CHAPTER 1 INTRODUCTION

Diversification is a form of corporate strategy for company. It seeks increase
profitability through grater sales volume obtained from new product and
new market. Diversification can occur either at business unit level or at the
corporate level. At the business unit level it is most likely to expand into a
new segment of an industry that the business is already in. At the corporate
level it is generally very interesting entering a promising business outside of
the scope of the existing business unit.
Diversification strategy
Diversification is a company strategy wherein a company tries to increase
profitability through increased sales volume from new product and new
market. In laymen’s term diversification means venturing out into new
business new products or new market to increase profits. It is the form of
growth strategy involving a significant increase in the performance
objectives beyond past performance records, Diversification allows a
company to venture out in to new lines of business that are different from
the present operations. Companies employ different diversification strategies
to expand firms operations by adding market, products, service or stages of
production to the existing business.
Diversification in the form of growth strategy is viewed by many investors
as “Bigger the better” Higher sales volume is seen s a measure of
performance irrespective of profits margins increase in sales is always
welcomed. People often assume that if the sales increase the profits will
follow suit.

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The concentric diversification is a strategy where a company adds a related
product or market to achieve a strategic fits. This allows the company to
achieve synergy making it possible for two or more parts of an organization
o achieve greater total effectiveness or profitability that what would have
been possible for single entity. This strategy may be employed to attain
financial synergy to let companies with stronger financial backing but
limited growth opportunities work with company that may not be financially
strong
But is having greater market potentials. Another advantage of this strategy is
that it opens ways to achieve management synergy, where management
experience and expertise it applied to different situations.
A conglomerate divecification takes place when a company diversifies into
business or markets that are not related to their present business or market
operations.Unde this Solution strategy may be achieved by combining
management expertise and financial resources, while the main objectives of
conglomerate diversification is to improves the profitability of the parent
company and to make little of no efforts in trying to achieve marketing or
production synergy.
Diversification Efforts may be either internal or external depending upon the
objectives of the company, internal diversification is a situation where a
company ventures in to a different but related bossiness line. It involves
increasing in the company product or market base. The external
diversification on the other hand is used to achieve similar results with a
difference that the line of business is drastically different and not related or
unrelated business line.
2

Expansion through Diversification
Diversification is a much used and much talked about set of strategies it
involves a substantial change in the business definition – single or jointly in
terms of customer groups or alternately technologies of one or ore of a firms
business

there

are

two

categories

Concentric

and

conglomerate

Diversification.
Concentric Diversification:
When an organization takes up an activity in such a manner that is related to
the existing business definition of one or more of firms businesses either in
terms of group, customers functions or alternative technologies it is called
concentric diversification. Concentric diversification may be of three types:
Marketing related concentric diversification: when a similar types of product
is offered with a help of unrelated technology for e.g. a company in the
sewing machine business diversifies in to kitchen ware and household
appliances, which are sold to house wives through a chain of retail stores.
Technology related concentric diversification: when a new type of product
or service is provided with the help of related technology for e.g. a leasing
firm offering hire-purchase service to institutional customers also starts
consumers financing for purchase of durable not individual customers.
Marketing technology related concentric diversification: when a similar
types of product is provided with the help of related technology for e.g. a
rain coat manufacturer Makes other rubber based items, such as water proof
shoes and rubber gloves sold through the same retails outlets.

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Conglomerate diversification: when an organization adopts a strategy which
require taking of those activities which are related to the existing business
definition of one or more of its business either in tern of their respective
customers group, customer functions or alternative technologies.
Goal of Diversification:
According to caloric and harvatopoulos (1988), there are two dimension of
rational for diversification. The first one relates to the nature of the strategic
objectives: Diversification may be defensive or offensive.
Defensive reasons may be spreading the risk of market contraction or being
forced to diversify when current product product or current market
orientation seems to provide
No further opportunities for growth. Offensive reasons may be conquering
new positions, taking opportunities that promise grater profitability than
expression opportunities or using retained cash that exceeds total expansion
needs.
The second dimension involves the expects of diversification:
Management may exact great economic value (growth, profitability) or first
and foremost great coherence and complementary to their current activates
(exploitation of know-how, more efficient use of available resources and
capacities).In addition, companies may also explore diversification just to
get a valuable comparison between this strategy and expansion.

4

RISKS
Diversification is the riskiest of strategies and requires the most careful
investigation. going into an unknown market with an unfamiliar product
offering means a lack of experience in new skills and techniques required
therefore therefore the company puts itself in a great uncertainity.Moreover
diversification might necessitates significant expanding to human and
financial resources which may distract focus, commitment and sustained
investment in the core industries.threfore a firm should choose this option
only when the current product or current market orientation does but offer
further opportunities for growth. In order to measure the chances of success
different tests can be done.

 The attractiveness test: the industry that has been chosen has to be
either attractiveness or capable of being made attractive.
 The cost-of-entry: the cost of entry must not capitalize all future
profits.
 The better-off test: the unit must either gain competitive advantage
from its link with the corporation or vice versa.

