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Project Report On Amul Company
Submitted in Partial Fulfillment of the Requirements of Bachelor of Business Administration of Guru Gobind Singh Indraprastha University

Submitted to : Mr. P.K Pandey

Submitted by : Rajeshwar Singh Anand

04121401709 Semester - 3

Jagannath International Management School Vasant Kunj, New Delhi – 110070

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S.N o ubject
1. 2. 3. 4. 5. 6. Certificate Preface Acknowledgement Synopsis Introduction

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4 5 6 7 9 9 9 10 11 11 12 12 13 16 16 16 17 17 18 19 19 20 22

Theoretical perspective a. History b. Condition Of Dairy Farmers c. Role Of Sardar Vallabbhai Patel d. Formation of District Co-operative Kaira e. Formation Of GCMMF f. The First Advertising Strategy g. Digital Advertising h. Business Model i. Developing Demand j. Distribution Network k. Umbrella Brand l. Third Party Service Providers m. Co-ordination n. Best Practices Methodology a. b. c. d. Analysis a. Marketing And Advertising Strategy b. Product Scope Strategy c. Different Products Of Amul And its variant d. Product Elimination e. Current Market Share Amul Revolution- impact study The Turnaround Socio-Economic Impact Institution Building

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Findings a. Product Positioning b. Product Repositioning c. Product Overlap

3 d. e. f. g. h. i. 10. Defense Strategy Amul Defending Its Turf Segmentation Targeting Promotion Amul Competitors 34 35 35 36 36 38 41 41 42 42 43 44

S.W.O.T Analysis a. Strength b. Weakness c. Opportunities d. Threat Conclusions Bibliography

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Certificate

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This project titled “Amul Company” is based on an original study conducted by Rajeshwar Singh Anand of BBA III Semester programme and is based on the results carried out by him under my guidance and supervision.

Mr. P.K Pandey (Project Guide)

Preface

The steps they have taken to improve the quality and quantity of their product in accordance with customer satisfaction. I haven’t included any technical term so as to make it easy to understand by the user. Acknowledgement . The report gives an overview of what is all about the Amul company.5 The report is on Amul Company. recommendations and policies that are as well as can be implemented are mentioned. I have tried to cover each and every topic which I found is relevant for the general understanding. their overall products and branches that they have already launched and their future launching of the products. It gives you a brief idea about their production and collection techniques Also at the end. Necessary charts and graphs are also included.

I WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO Mr. P.6 ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.K Pandey FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED ME TO COME UP WITH THIS PROJECT. Rajeshwar Singh Anand Synopsis .

Managing Director. commissioned the Indian Market Research Bure (IMRB) to conduct a consumer . and the subsequent entry of new players. and hence the pressure to make and market more and more processed-milk products. Price was an advantage that Amul enjoyed over its competitors. This flurry of launches helped Amul broaden its appeal across all segments. "We've handled liberalization and globalization far better than our transnational rivals.  According to some analysts.5% which was 10% lower than what competitors offered." Period of diversification  In 1996. all said and done. The new team that took over the management of the GCMMF in the mid-1990s hoped to take advantage of the change.  Amul had to expand the consumption base of milk-based products in India. Said Vyas. Amul's retail commission in Ahmedabad city was 17. Amul seemed to be all set to make steady progress in the coming years with its products having become quite popular in both rural and urban households. And with milk production having increased since the mid 1990s. including cheese. Analysts felt that Amul could price its products low because of the economies of scale it enjoyed. there was a change in lifestyles and the food tastes of people. It planned to make its products (butter and cheese) a part of the regular diet in most households. Being a cooperative. GCMMF.    However. It has made us fitter than ever.7  With the liberalization of the Indian economy in the early 1990s. Amul's obsession with keeping down manpower cost and dealer commissions added to the strength . In ice-creams for example. Amul's products were priced 20-40 % less than those of its competitors. this diversification was probably not entirely demand-driven. B M Vyas. GCMMF was compelled to buy all the milk that was produced in Gujarat. GCMMF had to make use of additional milk. Amul launched its new products with the intention of increasing the offtake of its basic milk products.

