Amul – The Taste of India
Group – G2:7
Group Members -
Abhishek Kekre
Bharath Kumar B
Gulab Nebhani
Lalima Dutta Choudhury
Tanya Dutta
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
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
Success!!
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.
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- 3.05 billion liters
09):
Milk collection (Daily Average 8.4 million liters
2008-09):
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing 3500 Mts. per day
Capacity:
Amul - Business Model
RAW MILK
pasteurization
Condensed
Packaged Milk
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
Industry Analysis : Porter’s 5 Forces
Threat of new entrants
Is high because
There are no entry
barriers
Competitive Rivalry
Bargaining Power Bargaining Power
is High due to of Suppliers is low
of Customers is
High because of Other brands and because the suppliers
Various Are rural milk
competitors Local players producers
Threat of
substitutes is high
because of
availability of
Other products
SWOT Analysis
Strengths Weaknesses
•Largest food brand in India •Risks of highly complex supply
•High Quality, Low Price chain system
•World's Largest Pouched Milk Brand •Strong dependency on weak
•Annual turnover of US $1504 million infrastructure
•Highly Diverse Product Mix •Alliance with third parties who do
•Robust Distribution Network not belong to the organized sector
Opportunities Threats
•Penetrate international markets •Competitors - Hindustan Lever,
•Diversify product portfolio to Nestle and Britannia
enter new product categories and •Still competition from MNCs in
expand existing categories like butter
processed foods, chocolates etc •Growing price of milk and milk
products
•Ban on export of milk powder
Customer Based Market Segmentation
Amul Kool Chocolate Milk
Nutramul Energy Drink
Kids Amul Kool Millk Shaake
Women Amul Calci +
Utterly Delicious Pizza
Youth Amul Emmental Cheese
Amul Cheese Spreadsv
Amul Lite
Calorie Conscious Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk
Nutramul
Health Conscious Amul Shakti Health Food
Drink
Industry Based Market Segmentation
Ice-cream Manufacturers
Restaurant/Food Chains
Coffee Shop Chains
Milk Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Butter/Cheese/Ghee
Advertisements
AMUL is well known for its innovative hoardings. Find below a
few:
Advertisements
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
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
Amul - Product Diversification
Seeking unfamiliar products or markets in
the pursuits of growth with both dairy and non-dairy products
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”
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…
•Defending against Mahananda, •Customers extremely satisfied
Vijay, Milma & other co-operative •Moved from loose milk to
milk brands •packaged milk
•Ready to try more products
•Aggressive moves against •Improved socio-economic
Britannia, Nestle, Mother Dairy conditions
and Kwality
•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
Amul – BCG Matrix
High
Amul Ice-cream
Business
Amul Cheese Amul Chocolate
growth
Rate
Amul Butter
Amul Chocolate drink
Low
High Low
Relative Market Share
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
. Low
Growth Inadequate Success
Phase Failed new brands
Excessive discounts
10% Market share
Tough competition by
Market Leaders – Cadbury
(70%), Nestle
Decline
Sales
Decline
Introduction Sales
Phase
Amul Milk, Amul
Fruit and Nut
New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo
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.
Thank You !!
