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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 makers- Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Fresh plans of fooding the markets of Japan and Sri Lanka. Dr. Veghese Kurien, Former chairmans of the GEMMF the man behind the success of Amul. On 10 Aug 2006, Parthi Bhatol was elected chairmen of GCMMF. Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggest food brand. Range of products includes milk, ghee, milk powders, curd, ice cream, paneer, cream, chocolate, cheese, butter, and shrikhand. The various brands of Amul's bread spreads are Amul Lite, Amul Butter, and Delicious Table Margarine. The Brand Amul's milk drinks are sold under various names such as Amul Kool, Amul Kool Cafe, Kool Koko, Amul Kool Chocolate Milk, and Amul Masti Spiced Buttermilk. Amul Ice Cream was launched on 10th March 1996 in Gujarat. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. Combated competition like Walls, Mother Dairy and achieved the No 1 position in the country.
This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor. In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious. 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. Being exposed to a brand, it is natural for a customer to try more products.
Improving socio-economic condition of the customer anchors the desire to enhance lifestyle.
PRODUCTS OF AMUL: Amul Cheese: Variants: Amul Pasteurized Processed Cheddar Cheese. Amul Processed Cheese Spread. Amul Pizza (Mozzarellas) Cheese.
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. 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. 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). The maximum retail price for Amul's Mozzarella cheese is now Rs 48 per 250 gm, while its processed cheese slices sell at Rs 43 per 200 gm. ``the pizza route would promote sales of an otherwise premium product as cheese,'' they pointed out. Amul aimed to do to pizza what it has already done for ice cream. They wanted pizzas to become a mass consumption item like kulcha chola or chole bhature. And done in the case of ice cream, they intended to force other pizza manufacturers to also slash prices. Eventually, this would further expand the market for cheese. Total Quality Management: Quality: “Quality is defined as the totality of characteristics & features of a product or process which facilitates realization of given requirements.” MEANING OF TQM: -
TQM is an approach to improve the effectiveness & flexibility of business as a whole. TQM is way of organizing by involving everyone.
Amul’s Total Quality Management: For the last five years, we at GCMMF, our twelve member dairies, their 10,000 village cooperative societies and our 3,500 dealers have pursued excellence through "Total Quality Management". This has radically improved our approach to change, essential in our rapidly changing market environment. A unique feature of our TQM Approach is our process of policy deployment known as Hoshin Kanri. This involves strategy formulation and implementation, involving every member of the value chain. We are equally proud of the "Amul Quality Circle" involving our dealers across the country that provide us a dynamic forum for change management in markets. KAIZEN: Kaizen at union have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-discipline teams, kaizens are highly focused Projects, Reliant, on a structured approach based on data gathering and analysis.) For Example: Saber unions records show a reduction from 2.0% to 0.5 in the amount of sour milk/ curd received at the Union.
SALES: During the year, your Federation's sales remained steady at Rs.2218.52 crore including consignment sales of Rs. 315.83 crore. In addition, your Federation co-ordinates Rs. 28.8 crore in product sales to the Defense services. Dairy Products turnover registered a growth of 5.1 per cent over the previous year. This year, Amul Butter registered record sales, with Rupee turnover growing by 12.3 percent. The sales value of Amulya has registered impressive growth with an increase of 14.5 percent. Sale of Amul Milk in Gujarat has increased by a spectacular 20.8 percent in value terms. Over the past year, Amul Cheese sales value has increased by 10.5 percent. We substantially increased sales value of Amul Mithai Mate by 33.6 percent, testimony to our commitment to quality. TURNOVER: Amul Turnover of Rs.4, 300 crore (2006-2007) Rs. 10,000 crore mark over the next three years. Four decades to become Rs.2, 000crore entity But, the turnover doubled to over Rs.4, 300crore within 9 years from 1999 to 2007. It is shown by following dia-gram: -(Fig.1)
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
1946 1999 2007 2008 2009 2010
Fig.1 Annual Turnover Diagram Of Amul
DEVELOPING DEMAND: Limited purchasing power, modest consumption levels. Low cost price strategy products. DISTRIBUTION NETWORK: Dry and cold warehouse. Cash transaction throughout the supply chain. JIT (Just In Time) improves dealers ROI (Return On Investment).
THIRD PARTY SERVICE PROVIDERS: Core is milk-processing, production of dairy products. Logistics of milk collection distribution of dairy products, sale pf products through dealers and retail stores. AWARDS: The Food Brand Amul has received various awards such as: In 2003,The Ramakrishna Bajaj National Quality Award. Award International Cio 1000 for Resourcefulness. In 1993, The Rajeev Gandhi National Quality Award. ISO 9000-HACCP certified plants: All Amul Ice Cream plants are ISO 9000-HACCP certified. Amul is in the process of getting ISO 22000 (Improved version) certification for all its plants. No. 1 in Quality: Amul is ranked No.1 ice cream in quality by “INSIGHT” (May-June, 2002), a bimonthly consumer magazine published by Consumer Research and Education Society (CERS) based at Ahmedabad. Best Value for Money brand: Voluntary Organization in Interest of Consumer Education (VOICE), a consumer organization based in Delhi said in an article published in Deccan Herald, Bangalore edition dated 16.03.04 that Amul provides the best Value For Money as far as price is concerned. They also mentioned the difference between Ice Cream and Frozen Dessert in their article as Amul is using milk fat in ice cream.
