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Amul – The Taste of India:

Amul – The Taste of India

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.

Reasons for Success:

Reasons for Success Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets 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 Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya 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. Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce. Success!!

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.


Facts 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 Dried Skimmed Milk Powder Packaged Milk Ice cream Beverages Condensed Ghee Butter Cream pasteurization

Industry Analysis : Porter’s 5 Forces:

Industry Analysis : Porter’s 5 Forces

SWOT Analysis:

SWOT 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 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 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 Segmentation:

Customer Based Market Segmentation Kids Women Calorie Conscious Health Conscious Youth Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Millk Shaake Amul Calci + Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreadsv Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk Nutramul Amul Shakti Health Food Drink

Industry Based Market Segmentation:

Industry Based Market Segmentation Milk Butter/Cheese/Ghee Ice-cream Manufacturers Restaurant/Food Chains Temples Bakery & Confectionaries Pizza Retailers Snacks Retailers Coffee Shop Chains


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



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

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

Product Mix of Amul:

Product Mix of Amul

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

Amul - Product Abandonment:

Amul - 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 Matrix:

Amul – 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 Portfolio:

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

Struggle - Amul Chocolates :

Struggle - Amul Chocolates . Introduction Phase Amul Milk, Amul Fruit and Nut Low Growth Phase Decline Sales New Brands Rejoice, Kite Bite, Nuts about you Sugar Free Choco Zoo Decline Sales Inadequate Success Failed new brands Excessive discounts 10% Market share Tough 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 .

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