Sales Function of a Corporate:

Amul
(Gujarat Co-operative Milk
Marketing Federation)

By: Bhakti Rane

Roll No: PM 1714
Institute: Sydenham Institute of Management Studies,
Research and Entrepreneurship Education, Mumbai
 Table of Contents

 Executive Summary

 Company Overview

 Sales Objectives

 Product Mix & Market Share

 Sales & Distribution Channels

 Channel Management

 Sales Forecasts & Recruitment

 Job Profile & Compensation

Executive Summary:

The topic “To study about Strategy and sales function of a corporate – Amul” highlights on the functioning
of Amul’s Sales & Distribution forces. Amul faces competition from local milk brands as well as few
countrywide brands such as Mother Dairy, Warna, Britannia, Nestle etc. The market share can be found
with the help of retailers. The study helps in knowing the best strategies necessary to develop effective
sales & marketing strategies that help build a successful organization. This information is important for
every organization for their promotion, expansion and development.

Company Overview:

1. Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and formed an Apex
Cooperative Organization, Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF), jointly
owned by some 2.1 million milk producers in Gujarat, India. Its products, including milk powders,
liquid milk, butter, ghee, cheese, chocolate, ice cream and pizza are widely used throughout India and
abroad and have made Amul the largest food brand in India today with an annual turnover of some
Rs.29 Billion ($US 616 million) per annum.

2. The primary goal of Dr. V. Kurien, Chairman, GCMMF, has been to build a strong Indian society
economically through an innovative cooperative network, to provide quality service and products to
end- consumers and good returns to the farmer members. Dr. Kurien states, We have traversed a path
that few have dared to. We are continuing on a path that still fewer have the courage to follow. We
must pursue a path that even fewer can dream to pursue. Yet, we must. We hold on trust the aims
and aspirations of millions of our countrymen.

3. Information Technology has played a significant role in developing the Amul brand. The logistics behind
co-ordinating the collection of some 6 million litres of milk per day from10,755 separate Village
Cooperative Societies throughout Gujarat and then storing, processing and producing milk products at
the respective 12 District Dairy Unions, are awesome. The installation of 3000 Automatic Milk
Collection System Units (AMCUS) at Village Societies to capture member information, milk fat content,
volume collected and amount payable to each member has proved invaluable in ensuring fairness and
transparency throughout the whole Amul organization.

4. In 1996 Amul was one of the first major organizations in India to have a website and this has been used
both to develop an intranet of Amul distributors as well as a cyber-store for consumers, one of the
first examples of e-commerce activity in India
 Gujarat Cooperative Milk Marketing Federation (GCMMF)
 Members : 12 district cooperative milk producers Unions
 No. of Producers Members : 2.36 million
 No. of Village Societies : 11,333
 Total Milk handling capacity : 6.9 million liters per day
 Milk Collection (Total ±2002- 03) : 1.86 billion liters
 Milk Collection (Daily Average (2003-04): 4.97 million liters
 Milk Drying Capacity : 511 metric Tons per day
 Cattle feed Manufacturing : 2340 Mats per day

Capacity:
Rs
Sales Turnover (million) US $ (in millions)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2005-06 37736 850
2006-07 42778 1050
2007-08 52448 1325
2008-09 67113 1504

Objectives:

 Amul’s vision is to provide more and more satisfaction to the farmers, their customers, employees and
distributors.

 Amul is committed to produce wholesome and safe food at excellent quality to remain market leader
through development of quality management systems, state of art technology, innovation and eco friendly
operations, to achieve delightment of customers and milk producers.
Product Mix & Market Share:

Liquid Milk (9 varieties)

Milk Powders (5 varieties)
Butter
Ghee (2 varieties)
Bread Spread
Cheese (3 varieties)
Ice Cream (Multiple varieties)
Condensed Milk
Sweets (3 varieties)
Dairy

Cocoa Products (2 varieties)

Mineral Water
Non Dairy
Edible Oils
Fruit Drinks

Market Share of GCMMF (Amul) in Various Product Categories in India (Per cent)
Sales & Distribution Channels:

The physical delivery network for distribution of milk and milk products is managed by the marketing arm
of the network – GCMMF. GCMMF provides umbrella branding to all the products of the networked. The
two brands that GCMMF supports are AMUL and SAGAR. Milk and milk products from all Unions are sold
under these two key brands (Table 3 shows the market share of AMUL across various product segments).
In essence, GCMMF procures from multiple production plants (the thirteen Unions) which in turn procure
from the Village Societies registered with each Union. GCMMF distributes its products through third party
distribution depots that are managed by distributors who are exclusive to GCMMF. These distributors are
also responsible for servicing retail outlets all over the country. GCMMF sales staff manages this process.
Retailing of GCMMF’s products takes place through the FMCG retail network in India most of whom are
small retailers. Liquid milk also gets distributed by home vendors who deliver milk at homes. Since 1999,
GCMMF has started web based ordering facilities for its customers. A well-defined supply chain has been
developed to service customers who order in this manner.
 Distributors have sales persons who collect orders almost weekly from retailers and mass
merchandisers. The order is forwarded to the warehouse.
 Upto 10 days of credit period received by the distributor is passed on to the retailers. This kind of a
benefit further helps in boosting sales.
 The retailers are helped by the distributors in enhancing sale by on time delivery.

GCMMF’s Supply Chain:

Channel Management:
In a product and price parity situation, the brand that sells more is the one that reaches the highest
number of customers. India – 1 billion people, 155 million household has over 4 million retail outlets in
5351 urban markets and 552725 villages, spread cross 3.28 million sq.

Selection Criteria for the Channel Members:

 Authentication by way of identity.
 Proof of solvency-details of the bankers.
 Safety of inventory by getting the company stock insured.
 Proper storage space in forms of refrigerators.
 The company requires the dealers to furnish any Advertising & Sales initiative undertaken by them on
behalf of the company.
 Details of delivery vehicles.
 Competent salesman.
 Details of the product kept of other companies have to be provided.
 Dealers of the company must carry a good reputation.
 Market coverage of distributors need to be defined.

Sales Forecasts & Recruitment:

Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular Amul brand of milk and
dairy products has forecasted a turnover of Rs. 29,220 Crores for the financial year 2017-18. With its
Branded consumer products aiming for a growth of 14% over previous year with products such as Cheese,
Butter, Milk Beverages, Paneer, Cream, Buttermilk and Dahi growing at 20-40%.

Recruitment & Selection:

Keeping these goals in mind, as well as common factors such as retirement attrition, Amul employs several
techniques for recruitment.

Through permanent employees

Internal Employee Referrals
Sources
Former employees

Campus Interview
External Advertisements
Sources Employment exchange
Unsolicited Applications
Recruitment Procedure:

Application

Initial
Interview

Employment
Tests

Interview

Checking
References

Physical /
Medical
Examination

Final
Interview

Induction
(Internal &
External)

Job Profile & Compensation:

Key Function:
Responsible for Sales & Distribution function for our range of products for assigned territory.

Roles & Responsibilities:

 The candidate would be responsible for market coverage as well as market penetration for assigned
territory.
 He/she will be also responsible for sales planning, Logistics & Distribution Management, WD & Territory
Management, Product Promotion, New Product Launches, Achievement of sales targets etc.
 He / She is required to track and analyse competitors activities and suggest countermeasures from time
to time.
Compensation:
Depending upon experience, region and education compensation starts from INR 4,00,000 per annum.