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) 750 employees of Marketing Arm.1 billion (2013–14. Revenue Employees US$3. Gujarat. ready made food items. meaning 6 . Website www. Anand. Ice-creams. India.amul. operative Milk Marketing Federation Ltd. 1946.CHAPTER : 2 AMUL PROFILE Type Founded Headquarters Gujarat Co- Cooperative Industry Dairy/FMCG. Products Amul milk. based at Anand in the state of Gujarat. India Key people Chairman. The word amul is derived from the Sanskrit word amulya.com. However. (GCMMF) . Amul is an Indian dairy cooperative. real pool consists of 3 million milk producer members.

Mission Dairy cooperatives of Gujarat turnover of Rs. founder-chairman of the GCMMF for more than 30 years (1973–2006).invaluable. which made the country the world's largest producer of milk and milk products. which today is jointly owned by 3 million milk producers in Gujarat. (GCMMF). The co-operative is sometimes referred to as Anand Milk Union Limited. In the process Amul became the largest food brand in India and has ventured into markets overseas. Dr Verghese Kurien. is credited with the success of Amul. the Gujarat Co-operative Milk Marketing Federation Ltd. Vision Liberate our farmers from economic oppression and lead them to prosperity. 7 . Amul spurred India's White Revolution. it is a brand managed by a cooperative body. Formed in 1946. 27000 crores by the year 2020.

Paneer.Gujarat Cooperative Milk Marketing Federation Ltd.54 billion. Its success has not only been emulated in India but serves as a model for rest of the World. GCMMF 8 . Pizza cheese. Japan. 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. and 3. It is exclusive marketing organization of 'Amul' and 'Sagar' branded products. milk powder. and traditional Indian sweets. Its daily milk procurement is approx 13 million lit per day from 16914 village milk cooperative societies. one of the largest such networks in India. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. chocolates. Many of our products are available in USA. Ice-cream. Singapore. butter. The Philippines. ghee. Its product range comprises milk. is India's largest food product marketing organization with annual turnover (2012-13) US$ 2. health beverages.18 million milk producer members. etc GCMMF is India's largest exporter of Dairy Products. It operates through 48 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers. Gulf Countries. popularly known as 'AMUL'. For the year 2009-10. cheese. (GCMMF). It is the Apex organization of the Dairy Cooperatives of Gujarat. China and Australia. It has been accorded a "Trading House" status. 17 member unions covering 24 districts.

In 2003. To live. it was awarded the The IMC Ramkrishna Bajaj National Quality Award .An Overview Year of Establishment 1973 17 District Cooperative Milk Producers' Unions Members (16 Members & 1 Nominal Members) No. GCMMF .2003 for adopting noteworthy quality management practices for logistics and procurement. It has given farmers the courage to dream. but also a movement.8 Million litres per day 4. the representation of the economic freedom of farmers.18 Million No. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. customer focus and dependability. To hope. of Producer Members 3. It is in one way. For its consistent adherence to quality. of Village Societies Total Milk handling capacity per day Milk Collection (Total 2012-13) 16. GCMMF is the first and only Indian organization to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.has been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA. GCMMF has received numerous awards and accolades over the years.914 16. The Amul brand is not only a product. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World.66 billion litres 9 .

.Surendranagar District Cooperative Milk Producers' Union Ltd.54 Billion) CRISIL Rating for GCMMF Our Member Unions 1. Surat District Cooperative Milk Producers' Union Ltd. Amreli 15. Surendranag 14. 10 .Rajkot District Cooperative Milk Producers' Union Ltd. Bharuch 10. Godhra 8. Surat 6.7 million litres 5890 Mts.Amreli District Cooperative Milk Producers Union Ltd. Kaira District Cooperative Milk Producers' Union Ltd.Bhavnagar District Cooperative Milk Producers Union Ltd. Rajkot 12. Anand 2... Valsad District Cooperative Milk Producers' Union Ltd.Gandhinagar District Cooperative Milk Producers' Union Ltd. Mehsana District Cooperative Milk Producers' Union Ltd...Kutch District Cooperative Milk Producers' Union Ltd..Milk collection (Daily Average 2012-13) Cattlefeed manufacturing Capacity 12... Palanpur 5.. Anjar 15. Sabarkantha District Cooperative Milk Producers' Union Ltd.. Himatnagar 4. Baroda District Cooperative Milk Producers' Union Ltd.. Gandhinagar 13. Ahmedabad District Cooperative Milk Producers' Union Ltd. 13735 Crores (US $ 2. Ahmedabad 11. Mehsana 3.. per day Sales Turnover -(2012-13) Rs. Bhavnagar 16. Bharuch District Cooperative Milk Producers' Union Ltd... Valsad 9. Vadodara 7. Banaskantha District Cooperative Milk Producers' Union Ltd.. Panchmahal District Cooperative Milk Producers' Union Ltd.

Amul Emmental Cheese. Amul Gouda Cheese. Amul Lite. Delicious Table Margarine Amul Pasteurized Processed Cheddar Cheese. Amul Processed Cheese Spread.Sales Rs US $ Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 116680 137350 million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172 2500 2540 (in The Product Range Breadspreads Cheese Range Amul Butter. Amul Pizza (Mozarella) Cheese. Utterly Delicious 11 . Amul Malai Paneer (cottage cheese).

