AMUL

ANAND MILK UNITED

LIMITED

Introduction
The largest food brand in India and world's Largest

Pouched Milk Brand Amul is a brand name managed by

Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF).

This name has its origin in the Sanskrit word "Amoolya,"

(meaning Priceless) and was actually suggested by an

employee of Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF)

 The Gujarat Cooperative Milk Marketing Federation

Ltd, Anand (GCMMF) is the largest food products

marketing organisation of India and is the apex
organization of the Dairy Cooperatives of Gujarat.

With a turnover of INR 67.11 billion GCMMF has

created an economic network that links :

 millions of consumers in India and abroad,

2.8 million village milk producers,
a cooperative system that includes 13,141 Village Dairy

Cooperative Societies (VDCS) at the village level,

further affiliated to 13 District Cooperative Milk

Producers Unions at the District level and GCMMF at

the State level.

History

Condition of dairy farmers

Plea of dairy farmers and role of Sardar Vallabh Bhai Patel

Formation of first District Co-operative Kaira

Formation of GCMMF

Condition of dairy farmers

There was exploitation of marginal milk producers

by traders or agents of existing dairies in the small

town named Anand (in Kaira District of Gujarat) and
Polson Dairy .
Other problems faced by dairy farmers in Gujrat.

Role of Sardar Vallabh Bhai Patel

Unfair trade practices and minimal returns angered

dairy farmers.

So under the leadership of Tribhuvandas Patel dairy

farmers approached Sardar Vallabh Bhai Patel for a
solution.

Formation of District Co-operative

Kaira

Thus the first District Cooperative was established to

collect and process milk in the District of Kaira in 1946.

Milk collection was also decentralized and village level

cooperatives were established to organize the marginal

milk producers in each of these villages.
The brand Amul was formally registered on December

14th, 1946

Formation of GCMMF

Later on with the help of Dr. Verghese Kurien and

Shri H M Dalaya this revolution spread to most of the

districts in Gujrat.
Thus GCMMF came into being in the year 1973.

Initially, the brand name Amul was with Kaira district

dairy cooperative, but later they decided to give it to

GCMMF

Father of White Revolution

The father of the White Revolution, Dr. Verghese

Kurien and the World Food Prize & the Magsaysay

Award winner, is responsible for the grand success of
brand Amul.

AMUL
Business Model

In a recent survey,
GCMMF ranked amongst the top ten

FMCG firms in the country

AMUL rated the second most

recognized brand in India amongst all

Indian and MNC offerings

What makes AMUL

successful???

Business Model

Objective :
Deliver profitable and equitable returns

to a large number of farmers for a long

period of time

Additional objective
Develop the supplier over the long term

through social change.

Pasteurizat
ion

Amuls Supply chain is one of the most

complicated in the world

Success depends on

Developing Demand
Consumers- Limited Purchasing

power
Modest consumption levels of milk
Low cost price strategy
Products affordable & attractive

Distribution Network
Dry and cold warehouses to buffer

inventory
Transactions on an advance demand draft

basis
Just-in-time inventory strategy improves

dealers' return on investment (ROI)

All branches -dedicated vehicle operations.

Umbrella brand
Common brand for most product

categories produced by various unions:

liquid milk, milk powders, butter, ghee,
cheese, cocoa products, sweets, icecream and condensed milk
Avoided inter-union conflicts
Opportunity for the union members to

cooperate in developing products.

Third Party Service Providers

Unions' core activity -milk processing and

the production of dairy products.

Marketing efforts , brand development - By

GCMMF
Logistics of milk collection, distribution of

dairy products, sale of products through

dealers and retail stores, provision of animal
feed, and veterinary services By Third
Parties

Co-ordination
Large number of organisations and entities in the supply

chain
GCMMF and the unions play a major role in achieving control
Interlocking control - The board is drawn from the heads of

all the unions, and the boards of the unions comprise of

farmers elected through village societies
The federation handles the distribution of end products and

coordination with retailers and the dealers.

The unions coordinate the supply side activities.

