Presented by: Gunjan Dugar Manish Madhukar Mohit

8/14/2019 Presented by: Gunjan Dugar Manish Madhukar Mohit

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Presented By:

Gunjan DugarManish Madhukar

Mohit Almal

Vineet Sekhani





Background

• Membership -

– Committing to supply a certain quantity of milk for acertain number of days in a year

– Would continue to be a member only if he kept up this

commitment

• Cooperative, not only collected milk but also providedsupport services

– veterinary care for their cattle

– Supply of cattle feed of good quality

– Education on better feeding of cattle

– Facilities for artificial insemination of their cattle



ANAND PATTERN

THE VILLAGE SOCIETY THE DISTRICT UNION THE STATE FEDERATION



ANAND PATTERN

• Village Society – Called as Village Dairy Cooperative Society (DCS)

– Formed by Milk Producers

– Has milk collection centres where milk is collecteddaily

– Each member's milk is tested for quality withpayments based on the percentage of fat and SNF

– At the end of each year -

• A portion of the DCS profits is used to pay each member apatronage bonus based on the quantity of milk poured.





ANAND PATTERN

• The State Federation

– Responsible for marketing the fluid milk and

products of member unions.

– Some federations also manufacture feed and

support other union activities



Organisational Structure

Managing Director

General Manager(Marketing)

Assistant generalManager

(Marketing – Dairy

Products)

Manager(commercial)

Manager(Exports)

Manager

(Liquid Milk)

Manager

(Ice Cream)

General Manager(HRD)

General Manager(Quality assurance)



Organisational Structure

• Sales offices• Headed by a Sales manager

• Assisted by Sales Officers and FieldSalespersons

48

• Dealer Network3600

• Retailers400000



Product PortfolioCategory Market Share Market Position

Liquid Milk NA 1

Full fat milk

Semi Toned Milk

Fully Toned Milk

Butter

Amul Butter 85 1

Amul Lite 80 1

Amul Ghee 8 2

Sagar Ghee 10 1

Milk PowderAmul Spray 65 1

Amul Milk Powder 80 1

Sagar, Skimmed Milk

Powder

40 1

Amulya, dairy whitener 60 1



Product PortfolioCategory Market Share Market Position

Cheese

Amul pasteurized Cheddar Cheese 50 1

Amul Cheese Spreads 90 1

Amul mozzarella cheese 100 1

Amul Emmental Cheese

Amul Paneer

Amul Cheese Powder

Ice Creams

Amul Ice Creams 30 2Sweets

Amul Shrikhand 50 1

Amul Mithai Gulab Jamun 1

Amul Mithai Mate



Product Portfolio

Category Market Share Market PositionChocolates

Amul Chocolates 10 3

Chocolate Drinks

Nutramul 15 4

Edible Oils 12

Dhara Edible Oil

Dhara Health

Fruit & Vegetable

based Products

N.A.

Safal Fruit Drinks

Safal Tomato Ketchup

Safal Mixed Fruit Jam



Success

Robustsupplychain

Low coststrategy

Diverseproduct

mix

Strongdistribution

network

Technologyand e-

initiatives

Amul – Quality, Value for money, Availability, Service

Success

Story



AMUL – Business Model

Raw Milk

Condensed

Butter

Ghee

cream

Packaged Milk

Ice cream

Beverages

DriedSkimmed Milk

Powder

Pasteurization



GCMMF’s Business Strategy

Developing demand

Limited purchasing power

A low cost price strategy product

The Distribution Network

Dry and cold warehouses

Cash transactions throughout the supply chain

JIT improves dealers’ ROI

Umbrella Brand

Common brand for most product categories

Amul’s sub-brands like Dhara, Safal etc.