Sagar Pure Ghee Sweetened Amul Mithaimate Condensed Milk Mithaee Range Amul Shrikhand. Confectionery Amul Chocozoo. Amul Bindass. Amul Masti Spiced Curd Products Butter Milk.Pizza Amul Gold Full Cream Milk 6% fat. Amul Flaavyo Yoghurt Pure Ghee Amul Pure Ghee..Amul Kool Millk Shaake. Amul Kool Chocolate Milk. Amul Fundoo The Birth of Amul  It all began when milk became a symbol of protest 12 . Amul Fresh Cream Amul Full Cream Milk Powder.sugarfree and probiotic Chocolate & Amul Milk Chocolate.5% fat Milk. Amul (Ethnic Sweets) Basundi. Amul Mithaee Gulabjamuns. Sagar Tea and Coffee Whitener Amul Kool Flavoured Milk. Amulspray Infant Milk Food. probiotic. Sagar Skimmed Milk Powder.Amul Lassee. Amul Fruit & Nut Chocolate.5% Fat. Amul Shakti Fresh Milk Standardized Milk 4. UHT Milk Range Amul Taaza 1.5% fat Milk. Amul Milk Drink Kool Koko. Amul Taaza Toned Milk 3% fat. Amul Kool Cafe.Amul Slim & Trim. Amulya Dairy Milk Powders Whitener. Amul Cow Milk Amul Gold 4. Amul Shakti 3% fat Milk. Amul Lite Slim-n-Trim Milk.Nutramul Energy Drink Health Drink Stamina Instant Energy Drink Brown Beverage Nutramul Malted Milk Food Amul Masti Dahi (fresh curd).Avsar Ladoos Ice-cream Sundae Range.

 Founded in 1946 to stop the exploitation by middlemen  Inspired by the freedom movement The seeds of this unusual saga were sown more than 65 years back in Anand. The then Prime Minister of India. Under the inspiration of Sardar Patel. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. This co-operative. the farmers of this area went on a milk strike refusing to be cowed down by the cartel. He understood that the success of Amul could be attributed to four important factors. Angered by unfair and manipulative practices followed by the trade. the founder Chairman and the committed professionalism of Dr Verghese Kurien. a small town in the state of Gujarat in western India. they formed their own cooperative in 1946. their elected representatives managed 13 . began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. which would have procurement. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel. the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. In 1946. who was entrusted the task of running the dairy from 1950. the Kaira District Co-operative Milk Producers Union Ltd. processing and marketing under their control. and the guidance of leaders like Morarji Desai and Tribhuvandas Patel. Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. The farmers owned the dairy. He advised them to get rid of middlemen and form their own co-operative.

Most importantly.the village societies and the district union. Their income from milch buffaloes was undependable. History Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere else in India. A they employed professionals to operate the dairy and manage its business. Many poor farmers faced starvation during off-seasons. the cooperatives were sensitive to the needs of farmers and responsive to their demands. farmers were compelled to sell their milk for whatever they were offered. The milk marketing system was controlled by contractors and middlemen. 14 . His income was derived almost entirely from seasonal crops. At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. As milk is perishable. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country. Often they had to sell cream and ghee at a throwaway price. Dr.

This became more noticeable when the Government of Bombay started the Bombay Milk Scheme in 1945. Sardar Patel pointed out that in undertaking such a strike there should be some losses to the farmers as they would not be able to sell their milk for 15 . Milk had to be transported 427 kilometers. The discontent of the farmers grew. The Government found it profitable. His advice was that the farmers should demand permission to set up such a co-operative. If their demand was rejected. No one had taken the trouble to fix the price of milk to be paid to the producers. The arrangement was highly satisfactory to all concerned – except the farmers. they should refuse to sell their milk to middlemen. Thus under the Bombay Milk Scheme the farmers of Kaira District were no better off ever before. Milk contractors took the biggest cut. This could be done only if milk was pasteurized in Anand. Polsons kept a good margin.They were in general illiterate. After preliminary trials. But they could see that the system under which contractors could buy their produce at a low price and arrange to sell it at huge profits was just not fair. They were still at the mercy of milk contractors. who had advocated farmers’ cooperatives as early as 1942 Sardar Patel reiterated his advice that they should market their milk through a co-operative society of their own. They went in deputation to Sardar Patel. the Government of Bombay entered into an agreement with Polsons Limited to supply milk from Anand to Bombay on a regular basis. They had to sell their milk at a price the contractors fixed. This co-operative should have its own pasteurization plant. from Anand to Bombay.

1946. Sardar then sent his trusted deputy. Morarjibhai Desai. Not a drop of milk was sold to the milk merchants. No milk reached Bombay from Anand. The Union began pasteurizing milk in June 1948. an Englishman. The Government should undertake to buy milk from the Union.some time. If this wasn’t done. Mr. and the 16 . It was resolved that milk producers’ co-operative societies should be organized in each village of Kaira District to collect milk from their member-farmers. After 15 days the milk commissioner of Bombay. All the milk societies would federate into a Union which would own milk processing facilities. This marked the beginning of the Kaira District Co-operative Milk Producers’ Union Limited. The Government turned down the demand. Desai held a meeting in Samarkha village on January 4. and his deputy visited Anand. By the end of 1948. If they were prepared to put up with the loss. Its objective was to provide proper marketing facilities for the milk producers of the district. 432 farmers had joined village societies. It lasted 15 days. 1946. for the Bombay Milk Scheme – just a handful of farmers in two village co-operative societies producing about 250 liters a day. It was formally registered on December 14. the farmers would refuse to sell milk to any milk contractor in Kaira District. Anand. to Kaira District to organize milk co-operative – and a milk strike if necessary. The farmers’ deputation readily accepted his proposal. An assured market proved a great incentive to the milk producers in the district. Mr. assessed the situation and accepted the farmers’ demand. The farmers called a ‘milk strike’. and the Bombay Milk Scheme almost collapsed. he was prepared to lead them.