Best practices
Small group activities or quality circles at the federation
TQM program at the unions
Improvement programs across to a large number of

members and the implementation rate is consistently high

For example, every Friday, Meeting without fail, between

10.00 a.m. and 11.00 a.m to discuss quality concerns

Village societies becoming individual improvement centres

Amul Revolution Impact

Study
Pre-Amul Era
Over five decades ago, the life of a farmer in
Kaira District was very much like that of his
counterpart anywhere
else in India.
His income was derived almost entirely from seasonal
crops.
Milk distribution was by private traders. . As milk is
perishable, farmers were compelled to sell it for
whatever they were offered. Often, they had to sell
cream and ghee at throwaway prices. In this situation,
the one who gained was the private trader.
Only one company , a British company(Polson) existed
and it exploited the farmers

The Turnaround
Farmers realization that they had to market milk themselves
to earn better is what led to the
establishment of the Kaira
District Cooperative Milk Producers' Union Limited (popularly
known as Amul)
An assured market proved a great incentive to the milk
producers of the
district. By the end of 1948, more than 400 farmers joined in
more
village societies, and the quantity of milk handled by one
Union
increased from 250 to 5,000 liters a day.
Socio-Economic Impact
The yearly elections of the management committee and its
chairman, by the members, are making the participants
aware of their rights and educating them about the
democratic process.

 Live exposure to various modern technologies and their

application
in day-to-day life has not only made
them aware of these
developments but also made
it easier for them to adopt these
very
processes for their own betterment.
More than 900 village cooperatives have created jobs for nearly
5000 people in their own villages -- without disturbing the socioagrosystem -- and thereby the exodus from the rural areas has been
arrested to a great extent.
Besides, women, who are the major participants, now have a
say in the home economy. Initiated Mahila Pashupalan Talim
Karyakram for women resource persons of the member unions
48 per cent of the income of the rural household in Kaira District
is being derived from dairying. Since dairying is a subsidairy
occupation for the majority of the rural population, this income
is helping these people not only to liberate themselves from the
stronghold of poverty but also to elevate their social status.

 CSR sensitive organizational structure the 3 tier model from

village societies to state cooperatives ensures
accumulation of
human capital which in itself
leads to development of society and
the
economy.
Amul Relief Trust formed in 2001 by GCMMF under the
Chairmanship of Dr. V. Kurien.
The Trust reconstructed 6 schools damaged by the 2001
earthquake
at a cost of Rs. 41.1 millions in Kutch area.

Ripple Effects
Anand Pattern extended to other districts in Gujarat Mehsana, Sabarkantha, Banaskantha, Baroda and Surat
where farmers easily adopted Amuls gameplan.
The Himalayan Cooperative Milk Producers Union
Limited (HIMUL) was formed at the foot of the
Himalayas in West Bengal in 1973 on the same lines as

Institution Building
The National Dairy Development
Board (NDDB) was created in
1965, fulfilling the desire of
the late Lal Bahadur Shastri - to
extend the success of the Kaira
Cooperative Milk Producers' Union
(Amul) to other parts of India.
Founded by Dr. Verghese Kurien
and Dr. Amrita Patel is the current

Marketing and Advertising

Strategies

1)Quality
No brand can survive long if its quality is not equal or exceed
customer expectations.
Incase of food product hygienic, taste, bacteriological &
organoleptic standard main essence.
2)Value for money
Customers get more than what they pay.
Keep price fair & do best to ensure that retailers dont gain at
the expense of customer.

3)Availability
Brand available when and where customers
want.
Amul has nations finest distribution network.
4)Service
Committed to total quality.

Product Scope Strategy

Perspective of the product mix of a company

Different products of Amul and

its variants
Bread spreads
Amul Butter
Amul Lite Low Fat Bread spread
Amul Cooking Butter
Delicious Margarine
Pure Ghee
Sweets
Amul Shrikhand & Amrakhand
Amul Mithaee Khoya Gulabjamaun
Amul Basundi
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Milk Powders
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk
Amul Mithaimate
Fresh Milk
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
34

Curd Products
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Lite Dahi
Amul Prolife probiotic Dahi
Amul Masti Spiced Butter Milk
Amul Lassee