Introduction . Amul decided to promote mozzarella cheese. low fat milk. and cheese sandwich segments.8 survey to identify the products consumers wanted from Amul . which was used in pizza. Amul launched branded yoghurt in India for the first time.  In 1999. The SnowCap brand also included tomato sauce and ketchup. Amul entered into the following areas: ice cream. cheese and paneer pakoda. when it test marketed "Masti Dahi" in Ahmedabad first and then introduced it all over the country  In January 2000. Amul launched ice creams after Hindustan Lever acquired Kwality. The product was positioned as a lifestyle as well as functional product. Positioned as the 'Real Ice-cream.  In August 2001. Milkfood and Dollops.  In November 2000.Based on the findings. paneer. cheese. Amul decided to enter the ready-to-eat stuffed paratha. plain. The products were marketed under the SnowCap brand. curd. Amul re-entered the carton milk market with the launch of "Amul Taaza" in Mumbai. Amul Taaza was non-sweetened. The growing demand for mozzarella cheese from pizza making companies like Pizza Hut and Domino's Pizza was expected to give Amul's cheese sale an additional push. cheeseburger. and condensed milk.' Amul Ice cream was one of the few milk-based ice creams in the market.  In 1997.

9  The largest food brand in India and world's Largest Pouched Milk Brand ‘Amul’ is a brand name managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).  2.  With a turnover of INR 67. (GCMMF)  The Gujarat Cooperative Milk Marketing Federation Ltd.  This name has its origin in the Sanskrit word "Amoolya. . Anand (GCMMF) is the largest food products marketing organisation of India and is the apex organization of the Dairy Cooperatives of Gujarat." (meaning Priceless) and was actually suggested by an employee of Gujarat Co-operative Milk Marketing Federation Ltd.11 billion GCMMF has created an economic network that links :  millions of consumers in India and abroad.8 million village milk producers.

Theoritical perspective History • Condition of dairy farmers • Plea of dairy farmers and role of Sardar Vallabh Bhai Patel • Formation of first District Co-operative ‘Kaira’ Formation of ‘GCMMF’ Condition of Dairy farmers  There was exploitation of marginal milk producers by traders or agents of existing dairies in the small town .141 Village Dairy Cooperative Societies (VDCS) at the village level.10  a cooperative system that includes 13.

11 named Anand (in Kaira District of Gujarat) and Polson Dairy .  Other problems faced by dairy farmers in Gujrat. . • So under the leadership of Tribhuvandas Patel dairy farmers approached Sardar Vallabh Bhai Patel for a solution. Role of Sardar Vallabhai patel • Unfair trade practices and minimal returns angered dairy farmers.

.12 Formation Of District Co-operative Kaira • Thus the first District Cooperative was established to collect and process milk in the District of Kaira in 1946. • Milk collection was also decentralized and village level cooperatives were established to organize the marginal milk producers in each of these villages. 1946 • Formation Of ‘GCMMF’ • Later on with the help of Dr. Verghese Kurien and Shri H M Dalaya this revolution spread to most of the districts in Gujrat. The brand Amul was formally registered on December 14th. • Thus GCMMF came into being in the year 1973.

the brand name Amul was with Kaira district dairy cooperative. One of the most conservative FMCG entities — GCMMF — spends a mere 1% of its turnover on promotions. The tag line of “Utterly Butterly Delicious” came out in October of 1967. Entered in the Guinness Book Of World Records for being the longest running campaign ever. .13 • Initially. The first Topical ad came out in 1969 at the beginning of the Hare Rama Hare Krishna movement. Amul butter girl is one of the longest run ad campaigns in the country for 43 years. but later they decided to give it to GCMMF The First Advertising Strategy 1966 sees the creation of the Amul girl by Sylvester daCunha of the ASP Advertising agency as a rival to the Polson . In 1967 the first hoarding was put up in Mumbai with the Amul girl.

14 Digital Advertising Amul Cyber Store Amul in Social Networking Amul Indulges in Second Life marketing – Advergaming Business Model  The father of the White Revolution. Dr. is responsible for the grand success of brand ‘Amul’. . Verghese Kurien and the World Food Prize & the Magsaysay Award winner.

  GCMMF ranked amongst the top ten FMCG firms in the country AMUL rated the second most recognized brand in India amongst all Indian and MNC offerings .15 In a recent survey.

16  Objective :  Deliver profitable and equitable returns to a large number of farmers for a long period of time  Additional objective  Develop the supplier over the long term through social change.  Amul’s Supply chain is one of the most complicated in the world Success depends on .