O. it was found that the Bombay Milk Scheme could not absorb the extra milk collected by the Union in winter. as the cooperative movement spread in the district. The new dairy provided a further fillip to the co-operative movement among milk producers. 1955. For example. Technical aid was provided by F.A. 1954. The word “Amul” is derived from Sanskrit word ‘Amulya’ 17 . Rajendra Prasad on November 15. the then Prime Minister of India. rapid growth brought in its wake serious problems. Its foundation stone was laid by the then President of India the late Dr. A Rs. This event also brought a breakthrough in dairy technology as the products were made processing buffalo milk for the first time in the world.5 times their summer yield. Kaira Union introduced the brand “Amul” for marketing its product range. The logic of this step was readily accepted by the Government of Bombay and the Government of India.quantity of milk handled by the Union had increased to 5000 liters a day.50 – lakh factory to process milk powder and butter was blueprinted. Their solution provided the stimulus for further growth. The only remedy was to set up a plant to process the extra milk into products like butter and milk powder. In the early stages. declared it open. when buffaloes yielded an average of 2. The union was thus enabled to organize more village co-operative societies and to handle more and more milk each year. Thus by 1953. the farmer-members had no regular market for the extra milk produced in winter. on which day the late Pandit Jawaharlal Nehru. The government of India helped the Union to get financial help from UNICEF and assistance from the Government of New Zealand under the Colombo Plan. The project was completed by October 31. except for a few doubting Thomases. They were again forced to sell a large surplus at low rate to middlemen.

1996 The moppet who put Amul on India's breakfast table 50 years after it was first launched. This saw Amul as model and this model is often referred in the history of White Revolution as “Anand Pattern”. the then Prime Minister of India who visited Anand on 31s October for inauguration of Amul’s Cattle Feed Plant. even today. having spent a night with farmers of Kaira and experiencing the success wished and expressed to Mr Kurien.000 tonnes a year in 1997. then the General Manager of Amul that replicating Amul model through out our country will bring a great change in the socio-economic conditions of the people. stands to be the largest dairy development programme ever drawn in the world. Replication of “Anand Pattern” has helped India to emerge as the largest milk producing nation in the world. The Operation Flood programme.which means ‘priceless’ or precious’. In order to bring this dream into reality. In the subsequent years Amul made cheese and baby food on a large commercial scale again processing buffalo milk creating a history in the world. 1965 The National Dairy Development Board (NDDB) was established at Anand and by 1969-70 NDDB came out with the dairy development programme for India popularly known as “Operation Flood” or “White Revolution”. Amul Butter Girl Edited from an article by Mini Varma published in The Asian Age on March 3. No other brand comes even close 18 . Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25. Late Shri Lal Bahadur Shastri. 1964 was the turning point in the history of dairy development programme in India.

chuckled at the Amul hoarding that casts her sometime as the coy. There are other people too. Mrs. winking at you. From her second floor flat she can see her neighbors on the road. shy Madhuri. How often have we stopped. a bold sensuous 19 . "People loved it. She expects the worst but can see no signs of an accident. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). from strategically placed hoardings at many traffic lights. I remember it was our favorite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation. Round eyed.to it." recalls Sheela Mane. Sheela Mane. It is her four-yearold who draws her attention to the hoarding that has come up overnight." Call her the Friday to Friday star. Amul Butter Girl Bombay: Summer of 1967. looked. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. a 28year-old housewife is out in the balcony drying clothes. chubby cheeked. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. "It was the first Amul hoarding that was put up in Mumbai. A Charni Road flat.

everyday fun. last year. They don't pander to your nationality or certain sentiments. From the Sixties to the Nineties. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease a laughter out of them. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humors is what anybody would enjoy. the Amul ads have come a long way. It is pure and simple. The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. 20 . dressed in her little polka dotted dress and a red and white bow. holding out her favorites packet of butter.Urmila or simply as herself.

Ghee Available in (Segments/Markets) Gujarat.  It is pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers. Kanpur. Lucknow. Pushkar. Meerut. Kolkata. Aligarh. Buttermilk. Sweets. Nasik 21 . Khoa. Jaipur.CHAPTER 3 : AMUL . Udaipur. Bhopal. Pune. Delhi & NCR. Pali . Allahabad. Nagpur. Ajmer. Making of : Tea or Coffee. Agra. Curd. Mumbai. Asansol.DIVERSIFIED PORTFOLIO AMUL MILK : Product Features  Amul Milk is the most hygenic liquid milk available in the market. Product Application Direct consumption. Jodhpur. Raipur. Indore.

