Amul The Taste of India
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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.
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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.
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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.
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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 - 200809):
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
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Amul - Business Model
RAW MILK
pasteurization
Condensed
Ghee
Butter
Cream
Packaged Milk
Ice cream
Beverages
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Dried
Skimmed Milk
Powder
Industry Analysis : Porters 5 Forces
Threat of new entrants
Is high because
There are no entry
barriers
Bargaining Power
of Customers is
High because of
Various
competitors
Competitive Rivalry
is
High due to
Other brands and
Local players
Threat of
substitutes is high
because of
availability of
Other
products
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Bargaining Power
of Suppliers is low
because the suppliers
Are rural milk
producers
SWOT Analysis
Strengths
Weaknesses
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
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
Threats
Penetrate international markets
Diversify product portfolio to
enter new product categories and
expand existing categories like
processed foods, chocolates etc
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
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Customer Based Market Segmentation
Amul Kool Chocolate Milk
Nutramul Energy Drink
Amul Kool Millk Shaake
Kids
Kids
Women
Women
Amul Calci +
Utterly Delicious Pizza
Amul Emmental Cheese
Amul Cheese Spreadsv
Youth
Youth
Calorie
CalorieConscious
Conscious
Amul Lite
Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk
Health
HealthConscious
Conscious
Nutramul
Amul Shakti Health Food
Drink
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Industry Based Market Segmentation
Ice-cream Manufacturers
Restaurant/Food Chains
Coffee Shop Chains
Milk
Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Butter/Cheese/Ghee
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Advertisements
AMUL is well known for its innovative hoardings. Find below a
few:
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Advertisements
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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
- Indias First Pro-Biotic Wellness Ice
cream &
Sugar Free Delights For Diabetics
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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
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Product Mix of Amul
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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
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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
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The 3 Cs
Defending against Mahananda,
Vijay, Milma & other co-operative
milk brands
Customers extremely satisfied
Moved from loose milk to
packaged milk
Ready to try more products
Improved socio-economic
conditions
Aggressive moves against
Britannia, Nestle, Mother Dairy
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
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Amul BCG Matrix
High
Business
growth
Rate
Amul Ice-cream
Amul Chocolate
Amul Cheese
Amul Butter
Low
Amul Chocolate drink
High
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Relative Market Share
Low
Amul Product Portfolio
Category
Market Share
Butter, Ghee
85%
Milk Powder
40%
Cheese
50%
Ice-cream
24.75%
Sweets
50%
Chocolate Drink
90%
Chocolate
10%
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Market Position
Struggle - Amul Chocolates
.
Low
Growth
Phase
Decline
Sales
Introduction
Decline
Sales
Phase
Amul Milk,
Amul Fruit and
Nut
New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo
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Inadequate Success
Failed new brands
Excessive discounts
10% Market share
Tough competition by
Market Leaders Cadbury
(70%), Nestle
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 Amuls 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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Thank You !!
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