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

Success!!

Diverse Product Mix
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: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 200809): Milk collection (Daily Average 2008-09): Milk Drying Capacity: Cattle feed manufacturing Capacity: 13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million liters per day 3.05 billion liters 8.4 million liters 626 Mts. per day 3500 Mts. per day

Amul - Business Model
RAW MILK

pasteurization

Condensed Ghee Butter Cream

Packaged Milk Ice cream Beverages

Dried Skimmed Milk Powder

Industry Analysis : Porter’s 5 Forces
Threat of new entrants Is high because There are no entry barriers

Bargaining Power of Customers is High because of Various competitors

Competitive Rivalry
is

High due to

Other brands and Local players

Bargaining Power of Suppliers is low because the suppliers Are rural milk producers

Threat of substitutes is high because of availability of Other products

SWOT Analysis
•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

Strengths

•Risks of highly complex supply chain system •Strong dependency on weak infrastructure •Alliance with third parties who do not belong to the organized sector

Weaknesses

•Penetrate international markets •Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

Opportunities

•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

Threats

Customer Based Market Segmentation
Kids Women Youth Calorie Conscious
Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Millk Shaake

Amul Calci + Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreadsv Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk

Health Conscious

Nutramul 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
affordable ‘sagar’ whitener

sensitive India - Low Priced Amul Ice Creams and

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

•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 growth Rate

Amul Cheese Amul Butter

Amul Chocolate

Low

Amul Chocolate drink High Relative Market Share Low

Amul – Product Portfolio
Category Butter, Ghee Milk Powder Cheese Ice-cream Sweets Chocolate Drink Chocolate Market Share 85% 40% 50% 24.75% 50% 90% 10% Market Position 1 1 1 2 1 1 3

Struggle - Amul Chocolates
.
Low

Growth Phase

Decline

Inadequate Success Failed new brands Excessive discounts 10% Market share Tough competition by Market Leaders – Cadbury (70%), Nestle

Sales

Introduction
Phase Amul Milk, Amul Fruit and Nut

Decline Sales

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 !!

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