Limited Purchasing power  Modest consumption levels of milk  Low –cost price strategy  Products affordable & attractive Distribution Network .17 Developing Demand  Consumers.

sale of products through dealers and retail stores. ghee. provision of animal feed. ice-cream and condensed milk  Avoided inter-union conflicts  Opportunity for the union members to cooperate in developing products. and veterinary services –By Third Parties   Co-ordination . Umbrella brand  Common brand for most product categories produced by various unions: liquid milk. cheese.By GCMMF Logistics of milk collection. brand development . milk powders. Third Party Service Providers  Unions' core activity -milk processing and the production of dairy products. sweets. cocoa products. distribution of dairy products. Marketing efforts .18  Dry and cold warehouses to buffer inventory  Transactions on an advance demand draft basic  Just-in-time inventory strategy improves dealers' return on investment (ROI)  All branches -dedicated vehicle operations. butter.

every Friday. and the boards of the unions comprise of farmers elected through village societies  The federation handles the distribution of end products and coordination with retailers and the dealers. Meeting without fail. The unions coordinate the supply side activities.m – to discuss quality concerns . and 11.00 a.19  Large number of organisations and entities in the supply chain  GCMMF and the unions play a major role in achieving control  Interlocking control .The board is drawn from the heads of all the unions. Best practices  Small group activities or quality circles at the federation  TQM program at the unions  Improvement programs across to a large number of members and the implementation rate is consistently high  For example. between 10.m.00 a.

20  Village societies becoming individual improvement centres Methodology Amul Revolution – Impact Study Pre-Amul Era .

By the end of 1948. they had to sell cream and ghee at throwaway prices. and the quantity of milk handled by one Unionincreased from 250 to 5. a British company(Polson) existed and it exploited the farmers The Turnaround • Farmer’s realization that they had to market milk themselves to earn better is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) An assured market proved a great incentive to the milk producers of the district. .  Milk distribution was by private traders.  His income was derived almost entirely from seasonal crops. As milk is perishable. are making the participants . Often.000 liters a day. In this situation. • Socio-Economic Impact • The yearly elections of the management committee and its chairman. by the members. the one who gained was the private trader. more than 400 farmers joined in more village societies. farmers were compelled to sell it for whatever they were offered.21  Over five decades ago. the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India.  Only one company .

Since dairying is a subsidairy occupation for the majority of the rural population. the elite and the ordinary come together to cooperate for a common cause. The rich and the poor. Initiated “Mahila Pashupalan Talim Karyakram” for women resource persons of the member unions.and thereby the exodus from the rural areas has been arrested to a great extent. who are the major participants. More than 900 village cooperatives have created jobs for nearly 5000 people in their own villages -. this income is helping these people not only to liberate themselves from the stronghold of poverty but also to elevate their social status. now have a say in the home economy. women.without disturbing the socio-agro-system -. • Voluntary mix of the various ethnic and social groups for common causes and mutual betterment has resulted in eroding many social inequilibria. • 48 per cent of the income of the rural household in Kaira District is being derived from dairying.22 aware of their rights and educating them about the democratic process. • . • Live exposure to various modern technologies and their application in day-to-day life has not only made them aware of these developments but also made it easier for them to adopt these very processes for their own betterment. • Besides.

salt. fruit and vegetables.It includes both dairy and non-dairy. Banaskantha. • • • Ripple Effects • Anand Pattern extended to other districts in Gujarat Mehsana. . Amul Relief Trust – formed in 2001 by GCMMF under the Chairmanship of Dr. Baroda and Surat where farmers easily adopted Amul’s gameplan.23 • CSR sensitive organizational structure – the 3 tier model from village societies to state cooperatives ensures accumulation of human capital which in itself leads to development of society and the economy. The Trust reconstructed 6 schools damaged by the 2001 earthquake at a cost of Rs. Kurien. Institution Building • The National Dairy Development Board (NDDB) was created in 1965.1 millions in Kutch area. and tree sectors also benefited from it's success. fulfilling the desire of the late Lal Bahadur Shastri . V.to extend the success of the Kaira Cooperative Milk Producers' Union (Amul) to other parts of India. Sabarkantha. • The Himalayan Cooperative Milk Producers’ Union Limited (HIMUL) was formed at the foot of the Himalayas in West Bengal in 1973 on the same lines as Amul. • At a later stage oilseeds. 41.

