CANNIBALIZATION IN

AMUL

CANNIBALIZATION

• Market cannibalization refers to a situation where a new product “eats” up the sales and demand of an existing product.

• This can negatively affect both the sales volume and market share of the existing product.

“World’s Largest Pouched Milk World’s Brand Biggest Vegetarian Cheese Brand”

OVERVIEW

• The Brand ‘Amul’ is owned by The Gujarat Cooperative Milk Marketing Federation.

• GCMMF is Largest Food Products Marketing organization of India, with a revenue of $1.5 Billion.

• It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India.

• White revolution of India was an initiative under the Umbrella of Amul.

• Amul sells its products around the world in 40 countries.

Target segmentation

AMUL PRODUCT DIVERSIFICATION

Cannibalization in Amul products

Product Overlaps (cannibalization)It is Situation where the company decides to Complete against its own

brands.

1. Powdered milk Health and price Conscious.•“SAGAR vs. Amulya”.

USP: Sagar is affordable whitener for health conscious one.

Sagar Skimmed Milk Powder

• Sagar SMP is a non-fat , protein rich milk powder. Most suitable for use by people on low calorie and high protein diet.

• Ideal for preparing low fat and sugar free Milk Based Products.• On reconstitution as per directions, 1 Kg of Sagar SMP provides 10

litres of toned milk mix.

Amulya

• Amulya, a premium Dairy Whitener from the house of Amul is the favourite choice of all Tea and Coffee lovers across India.

• It has the highest milk fat content among all the Dairy Whitener brands in India that makes it the creamiest dairy whitener.

• It is available in attractive packaging, wide range of pack sizes and at affordable prices.

• Ideal for preparing Tea, Coffee, Sweets, Curd, Cakes and Other Milk Based Products.

• On reconstitution as per directions, 1 Kg of Amulya provides 8 litres of sweetened toned milk mix.

Main reasons of failure with & market share

• Amulaya brand, the co-operative claims to have a 70 per cent share in the milk powder market.

• Currently, Amulaya enjoys a 40 per cent share in the skimmed milk powder market.

• Amulaya is very popular among the customer.• The study shows that amul milk power is most trusted as compare to

the other brand.• The Sagar brand, marketed by GCMMF, generates about Rs 500 crore

in sales.• They are not getting the right price for their product(sagar) and

making a loss of nearly 10%.

STUDY SHOWS

• The study clearly shows that sagar brand have only 3%of market share, were as amulaya is having 40%of it.

• Sagar is failed to advertise it properly and it has some issues related to the logo as well.

• Sagar was also have the problem related to its supply to milk.

 2. Milk drinks

“Nutramul Energy Drink vs. Amul Kool”

AMUL KOOL

• Amul Kool is targeted at children, teenagers prefer Kool Café as it has a cool imagery associated with it.•It was introduced in 2007 with the refreshing taste of saffron(kesar) and after that more flavors are introduced every year. like- chocolate, elachi etc.•It is an easy to use delicious drink that refreshes you immediately with goodness of milk.•Available in easy to use Tetrapack, Glass Bottles, Pet Bottles and Cans.

ARTICLE

• ITO article Asia's largest milk brand flood the domestic market with Amul cool drink.

• Amul has set up a new aseptic pet bottle line with rupees 100cr investment.

• Amul had over Rs.18143 cr. Of sales turn over in 2013-2014 from milk drink

AMUL KOOL NUTRAMUL OTHERS TOTAL

OUTLETS 30 18 12 60

Here chart represents the higher sell of product of the company where kool is higher then the another

CHAIRMAN’S VIEW

• GCMMF has posted a 19% growth in its turnover during 2011-2012 fiscal at Rs.11668 cr. This fiscal it is aiming Rs. 14000cr, turnover.

• To achieve a turnover of 30000CR, by 2018-2019 Amul is growing by over 20% in milk ice-cream & cold beverages segment.

NUTRAMUL

•Nutramul is a nutritious and healthy drink which provides nourishment to the body in the form of Vitamins, Proteins, Carbohydrates and Minerals.•Nutramul is a Brown Beverage that falls under the Health Food Drink category.•It's a milk additive, which means it can be consumed by adding directly to milk. It is easy to make and tasty to drink and is suitable for people across age groups, particularly kids who require adequate nourishment for proper growth.

