Amul (Anand Milk Union Limited

Presented By : Jyothi.B Swati Jain Vishakha Jhaveri

Largest Food Brand And Business In India

OPPORTUNITIES: Subscription Revenues to Annual Turnover Of Rs 4300 Crore (2006-07) Drive Industry Growth; Mobile TV Added Channel
Rs 10,000-crore mark over the next three years. Four decades to become Rs 2,000-crore entity But, the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007

Annual Turnover
10000 8000 INR Crores 6000



2000 0 1946 1999 2007 2008 2009 2010 Time Frame

‡ Formed in 1946, is a dairy cooperative movement in India. ‡ A brand name managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) ‡ Jointly owned by 2.6 million milk producers in Gujarat ‡ Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. ‡ Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries ‡ Fresh plans of flooding the markets of Japan & Sri Lanka. ‡ Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul. ‡ On 10 Aug 2006 Parthi Bhatol was elected chairman of GCMMF ‡ The white revolution has finally created a billion-dollar brand.

Business Model
‡ Every day Amul collects 7 million litres of milk from 2.6 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country. ‡ Its supply chain one of the most complicated in the world.

Raw Milk

Condensed Ghee Butter Crea

Packaged Milk Ice crea Beverages

Dried Ski ed Milk Powder

Amul's sub-brands . modest consumption levels . sale of products through dealers and retail stores .JIT improves dealers' return on investment (ROI Umbrella brand .Developing demand .core is milk processing . edible oil products . mineral water . distribution of dairy purchasing power.Jal Dhara brand while fruit drinks .dry and cold warehouses .Safal Third party service providers . production of dairy products .cash transactions throughout the supply chain .a low-cost price strategy products The distribution network .common brand for most product categories .logistics of milk collection.Dhara.

AMUL defending its turf ‡ Largest milk brand in Asia marketing more than 30 different brands of dairy products like cheese. Vijay.. Nestle and Mother Dairy among others. ice-cream. Milma and other co-operative milk brands ‡ Aggressive moves against FMCG and F&B brands like Britannia. . ready-to-eat pizza. condensed milk. ‡ Amul is the market leader in ghee and butter ‡ Amul Kool and Kool Café doing well ‡ Defending against names like Mahananda. beverages etc.

‡ Being exposed to a brand. all available under the Amul brand) ‡ A sound strategy likely to work. it is natural for a customer to try more products ‡ Improving socio-economic condition of the customer anchors the desire to enhance lifestyle .Defense Strategy ‡ Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages.

low fat butter. as it has a cool imagery associated with it. various culinary applications . Amul Kool is targeted at children. then butter. ‡ Segmentation is not as easy in curd and low fat products. due to mixed audiences. eg.Segmentation ‡ Wide range of product categories caters to consumers across all market segments. the most used spread is ghee. . ³In India. while teenagers prefer Kool Café. margarine. For example. butter and cheese. cheese. ghee. cheese spread and mozzarella cheese.

IIT-B.Targetting ‡ Changing retail environment ‡ Striking out on its own. IIM-A. which contributed 3% to the brand¶s total turnover last year. there are now 400 Amul parlours across the country. Wipro. with Amul Outlets or parlours to deliver consumers total brand experience ‡ Launched in 2002. . High profile locations: Amul parlours are today present on campuses of Infosys. Temples. Metro rail and railway stations in Gujarat.

milk better than cola. priced at Rs 12 Ice-cream Probiotic and sugar-free variants Chocolates sugar-free brand called Choco-Mini to target the diabetic .Positioning ‡ ‡ ‡ ‡ ‡ A mass market player. a health drink made from milk with added vitamin C against Red Bull and Gatorade. no premium offerings USP ± Quality with affordability Up against niche players ± value addition to customers Sheer size and scale of operation New offerings for health conscious and vibrant India ± Health and energy drinks Stamina. Aimed at youngsters.

Promotion ‡ Given this wide product portfolio. ‡ After ice-creams were launched in 1996. Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko ² cold chocolate drink . Amul¶s approach is to promote its brands in a rotational cycle of two to three years. The focus shifted to cheese in 2001. the category was re-visited in 1999. in order to improve availability of the product and make it affordable. Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%).

. which has been held for the last four year between October and December in about 50. state and national level. ‡ Below-the-line activity has grown too ² such as the Amul food festival.000 retail outlets. and is conducted at city. ‡ The Chef Of India promo invites hotel chefs to come up with recipes using as many Amul products as possible.Promotion ‡ Uses a variety of media to communicate ‡ Most famous is billboard campaign ‡ The endearing polka dressed girl and pun at various issues increased brand¶s fan following.