Chocolate & Confectionery

Amul Fruit & Nut Chocolate
Amul Bindazz
Amul Rejoice
Amul kesar

Brown Beverage
Nutramul Malted Milk Food

Amul Ice creams

Vanilla Royale
Royal Treat Range (Butterscotch, Rajbhog,

Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista

Royale, Fruit Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi,

Shahi Anjir, Fresh Strawberry, Black Currant,

Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae

Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice

Candies, Tricone, Chococrunch, Megabite,

Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate,

Chocochips, Cake Magic)

Milk Drink
Amul Kool Flavoured Milk (Mango, Strawberry,
Saffron, Cardamom, Rose, Chocolate, Butterscotch)
Amul Kool Cafe
Amul Kool Koko
Health Beverage
Amul Shakti White Milk Food

Product Positioning
Placing a product in that part of the market where it
will receive a favorable reception compared to
competing products.
A mass market player, no premium offerings
USP Quality with affordability
Up against niche players value addition to
customers
Sheer size and scale of operation
New offerings for health conscious and vibrant
India

38

 Indias First Pro-Biotic Wellness Ice cream &

Sugar Free Delights For

Diabetics.

Low Priced Amul Ice Creams made Kwality

Walls life hell.

39

Flank Attack.. Age Wise..

Aug 25 2007
Amul launches Chocolate milk under brand
name of Amul Kool Koko.
This is targeted at teenagers and

youths.

40

Nov 11, 2007

Amul in Multinational Arena With Snack
Launch: Munch Time.
Flavors: Masala , Mint and Tomato
New Product Activity.
Nov 26, 2007
Amul Launches Fresh Paneer (Free From Any
Harmful Chemicals)
Flank AttackExpanding its Cheese
Segment.
Current market share 65%.

41

Product Repositioning
New Competition
Change in consumer preference
Wrong original positioning
Amul marketed bottled water product named

JALDHARA but due to less potential in the

market it turned out to be blunder.
Now Amul is all set to launch bottled water
NARMADA NEER.

42

Product Overlap
Situation where company decides to compete against its
own brands.
Powdered Milk
Health and price Conscious
SAGAR Vs Amulya.
USP:
Sagar is affordable whitener for health conscious one.

43

 Cheese Spreads
Specific Vs General

Amul Processed Cheese Vs Cheese Spread

USP:
Cheese spread is highly accepted spread for regular
use.

Milk Drinks

Nutramul Energy Drink Vs Amul Kool

44

Product Elimination
Product reaches the stage where continued support
is no longer justified where performance is falling
short of expectations, it is desirable to pull the
product out of the market place.

It eliminated JALDHARA a decade ago as Bottled

water product do not have potential customers.

Current Market Share

Defense Strategy
Moving consumers from loose milk to packaged

milk and gradually move them up the value chain

(tetra pack to beverages, all available under the
Amul brand)
A sound strategy likely to work.
Being exposed to a brand, it is natural for a
customer to try more products
Improving socio-economic condition of the
customer anchors the desire to enhance lifestyle

Amul defending its turf

Largest milk brand in Asia marketing more than

30 different brands of dairy products like cheese,

ice-cream, condensed milk, ready-to-eat pizza,
beverages etc.
Amul is the market leader in ghee and butter
Amul Kool and Kool Caf doing well
Defending against names like Mahananda, Vijay,

Milma and other co-operative milk brands

Aggressive moves against FMCG and F&B brands
like Britannia, Nestle and Mother Dairy among
others.

Segmentation
Wide range of product categories caters to

consumers across all market segments. For

example, Amul Kool is targeted at children, while
teenagers prefer Kool Caf, as it has a cool
imagery associated with it.

Segmentation is not as easy in curd and low fat

products, due to mixed audiences, various

culinary applications , eg. ghee, butter and
cheese.

In India, the most used spread is ghee, then

butter, cheese, low fat butter, margarine, cheese
spread and mozzarella cheese.

Targeting
Changing retail environment
Striking out on its own, with Amul Outlets or

parlors to deliver consumers total brand

experience
Launched in 2002, there are now 400 Amul
parlors across the country, which contributed 3%
to the brands total turnover last year.
High profile locations: Amul parlors are today
present on campuses of Infosys, Wipro, IIM-A, IITB, Temples, Metro rail and railway stations in
Gujarat.