 Several Generation of Indian consumers have grown up with the taste of Amul Butter for the six decades.  Amul Butter topical is recognized as one of the longest running advertisement campaign in the world.  Utterly Cute Amul Buter Girl has been a part of Indian Consumers since 1950.Amul Butter Product Features  Amul is synonymous with Butter in India. 22 .  Utterly Butterly Delicious taste of Amul Butter is must on breakfast table of almost every Indian Household.

 Topping : Pav Bhaji. Amul Cheese Product Features  Wholesome cheese. Nans. Sandwitches. Cakes. Soups. Available in (Segments/Markets) Amul Butter is available in India as well as other country like UAE / Bahrain / Kuwait/ Oman / Hong Kong / Shi Lanka / USA / Malaysia / Singapore / Qatar/ New ZealandAlso Amul Butter is available in segments like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant segment / Railway and Flight Kitchen etc. Rice. Salads. Dal. Parantha.  Cooking Medium : Butter Paneer Masala. Breads. Dals. 23 . Roti.  Ingredient : Biscuits.Product Application  Spread. Butter Corn Masala and thousands of delightful recipes.  Good source of Calcium and milk Proteins. OnBread.

 The cheese balls are also popular application.  A few dishes which use processed cheese are mashed potatoes. macaroni.etc.Product Application  It is a popular cheese for snacking on its own as chiplets and slices. souffles.  The Cheese makes a delightful pairing with fruits such as apples. pears.  It adds flavor in melted dishes such as soup and sauce recipes. 24 .  Processed cheese can be added to omelettes. Available in (Segments/Markets) In Top Outlets/APOs/MFS across Major cities and Towns in India and some countries abroad as well. au gratins.  Cheese tastes superb between toasted wheat breads along with cucumber and tomato slices. pizza.

Product Application To be taken directly on move (small packs) or at home.  It is an easy to use delicious drink that refreshes you immediately with goodness of milk. picnics etc.mango these flavours is available all over India. (family pack) Taste best when Chilled.  Available in easy to use Glass Bottles . 25 . Available in (Segments/Markets) Amul Kool Rose Eiilachi.Amul Kool Product Features  Amul Kool Rose is refreshing milk with flavor of Rose. parties.

 No Differentiation in Quality Standards of Consumer & Catering/ Institutional Packs  Best Ingredients: Fresh milk. 26 . Real Ice cream): No added vegetable oil. superior fruits & nuts. hence no Frozen Dessert.  Manufacturing Facility: Made in ISO & HACCP certified state of the art plants with stringent hygienic standards to ensure food safety.Amul Ice Cream Product Features  Made from Fresh Milk (Real Milk.

caterers etc. 27 . Amul Flaavyo Product Features  Tasty. restaurants. vending push carts. Oct '07) & SUGAR FREE Probiotic products. hotels. Amul Scooping Parlours. Catering at parties. Healthy and refreshing treat for all age people. Product Application Individual consumption (impulse). etc. canteens. Prolife & SUGAR FREE Probiotic: The first company in India to introduce probiotics in ice cream (IDF Award for Best Nutrimarketing Category. celebration and Recipe preparation for sundaes. retail shops. marriages etc. Take home. shakes.  Contains live probiotic bacteria which helps digestion and improve immunity. Available in (Segments/Markets) More than 800 cities across India at Amul Preferred Outlets.

Strawberry Product Application As a healthy dessert Amul Malai Paneer Product Features  Most convenient form of paneer  Rich in Proteins  Pure and Hygienic  Having high fat and low moisture compared to loose paneer available in market. 28 .  Available in two flavours namely Mango. Contains added real fruit pieces and essential vitamins.

 Dahi is well known for its nutritive values. uniform texture and softness. Dahi Idli. time consuming chore and can cause great embarrassment to the house wife when it is not prepared properly. Dahi BatataPuri. and non-veg." "AMUL MASTI" Dahi:  Making fresh Dahi is cumbersome. dishes. Available in (Segments/Markets) All India Amul Masti Dahi Product Features  Dahi or Curd plays a key role in the Indian diet and in preparation of delicious dishes like Dahi Wada. Kadhi and Muglai Food. creamy and good quality dahi ."Amul Masti Dahi. It is also used to marinate veg.  The answer to making great tasting dishes is fresh. Product Application Culinary preparations. Dahi Raita. Paneer having smooth. Dahi Rice. 29 .  It is ideal meal accompaniment and is delicious as well as nutritious by itself too.

 Amul Masti Dahi is prepared from certified and selected bacterial culture which gives excellent curd. The culture is developed after in depth research. Dahi prepared by local shop owners or at home varies in terms of quality & culture used.e. Amul Masti Dahi doesn't contain any preservatives. freshest pasteurized milk and it is free from added sugar. 30 .e. free from unwanted bacteria.  AMUL Masti Dahi is prepared with selected culture having pro health bacteria.  It is difficult to maintain controlled conditions at Home or at local shop level.  What's more. Superiority of Amul Masti Dahi:  Amul Masti Dahi is prepared from purest.  Amul Dahi is prepared in controlled conditions i. maintaining proper temperatures to grow beneficial bacteria and to avoid growth of harmful bacteria.  Many times the quality of Dahi available from the local market is far from satisfactory and often found to be contaminated as the culture used do not contain 100% beneficial bacteria.  AMUL Masti Dahi is a pasteurized product i.