‡ Amul butter girl is one of the longest run ad campaigns in the country for 41 years. . ‡ Intelligent marketing of milk.Intelligent Marketing ‡ One of the most conservative FMCG entities ² GCMMF ² spends a mere 1% of its turnover on promotions. icecream and butter milk. ‡ GCMMF has written and re-written rules of the game.









Amul Product portfolio .

‡ Incidentally. Amul is selling its packaged milk brands on the Net too. Amul is expanding their processing and packaging capacity to meet growing demands eg delhi & Mumbai. "Our core strategy is to further consolidate our operations in existing markets which includes Kolkatta along with beefing up advertizing &marketing actions.Amul milk ‡ Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is drawing up a fresh game plan for its flagship brand 'Amul Fresh Milk. Amul is also extending its distribution network to reach new markets. . ‡ In a bid to pump up volumes. ‡ Mother dairy is working on similar grounds and increasing its reach and both the giants are trying to capture large packaged milk market. its main rival is mother dairy India ‡ On Amul¶s future plans.

Hence covering all the segments in which a competitor can enter. . thus creating strong barriers and in turn playing offence to defend its market position. low fat butter etc along its main product.Amul Butter cash cow in the product portfolio Primary position as far as butter is concerned with a market share of more than 86 per cent ‡ Amul has introduced a number of diverse range of varied products like cooking butter.

Amul cheese Amul cheese Variants Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese (Mozarella) ‡ Amul as a brand investing a lot of resources in cheese because it has to defend its position from the various attacks of its close competitor britannia and hence attacks itself by introducing new variants in the cheese segment. .

this would further expand the market for cheese. while its processed cheese slices sell at Rs 43 per 200 gm. They wanted pizzas to become a mass consumption item like kulcha chola or chole bhature. Eventually. ``The pizza route would promote sales of an otherwise premium product as cheese.Amul pizzas ‡ The brand with the hope to double its cheese sales through its recent foray into the marketing of vegetable pizzas introduced amul pizzas. . And done in the case of ice-cream. ‡ Marketing analysts say that Amul's pizza marketing strategy is unique because it aims at boosting sales of an `elite' product (cheese) by pushing down prices of another `elite' product (pizza).'' they pointed out. The maximum retail price for Amul's Mozzarella cheese is now Rs 48 per 250 gm. they intended to force other pizza manufacturers to also slash prices. ‡ Amul aimed to do to pizza what it has already done for ice-cream.

market penetration strategy ‡ Amul's Pro-biotic Ice-cream-flanking strategy targeted at health concious individuals In a country like India where we have waterborne diseases like diarrhoea. ‡ Delhi and the National Capital Region. eating a spoonful or two of pro-biotic ice-cream would keep the family healthy and strong. which was hitherto deemed to be Mother Dairy domain in the icecream sector.75 per cent share in the Rs 525 crore Indian market. The product was launched with this in view.22% ‡ Amul being the 2nd to the market leader is playing offence at its best. Amul was the first in the country to introduce pro-biotic ice-cream and pro-biotic sugar free ice-cream. Hence it also has first mover advantage.66% & the market leader HUL. Mother Dairy share of 8. . has already seen Amul move in with vengence.kwality walls with 28.Amul ice creams24.

Now.Amul chocolates. Amul intends to concentrate on the niche segment when it comes to the chocolate range & occupy a position in the shape based chocolate segment & introduce new variants in the same. ‡ Amul is reworking its strategy in the chocolate category to push its chocolate product sales. share of roughly 10 per cent compared with 70 per cent share of the market leader. with a new product portfolio. it is planning to create a space for itself. Amul's strategy is to identify the market gaps and try and fill them. both of which have been appreciated by the consumers. Cadbury. the dairy products major never posed a threat to market leaders such as Cadbury and Nestle.-Flanking strategy . ‡ The company has maintained a chocolate portfolio for more than 20 years. In the chocolate business. They have done this in the past with their Sugar free and Choco Zoo.

Sagar Amul ghee-20 per cent share in the ghee market ‡ Amul has decided to restrict the brand in Gujarat and Maharashtra.Ghee is already dominated by local cooperative brands and it will continue with Sagar ghee as a regional brand. Sagar Ghee is promoted before every festival in both these States to build demand for the brand. ‡ Amul is trying to promote Sagar on the value for money platform. Laxman to drive home the image of a brand for the common man. In fact. With the baseline `Flavour of Festivals'.Its a dominant player here and uses defence strategy to safeguard its position. in the past. the brand is being advertised based on images from festivals . the brand used cartoons from R. Today. however.K.

