bcg matrix of amul

Slide 1: 

STRATEGIC MANAGEMENT 1

Slide 2: 

UNIVERSITY OF MUMBAI’S ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES 2

Slide 3: 

3 SYBMS SEM II Submitted to :- Prof. Anita Boabade Mam

Topic : - : 

Topic : - :- BCG MATRIX OF 4

Slide 5: 

ACKNOWLEDGEMENT I would like to express my special thanks of gratitude to my Prof. Anita Bobade Mam as well as our Director who gave us golden opportunity to do this wonderful project on the topic “BCG Matrix of AMUL”. While studying this project I gained lot of knowledge and information. Secondly I would also like to thank my Parents and Friends who helped me a lot in finishing this project within the limited time. I have made this project not only for marks but to also increase my knowledge.THANK YOU ONE AND ALL 5

Contents : 

Contents What is BCG Matrix? The BCG growth- share matrix STARS CASH COWS DOGS QUESTION MARKS History of Amul Reasons for Success GCMMF – Over View Facts Amul - Business Model SWOT Analysis Customer Based Market Segmentation Industry Based Market Segmentation 6

Contd……. : 

Contd……. Advertisements Mix… Product for every one Product Mix of Amul Amul - Product Diversification The 3 C’s… Amul – BCG Matrix Amul – Product Portfolio What more can Amul do? Benefits Limitations Conclusion Bibliography 7

What Is BCG Matrix? : 

What Is BCG Matrix? BOSTON CONSULTING GROUP (BCG) MATRIX is developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. 8

Slide 9: 

9

THE BCG GROWTH-SHARE MATRIX : 

THE BCG GROWTH-SHARE MATRIX It is a portfolio planning model which is based on the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs It is based on the combination of market growth and market share relative to the next best competitor. 10

STARS High growth, High market share : 

STARS High growth, High market share Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW. 11

CASH COWS : 

CASH COWS Low growth , High market share They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining. 12

DOGSLow growth, Low market share : 

DOGSLow growth, Low market share Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage. 13

QUESTION MARKSHigh growth , Low market share : 

QUESTION MARKSHigh growth , Low market share Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks. 14

History of Amul : 

History 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. 15

Slide 16: 

Reasons for Success 16 Success!!

Robust Supply Chain : 

Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets 17

Low Cost Strategy : 

Low Cost Strategy Amul adopted a low-cost price strategy to make its products. Affordable and attractive to consumers by guaranteeing them value for money. 18

Diverse Product Mix : 

Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya 19

Strong Distribution Network : 

Strong Distribution Network Amul 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. 20

Technology and e-initiatives : 

Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce. 21

GCMMF – Over View : 

GCMMF – 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. 22

Facts : 

Facts 23

Amul - Business Model : 

Amul - Business Model 24

SWOT Analysis : 

SWOT Analysis 25

Slide 26: 

26

Strengths : 

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 27

Slide 28: 

Weaknesses 28

Weaknesses…….. : 

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 29

Slide 30: 

Opportunities..! 30

Opportunities…….! : 

Opportunities…….! Penetrate international markets Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc 31

: 

Threats…! 32

Threats…! : 

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 33

Slide 34: 

Customer Based Market Segmentation Health Conscious Kids Women Youth Calorie Conscious 34

Slide 35: 

Kids Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Millk Shaake 35

Slide 36: 

Womens Amul Calci 36

Slide 37: 

Youth UtterlyDelicious Pizza Amul Emmental Cheese Amul Cheese Spreads 37

Slide 38: 

Health Conscious Nutramul Amul Shakti Health Food Drink 38

Slide 39: 

Calorie Conscious Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk 39

Slide 40: 

40 Industry Based Market Segmentation

Slide 41: 

41 Milk Ice-cream Manufacturers Restaurant/Food Chains Coffee Shop Chains Temples Amul Milk

Butter/Cheese/Ghee : 

Butter/Cheese/Ghee 42 Bakery & Confectionaries Pizza Retailers Snacks Retailers

Advertisements : 

Advertisements AMUL is well known for its innovative hoardings. Find below a few: 43

Advertisements : 

Advertisements 44

Product Mix of Amul : 

Product Mix of Amul 45

Mix… Product for every one : 

Mix… 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 46

Mix… Product for every one : 

Mix… 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 47

Amul - Product Diversification : 

Amul - Product Diversification Secret Philosophy Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced products with consistent value addition but never left the core philosophy of “providing milk at a basic, affordable price” Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products 48

BCG MATRIX : 

BCG MATRIX High Low HIGH LOW MARKET SHARE BUSINESS GROWTH RATE

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 – Product Portfolio : 

Amul – Product Portfolio 51

Slide 52: 

Amul – Product Portfolio in Graph Market share 52

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. What more can Amul do? 53

Slide 54: 

BENEFITS……! 54

Slide 55: 

BENEFITS BCG MATRIX is simple and easy to understand. It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability. 55

Slide 56: 

What to do ? LIMITATIONS……..! 56

Slide 57: 

BCG MATRIX uses only two dimensions, “Relative Market” share and “Market Growth rate”. Problems of getting data on market share and market growth. High market share does not mean profits all the time. Business with low market share can be profitable too. LIMITATIONS… 57

CONCLUSION : 

CONCLUSION Amul one of the fastest growing industries of India. This industry has revolutionized the Indian dairy sector and also brought it back from the brink of extinction . Also it was one of the first successful cooperative associations in India and also now the market leader in the dairy sector . 58

Slide 59: 

www.amul.com www.wikipedia.com www.scribd.com www.google.com 59 Biblography

Slide 60: 

60 Thank you……!