It improves the body's natural defenses and helps keep the body functioning at its best. 31 . iodine and vitamins. phosphorous. magnesium. enhances immune function of the body and encourages the body to function in the best possible and most natural way. zinc.  Amul Masti Dahi contains all goodness of milk such as proteins. calcium.  Amul Masti Dahi is high on nutrition and taste. skin infections.  Thick.  The live microflora in Amul Masti Dahi helps the digestive system and enhances the immune system's ability to fight harmful organisms. fats. quickens recovery from certain types of diarrhea. Food tastes even more delicious at the snap of your fingers. glossy texture. carbohydrates.  Lactic acid in Amul Masti Dahi is helpful in absorption and utilization of calcium. creamy Amul Masti Dahi has a rich. Amul Masti Dahi is hygienically processed and packed in a reusable plastic tub as well as convenient pouch and thus free from possible adulteration.  Amul Masti Dahi having a probiotic nature contains live bacterial culture which increases milk digestibility.  Amul Masti Dahi is a quality product from the house of "Amul" at affordable price which gives "value for money".

 To marinate veg. Nagpur. Bhopal. Banglore Amul Ghee 32 .Product Application  Direct consumption  Making of :Lassee. Raipur. Pune. Dahi Idli. Dahi Wada. and non-veg. Chennai. Jaipur. Udaipur. Dahi Raita. Delhi & NCR. Kadhi and Muglai Food. Jodhpur. Mumbai. dishes Available in (Segments/Markets) Amul Masti Dahi is widely available in: Gujarat. Indore. Western UP. Dahi Rice. Dahi BatataPuri.

Ideal for Cooking.E and K.. nourish the skin and improves complexion  Ghee is good source of energy and provides vitality to human body.  1 spoon a day of Ghee keeps you fit & strong in this fast life where we need to be active & energetic always.  Ghee can be consumed for better digestion  Ghee stimulates muscle movements. Available in (Segments/Markets) Amul Ghee is available in India as well as other country like UAE / Bahrain / Oman / Hong Kong / Sri Lanka / USA / Singapore / Qatar/ Australia / Saudi Arab / Japan /Hong Kong etc. Roti etc. strengthen the sense organ. and rich source of Vitamin A.  Amul Ghee is an ethnic product made by dairies with decades of experience.D.Product Features  Ghee is very healthy for our Body.Amul Ghee is available in 33 . Product Application Spread : Parantha.. Garnishing and Making Sweets.  Amul Ghee is made from fresh cream and it has typical rich aroma and granular texture.

 It is available in attractive packaging. Coffee. 1 Kg of Amulya provides 8 litres of sweetened toned milk mix. a premium Dairy Whitener from the house of Amul is the favourite choice of all Tea and Coffee lovers across India. Product Application Ideal for preparing Tea. On reconstitution as per directions. Sweets. 34 .segments like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant segment / Railway Parlour. wide range of pack sizes and at affordable prices.  It has the highest milk fat content among all the Dairy Whitener brands in India that makes it the creamiest dairy whitener. Available in (Segments/Markets) All Over India in Normal Trade and Modern Format Stores. Curd. Cakes and Other Milk Based Products. AMULYA Product Features  Amulya.

Proteins.  Nutramul is a Brown Beverage that falls under the Health Food Drink category. Product Application It's a milk additive. particularly kids who require adequate nourishment for proper growth. Carbohydrates and Minerals. It is easy to make and tasty to drink and is suitable for people across age groups. 35 . Available in (Segments/Markets) All Over India in Normal Trade and Modern Format Stores.Nutramul Product Features  Nutramul is a nutritious and healthy drink which provides nourishment to the body in the form of Vitamins. which means it can be consumed by adding directly to milk.

which means it can be consumed by adding directly to milk. Product Application It's a milk additive. Tastier. Carbohydrates and Minerals. cream. Amul Shrikhand Product Features  Prepared from fresh curd. 36 . Richer and uniform in texture. Proteins. particularly kids who require adequate nourishment for proper growth. Sugar and pasteurized which gives Amul Shrikhand Smooth.  Nutramul is a Brown Beverage that falls under the Health Food Drink category.Nutramul Product Features  Nutramul is a nutritious and healthy drink which provides nourishment to the body in the form of Vitamins. Available in (Segments/Markets) All Over India in Normal Trade and Modern Format Stores. It is easy to make and tasty to drink and is suitable for people across age groups.

 Tastier. Loose Shrikhand which is manufactured and marketed by Mithaiwalas / Halwai.  Made without addition of any artificial flavour or synthetic colour or any other chemical preservatives. Richer. Baroda & Sabar Dairy. who practically does not care for quality assurance and does not maintain hygienic standards.  Amul Shrikhand is available in convenient to use cups as it is packed in four consumer pack-sizes.  Pasteurised before packing to ensure freedom from disease causing bacteria. Consumer has freedom to choose from four pack-sizes while on tour or on picnic or any time at home to serve the guests on special occasions. Himatnagar.  Highest standard of quality and hygiene ensured at the most state of the art plant at Sugam Dairy. fully automated production process giving Shrikhand that is untouched by human hand.  Consistent quality provided with assurance of Amul brand name. Better Shrikhand. while Amul Shrikhand is made with the highest standard of quality and hygiene and is available at most reasonable price.  Hygienic. made out of quality ingredients. Product Application 37 .