Anand (IRMA). Bidaj. Anand. Mother Diary. Animal Breeding Centre (ABC). Institute of Rural Management. • To promote the development of cooperatives NDDB has set up separate units and works in close association with a number of national level institutions Sabarmati Ashram Gaushala (SAG). • 96000 cooperatives have been integrated by this to date. Salon. Analysis Marketing and Advertising Strategies 1)Quality . Anand. Verghese Kurien and Dr. • Institute Of Rural Management formed in 1979 with Swiss Agency for Development Coordination and Govt of Gujarat to develop people through management education. Amrita Patel is the current Chairman of the National Dairy Development Board. Anand and Foundation for Ecological Security (FES). Delhi.24 • Founded by Dr. National Cooperative Dairy Federation of India (NCDFI).

4)Service . bacteriological & organoleptic standard –main essence. • 3)Availability  Brand available when and where customers want. 2)Value for money • Customers get more than what they pay. Keep price fair & do best to ensure that retailers don’t gain at the expense of customer.25 • No brand can survive long if it’s quality is not equal or exceed customer expectations.  Amul has nation’s finest distribution network. taste. • Incase of food product hygienic.

26  Committed to total quality. Product Scope Strategy “Perspective of the product mix of a company” Different products of Amul and its variants Bread spreads .

27  Amul Butter  Amul Lite Low Fat Bread spread  Amul Cooking Butter  Delicious Margarine Pure Ghee Sweets  Amul Shrikhand & Amrakhand  Amul Mithaee Khoya Gulabjamaun  Amul Basundi Milk Powders  Amul Full Cream Milk Powder  Amulya Dairy Whitener  Sagar Skimmed Milk Powder  Sagar Tea and Coffee Whitener Sweetened Condensed Milk  Amul Mithaimate Fresh Milk     Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat .

28  Amul Saathi Skimmed Milk 0% fat  Amul Cow Milk Curd Products  Yogi Sweetened Flavoured Dahi (Dessert)  Amul Masti Dahi (fresh curd)  Amul Lite Dahi  Amul Prolife probiotic Dahi  Amul Masti Spiced Butter Milk  Amul Lassee Chocolate & Confectionery     Amul Amul Amul Amul Fruit & Nut Chocolate Bindazz Rejoice kesar Brown Beverage  Nutramul Malted Milk Food Amul Ice creams  Vanilla Royale .

Roasted Almond)  Nature's Treat (Alphanso Mango. Sundae Magic. Kesar Pista Royale.29  Royal Treat Range (Butterscotch. Dollies. Fresh Pineapple)  Sundae Range (Mango. Black Currant. Fruit Bonanza. Black Currant. Santra Mantra. Chocochips. Cassatta)  Utterly Delicious (Vanila. Strawberry. Fresh Litchi. Chocolate. Fresh Strawberry. Cake Magic) Milk Drink . Malai Kulfi)  Nut-o-Mania Range (Kaju Draksh. Rajbhog. Ice Candies. Megabite. Frostik. Chococrunch. Shahi Anjir. Tricone. Double Sundae)  Assorted Treat (Chocobar.

Cardamom. Rose. Butterscotch)  Amul Kool Cafe  Amul Kool Koko Health Beverage  Amul Shakti White Milk Food Product Elimination Product reaches the stage where continued support is no longer justified where performance is falling short of expectations. Chocolate. Saffron. Strawberry. Current Market Share . “ It eliminated “JALDHARA” a decade ago as Bottled water product do not have potential customers”.30  Amul Kool Flavoured Milk (Mango. it is desirable to pull the product out of the market place.

31 100 90 80 70 60 50 40 30 20 10 0 AM ULYA AM UL BUTTER CHEESE SPREAD M OZARELLA OTHERS M ARKET SHARE Findings Product Positioning .

 Low Priced Amul Ice Creams made Kwality Walls life hell.32 Placing a product in that part of the market where it will receive a favorable reception compared to competing products. 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 –  India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics. .  A mass market player.

Age Wise. 2007  Amul in Multinational Arena With Snack Launch: “Munch Time”...33 Flank Attack. Mint and Tomato . Nov 11.  This is targeted at teenagers and youths. Flavors: Masala . Aug 25 2007  Amul launches Chocolate milk under brand name of ‘Amul Kool Koko’.

Nov 26. Current market share 65%. Product Repositioning  New Competition  Change in consumer preference  Wrong original positioning  Amul marketed bottled water product named “JALDHARA” but due to less .34 New Product Activity. 2007  Amul Launches “Fresh Paneer” (Free From Any Harmful Chemicals) Flank Attack—Expanding its Cheese Segment.

