GENERAL MANAGEMENT

AMUL CASE STUDY

ANALYSIS
Quick summary from the given case study
■ The goal was set by Gujarat Cooperative Milk Marketing
Federation (GCMMF) to make Amul India’s largest food brand
■ A sales target of Rs.10 bn was set in 2001 (the sales then being Rs.
2.3 bn) and to be achieved by 2006.
■ GCMMF entered the pizza market under the brand name SnowCap
■ Planned to launch in western cities like Mumbai, Surat and Baroda
and depending upon the response there would be expansion of the
product to other cities
■ The competitors in the market then were Domino’s, Pizza Hut and
Nirula’s.
About Amul
■ Amul was formed in 1946 and is managed by Gujarat
Cooperative Milk Marketing Federation (GCMMF)
■ It is currently owned by 3.6 million milk producers in
Gujarat, and the apex body of 13 District Milk Unions
which is spread across 13,000 villages of Gujarat.
■ The establishment of this company lead to the White
Revolution of India which made India go from a milk-
deficient nation to the world’s largest producer of milk.
What makes Amul to concentrate on the pizza market?
■ Amul entered the pizza market under the brand
SnowCap to sell pizzas.
■ One of the reason for them to enter this market was to
adhere to the tastes and preferences of the public as
pizzas were popular during this time. They were as
popular as the local delicacies which made Amul step
into this.
■ The other yet main reason why Amul chose to
concentrate and enter the pizza market was to boost
the sales of its mozzarella cheese.
How is Amul targeting vegetarian pizza? Explain?
■ The reason for Amul to target vegetarian pizzas was
mainly because of the reason that 38% of India’s
population is vegetarian. In order for this product to
be highly consumed, it is tailored according to the
residents of the country and figuring out what the
public prefers through surveys.
■ Amul under SnowCap sold these vegetarian pizzas
at a highly affordable price ( at Rs.20) with great
quality which lead to great consumption of pizzas.
What growth does Amul expect in pizza selling to
contribute its overall growth?
■ Compared to its competitors in the market, Amul under SnowCap priced the
pizzas at Rs.20 whereas competitors like Domino’s, Pizza Hut and Nirula’s
priced theirs at Rs.39. It can be seen that Amul’s price was one-thirds of its
competitors. This could lead to forcing the competitors to lower the price of their
pizzas in the long run.
■ As said before, the main reason for Amul is to boost its sales in mozzarella
cheese (a crucial ingredient in the making of pizzas). GCMMF has planned to
open about 3,000 pizza retail franchises all over the country which can lead to
the boost in the consumption of mozzarella cheese.
■ This strategy formed by GCMMF is based on a franchise model wherein Amul
will train franchises and provide them with the required equipment, technical
inputs and promotional support.
■ This move makes it clear that Amul wants to attract customers through this
pricing ideal. Affordable yet quality products are enough to cause high demand
for a product.
Sources:

■ https://bbamantra.com/project/segmentationtargeting-and-positioning-of-amul/
■ http://eceyucel.net/2020/12/14/amul-case-study/