NZ & Kenya. Amul Mithai Mate Product Features  Amul Mithai Mate is much more creamier than competitors available in market  Made of Pure Milk FAT  Avaiable in very convenient easy to open pack 38 . Rests of the Indians prefer Shrikhand for the change of taste purpose or as sweet dessert. Singapore. Also available in all Gulf countries.Gujarati and Maharashtrian people love Shrikhand as a part of their regular as well as festive meal along with Roti / Puri. Available in (Segments/Markets) All Major retail outlets in Gujarat & Maharashtra as well as in all Amul Preferred Outlets besides All Modern Format stores in rest of the states. USA. Australia.

Also Amul Mithai Mate 400 g Tin is available in segments like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant segment / Bakery etc. Pies. earth quake or any natural calamity. Toppings and Caramel etc. Rasmalai. Can be made several milk based desert in minutes Product Application  Can be used to prepare: Gajar ka Halwa. Amul Cooking Chocolate 39 . in relief works. Narial ke laddoo. Icecream. Baked Products.. Cakes.  As a ready health food. in case of flood. Available in (Segments/Markets) Amul Mithai Mate is available in India as well as other countries like UAE / Bahrain / Shi Lanka / USA / Singapore / Qatar . Sauces. Chocolate..  For whitening coffee and tea directly. Candies. Kheer.  As a health food in mid day meal system for feeding of the school children.

Ice cream. Amul Fresh Cream Product Features  Amul Fresh Cream has been processed to give smooth. home made chocolates. rich cream which stays fresh until opened. Available in (Segments/Markets) Available with select Amul dealers. 40 .  Amul fresh cream sterilized at high temperature and packed aseptically to give safe. Product Application Bakery.  Made of fresh & Pure Milk cream  Available in two convenient packs  No preservative added.Product Features  Chocolates are made through refiner from world's No. 1 Carle & Montanari to give a smooth texture. consistency and makes mouth watering preparations.

Amul Pouch Butter Milk Product Features  It is produced in very hygienic and clean atmosphere. etc.  Used for preparing sweet meals.  Used in tea and Coffee. Amul Fresh Cream is available in segments like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant segment / Caterer.  Can be used to prepare Punjabi dishes.Product Application  Amul Fresh cream is used to prepare fruit salad. 41 . Available in (Segments/Markets) Amul Fresh Cream is available in India as well as other countries like UAE / Bahrain / Singapore / Qatar.  For making Ice-creams.

42 . "Ghol" (Bengal). Scientific bacterial culture in Amul Buttermilk improves digestion. You can prepare Bean Kadhi from Amul buttermilk.  Buttermilk is traditionally known as "Chhash" (Gujarat & MP). Amul Buttermilk will improve the digestive function. Product Application Take a glass full in early morning in place of Tea. Available in (Segments/Markets) Available with select Amul dealers. "Mattha" (UP & Delhi).  It is conventionally packed in pouches and easily available at Amul Milk outlets spread all over major cities of India. "Tak" (Maharastra).

services. milk procurement and processing at the District Milk Union and milk and milk products marketing at the state milk federation. it is called concentric diversification. The structure was evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood programme.CHAPTER 4 : EVALUATION OF AMUL DIVERSIFICATION STRATEGY Diversification strategies are used to expand firms' operations by adding markets. The main functions of the VDCS are: 43 . Conglomerate diversification occurs when there is no common thread of strategic fit or relationship between the new and oldlines of business. When the new venture is strategically related to the existing lines of business. This structure consists of a dairy cooperative society at the village level affiliated to a milk union at the district level which in turn is federated into a milk federation at the state level. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. It is known as the ‘Amul Model’ or ‘Anand Pattern’ of dairy cooperatives. or stages of production to the existing business. Amul Model The Amul Model is a three-tier cooperative structure. Milk collection is done at the village dairy society. products. the new and old businesses are unrelated.

The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. cattle-feed sales. . conducting training on animal husbandry and dairying. mineral mixture sales. artificial insemination services.  Selling liquid milk for local consumers of the village. fodder and fodder seed sales.  Supplying milk to the District Milk Union.  Establishment of a direct linkage between milk producers and consumers by eliminating middlemen 44 .  Providing support services to the members like veterinary first aid. Collection of surplus milk from the producers of the village and payment based on quality and quantity.

45 . ensuring a better life for millions. Milk Producers (farmers) control procurement.246 dairy cooperative societies across the country.44. Their milk is processed in 177 District Co-operative Unions and marketed by 22 State Marketing Federations. processing and marketing  Professional management The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1.

46 .

Depending on the response in these cities. set a sales target of Rs. Verghese Kurien. and Baroda.10 bn by 2006 as against sales of Rs 2. In 2001. Chairman of GCMMF. GCMMF was also planning to launch its pizzas in other western Indian cities like Mumbai.CHAPTER 5 : CASE STUDY Amul's Diversification Strategy: A Pizza for Rs 20! In early 2001. Surat. Gujarat. GCMMF would decide to introduce its pizzas in other cities in India. The pizzas were offered in four 47 . GCMMF entered the fast food market in India with the launch of vegetable pizzas under the brand name SnowCap in Ahmedabad.3 bn in 2001. Gujarat Cooperative Milk Marketing Federation (GCMMF) planned to leverage its brand equity and distribution network to turn Amul into India's biggest food brand.

