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Amul Company Profile
Amul Company Profile
Company Profile
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product
marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily milk procurement is
approx 13 million lit (peak period) per day from 16,117 village milk cooperative societies, 17 member
unions covering 24 districts, and 3.18 million milk producer members.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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. Its success has not only been emulated
in India but serves as a model for rest of the World. It is exclusive marketing organisation
of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer
network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product
range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream,
Paneer, chocolates, and traditional Indian sweets, etc
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.
Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China
and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in
Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been
awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products
sector by APEDA.
For its consistent adherence to quality, customer focus and dependability, GCMMF has received
numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award
in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award
instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality
Award - 2003 for adopting noteworthy quality management practices for logistics and procurement.
GCMMF is the first and only Indian organisation to win topmost International Dairy Federation
Marketing Award for probiotic ice cream launch in 2007.
The Amul brand is not only a product, but also a movement. It is in one way, the representation of
the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.
Milestones of GCMMF:
Industry Analysis
Porter’s five forces for dairy and processed food industry in India
Concentration (high)
Diversity of competitors (low)
Product differentiation (high)
Excess capacity and exit barriers (moderate)
Cost conditions (high)
Due to large number of options and substitute products present from competitors, the buyers have
very high bargaining power. Buyer switching cost is minimal and availability of information makes
the buyers all the more powerful.
In food processing and dairy industry, the huge number of available suppliers makes it easier for the
companies to negotiate with them. Threat of backward integration is also present.
Value Chain
Customer – Large customer population consisting of households and businesses of various sizes.
Suppliers – 2.12 million farmers and milk producers, more than 10,000 village level milk collection
centres.
Competitors – Competition from organised as well as unorganised sectors. ITC, HUL, Nestle,
Brittania etc are competing in the organised sector with Amul whereas unorganised
sector gives a tough competition in the form of milkmen and delivery boys etc
India has varied agro climatic conditions; it has a wide-ranging and large raw material base
suitable for food-processing industries.
Demographic trends
The food-processing industry has a bright future due to demographic environment in India, which is
a key positive. Rising income levels leading to large customer base India with its population of more
than 1 billion accounts for close to 17% of the global population. It is one of the most attractive
consumer markets in the world with the increase in income levels across the population segments.
The increase in income levels and higher tendency to spend provides great opportunities for
companies across various sectors
India has a relatively young population with close to 55% of population in the age group of 20- 59
years. This group is also high in consumption and therefore, this trend is expected to provide a
further boost to the growth of consumption in India.
Unmatched supply chain network in the entire country leading to optimum product reach
even to the remotest village in India
SWOT Analysis of Amul
Strengths
1. Huge brand name and trust factor associated with the company. The company is having Indian
origin thus creating feeling of oneness in the mind of the customers.
2. It manufactures milk, milk products, sweets and processed food which is purely vegetarian thus
providing quality confidence in the minds of the customers.
3. It aims at rural segment, which covers a large area of loyal customers, which other companies had
failed to do.
4. People are quite confident for the quality products provided by Amul.
Weaknesses
1. Lack of investment as compared to other MNEs
2. Poor product replacement policy
Opportunities
1. There is a lot of potential for growth and development as huge population stay in rural market
where other companies are not targeting.
2. The chocolate market is at growth stage with very less competition so by introducing new brand
and intensive advertising there can be a very good scope in future.
Threats
1. The major threat is from other companies who hold the majority share of consumers in Indian
market i.e. Cadburys and Nestle.
2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.
Amul Pro
Challenges faced by the SBU
Food-processing industry and the food processing business unit (SBU) in Amul is facing constraints
like non-availability of adequate infrastructural facilities, lack of adequate quality control & testing
infrastructure, inefficient supply chain, seasonality of raw material, high inventory carrying cost, high
taxation, high packaging cost, affordability and cultural preference of fresh food.
Unprocessed foods are prone to spoilage by biochemical processes, microbial attack and infestation.
Good processing techniques, packaging, transportation and storage can play an important role in
reducing spoilage and extending shelf life. The challenge is to retain the nutritional value, aroma,
flavour and texture of foods, and presenting them in near natural form with added conveniences.
Processed foods need to be offered to the consumer in hygienic and attractive packaging, and at low
incremental costs.
Amul should increase their hoarding ads about Amul Pro as this is the best way in which
Amul connects with the common people.
Ladies coaches in the Mumbai local trains can be the ideal place to market and advertise
Amul Pro. This will get the attention of the working women having kids and can act as a
positive reinforcement to the already existing marketing strategies for the product.
Branding and promotion activities like distributing free samples in the schools can be a good
option to make the target consumer, the kids in the growing age, aware about the product.
Increase in the margin of the retailers will attract the retailers to shelf the product.
The sales officer must do random checks in order to ensure that the salesman are actually
informing the retailer about the new products and pushing the sales of the same. As per our
observation, there is a lack of awareness about Amul Pro among the shopkeepers.
College canteens and ice cream parlours which serve cold chocolate drinks could also be
targeted for sales.
Amul can make it mandatory for the distributor to train its salesman in terms of the product
portfolio knowledge as he is the one who pitches in to every customer/retailer for the Amul
products.
Micro size packs (250 gm, 200 gm etc) could increase the product placement possibilities in
smaller stores.
Business Policy Assignment
By
Mrinal Banerji
PGDM-IB
Roll No 21