Amul The Taste of India

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
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.
Success!!
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-
09):
3.05 billion liters
Milk collection (Daily Average
2008-09):
8.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing
Capacity:
3500 Mts. per day
Amul - Business Model
RAW MILK
Dried
Skimmed Milk
Powder
Packaged Milk

Ice cream
Beverages
Condensed

Ghee
Butter
Cream
pasteurization
Industry Analysis : Porters 5 Forces
Bargaining Power
of Customers is
High because of
Various
competitors
Threat of
substitutes is high
because of
availability of
Other products
Threat of new entrants
Is high because
There are no entry
barriers
Competitive Rivalry
is High due to
Other brands and
Local players

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



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


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

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

Customer Based Market Segmentation
Kids
Women
Calorie Conscious
Health Conscious
Youth
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

Nutramul
Amul Shakti Health Food
Drink

Industry Based Market Segmentation
Milk
Butter/Cheese/Ghee
Ice-cream Manufacturers
Restaurant/Food Chains
Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Coffee Shop Chains
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
- Indias 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
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
Seeking unfamiliar products or markets in
the pursuits of growth with both dairy and non-dairy products
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 Cs
Customer
Company
Competitor
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


Defending against Mahananda,
Vijay, Milma & other co-operative
milk brands

Aggressive moves against
Britannia, Nestle, Mother Dairy
and Kwality

Amul BCG Matrix
Business
growth
Rate
Relative Market Share
High Low
High
Low
Amul Chocolate
Amul Butter
Amul Cheese
Amul Chocolate drink
Amul Ice-cream
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
.
Introduction
Phase
Amul Milk,
Amul Fruit and
Nut




Low
Growth
Phase
Decline
Sales
New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo

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


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 Amuls 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 !!