Promotion
Given this wide product portfolio, Amuls

approach is to promote its brands in a

rotational cycle of two to three years.

After ice-creams were launched in 1996, the

category was re-visited in 1999, in order to

improve availability of the product and make it
affordable.
The focus shifted to cheese in 2001, Amul
Masti Chaas in 2004-05 (sales of Masti dahi
grew by 25%), Nutramul and Kool Kafe in 2006
and Amul Koko cold chocolate drink in
2007

 Uses a variety of media to communicate

Most famous is billboard campaign
The endearing polka dressed girl and pun at

various issues increased brands fan following.

Below-the-line activity has grown too such as

the Amul food festival, which has been held for

the last four year between October and
December in about 50,000 retail outlets.
The Chef Of India promo invites hotel chefs to
come up with recipes using as many Amul
products as possible, and is conducted at city,
state and national level.

The First Advertising Strategy

1966 sees the creation of the Amul girl by Sylvester
daCunha of the ASP Advertising agency as a rival to the
Polson .
In 1967 the first hoarding was put up in Mumbai with the Amul
girl.
The tag line of Utterly Butterly Delicious came out in
October of 1967.
The first Topical ad came out in 1969 at the beginning of the
Hare Rama Hare Krishna movement.
One of the most conservative FMCG entities GCMMF
spends a mere 1% of its turnover on promotions.
Amul butter girl is one of the longest run ad campaigns in the
country for 43 years.
Entered in the Guinness Book Of World Records for being the

Digital Advertising
Amul Cyber Store
Amul in Social Networking
Amul Indulges in Second Life marketing
Advergaming
Amul Parlors

Amul Competitors
Butter
Britannia
Nestle

Cheese
Britannia

Baby Food
Nestle
Heinz

Dairy Whitener Segment

Nestle
Britannia

Ice creams
HLL

Amul Competitors
Chocolates & Confectionaries
Cadbury
Nestle

Pizza
Pizza Hut
Dominos
Nirulas Frozen pizza

Curd
Nestle
Mother Dairy

Ultra High Treated Milk

Nestle
Britannia

Amul Competitors
Sweet Condensed milk
Nestle

Cottage Cheese(Paneer)
Britannia

Milk Additives
Cadbury
Smithkline Beecham

Flavored Milk
Britannia
Nestle

Period of diversification
In 1996, B M Vyas, Managing Director, GCMMF,

commissioned the Indian Market Research

Bureau
(IMRB) to conduct a consumer
survey to identify the
products consumers
wanted from Amul .Based on the findings, Amul entered
into the following areas: ice cream, curd, paneer, cheese,
and condensed milk.
In 1997, Amul launched ice creams after Hindustan Lever

acquired Kwality, Milkfood and Dollops. Positioned as the

'Real Ice-cream,' Amul Ice cream was one of the few milkbased ice creams in the market.
In 1999, Amul launched branded yoghurt in India for the

first time, when it test marketed "Masti Dahi" in

Ahmedabad first and then introduced it all over the
country

 In January 2000, Amul re-entered the carton milk

market with the launch of "Amul Taaza" in

Mumbai.
Amul Taaza was nonsweetened, plain, low fat milk.
The
product was positioned as a lifestyle as well as functional
product.
In November 2000, Amul decided to promote mozzarella

cheese, which was used in pizza. The growing demand for

mozzarella cheese from pizza making companies like
Pizza Hut and Domino's Pizza was expected to give
Amul's cheese sale an additional push.
In August 2001, Amul decided to enter the ready-to-eat

stuffed paratha, cheeseburger, cheese and paneer

pakoda, and cheese sandwich segments. The products
were marketed under the SnowCap brand. The SnowCap
brand also included tomato sauce and ketchup.

