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Amul Vs Nestle 1 PDF
Amul Vs Nestle 1 PDF
In India
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GROWTH RATE
Market Environment
| India has the largest milk and milk products
market in the world.
| If the growth of this sector is extrapolated, it is
observed that in the next ten years production
will increase to about three times todays
numbers.
Growing Industry
| Due to increasing population, per capita
availability of milk will increase by only about 1.5
per cent per annum.
| For an economy growing at about 6 per cent per
annum, this increase in availability will be grossly
inadequate.
| Production growing at only 3 per cent and
consumption growing at more than double the
rate is obviously going to lead to a mismatch
between demand and supply..
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BEVERAGES
CHOCOLATES AND
CONFECTIONARY
Market Position
| In butter, cheese and saturated fats, ul has
remained the undisputed market leader in India since
its inception in 1955.
| Today the market share of ul ice cream is 38% share
against the 9% market share of HLL, thus making it 4
times larger than its closest competitor.
| Nestle markets its products in130 countries across the
world.
| Xestl has 80% market share in the baby cereal
segment ( Infant food)and is clearly a market leader.
| Nestl is the Indian market leader in instant coffee ,
with 55% market share and NI has about 80% market
share in the instant noodle segment.
Expansion
| Amul is the largest food brand in India and
world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (0607) .
| Besides India Amul has entered overseas markets
such
as Mauritius, UAE, USA, Bangladesh, Australia, Ch
ina, Singapore, Hong Kong and a few
South African countries.
| Future plans to enter Japan and Sri-Lanka Market
Expansion
| Milk products and nutrition account for around
45per cent of Nestl Indias total revenues.
| hence now company has expanded their product
line to attract Indian market more extensively by
adding in their portfolio yoghurt segment consists
of Fresh n Natural Dahi, Slim Dahi, Jeera Raita
and fruit-flavoured yoghurts.
| Tied up with Andhra Pradesh-based Heritage
Foods India Ltd in the South, Bengal Nester in the
East and Dynamix Dairy Industries Ltd in the West
not only for sourcing milk but also processing,
packaging and supplying
Market Responsiveness
| Amul has responded very quickly to the
various niches in the market locally as well as
internationally by launching products like
Amul Kool (targeting the youth) and Amul
Masti (Buttermilk educating youth against
carbonated drinks).
| Nestle is slowly traversing this path by
launching Nestle Jeera Raitha
Market Responsiveness
| Amul is slowly transforming from the very
cute image to the yo and yippie image
reaching out to the young crowd stirring them
up with their confectionery range.
| Nestle has reached out to the masses by
quietly maintaining its international image but
with a great taste and quality. It has some of
the most popular brands (Maggi Noodles) for
long which does not had any challengers.
Marketing Strategy
| Amul has this desi brand image with extensive
marketing activities like
8 sponsoring various programs
8 hosting many competitions ( TV reality shows such as
Voice of India, Master Chef)
8 own exclusive parlors.
8 Advertising in simple
8 Advertisement in akashavani to reach more people in
rural India
8 Introduction of IT in milk collection, processing and
distribution area from rural level itself.
Marketing strategy
| Nestl supports initiatives to create awareness
about the right to education
| Company veterinarians and agronomists
supervise the milk routes and advise far ers on
various issues including proper feed for the herds.
Milk storage facilities have been set up close to
the farmers. Veterinary services are provided
free, and medicines provided at wholesale cost
| Nestl India supports local schools, helps in the
maintenance of public parks and green belts,
facilitates blood donation ca ps and health
awareness programs
Sales Turnover
| sales of our Federation registered a quantum
growth of 19.3% to reach Rs. 8005.36 crores
(Rs. 80 billion).
| The Company has posted a net profit of Rs
2185.60 million for the quarter ended
September 30, 2010 nestle.
Awards
| Nestle India was recognized with the top
Exporter Award for export of Instant Coffee,
and for export of all coffees to Russia and CIS
Countries.
| Amul has won various national awards which
includes the Rajiv Gandhi National Quality
Award and the Ramakrishna National Quality
Award.
Market Competitors
| Mother Dairy , National Dairy Development
Board (NDDB)
| Cadbury
| Local Brands : regional wise Nandini (K), Vijaya
(AP), Aravind(TN)
| HLL (Kwality Walls)
SWOT
XSIS
|Demand
|Margins
|Flexibility of product mix:
|Availability of raw material:
|Technical manpower:
OPPORTUXITIES
|Value addition
|New products
|utilization of resources
|geriatric foods and
nutritionals.( milk proteins)
|Export potential
WEXESS
|Perishability
|Lack of control over yield:
| Logistics of procurement:
|Problematic distribution:
| Competition:
THRETS
|un-organized sector
|Export potential
|Entry in retailing
|Packaged sweets, sports drink
new market
WEXESS
THRETS
|Increasing requirements
|Adulteration
|Competition
|No supporting units
|International Company
|Strong brands (market leader)
|Expanded product line
|Wide distribution network
|Quality maintenance
|R&D support
OPPORTUXITIES
|Expansion: Potential to
expand smaller towns ( rural
market)
|Global hub
|Product offerings
WEXESS
THRETS