• According to ORG-Marg figures,: Nutramul has a 3 per cent market share in the malted beverages market. Panigrahi said Amul has not paid much attention for quite some time to the malted beverages market

• Nutramul, which is in the brown beverages category, will also be extended to the white beverages as well.

PRODUCT PROTFOLIO

REASONS FOR FAILURE

•Advertisement is an important role for the product to be sold in the market, as Amul advertising has low profile so by this other competitors were benefited.•The competitor products have been very well received by consumers due to their advertising pitch Example: Kwality, Vijaya, Nestle.

•They would be willing to make further investments only for that brand which offers replacement facilities. Amul has no replacement policy.

Distribution:

• The major development on the distribution front was the development and alignment of four distribution highways-those of Fresh Products, Chilled Products, Frozen Products and Ambient Products.

• This is a significant achievement because it allows them to develop synergies among all product lines and to leverage these highways to introduce and distribute new products as per market demand.

• No other organization in India has been able to develop this kind of channel synergy so far.

3. Cheese spreadSpecific vs. General

“Amul Processed Cheese vs. Cheese Spread’sUSP: Cheese spread is highly accepted spread for regular use.

Cheese Spread

•In1983 Amul introduced cheese spreads.•Easy to spread and use, healthiest form of spread (only 20% fat)•Good source of Calcium and milk Proteins• Very easy to spread on all dishes.•A low-fat, low-calorie, low-cholesterol product•Easy to use as a cheesy alternative to chutneys, sauces, ketchups and dips.•Ideal for adding delicious taste to Paranthas, rotis. dosa, Omelette, nan, kulcha,samosas, pakora and many other Indian dishes.

Amul Pizza Mozarella Cheese

• Amul, which is the largest selling brand of Cheese in India, has introduced genuine Mozzarella Cheese

• Amul Pizza Cheese has Moist, Soft, Elastic texture and has a very timely surface sheen and when fresh, it has a slightly salty blandish taste and pleasant aroma. Because of its stretch ability, i.e. ability to form strings when hot, this cheese is ideal for preparing Lasagna, and as a topping on pizzas.

• When baked along with pizzas, it melts uniformly, beautifully engulfing all other ingredients of the pizza surface.

• Mozzarella is an excellent source of milk proteins, which are palatable.• Because of its stretch ability, i.e. ability to form strings when hot, this

cheese is ideal for preparing Lasagna, Veal Cutlet, Alla Parmagnia and as a topping on pizzas.

Strategy

• When low cost pizzas were introduced, GCMMF 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

Market profile

• The Indian organized cheese market including its variants like• processed cheese, mozzarella, cheese spreads, flavored.• and spiced cheese, is valued at around Rs 4.5 billion7. Processed• cheese at 60% of the overall market is Rs 2.7 billion7.• The next most popular variant is cheese spread claiming a• share of around 30% of the total processed cheese market.• The market is primarily an urban phenomenon and is known• to be growing at around 15%7. The market for cheese cubes,• slices and tins is growing. The flavored cheese segment has• been constantly declining.

Market growth rates

• 1990-91 – 1996-97 18.5%• 1996-97 – 2001-02 20.6%• 2001-02 – 2006-07 11.7%• 2004-05 – 2009-10 9.4%• 2009-10 – 2014-15 7.4%

• Currently, imported cheese has 5% market share in the overall cheese market in India, which is dominated by local brands – Amul, Britannia and Le Bon. HappyCow (Austria), Laughing cow (France) and Kraft (Australia) are prominent selling imported brands.

• Amul is world’s biggest vegetarian cheese brand.• During the last few years, the Indian cheese market has grown steadily

at 15 to 20 per cent per annum.• Amul is the top selling brand in India, with a 50per cent share of the

market. Its cheese spreads have a 60 percent share of the market, while it is the only large player in mozzarella pizza cheese with 70% market share.

Market share of Amul

AMUL COMPETITORS

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