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GROUP NO 4
NAME ROLL NO. BHASKAR C. 10 B 709 DOMINIC G. 10B718
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 has been a sterling example of a co-operative organization's success in the long term. Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.
• To build mutual trust with consumers, governmental authorities and business partners. • Conservation of natural resources and minimization of waste. • • To establish the benchmark for good business practice. • Employing new technologies and processing by committing to resources, both human and financial. • Measuring the cost and benefits to business of its activities.
.VISION AMUL aim is to meet the various needs of the consumer and reach out to a much larger network of people both on a national as well as international scale.
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+".GCMMF – Over View GCMMF: Gujarat Cooperative Milk Marketing Federation GCMMF is India's largest food products marketing organization.
of Village Societies: Total Milk handling capacity: Milk collection (Total . of Producer Members: No.22 million litres per day 3.4 million litres 626 Mts. per day . per day 3500 Mts.05 billion litres 8.79 million 13.Facts Members: No.328 11.2008-09): Milk collection (Daily Average 2008-09): Milk Drying Capacity: Cattle feed manufacturing Capacity: 13 district cooperative milk producers' Union 2.
Amul .Business Model RAW MILK pasteurization Condensed Packaged Milk Ice cream Beverages Ghee Butter Cream Dried Skimmed Milk Powder .
Er AMUL .
.What Is BCG Matrix? BOSTON CONSULTING GROUP (BCG) MATRIX is developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s. businesses or products are classified as low or high performers depending upon their market growth rate and relative market share . According to this technique.
THE BCG GROWTH-SHARE MATRIX It is a portfolio planning model which is based on the observation that a company‟s business units can be classified in to four categories: Stars Question marks Cash cows Dogs It is based on the combination of market growth and market share relative to the next best competitor. .
High market share Stars are leaders in business. Attempts should be made to hold the market share otherwise the star will become a CASH COW. They also require heavy investment. It leads to large amount of cash consumption and cash generation. .STARS High growth. to maintain its large market share.
COWS share Low growth High market They are foundation of the company and often the stars of yesterday. .CASH . They extract the profits by investing as little cash as possible They are located in an industry that is mature. They generate more cash than required. not growing or declining.
Dogs do not have potential to bring in much cash. Low market share Dogs are the cash traps.DOGS Low growth. . Business is situated at a declining stage. Number of dogs in the company should be minimized.
. (low). Low market share Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged.QUESTION MARKS High growth . Investments should be high for question marks. Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog.
BCG MATRIX High BUSINESS GROWTH RATE Low HIGH LOW MARKET SHARE .
They generate more cash than required. not growing or declining. .So basically Amul Butter falls into the category of cash cow. Amul Butter and Amul Milk are the foundation of the company . They are located in an industry that is mature. They extract the profits by investing as little cash as possible.
GE MATRIX .
indicating expansion strategies. • Three zones of three cells each are made denoting different combinations represented by green. • Based on the green zone.GE MATRIX • The nine cells of the GE matrix are grouped on the basis of low to high industry attractiveness and weak to strong business strength. . the signal is “go ahead” to grow and build. • Business in the green zone attract major-investment. yellow and red colours.
. the signal is “wait and see” indicating hold and maintain type of strategies aimed at stability and consolidation. or the re-building approach for adopting turnaround strategies.For the yellow zone. For the red zone. indicating the retrenchment strategies of divestment and liquidation. the signals is „stop‟.
2 1.6 Growth rate of sales Intensity of competition 10% 15% 5 6 0.9 Probability of technological obsolence Social image Profitability 15% 7 1.Factor Size of the market Weightage 15% Rating 4 Score 0.5 0.05 15% 30% 100% 8 5 1.5 5.75 .
4 .9 10% 100% 7 0.Relations Technical strength Corporate image Weightage Rating Score 15% 6 0.9 10% 10% 5 7 0.Factor Plant capacity and market share Growth rate Location and distribution channels Management Competence LabourMgt.4 0.5 0.7 20% 20% 15% 8 7 6 1.6 1.7 7.
G E MATRIX .
Try to cement its position as a leader over Mother Dairy . Invest for Growth . Cash generation is already in excess so should go for selective investment .AMUL CAN DO THE FOLLOWING .
SWOT Analysis .
Strengths • Largest food brand in India • Providing Best quality • World's Largest Pouched Milk Brand • Annual turnover of US $1504 million • Highly Diverse Product Mix • Robust Distribution Network .
• Risks of highly complex supply chain system. • Loss of employees who actually started amul by retirement. Eg.. • Strong dependency on weak infrastructure. • Alliance with third parties who do not belong to the organized sector. Chairman Kurian Verghese . • It has been listed in the stock market.Weaknesses…….
chocolates etc .! • Penetrate international markets • Diversify product portfolio to enter new product categories • and expand existing categories like processed foods.Opportunities…….
Nutralite. Nestle and Britannia.Threats…! • Competitors . Mother Dairy. • Still competition from Mutli National’s in butter • Growing price of milk and milk products • Ban on export of milk powder .
Ansoff‟s Growth Matrix Model Market Development Diversification Growth Matrix Model Market Penetratio n Product Development .
Introduction of AMUL KOOL in cans. .Market Penetration Increase in market customers . Persuading to increase their usage Cost reduction benefits to customers. Reduction in price.
Kids Women Youth Calorie Conscious Health Conscious .
Millk Shake .Kids I. Amul Kool V. Chocolate Milk III. Amul Kool II.Nutramul Energy Drink IV.
Womens Amul Calci .
Youth I.Amul Cheese Spreads . UtterlyDelicious Pizza II. Amul Emmental Cheese III.
Health Conscious I. Nutramul II.Amul Shakti Health Food Drink .
Calorie Conscious I.Amul Lite II.Sagar Skimmed Milk Powder III.Amul Lite Slim and Trim Milk .
Amul Milk Ice-cream Manufacturers Restaurant/Food Chains Milk Coffee Shop Chains Temples .
Diversification of Packaging Amul is available in different forms and sizes – 100 g Amul slabs 200g Amul slabs Amul cubes .
Advertisements AMUL is well known for its innovative hoardings. Find below a few: .
Lassi Increase in geographical expansion in national or international markets. Eg .Market Development Introduction of our existing products into new market segments. .
Product Development This strategy suggests the company to continue operating in the same market but with newer products in addition to current products. butter slabs and cubes. Eg. Cheese spread and slice . .
.Diversification It is used to indicate development for growth away from the present market and products. Uptil now amul is dealing only with dairy product but could diversify in the near future with malls cafes.. Etc etc.
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