India’s

: Keeping up with the

Times

Presentation by Group 2
MARKETING MANAGEMENT
 AMUL: BACKGROUND
֍ All district milk producers unions of Gujarat came together to form a federation “Gujarat Cooperative Milk
Marketing Federation”

֍ Dr. Verghese Kurien : Father of white revolution in India.

֍ Founded in 1946, Amul is a Indian dairy cooperative owned by 3.2 million farmers in the Western state of
Gujarat.

֍ Amul produced 46 types of dairy based foods having a sales turnover of US $2.5 billion as of March 2013

֍ A successful cooperative society that always take care of the farmers and loyal customers
 INDIAN DAIRY INDUSTRY
India- World’s Largest Milk Producing And Consuming Nation

Who are involved? What happens to this

90 million Families i.e. 400
individuals milk?
50%- Self consumption,
40%- Unorganized Milkmen,
10%- Organized Small Local Cooperatives and Large

How much is the Private Players

industry growing? What is the estimated

7.5% annual growth in recent
years value?
$47.6 Billions in both Organized and
Unorganized sectors

What is changing in the

Who dominates the market? recent times?
Dairy cooperatives and foreign
multinational dairies Dairy entrepreneurs focusing on higher-end value-added
and premium products like probiotic Greek yogurt, whey
proteins and on-the-go products.
 AMUL’S EARLY
YEARS
Kaira Union formed their
1946 Cooperative

They Began to collect over 1948

20,000 litres milk a day -
1953

Kaira Union Branded its Product by the

1957 name ‘AMUL’ & began producing milk
powder,butter,ghee,babyfood

Began providing Post

● Artficial insemination service
1957
● increasing frequency of calving & milk
productivity
● Manufacture cattle feed
 OPERATION FLOOD

Operation Flood Brand Recognition

Launched by NDDB, generated demand for milk Developed milk products market and comfortable
products in urban areas. ecosystem for investing time & money for
farmers

White Revolution IRMA

Lauded as economic, agricultural & social Training institute of leaders &
success. Benefited 100 million families, innovators in rural society.
chipped away societal biases
 THE THREE-TIER COOPERATIVE
STRUCTURE

Village Level District Level Apex Body

 Residents owning cows & buffalo
 Purchased shares and gave away surplus
milk
 Affordable cattle feed and other services
 Owned by dairy cooperative societies
 Purchased milk from societies
 Processed & packaged value-added
products.
 Sold within districts.
 GCMMF, owned by district unions
 Common distribution network, planned
individual product mixes
 Procured raw materials
 Provided support and financing
 BCG MATRIX: BUILDING A BRAND

High Low

Market Growth Rate

High
STARS QUESTION MARKS
Amul Buttermilk Amul Ice cream
Amul Butter Paneer

CASH COWS DOGS

Flavored Milk Infant Milk Food
Low

Lassee (Yogurt Drinks)

Relative Market Share

 COMPETITION MANAGEMENT

Price Advertisement Political Transparency

Low margins for Low cost and long The clean image holds
distribution partners running advertisements,
Affiliations
Politics and Amul the public trust
and higher income to Umbrella brand strategy
don’t go hand in
farmers
hand
 NEW CHALLENGES

Brand Loyalty and Procurement Urban Migration

Competition
Poor feed quality, limited
Local competition,detachment procurement with Brain drain from rural to
increasing demand urban
 SWOT Analysis

S W O T
Strengths Weaknesses Opportunities Threats
♦ Highly diverse product mix ♦ Risk of highly complex ♦ Penetration in international ♦ Competitors like Nestle, HUL,
♦ Robust distribution network and supply chain system markets Britannia
channels; Arrangements with ♦ Procurement issues ♦ Expand existing categories ♦ Growing price of milk and
distribution partners like processed foods, milk products
♦ Cost effective advertising campaigns chocolates, etc ♦ Large foreign retailers
and marketing strategies ♦ Younger generations shying
♦ Leadership away from dairy farming
SUPPORT ACTIVITIES
PORTER’S VALUE CHAIN ANALYSIS
Firm Infrastructure- Head, zonal and overseas offices

Cu
sto
me
Human Resource Management- Leadership & open culture

rV
al u
Me ar
Technology Development- Integration from farmers to customers; B2B

gin
Procurement

Outbound

Vagin
e
Inbound Service and

lu
Logistics: Sales and

er ar
Logistics: Operations Support:

mM
Marketing:
Production by co- Milk processing, Village Diary Co- After sales
Distributors,

to
operative and Packing op society, services

s
Retailers

Cu
union members Milk unions

PRIMARY ACTIVITIES
THANKS!