Amul – The Taste of India

 Group – G2:7
 Group Members -
 Abhishek Kekre
 Bharath Kumar B
 Gulab Nebhani
 Lalima Dutta Choudhury
 Tanya Dutta
 History of Amul
 Amul (Anand Milk Union Limited), formed in 1946, is a dairy
cooperative movement in India.

 It is managed by Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF).

 AMUL is based in Anand, Gujarat and has been a sterling

example of a co-operative organization's success in the long
term. The Amul Pattern has established itself as a uniquely
appropriate model for rural development.

 Amul has spurred the White Revolution of India. It is also the

world's biggest vegetarian cheese brand.
Reasons for Success

Robust Supply Chain

The vast and complex supply chain Hierarchical network of cooperatives
Stretches from small suppliers to large fragmented markets

Low Cost Strategy

Amul adopted a low-cost price strategy to make its products
affordable and attractive to consumers by guaranteeing
them value for money

Diverse Product Mix

Success!!
Amul Butter, Milk Powder, Ghee,
Amulspray, Cheese, Chocolates,
Shrikhand, Ice cream,
Nutramul, Milk and Amulya

Strong Distribution Network

Amul products are available in over 500,000 retail outlets across
India through its network of over 3,500 distributors.
47 depots with dry and cold warehouses to buffer inventory of the
entire range of products.

Technology and e-initiatives

New products
Process technology
Complementary assets to enhance milk production
E-commerce.
 GCMMF – Over View
 GCMMF: 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.

 CRISIL, India's leading Ratings, Research, Risk and Policy

Advisory company, has assigned its highest ratings of
"AAA/Stable/P1+" to the various bank facilities of GCMMF.
 Facts
Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million liters per day

Milk collection (Total - 2008- 3.05 billion liters

09):
Milk collection (Daily Average 8.4 million liters
2008-09):
Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing 3500 Mts. per day

Capacity:
 Amul - Business Model

RAW MILK

pasteurization

Condensed
Packaged Milk
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
Industry Analysis : Porter’s 5 Forces

Threat of new entrants

Is high because
There are no entry
barriers

Competitive Rivalry
Bargaining Power Bargaining Power
is High due to of Suppliers is low
of Customers is
High because of Other brands and because the suppliers
Various Are rural milk
competitors Local players producers

Threat of
substitutes is high
because of
availability of
Other products
 SWOT Analysis
Strengths
•Largest food brand in India
•High Quality, Low Price
•World's Largest Pouched Milk Brand
•Annual turnover of US $1504 million
•Highly Diverse Product Mix
•Robust Distribution Network
Opportunities
•Penetrate international markets
•Diversify product portfolio to
enter new product categories and
expand existing categories like
processed foods, chocolates etc
Weaknesses
•Risks of highly complex supply
chain system
•Strong dependency on weak
infrastructure
•Alliance with third parties who do
not belong to the organized sector
Threats
•Competitors - Hindustan Lever,
Nestle and Britannia
•Still competition from MNCs in
butter
•Growing price of milk and milk
products
•Ban on export of milk powder
Customer Based Market Segmentation

Amul Kool Chocolate Milk

Nutramul Energy Drink
Kids Amul Kool Millk Shaake

Women Amul Calci +

Utterly Delicious Pizza

Youth Amul Emmental Cheese
Amul Cheese Spreadsv

Amul Lite
Calorie Conscious Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk

Nutramul
Health Conscious Amul Shakti Health Food
Drink
 Industry Based Market Segmentation
Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Milk Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Butter/Cheese/Ghee
 Advertisements
 AMUL is well known for its innovative hoardings. Find below a
few:
Advertisements
Mix… Product for every one

 Amul never forgot its “primary

customer”
- Amul collects 447,000 ltrs of milk
from 2.12 million farmers (many
illiterate)

 Product for youth

- Amul launched Chocolate milk under
brand
name of ‘Amul Kool Koko’ targeting the
youth

 Product for diabetic people

- India’s First Pro-Biotic Wellness Ice
cream &
Sugar Free Delights For Diabetics
Mix… Product for every one
 Product for the health
conscious
- Amul Launched “low fat, low
cholesterol
bread spreads”

 Product for the price

sensitive India
- Low Priced Amul Ice Creams and
affordable ‘sagar’ whitener

 Product for the urban class

- Amul launched emmental,
gouda and pizza mozzarella cheese
Product Mix of Amul
Amul - Product Diversification
Seeking unfamiliar products or markets in
the pursuits of growth with both dairy and non-dairy products

Secret Philosophy
 Progressive addition of higher value products
while maintaining the desired growth in existing
products.
 Amul introduced products with consistent value
addition but never left the core philosophy of
“providing milk at a basic, affordable price”
 Amul - Product Abandonment
 10 years back, Amul took a shot at bottled water through ‘Jaldhara’
which was produced by NDDB.

 However the venture failed owing to less demand for packaged water
in market. The product was abandoned.

 Now Amul is all set to re-launch bottled water “NARMADA NEER”

 The 3 C’s…

•Defending against Mahananda, •Customers extremely satisfied

Vijay, Milma & other co-operative •Moved from loose milk to
milk brands •packaged milk
•Ready to try more products
•Aggressive moves against •Improved socio-economic
Britannia, Nestle, Mother Dairy conditions
and Kwality

•Largest milk brand in Asia

•More than 30 dairy brands
•Market leader in ghee & butter
•Very strong supply chain
•Enjoys Fine reputation
•Quality with Affordability
 Amul – BCG Matrix

High
Amul Ice-cream

Business
Amul Cheese Amul Chocolate
growth
Rate
Amul Butter

Amul Chocolate drink

Low

High Low

Relative Market Share

 Amul – Product Portfolio

Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3
Struggle - Amul Chocolates
. Low
Growth Inadequate Success
Phase Failed new brands
Excessive discounts
10% Market share
Tough competition by
Market Leaders – Cadbury
(70%), Nestle
Decline
Sales

Decline
Introduction Sales
Phase
Amul Milk, Amul
Fruit and Nut

New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo
What more can Amul do?

To improve further Amul can try out the following ideas:

I) Amul can venture out on new products like Toned
milk, Condensed milk that can be used for sweets, Baby food
products,

II) There are certain product like Amul basundi,

gulab jamoon, choclates etc which are not as popular as
Amul ice cream. Amul must try to understand the cause of
this through thorough market research and work on
improving these products

III) Though Amul’s hoardings are a huge success, it

can penetrate even better in the rural areas by advertising
through the media viz cable channels and newspapers.
Sponsoring shows in TV, sports events can be of great help.
Thank You !!