P a g e
END NOTES
 Population And Employment Profile Of Mumbai Metropolitan Region-

Observations And Trends
 Business Strategies For Managing Complex Supply Chains In Large

Emerging Economies: The Story Of Amul- Indian Institute Of
Management Vastrapur, Ahmedabad
 Amul –The Taste Of India- Business Analysis Report - Symbiosis Institute

Of International Business (Siib)Constituent Of Symbiosis International
 A Report On Communication Strategy Of Amul – The Taste Of India-

(Marketing Mgnt. Ibs Pune)
 Opportunities And Challenges In The Indian Dairy Industry- Dr K.G.

Karmakar And Dr G.D. Banerjee
 Marketing Management – Philips Kotler
 Finance India [Vol. X No. 2, June 1996] Dairy Co-Operative And Rural
Development- Manob Kanti Bandyopadhyay
 Mother Dairy's Big India Plans

July 04, 2006 16:18 Ist
 Ogilvy India Bags Mother Dairy Business

Monday, 15 June 2009 08:52
36 | P a g e
WEBLIOGRAPHY
 www.amul.com
 www.amul2b.com
 www.quickmba.com
 www.scribd.com
 http://marketingpractice.blogspot.com/2008/05/nutralite-better-than-
butter.html
 http://www.valuenotes.com/way2wealth/way2wealth_foods_15Apr08.
asp?ArtCd=137491&Cat=I&Id=54
 http://en.wikipedia.org/wiki/Mumbai
 http://www.demographia.com/db-dense-nhd.htm
 http://www.mmrdamumbai.org/docs/Population%20and
%20Employment%20profile%20of%20MMR.pdf
APPENDIX
37 | P a g e
CONSUMER’S SURVEY
QUESTIONNAIRE
Name : ________________
Age : ________________
Occupation: ________________
1) Do you consume butter?
Yes No
2) What is the first thing that comes to your mind when you hear the word ‘butter’?
_____________________________________
3) What brand of butter do you usually buy?
Amul Britannia
Mother Dairy Other ______________________
4) What comes to your mind when you hear the name of your brand of butter?
_________________________________________________
5) What influences your purchase the most?
Taste Price
Brand Packaging
Advertising
38 | P a g e
6) Rank the following brands on a scale of 1-5 for the given parameters:
( 1 – minimum value; 5 – maximum value)
Taste Price Advertising Packaging

Amul
Britannia
Mother Dairy
Other
7) How often do you buy butter?
Weekly Monthly Fortnightly
8) What quantity of butter do you usually buy?
100g 250g 500g
9) How much do you usually spend on butter?
_____________________
10) How has your experience with the brand been?
Very Good Good Neutral Bad Very Bad
11) What additional feature would you want your butter to have?
Fewer calories Lower Pricing
Better packaging Unsalted
Other ______________________
12) Are you aware of any substitutes to butter? If yes, please specify.
Yes _________________ No
39 | P a g e
13) What do you normally use butter for?
As a spread
For cooking
For baking
RETAILERS SURVEY
LIST OF QUESTIONS USED FOR FACE-TO FACE INTERVIEWS:
1. Outlet Types visited for the purpose of research.

2. Penetration Level of Amul products in retail outlets.
3. Which brand of butter do you sell most?
4. Availability of credit, discount and good distribution channel in Amul product
5. Replacement offer to the expired packed product by the company?
6. Replacement offer to the expired product influence the stocking decision?
7. Ranking of some of the other factors that influence a retailers stocking decision.
40 | P a g e

Amul Butter Brand Analysis

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An Insight into the Indian Butter industry

360 Research Agency , Mumbai.

February 15, 2010

ADVERTISING AND MARKETING RESEARCH

USHA PRAVINGANDHI COLLEGE OF MANAGEMENT

VILE PARLE (W)

REVIEW OF RELATED LITERATURE.........................................................................................................8

METHODS AND INSTRUMENTS OF DATA GATHERING.........................................................................18

RECOMMENDATIONS FOR FURTHER INVESTIGATION.........................................................................35

DETERMINE EXPECTED VALUE OF PERFECT INFORMATION

The Budget allocated is Rs 10,000 because it is a local research conducted in Mumbai

REVIEW OF RELATED LITERATURE

India is the world’s largest butter producer

Date of posting: 21-06-07

Mother Dairy, a subsidiary company of the National Dairy Development Board

About the Company

 AMUL- Anand Milk Union Limited formed in 1946 is a dairy co-operative

History of the Company

 The first milk Union milk was established in 1946 with

Different products handled by Amul

Amul Butter Amul Lite Delicious Table Margarine

Market Analysis and Type of Industry

 Market share of Amul butter is around 86%

Age-5 yrs – 80 yrs.

 Product Specification- Meets AGMARK standards and BIS specifications.

Product Life Cycle Stage

Sampling before Re-launch

1. Sampling Technique: Probability sampling.

3. Sample size: 50 respondents

4. Method: Direct interview through questionnaire.

5. Data analysis method: Random sampling method

6. Area of survey: Mumbai, location: western suburbs.

Sampling after Re-launch

1. Sampling Technique: Non-Probability sampling (A non-probability sampling technique is

2. Sample Unit: unmarried working class.

3. Sample size: 50 respondents

4. Method: self selection method.

5. Data analysis method: Random sampling method

6. Area of survey: Mumbai, location: All Malad call centers.

We have used Descriptive research.

We have used Face-to-face Interviews and observation to gather primary data.

We have made use of previously conducted researches by various organisations to derive

Step 2: Specify the Sampling frame

Step 3: Specify the sampling Unit

In our case we have considered 3 sample units to be studied- Home-makers, bachelor

Step 4: Specify the Sampling Methods

Step 5: Determination of the Sample size

Step 6: Specify the Sampling Plan

Step 7: Select the Sample

Mira road- Srushti Complex

Borivali- Shanti Ashram

Malad- Bangur Nagar

Andheri- Seven Bungalows

Bandra- Pali hill

Worli- Nr Sea link

Churchgate- Near Railway station

Colaba- Near Causeway

Reliance Fresh and Subhiksha, Mira road

More and A1 super Bazaar, Borivali

Dmart and Food Bazaar, Malad

Mega Mart and Reliance Fresh, Andheri

Nature’s basket and BM bazaar, Bandra

Ambika stores, Big bazaar, Worli

Big bazaar and Reliance Fresh, Churchgate