COMPETITORS: There are some competitors to Amul such as: -
(1) BUTTER: Britannia. Nestle. (2) CHEESE: Baby Food Nestle. Heinz. (3) DAIRY WHITENER SEGMENT: Nestle. Britannia. (4) ICE-CREAM: HLL. (5) CHOCOLATES AND CONTECTIONARIES: Cadbury. Nestle. COMPARISION: There is comparison between Amul and Britannia. (1) Britannia: BNZFL is a joint venture between Britannia Industries Ltd. and the Fonterra Cooperative Group, New Zealand, a dairy cooperative group.
The company focuses entirely on the dairy business, with cheese being its flagship product. The other products it sells are dairy whiteners, butter, ghee (Indian clarified butter) and a malt drink- Anlene. All products are marketed under the 'Britannia MilkMan' brand. TURNOVER: Its turnover in 2005-06 is US$ 24 million with about 50% coming from processed cheese, 30% from the dairy whitener & the remaining 20% from butter ghee sales. Britannia Cheese: A BNZF only sell in the processed cheese segment and has five variations of processed cheese in the market, besides a cheese dip product. Over half of the company's revenues come form the processed cheese segment. BNZF cheese is priced at a premium in the market, one reason being that the cheese is sourced from cow's milk (unlike Amul, that sources its cheese from buffalo milk). Cheese products: Cheese cubes, Cheese singles (regular and Slim variants), Britannia Milkman Malai Chaska- a soft, fresh and creamy ‘dairy spread,’ which has a mild, tangy taste, Britannia cheese spread in different flavors like Masala Herbs, Spicy Cilantro, Peppy Pepper etc., and Pizza cheese
Other Products: Britannia Flavored Milk in tetrapaks are popular. Other products in the milk range include products like Sweet Lassie (buttermilk) and Cold Coffee in 200 ml tetrapaks.
The Lassie is priced at Rs. 10 while the Cold Coffee is priced at Rs. 12. The firm has also entered the fresh pasteurized milk market, dominated by Government-owned milk marketers. The firm has started supplying dresh paneer (cottage cheese) in and around Delhi, the national capital. The firm also has in its portfolio Daily Fresh Dahi (curd) and has just launched Low fat Dahi in 2008. STRATEGY: In 2001 Besides focusing on competitive pricing, BNZF has adopted a three-pronged strategy of freshness (lower pipeline stock), availability (improve distribution network) and visibility (more shelf space at modern trade). It recently entered some fresh milk markets, such as Delhi and Kolkata, where GCMMF does not have a presence. It is concentrating on just 30 cities, and that too through select class A & B outlets, for butter and cheese. It is not playing the national game with GCMMF. Being No. 2 in 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. (2) NESTLE: -
Nestlé India is a subsidiary of Nestle S.A., world's biggest food company and a leading Swiss giant. Nestle India's business can be broadly classified into four categories ---milk products and nutrition (infant mixes, yoghurt, milk), prepared dishes and cooking aids, beverages (coffee and malted drinks) and chocolate and confectionary. Company has a wide presence across India with its portfolio of strong brands Nescafe, Maggi, Milkybar,Milo,KitKat,Barone,Polo,Munch,Milkmade,Nestea,Nestle Milk, Nestle Fresh 'n' Natural Dahi. The company is focused on growing its market share through renovation and innovation of its existing brands in India. Nestle Dairy whitener: The loose milk market is estimated to be around Rs470 billion, the processed milk market is only Rs 10000 crores. Milk powder market is only 7% of the whole milk market. There are two types of milk powdersa:(1) (2) Whole milk powderb. Skimmed milk powder.
Everyday is a major player in the Dairy whitener category that is a part of the skimmed milk category. The dairy whiteners are used for tea making.
Nestle Everyday: Nestle Everyday was launched in 1986 now have a market share of around 22%. The category is facing the major obstacle of consumer perception towards this category. The consumers perceive that loose milk is fresh. And with abundant milk supply, milk powders were able to penetrate only 4.7% of the entire market. While Everyday faces stiff competition from Amul's Amulya and Britannia's Milkman, the major competition is from the ordinary milk. STRATEGY: It wants to give GCMMF competition across the entire dairy line will be busy protecting the dominance of its Cerelac and Milkmaid brands, against the impending price-led onslaught from GCMMF's Amul Infant Milk Substitute and Mithai Mate, which will now be produced from a spanking new 8,000 tonne a year facility at Mehsana. Nestle India has access to its Switzerland-based parent, Nestle SA's investments (global expenditure was Rs 6,500 crore in 2007) in research and development and advanced technology for foods and beverages. Likewise, Nestle Fresh ‘N' Natural Slim Dahi (fat free), Nestle Milkmaid Fruit Yoghurt (fat free with real fruits), Nestle Nesvita (fat free with probiotics, for healthy digestion), Nestlé Cerelac Stage 4 and Nestlé Nan with DHA (both infant foods) were also launched.
For the Consumer, Amul simply means 'Value For Money'
and Quality as it should be. Amul symbolizes our farmers' determination to manage their own resources. Amul is India's first food brand to have a dedicated website: www.amul.com. Finally, I have to say thanks to Prof. Aarti Sharma to give this Opportunity.
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