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Amul – The Taste of IndiaAmul – The Taste of India
Group – G2:7 Group Members -
Abhishek Kekre Bharath Kumar B Gulab Nebhani Lalima Dutta Choudhury Tanya Dutta
History of AmulHistory of Amul
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.
Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.
Reasons for SuccessReasons for Success
Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets
Low Cost StrategyAmul adopted a low-cost price strategy to make its productsaffordable and attractive to consumers by guaranteeing them value for money
Diverse Product MixAmul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya
Strong Distribution NetworkAmul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.
Technology and e-initiatives New products Process technologyComplementary assets to enhance milk productionE-commerce.
Success!!
GCMMF – Over ViewGCMMF – Over View
GCMMF: Gujarat Cooperative Milk Marketing Federation
GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
FactsFacts
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million liters per day
Milk collection (Total - 2008-09):
3.05 billion liters
Milk collection (Daily Average 2008-09):
8.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing Capacity:
3500 Mts. per day
Amul - Business Model Amul - Business Model
RAW MILK
DriedSkimmed Milk
Powder
Packaged Milk
Ice creamBeverages
Condensed
GheeButterCream
pasteurization
Industry Analysis : Porter’s 5 ForcesIndustry Analysis : Porter’s 5 Forces
Bargaining Power of Customers is High because of
Various competitors
Threat of substitutes is high
because ofavailability of Other products
Threat of new entrantsIs high because
There are no entrybarriers
Competitive Rivalry
is High due to
Other brands and
Local players
Bargaining Power of Suppliers is low
because the suppliersAre rural milk
producers
SWOT AnalysisSWOT Analysis
Weaknesses•Risks of highly complex supply chain system•Strong dependency on weak infrastructure•Alliance with third parties who do not belong to the organized sector
Weaknesses•Risks of highly complex supply chain system•Strong dependency on weak infrastructure•Alliance with third parties who do not belong to the organized sector
Opportunities•Penetrate international markets•Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
Opportunities•Penetrate international markets•Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
Threats•Competitors - Hindustan Lever, Nestle and Britannia•Still competition from MNCs in butter•Growing price of milk and milk products•Ban on export of milk powder
Threats•Competitors - Hindustan Lever, Nestle and Britannia•Still competition from MNCs in butter•Growing price of milk and milk products•Ban on export of milk powder
Strengths•Largest food brand in India •High Quality, Low Price•World's Largest Pouched Milk Brand•Annual turnover of US $1504 million •Highly Diverse Product Mix•Robust Distribution Network
Strengths•Largest food brand in India •High Quality, Low Price•World's Largest Pouched Milk Brand•Annual turnover of US $1504 million •Highly Diverse Product Mix•Robust Distribution Network
Customer Based Market SegmentationCustomer Based Market Segmentation
KidsKids
WomenWomen
Calorie ConsciousCalorie Conscious
Health ConsciousHealth Conscious
YouthYouth
Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shaake
Amul Calci +
Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreadsv
Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk
NutramulAmul Shakti Health Food Drink
Industry Based Market SegmentationIndustry Based Market Segmentation
Milk
Butter/Cheese/GheeButter/Cheese/Ghee
Ice-cream Manufacturers
Restaurant/Food Chains
Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Coffee Shop Chains
AdvertisementsAdvertisements
AMUL is well known for its innovative hoardings. Find below a few:
AdvertisementsAdvertisements
Mix… Product for every oneMix… Product for every one
Amul never forgot its “primary customer”
- Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)
Product for youth - Amul launched Chocolate milk under
brand name of ‘Amul Kool Koko’ targeting the
youth
Product for diabetic people - India’s First Pro-Biotic Wellness Ice
cream & Sugar Free Delights For Diabetics
Mix… Product for every oneMix… Product for every one
Product for the health conscious
- Amul Launched “low fat, low cholesterol
bread spreads”
Product for the price sensitive India
- Low Priced Amul Ice Creams and affordable ‘sagar’ whitener
Product for the urban class - Amul launched emmental,
gouda and pizza mozzarella cheese
Product Mix of AmulProduct Mix of Amul
Amul - Product Diversification
Secret Philosophy Progressive addition of higher value productswhile maintaining the desired growth in existingproducts. Amul introduced products with consistent valueaddition but never left the core philosophy of“providing milk at a basic, affordable price”
Seeking unfamiliar products or markets inthe pursuits of growth with both dairy and non-dairy products
Amul - Product AbandonmentAmul - Product Abandonment
10 years back, Amul took a shot at bottled water through ‘Jaldhara’ which was produced by NDDB.
However the venture failed owing to less demand for packaged water in market. The product was abandoned.
Now Amul is all set to re-launch bottled water “NARMADA NEER”
The 3 C’s…The 3 C’s…
•Customers extremely satisfied•Moved from loose milk to •packaged milk•Ready to try more products•Improved socio-economic conditions
•Largest milk brand in Asia•More than 30 dairy brands•Market leader in ghee & butter•Very strong supply chain•Enjoys Fine reputation•Quality with Affordability
•Defending against Mahananda,Vijay, Milma & other co-operative milk brands
•Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality
Amul – BCG MatrixAmul – BCG Matrix
Business growth
Rate
Relative Market Share
High Low
High
Low
Amul Chocolate
Amul Butter
Amul Cheese
Amul Chocolate drink
Amul Ice-cream
Amul – Product PortfolioAmul – Product Portfolio
Category Market Share Market Position
Butter, Ghee 85% 1
Milk Powder 40% 1
Cheese 50% 1
Ice-cream 24.75% 2
Sweets 50% 1
Chocolate Drink 90% 1
Chocolate 10% 3
Struggle - Amul ChocolatesStruggle - Amul Chocolates
.
Introduction Phase
Amul Milk, Amul Fruit and Nut
Low Growth Phase
Decline Sales
New BrandsRejoice,Kite Bite, Nuts about youSugar FreeChoco Zoo
Decline Sales
Inadequate SuccessFailed new brandsExcessive discounts10% Market shareTough competition by Market Leaders – Cadbury (70%), Nestle
What more can Amul do?What more can Amul do?
To improve further Amul can try out the following ideas:I) Amul can venture out on new products like Toned
milk, Condensed milk that can be used for sweets, Baby food products,
II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products
III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.
Thank You !!