‡ The almost 40-year-old brand of Sagar has also been extended to a tea and coffee whitener and has been made available nationally. Thus creating barriers by segmentation for entry of competitors.Sagar skimmed milk powder-40 per cent share ‡ Amul¶s milk powder continues to enjoy a national presence although it enjoys a strong franchise in the North-Eastern. ‡ Amul also has the Amulya brand of dairy whiteners. . which is at a premium to the Sagar brand by almost 25 per cent. Eastern and parts of the Southern markets. amulya & sagar. Hence the brand is targeting 2 segments together with it¶s brands of milk power.

This is a category where brand loyalties are very strong as mothers want the best for their babies.Sagar Amulspray-baby milk powder ‡ Nestle is the market leader in the segment. This ozone is not its core competency. Nestle's Cerelac and Nestum together have around 80% market share and Heinz's Farex has close to 18% share. Other brands are Heinz's Lactodex Farex. ‡ In infant formula also Nestle's Lactogen formula and Lactogen standard formula are the leading brands with around 75% market share. ‡ The market for milk powder is already saturated and there is no need to expand the range is what has been decided by Amul. Wockhardt's Raptakos. Heinz is the only other significant competitor to Nestle in this segment. . and Amul's Amulspray which occupy the rest of the market.

packaged ready to eat foods market it can definitely expand its market to a large extent. ‡ Hence targeting the large Indian community in the US markets with its niche products like mithai. would make a lot of commercial sense. and if Amul is really looking to capture the hearts of the second. Amul processed cheese. offering low-fat versions of its brands.and thirdgeneration Indians. Shrikhand. Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.Expansion to foreign shores ‡ Gujarat Cooperative Milk Marketing Federation had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. . Nutramul. pure ghee. ‡ 50 per cent of Americans being medically obese.

Butter Britannia Nestle Cheese Britannia Baby Food Nestle Heinz Dairy Whitener Segment Nestle Britannia Ice creams HLL .

Chocolates & Confectionaries Cadbury Nestle Pizza Pizza Hut Dominos Nirulas Frozen pizza Curd Nestle Mother Dairy Ultra High Treated Milk Nestle Britannia .

Sweet Condensed milk ‡ Nestle Cottage Cheese(Paneer) ‡ Britannia Milk Additives ‡ Cadbury ‡ Smithkline Beecham Flavored Milk ‡ Britannia ‡ Nestle .

ghee (Indian clarified butter) and a malt drink. and the Fonterra Cooperative Group. All products are marketed under the 'Britannia MilkMan' brand. with cheese being its flagship product. butter. ‡ Its turnover in 2005-2006 is US$ 24 million with about 50% coming from processed cheese. ‡ The company focuses entirely on the dairy business. a dairy cooperative group. The other products it sells are dairy whiteners. . New Zealand.Anlene. 30% from the dairy whitener and the remaining 20% from butter and ghee sales.‡ BNZFL is a joint venture between Britannia Industries Ltd.

fresh and creamy µdairy spread. . Spicy Cilantro.‡ BNZF only sells in the processed cheese segment and has five variations of processed cheese in the market.. that sources its cheese from buffalo milk). and Pizza cheese. tangy taste. ‡ BNZF cheese is priced at a premium in the market. ‡ Cheese products: Cheese cubes. Over half of the company's revenues come form the processed cheese segment. Britannia Milkman Malai Chaska. Peppy Pepper etc. one reason being that the cheese is sourced from cow's milk (unlike Amul.a soft. Cheese singles (regular and Slim variants). besides a cheese dip product.¶ which has a mild. Britannia cheese spread in different flavors like Masala Herbs.

12. The Lasssi is priced at Rs. the national capital. dominated by Government-owned milk marketers ‡ The firm has started supplying dresh paneer (cottage cheese) in and around Delhi. ‡ The firm has also entered the fresh pastuerised milk market. 10 while the Cold Coffee is priced at Rs. ‡ The firm also has in its portfolio Daily Fresh Dahi (curd) and has just launched Low fat Dahi in 2008 .‡ Britannia Flavored Milk in tetrapaks are popular. Other products in the milk range include products like Sweet Lassi (buttermilk) and Cold Coffee in 200 ml tetrapaks.

‡ It recently entered some fresh milk markets. where GCMMF does not have a presence. ‡ Being No 2in the butter and cheese market afterAmul which holds more than 86% (combined butter & cheese market) it should be following Offense strategy by attacking the strengths of Amul cheese market. for butter and cheese. and that too through select class A & B outlets. It is concentrating on just 30 cities.Strategy In 2001 ‡ Besides focusing on competitive pricing. availability (improve distribution network) and visibility (more shelf space at modern trade). It is not playing the national game with GCMMF. BNZF has adopted a three-pronged strategy of freshness (lower pipeline stock). . such as Delhi and Kolkata.

