7Project on

Amul cheese

Subject: Managerial Economics

Lecturer: Ms.Mughda Joshi

Mahesh

SonaliStewart

Manjiri

Chaitali

Group members having a discussions about the project

Module:1

Module:2

Module:3

Module:4

Index

About the product

Demand analysis

Cost & Revenue concept

Market structure

Module :1About the Product

Introduction to the company

Amul "priceless" in Hindi.

The brand name "Amul," from the Sanskrit "Amoolya," meaning Precious was suggested by a quality control expert in Anand, formed in 1946, is a dairy cooperative in India.

It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 3.1 million milk producers in Gujarat, India.

Amul is based in Anand, Gujarat and has been an example of a cooperative organization's success in the long term.

REASONS FOR SUCCESS

Robust Supply Chain

Low Cost Strategy

SUCCESS!!

Diverse product mixAmul Butter, Ghee, Milk Powder, Cheese,Chocolate, Shrikhand, Ice Cream, Amulspray,Milk, Nutramul And Amulya

Strong Distribution network

Technologhy And E-Initiatives

Amul Products Diversification

1946 1999 2007 2008 2009 20100

2000

4000

6000

8000

10000

12000

Amul Growth RateAnnual Turnover of 4300 Crore (2006-07)Rs 10000 Crore mark in 2010Five decade to became Rs 2000 Crore entity but the turn over doubled to over Rs 4300 crore within nineyears form 1999-07

Amul marketing

in rural India

Members : •2 district milk producing units

Number of producer members: •3.11million members

Number of village societies: •11,962 villages

Total milk handling capacity: •9.91million litres per day

Daily average milk collection •6.31million litres

Sales turnover: •US$1068million in 2011

Biggest strength : •supply chain management

SWOT Analysis

Strength

Weakness

Opportunity

Threats

1. Creative advertising2.High brand presence3.High visibility4.Excellent product quality and trusted name

1. Low product range/ taste

1. Smaller packages2.No frills packaging for rural customers at lower cost 3.New tastes/varieties4.Tieup with restaurants/food chains/pizza parlors

1. Growing market share of other players

Module:2 Demand Analysis

Demand for Amul products

The demand for Amul can never fall because of the types of products produced by them.

They produce quality products and have won the hearts of Indian people and is become the taste of India for more than 60 years.

Due to the customer and industry based approach of the company

Customer Based Market Segmentation

Kids

Women

Calorie Conscious

Health Conscious

Youth

Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shake

Amul Calci +

Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreads

Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk

NutramulAmul Shakti Health Food Drink

Industry Based Market Segmentation

Milk

Butter/Cheese/Ghee

Ice-cream Manufacturers

Restaurant/Food Chains

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Coffee Shop Chains

Amul – 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

Marketing Strategy

Module:3Revenue Concept

STRATEGY

As its product lists, GCMMF has capitalized on the value added segment with a wide range of Amul cheeses.

The Amul brand represents 'value for money' to the Indian consumer and its cheese portfolio is competitively priced and of assured quality.

The company has been aggressively marketing its cheese products, to the extent of even moving away from its umbrella brand strategy and introducing a new mascot, the Amul Cheese Boy.

STRATEGY

When low cost pizzas were introduced, Amul adopted an innovative and successful strategy of increasing sales of an elitist product (cheese) by reducing the price of another elitist product (pizzas).

Especially since 2005, the company has focused on expanding its already strong distribution network to smaller cities as cheese demand has rapidly expanded beyond the large metros.

Module:4Market structure

Types of market

structures

Monopolistic competition

Perfect competitionOligopolistic

competition

Oligopoly competition

Definition:An oligopoly is a market form in

which a market or industry is dominated by a small number of

sellers (oligopolists). The word is derived, by analogy with "monopoly", from the Greek

ὀλίγοι (oligoi) "few" + πωλεῖν (polein) "to sell".

Because there are few sellers, each oligopolist is likely to be

aware of the actions of the others.

Strategy to sell• Create goodwill in the

market due to less number of sellers.

• There is less competition they become the price maker

• They maintain their quality to be the taste of India.