Amul’tought house wives ‘How to make pizzas?’. thus saving the retailers Rs. fruit pizza (pineapple-topped).  The initial Price For Amul Pizza is Rs.140 per kg. GCMMF planned to open 3.000 classes. GCMMF would offer the cheese at a bulk rate of Rs. compared to the market price of Rs 146 per kg.000 pizza retail franchise outlets all over the country by 2005. The existing players in the pizza market.flavours: plain tomato-onion-capsicum. 48 . GCMMF on its part would have a ready market for its cheese products.  In Delhi alone.20-25 price range. Analysts felt that GCMMF's move would force the existing players to reduce their prices in the long run. The main cost component of the pizza is the mozarella cheese.39. In over 15. mushroom and 'Jain pizzas' (pizzas without onion or garlic). As other pizza vendors like dominoz. its 96 Franchisee used to sell 50 pizzas a day on week days.  Ready To eat Pizza was invented in 2001. GCMMF launched the pizzas in the Rs. It would also negotiate with bulk suppliers of vegetables to get these at wholesale rates. (Refer Exhibit I). Pizza Hut and Nirula's offered pizzas at nothing less than Rs.20/ For Pizza Amul conducted Teach and Treat classes. like Domino's.6 per kg. These would be provided to the retailers. The pizzas would be made at the retail outlets.Pizza hut charging more than 50/-. The technical training and the recipe for the pizza would be provided by GCMMF.  It was Project to test and create a market for low priced pizza.

ii. Amul's Diversification Strategy : AMUL CHOCOLATE Chocolates are made through refiner from world's No. vii. iii. Relunch strategy for Amul Pizzas Proper SWOT analysis Branding Positioning Consumer market and buyer behavior. Amul planed to sel 3 lack Pizza But Amul failed to sell as on following poins : Problems : i. vi. 1 Carle & Montanari to give a smooth texture. Competitors tastes Less advertisementPackaging of the Pizzas Amul was not fast enough to see the changing iv. ii. Introduce product name with TAVA FRESH. Build on customer satisfaction value and retention. trends and accordingly introduce the product Amul’s Pizzas were not up to the quality levels v. v. iv. iii. defined by its all the other products The Value Proposition promised by Amul was not delivered. 49 . Solutions : i.

New attractive packing for chocolate Introduction of sales promotion schemes vi. ii. iv. v. ii. iii. contest. 10% people have not tasted Amul Chocolate. iv. (like discounts. v. free gifts etc.Problems : i. Lack of Sales Promotional Activities Solutions : i. Company should use brand ambassador . iii. coupons.) appointing Ad agency SWOT ANALYSIS : 50 . Amul should give local advertisements Try to change perception of people. Lake of Awareness in consumers Lack of Advertisement Amul is not using any brand ambassador.

Strengths Weakness Largets food brand in India Risk of highly complex supply chain High quality.low price Strong dependence on poor infrastructure World largest pouched milk brand Allince with third party Highly Diverse portfolio mix 51 .

Nestle Diversify product prortfolio completion For butter from MNC New Product development Growing price of the milk product 52 .Robust Distribution Service Opportunities Threats Penetrate international market Compititors-Hindustan lever.

AMUL PARLOUR : 53 .

Gulab jamun.This industry has revolutionized the Indian dairy sector and also brought from brink 54 .Amul must try to understand the cause of this act through market research work on improving these product.Conensed milk that can be used for Sweets.  There are certain product like Amul Basundi. baby food Products. Chocolate etc which are not as popular as Amul Ice-cream.  Though Amul’s hoarding are huge success it can penetrate even better in Rural areas by advertising through media like cable channel and news paper. CONCLUSION Amul is one of the fastest growing industries of India. Sports event can be a great help.WHAT MORE CAN DO AMUL ? To improve Further Amul can try out the following Ideas:  Amul can venture out on new product like Toned Milk.

extinction. Amul is state level apex body of milk cooperatives in gujrat which aims to provide remunerative returns to the farmers and Also serve the interest of consumers by providing affordable quality products.org/Case_Studies/Strategy/Diversification %20Strategies/DIS0020.htm 2.htm 55 . http://www. village level hierarchy. district level. http://www.org/free%20resources/casestudies/amul1. BIBLOGRAPHY 1.125 billion to the milk Produce in a year.and Also it was one of the successful cooperative association in india and also now the market leader in dairy sector. Amul Distribution chain is most difficult chain and complicates chain in world. Amul is the leading milk dairy in india amul helped by NDDB to organize dairy industry Amul conduct in Three Tier Organization it is divided in to state level. Amul federation consumes per day 4 million litre milk from village and processed that quantity by pasteurization techinique and other preservation techniques per day an aggregate amount more than Rs.ibscdc.icmrindia.

http://www. http://topicideas.studymode.com/subjects/diversification-strategy-of-amulpage1.3.html 4.org/ppt/case-study-solution-of-amul-diversification- strategy 56 .