AMUL: The Success in the Ice-Cream

Segment
Fahad Tanki : 15
Gauri Shetty: 18
Harsh Sachdeva : 19
Meenal Phadke : 31
Parth Nagar : 36
Rishil Shah : 41
Varun Jain : 50
PRELUDE TO THE COMPANY
• Amul was formally registered on 14th Dec
1946 .
• The brand name AMUL sourced from Sanskrit
word “Amoolya” which means “Priceless”.
• AMUL [ Anand Milk Union Limited ] is the
product of co-operative movement in India.
• The Amul Pattern has established itself as a
unique appropriate mode for rural
development .
 Secret Behind Amul’s Success..!!
• Bring at the command of the rural milk
producers the best of the technology.
• It provides a support system to the milk
producers without disturbing their agro-
economic systems.
• 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.
 Supply Chain and Huge Distribution
network
The distribution network
• It comprises of
1) 300 stock keeping units
2) 46 sales offices
3) 1 lakh retailers with refrigerators
4) 18000 strong cold chain
• Amul products are available in over 500,000 retail outlets
across India through its network of over 3,500 distributors.
• There are 47 depots with dry and cold warehouses to buffer
inventory of the entire range of products.
 RANGE OF PRODUCTS
Breadspreads
Cheese Range
Mithaee Range
Milk Range
Pure Ghee
Infant Milk Range
Milk Powders
Sweetened Condensed Milk
Curd Products
Milk Drinks
Sales Figures…
Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

Launched on 10th March, 1996 in Gujarat
Platform of ‘Real Milk. Real Ice Cream’
In 1997, entered Mumbai followed by
Chennai in 1998 and Kolkata & Delhi in
2002.
Nationally in 1999.
It has combated competition like Walls,
Mother Dairy and achieved the No 1
position in the country.
This position was achieved in 2001 and
it has continued to remain at the top.
Today the market share of Amul ice
cream is 38% share against the 9%
market share of HLL.
Not only has it grown at a phenomenal rate
but has added a vast variety of flavors to its
ever growing range.
Currently it offers a selection of 220 products.
Amul has always brought newness in its
products and the same applies for ice creams.
In January 2007, Amul introduced SUGAR
FREE & ProLife Probiotic Wellness Ice
Cream, which was a first in India.
THE PRODUCT RANGE
Prolife Ice Cream

Novelties
Sugar Free Probiotic

Swirl
Sticks

Cones
Always something New
Introducing Amul Exotica…
RECOGNITIONS
ISO 9000-HACCP certified plants
No. 1 in Quality by “INSIGHT”
magazine
Best Value for Money brand
Amul Pro-Biotic Ice-cream Gets No. 1
Award At World Dairy Summit
The Competition
Major Competitor being Walls (by HUL) has
a market share of only 9% as compared to
38% of Amul
i.e. 4 times more than its nearest competitor
As far as Mother Dairy is concerned it is a
sister concern as a part of GCMMF, so
ultimately the profit falls in their kitty.
The other players like Vadilal, Pastonji,
Havmor etc. are highly regionalised.
Walls Vs. Amul
Kwality Walls’ Promotion:
i.Candy for the classes
ii. Value packaging
iii. Unique flavours
iv. Niche launches
v. Decent reach
Kwality Walls’ Pricing:
i. 750 ml pack-Rs 65.
ii. 400 ml pack-Rs 40
iii. 135 ml Super Cornetto-Rs 30.
Amul’s Promotion:
i. Candy for the masses
ii. Cool packaging
iii. Maximum flavours
iv. Aggressive launches
v. Good reach
Amul’s Pricing:
i. 1.25 litre party pack-Rs 65.
ii. 500 ml Vanilla-Rs 35.
iii. 180 ml Mega Bite cone-Rs 20
What worked for Amul…
For any new player to enter this market,
three things are critical:
Decentralized manufacturing facilities
Efficient cold chain
Growing market
And Amul had all of the above in place.
How…
Amul’s entry into ice creams is
regarded as successful due to the large
market share it was able to capture
within a short period of time:
 due to price differential,
quality of products and
of course the brand name.
Their Motto…
They have survived and grown on the
basis of:
 co-operative culture,
co-operative networking,
market acumen and
respect for both producer and the
consumer.
What’s Different…
Amul Parlour Approvals : 4535

Cyberstores

Rural Reach
SWOT Analysis
STRENGTHS OPPORTUNITIES
Margins Value addition
Product mix
Availability of raw
Export potential
material Markets
Technical manpower IT support
Enhanced Milk
Production
Transportation &
Storage
Vast resources
Increasing purchase
power
WEAKNESS THREATS
Logistics of Infestation
procurement Exploitation
Erratic power supply Creation of Non Tariff
Lack of control over Barriers by Developed
yield Nations
MICHAEL PORTERS FIVE FORCES
MODEL
RIVALRY AMONG COMPETING FIRMS
In the FMCG industry rivalry among competitors is very fierce.
There are scarce because the industry is highly saturated and the
competitors try to snatch their share of market. They use all kinds of
tactics from intensive advertisement campaigns to promotional stuff
and price wars etc. so overall the intensity of rivalry is very high.
POTENTIAL ENTRY OF NEW COMPETITORS
The industry does not have any measures with which it can control
the entry of new firms. The resistance is very low and the structure
of the industry is so complex the new firms can easily enter and also
offer tough competition due to cost effectiveness. Thus potential
entry of new firms is highly viable.
POTENTIAL DEVELOPMENT OF SUBSTITUTE
PRODUCTS
There are complex and never ending consumer needs and no firm
can satisfy all needs alone. The wide range of choices and needs
give a sufficient room for new product development that can
replace existing products.
BARGAINING POWER OF SUPPLIERS
The bargaining power of suppliers of raw materials and
intermediate good is very high. The most important factor here is
the importance of quality. There is ample number of substitute
suppliers available. There is no monopoly situation in the supplier
side because the suppliers are also competing among themselves.
BARGAINING POWER OF CONSUMER
With ice cream there are virtually no important end
consumers. However if AMUL focuses on the
consumer as retailer then the importance of the few
powerful and growing grocery chains represents a
significant hurdle. This is offset by the almost complete
lack of potential for backward integration and the relative
insignificance of ice cream to this customer group.
Strategies
Brand presence & association
Aggressive Launch
Value Marketing
Umbrella brand
Better Pricing
Utilization of existing supply chain
Good Quality
Continuous Innovation
Maintaining the Image
CONCLUSION
THANK YOU