DD 401

Design Management

Roopa Sathyan
180205030
 AMUL

Amul (The Kaira District Co-operative Milk Producers'

Union) is an Indian dairy cooperative association
headquartered in Anand, Gujarat. It is a cooperative brand
administered by the Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which is jointly held by 3.6
million milk producers in Gujarat and the apex body of 13
District Milk Unions spanning across 13,000 villages. It
was founded in 1946. Amul was a driving force behind
India's White Revolution, which saw the country become
the world's largest producer of milk and dairy products.
Amul has grown to become one of the industry's most
well-known companies, renowned for the number of jobs
it has created over the years in addition to its high-quality
products.

Ansoff Matrix of Amul

The Ansoff Matrix, also known as the Product/Market

Expansion Grid, is a tool that companies use to evaluate
and plan their expansion strategy. The matrix depicts four
techniques for assisting a company's growth, as well as
the risks connected with each strategy.

Productivity Penetration
This method is used by Amul to promote existing
products in existing markets. The company's initial
objective is to expand the number of retail locations
where its products are sold. It also ensures that all stores
have sufficient product supply to sell all items. To ensure
higher sales, the stores are carefully placed in high-traffic
areas. The company is also creating strategic agreements
with prominent retailers, such as Wal-Mart, to dedicate
space to Amul's products. To service small consumers,
smaller retail outlets are being developed in
neighborhoods.

Market Extension
This is done by promoting existing products in new
markets. Amul is achieving this by expanding the number
of stores in rural areas to better serve rural customers. It
is also expanding outside of Gujarat, into Lucknow,
Kanpur, and other smaller towns, to broaden its
geographic reach. Amul Taaza, milk with an extended
shelf life than ordinary Tetra Pak milk, has been
introduced. It is also expanding into the Middle East and
Southeast Asian areas to sell its products on a global
scale. Rather than serving standard container sizes, the
company adapts its packaging sizes to meet the needs of
regional consumers.
New Product Development
Amul is known for product development, releasing new
products in current markets, and increasing the quality
and shelf life of existing products. Their packaging is also
updated regularly. The company has also introduced
sugar-free ice cream and other treats for diabetics, as well
as Amul Cool and other drinks aimed at the younger
market and new ice cream varieties regularly. This
demonstrates that Amul has a strong product research
and development system in place, allowing them to
develop new items and then market them. Various
chocolate, buttermilk, lassi, and other product versions
have also been introduced by the company.

Diversification
Amul also has a great diversification plan. It expands into
new dairy products such as nutritious ice cream, cooking
chocolate, and lassi as part of its diversification strategy.
It also diversifies into unrelated areas by introducing its
energy drink Stamina and planning to open a pizza parlor
chain. The company also makes a variety of confectionery
items for the worldwide markets it serves. The business
already has control over its entire supply chain. Instead of
obtaining milk from other members, it can diversify
vertically backward by creating its own cattle farms.

The design strategy here helps the corporate to achieve

more market share by expanding and incorporating new
technology. The company gathers an average of 23
million liters of milk every day, with demand expected to
increase in the future years (Amul, 2019). After being
processed and packaged in Tetra Pak, the company also
exports its products to numerous countries. Amul made
$4.8 billion in sales last year (Amul, 2019).
BCG Matrix of Amul

The Boston Consulting Group Matrix (BCG Matrix),

commonly known as the product portfolio matrix, is a
business planning tool used to assess a company's brand
portfolio's strategic position. It has four quadrants each
being labeled as low or high performance, depending on
the relative market share and market growth rate.

The Question Marks

These include products that have the potential to expand,
but which will take a little more attention and careful
preparation in order to succeed. These products have a
small market share in high-growth markets. With the
right attention and funding, they can essentially become
emerging 'Star' products. Amul Lassi comes into this
category because it is already available in a crowded
market. It is, nevertheless, steadily establishing itself
against close competitors such as Aarey and Govardhan.
Amul Lassi's marketing is likewise aimed to make it a
faster-growing product.
The Stars
Amul Ghee and Amul Ice Cream come under this
category. 'Star' items have a high market share in markets
with high growth potential, which is the most desirable
quadrant. Companies frequently invest a significant
amount of money from the 'Cash Cow' category into the
promotion and development of 'Star' products. Amul Ice
Creams' commercials are very targeted, and they are
always being improved to make them more acceptable to
the general public by using adjectives like 'creamy,
"medium-fat,' and so on.

The Dogs
Amul Cookies and Amul Pizza will be the 'Dog' items for
the company. These items have a poor growth rate and
market share and are frequently seen as unprofitable for
the business. As a result, corporations don't spend a lot of
money on product modifications or promotions. They are
frequently either discontinued or produced in small
quantities.
The Cash Cows
Amul’s Cash Cow includes cow milk, Amul Butter, and
Amul Cheese. These three goods create consistent, high
revenue, which is used to fund the brand's other products.
They have a large stake in markets with modest growth
rates. Given the number of brands and popups in the
dairy business as a result of changing trends, this is quite
an achievement.

Amul is holding its ground at a time when businesses are

losing business left, right, and center. Having a few
products in the 'Cash Cow' and 'Star' categories shows
how trustworthy and well-liked this brand is. The design
strategy was well followed here.