Nestea. prepared dishes and cooking aids. Nestle Fresh 'n' Natural Dahi and NESTLE Jeera Raita ‡ The company is focused on growing its market share through renovation and innovation of its existing brands in India.Milo. world's biggest food company and a leading Swiss giant. beverages (coffee and malted drinks) and chocolate and confectionary.Munch. Milkybar. .. ‡ Nestle India's business can be broadly classified into four categories ---milk products and nutrition (infant mixes. ‡ Company has a wide presence across India with its portfolio of strong brands Nescafe.Milkmade.‡ Nestlé India is a subsidiary of Nestle S.Barone. Maggi. yoghurt.KitKat.A. milk).Polo.Nestle Milk.

The dairy whiteners are used for tea making. . Whole milk powder b. Everyday is a major player in the Dairy whitener category that is a part of the skimmed milk category. ‡ There are two types of milk powders a. Skimmed milk powder.Nestle Dairy whitener ‡ The loose milk market is estimated to be around Rs470 billion. Milk powder market is only 7% of the whole milk market. the processed milk market is only Rs 10000 crores.

7% of the entire market. variants and identifying multiple uses are the only option in this nascent market. the major competition is from the ordinary milk. The consumers perceive that loose milk is fresh. And with abundant milk supply.Nestle Everyday ‡ Everyday was launched in 1986 now have a market share of around 22%. ‡ Expand the market or increase the usage situations . ‡ Adding more nutrients . The category is facing the major obstacle of consumer perception towards this category. ‡ While Everyday faces stiff competition from Amul's Amulya and Britannia's Milkman. milk powders were able to penetrate only 4.

.‡ It wants to give GCMMF competition across the entire dairy line. which will now be produced from a spanking new 8. Nestlé Cerelac Stage 4 and Nestlé Nan with DHA (both infant foods) were also launched. Nestle SA's investments (global expenditure was Rs 6.000 tonne a year facility at Mehsana. ‡ Nestle India has access to its Switzerland-based parent. Nestle Nesvita (fat free with probiotics. against the impending price-led onslaught from GCMMF's Amul Infant Milk Substitute and Mithai Mate. Will be busy protecting the dominance of its Cerelac and Milkmaid brands. for healthy digestion).500 crore in 2007) in research and development and advanced technology for foods and beverages ‡ Likewise. Nestle Milkmaid Fruit Yoghurt (fat free with real fruits). Nestle Fresh µN' Natural Slim Dahi (fat free).

Cadbury has maintained its undisputed leadership over the years and has market share of over 70% .1 confectionery and third largest soft drinks company in the world. ‡ Currently Cadbury India operates in three sectors viz.‡ Cadbury Schweppes is the No. ‡ In the Chocolate Confectionery business. The company today employs nearly 2000 people across India. Chocolate Confectionery. confectionery and beverages that bring smiles to millions of consumers across 180 countries ‡ Cadbury India began its operations as a trading concern in 1947. Milk Food Drinks and in the Candy category. market and distribute branded chocolates. We manufacture.the highest Cadbury brand share in the world! .

‡ In the Milk Food drinks segment our main product is Bournvita . ‡ Similarly in the medicated candy category Halls is the undisputed leader. ‡ We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.the leading Malted Food Drink (MFD) in the country. .

Gems. It is looking at its strategy afresh to gain a toehold in the sugar confectionery market. . and to reduce its traditional dependence on chocolates. and Bournvita recently.Strategy ‡ Since 1965 Cadbury has pioneered the development of cocoa cultivation which gives it a strong unbending foundation in chocolates segment in India. ‡ It re-launched three brands: 5 Star. ‡ Being the market leader it follows the Defense strategy.

at around 500 ml per capita. ‡ With a growth in sales of nearly 40 per cent in 2006 and with HLL making profits in the category for the second year in succession. ‡ The market potential is huge.200-crore branded ice creams sector is dominated by HLL with 37% market share followed by Amul with 27% market share. mainly under the brand name Walls. with ice cream consumption in the country very niche.‡ Unilever. ‡ The Rs 1. compared with 2-4 litre in Singapore and an eye-popping 25 litre in the US. by now). the company is bullish. is the world's largest ice-cream company selling in more than 80 countries (could be more. the major shareholder in HLL. .

category head. HLL said: ³Our growth will be driven by increasing the availability and offering innovative products at affordable price points. where 60 per cent of the ice-cream market exists. . Ice Creams. ‡ It is also planning to extend Unilever¶s retail brand µKwality Walls Swirls¶ parlors in accordance with the growing number of shopping malls in India. has helped to build the brand well. rationalised manufacturing infrastructure and brought its focus down to six mainline cities only. ‡ The FMCG major's ice-cream business eliminated several stock-keeping units. rather than a product-driven promotion. ‡ Sailesh Venkatesan.Strategy ‡ The strategy of promoting Kwality Walls as an umbrella brand for its ice creams.

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