 Powdered Milk  Health and price Conscious  Cheese Spreads  Specific Vs General “Amul Processed Cheese Vs Cheese Spread” USP: Cheese spread is highly accepted spread for regular use.35  potential in the market it turned out to be blunder. Now Amul is all set to launch bottled water “NARMADA NEER”. . Product Overlap Situation where company decides to compete against its own brands.

36  Milk Drinks “Nutramul Energy Drink Vs Amul Kool” Defense Strategy  Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages. all available under the Amul brand)  A sound strategy likely to work. .

beverages etc. it is natural for a customer to try more products  Improving socio-economic condition of the customer anchors the desire to enhance lifestyle Amul defending its turf  Largest milk brand in Asia marketing more than 30 different brands of dairy products like cheese.37  Being exposed to a brand. Vijay. Milma and other cooperative milk brands  Aggressive moves against FMCG and F&B brands like Britannia. Nestle and Mother Dairy among others. ready-to-eat pizza.  Amul is the market leader in ghee and butter  Amul Kool and Kool Café doing well  Defending against names like Mahananda. condensed milk. Segmentation . ice-cream.

butter and cheese. High profile locations: Amul parlors are today present on campuses of Infosys. cheese spread and mozzarella cheese. . then butter. margarine. various culinary applications . eg. Targeting  Changing retail environment  Striking out on its own. “In India. cheese. there are now 400 Amul parlors across the country. For example. with Amul Outlets or parlors to deliver consumers total brand experience  Launched in 2002.  Segmentation is not as easy in curd and low fat products. ghee.38  Wide range of product categories caters to consumers across all market segments. which contributed 3% to the brand’s total turnover last year. as it has a cool imagery associated with it. low fat butter. Amul Kool is targeted at children. while teenagers prefer Kool Café. due to mixed audiences. the most used spread is ghee.

 After ice-creams were launched in 1996. in order to improve availability of the product and make it affordable. . IIT-B. IIM-A. Metro rail and railway stations in Gujarat. Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%). Promotion  Given this wide product portfolio. Amul’s approach is to promote its brands in a rotational cycle of two to three years. Temples. The focus shifted to cheese in 2001.39 Wipro. Nutramul and Kool Kafe in 2006 and Amul Koko — cold chocolate drink in 2007  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. the category was re-visited in 1999.

000 retail outlets.40  Below-the-line activity has grown too — such as the Amul food festival. which has been held for the last four year between October and December in about 50.  The Chef Of India promo invites hotel chefs to come up with recipes using as many Amul products as possible. Amul Competitors Butter  Britannia  Nestle Cheese  Britannia Baby Food  Nestle  Heinz . and is conducted at city. state and national level.

41 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 .

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

43 SWOT Analysis In this part we are going to analyses the strength. threats and opportunity of the PepsiCo Strength • • • • • • Demand profile Flexibility of product mix Technical manpower Trust enjoyed by its products Strong cooperative organization Introduced TQM Weakness • Logistics of procurement • Competition . weakness.

the un-organized sector • Strong competition from MNCs .44 • Short self life of its products • Completely dependent on villages for its raw material • Salaries offered is less compared to competitors Opportunities • • • • • Value addition Export potential Used internet to sell its products Introduced hybrid products in the market Exploring foreign markets Threat • Milk vendors.

ethnic sweets. curd. Rs.  Amul will create fresh avenues for growth by tapping the rising demand for new value-added products. This would include multi-fold capacity expansion for major product categories including milk powders. 9600 crores. Ice-cream. Special emphasis will be given to strengthening their presence in the large market for liquid milk.45 • Competition from private dairies and local milk suppliers • The yield of Indian cattle still much lower than other dairy countries Conclusion  Amul envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. . in metropolitan cities. paneer. Milk production in milk shed area will increase to 231 lakh kg per day (23.  Plan to double to processing capacity of dairy plants to 20. 27000 crores by the year 2020. by 2020.1 million kg per day). ghee and other dairy products. This will be a three-fold increase over its current group turnover of approx.7 million kg per day. at an annual growth rate of 4%. cheese.

) www.yahoo.com 2.com 4.msn.) www.) .youtube.com 3.) The Economic Times 1.google.) www.com 5.46 BiblioGraphy List of published sources consulted during the course of the project :www.

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