Third party service providers

Core is milk processing

Logistics of milk collection, distribution of productsand sale through retail outlets and dealers



Porter’s 5 Forces: An Industry Analysis

Competitiverivalry high

due to other

brands and

local players

Threat of new

entrant is highas entry barriers

are low

Bargaining power

of customers is

high because of

high competition

Threat of

substitute is

high because of

other products

Bargaining power

of suppliers is low

because they are

rural milk

producers





SWOT Analysis

Strength

High Quality, low price

Introduced TQM

Highly diversified product mix

Robust distribution network

Brand strength

Weakness

Strong dependence on weak

infrastructure and dependence on

villages for raw material

Short shelf life of product

Alliance with third parties

Opportunities

Penetrate international markets

Diversify product portfolio by

adding products like processed food,

chocolates

Use of internet to sell products

Increasing customer contact points

Threats

International competitors

Growing price of milk

Yield of indian cattle low as

comapred to other countries

Saturation of markets







Profitability Ratios

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

93-94 94-95 95-96 96-97 97-98 98-99

Net profit margin

9.89%

11.29%

9.67%

8.55%

10.93%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

94-95 95-96 96-97 97-98 98-99

ROA

2.25%3.20%

18.63%

13.73% 13.72%

18.76%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%16.00%

18.00%

20.00%

1994 1995 1996 1997 1998 1999

ROE



Ratio’s

2.68%

2.20%2.18%

2.35% 2.34%2.22%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

93-94 94-95 95-96 96-97 97-98 98-99

Marketing Expense/Total

Turnover22.81%

18.48%19.40%

18.29%

19.63%18.38%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

93-94 94-95 95-96 96-97 97-98 98-99

Dhara Sales/ Total Turnover



Amul Competition



Product Strategy of Amul

• Product Positioning Strategy

• Product Design Strategy

•

Diversification Strategy• Value Marketing Strategy





Product Design Strategy

“Whether to offer standardised or customized

products”

Uses of Utterly – Butterly Girl:

Using since 1967

One of the longest serving ad campaigns



Product Diversification

• Seeking unfamiliar markets or products in thepursuit of growth

• Amul’s Philosphy:

- Progressive addition of higher valueproducts while maintaining the desiredgrowth in existing products

Core philosphy:- Providing milk at basic and affordable

price



Value Marketing Strategy

• Providing a product that works as claimed, is

accompanied by decent service and delivered

on time

• Commitment to quality

• Value for money

• Creating awareness

• Fostering loyalty





Dairy Cooperative Network-Current Scenario

The Dairy Cooperative Network

• Includes 177 milk unions

• Operates in over 346

districts

•

Covers around 1,28,799village level societies

• Is owned by around 13.4

million farmer members of

which 3.7 million are

women

Milk Production

• India's milk production

increased from 21.2 million

MT in 1968-69 to 100.9 million

MT in 2006-07 and to 102

million MT in 2007-08• Per capita availability of milk

was 246 grams per day in

2006-07 increased from

241grams per day in 2005-

06, up from 112 grams per day

in 1968-69





Mission 2020• “Mission 2020,” as the GCMMF calls it, focuses on

cattle feed manufacturing capacity

• The GCMMF, at current price, will require an

investment of Rs 2,600 crore to ready theinfrastructure required for such a facility

• “We want to expand the manufacturing capacity of

the cattle feed more than four times to 12,000 MTsper day by 2020,” said ParthiBhatol, chairman, GCMMF



Sales Growth-By Value



Amul-Retailing

•The network of more than 4000 parlors in almost allmajor towns of the country bears testimony to the

fact that the model is hugely scalable and inherently

sustainable

• The retailing business alone fetched sales turnover

of more than Rs.200 Crores during the current year

• Channel Partner- Indian Railways, 300 New Outlets



Problem Statement



SWOT ANALYSIS

• Strengths:

– Existing Distribution Channel

– Current Positioning – PURITY!!

– Better knowledge about Indian Tastes &Preferences than the MNCs

– Strong Morals

– Excellence in forming Cooperatives

– Sound Financials



SWOT ANALYSIS

• Weaknesses:

– Unable to recruit professionals

– Do not enjoy a level playing field as compared to

Companies

– Need to do away with the Lean organisation

format, hence affecting the profitability



SWOT ANALYSIS

• Opportunities

– Premium Food consumption to increase by more

than 150%

– Prevailing conditions comprises loopholes like

• Wasteful production

• Poor prices paid to farmers

–

Growing Health Concern





Documents

Presented by: Gunjan Dugar Manish Madhukar Mohit