Why Diversification
With the liberalization of the Indian economy in the early

1990s, and the subsequent entry of new players, there

was a change in lifestyles and the food tastes of people.
The new team that took over the management of the
GCMMF in the mid-1990s hoped to take advantage of the
change.
According to some analysts, this diversification was

probably not entirely demand-driven. Being a

cooperative, GCMMF was compelled to buy all the milk
that was produced in Gujarat. And with milk production
having increased since the mid 1990s, GCMMF had to
make use of additional milk, and hence the pressure to
make and market more and more processed-milk
products.

 Amul had to expand the consumption base of milk-based

products in India. It planned to make its

products (butter
and cheese) a
part of the regular diet in most households. Amul
launched its new products with the intention of increasing
the offtake of its basic milk products, including cheese.

This flurry of launches helped Amul broaden its appeal

across all segments. Price was an advantage that Amul
enjoyed over its competitors. Amul's products were priced
20-40 % less than those of its competitors. Analysts felt
that Amul could price its products low because of the
economies of scale it enjoyed.

The pizzas were expected to increase the sale of its

cheese. The entry into the confectioneries market was

another avenue for increasing milk consumption

Amul's obsession with keeping down manpower costs

and dealer commissions added to the
strength . In ice-creams for example, Amul's retail
commission in Ahmedabad city was 17.5% which was
10% lower than what competitors offered.

However, all said and done, Amul seemed to be all set to

make steady progress in the coming years with its

products having become quite popular in both rural and
urban households. Said Vyas, "We've handled
liberalization and globalization far better than our
transnational rivals. It has made us fitter than ever."

Exports

GCMMF is India's largest exporter of Dairy Products. It has

been accorded a "Trading House" status.
GCMMF has
received the APEDA
Award from Government of India for Excellence in Dairy Product
Exports for the last 11 years.

Amul export turnover registered a 93 percent increase, over the

previous year in 2009. Apart from regular exports of branded,
consumer-packed dairy products to the US, Persian Gulf and Far
East markets, they exported large quantities of skim and full cream
milk powder. Nutramul, Amulya, Mithaimate and Amul paneer were
launched in the Gulf countries.

New markets like Sri Lanka ,Madagascar, Russia and Saudi Arabia
are being developed, building a strong base for the future.

Amul dairy plants have now received ISO 9000 and HACCP
certification, helping it to obtain the required Export Inspection
Agency plant certification for dairy products.

AMULS Indian desserts are very well liked in countries like

Singapore and Malaysia. Amul has list
of products marketed to
various
countries few of its products are Amul butter, Amul
cooking butter, Amul cheese spread, Amul
pizza cheese, Amul shrikhand, Amul fresh cream etc.

India's largest dairy brand Amul would soon be seen on the

shelves of leading international stores like Wal-Mart and Mustafa
in Singapore after its successful foray into the United Arab
Emirates (UAE).

Mission 2020 of Amul

Amul envisages that the dairy cooperatives of Gujarat will

have a group turnover of Rs. 27000
crores by the year 2020.
This
will be a three-fold increase over its current group turnover of
approx. Rs. 9600 crores. Milk production in milk shed area will
increase to 231 lakh kg per day (23.1 million kg per day), at an
annual growth rate of 4%.

Amul will create fresh avenues for growth by tapping the rising
demand for new value-added products. Special emphasis will be
given to strengthening their presence in the large market for
liquid milk, in metropolitan cities.

Plan to double to processing capacity of dairy plants to 20.7

million kg per day, by 2020. This would include multi-fold
capacity expansion for major product categories including milk
powders, Ice-cream, paneer, cheese, ethnic sweets, curd, ghee
and other dairy products.

SWOT Analysis of Amul

Strength

Weakness

Demand profile
Flexibility of product mix
Technical manpower
Trust enjoyed by its
products
Strong cooperative
organization
Introduced TQM

Logistics of procurement
Competition
Short self life of its
products
Completely dependent on
villages for its raw
material
Salaries offered is less
compared to competitors

Opportunities

Threat

Value addition
Export potential
Used internet to sell its
products
Introduced hybrid
products in the market
Exploring foreign markets

Milk vendors, the unorganized sector

Strong competition from
MNCs
Competition from private
dairies and local milk
suppliers
The yield of Indian cattle
still much lower than other

Thank You
Questions????