23713737 Amul the Taste of India

8/2/2019 23713737 Amul the Taste of India

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Presented by:

DIVYA BODDU

09020242007

SIIB MBA-AB


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1929

Peston Edul Polson established Polson Model Dairy atAnand to manufacture butter, ghee and casein.

1944

Inauguration of Bombay Municipal Corporation MilkSupply. Monopoly rights were awarded to Polson forProcuring milk from Kaira.

1946

KDCMPUL formed to counter exploitation by PolsonsDairy (Anand)

And so did GCMMF and brand Amul correspondingly


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Pandit Jawaharlal Nehru, Indira

Gandhi, Morarji Desai and others at

the inauguration of Amul Dairy.

Amul Dairy, Anand [today]


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Type :Cooperative

Headquarters: Anand, India

Key people: Chairman, GCMMF - P. G. Bhatol

Industry :Dairy Products Revenue:INR 67.11 billion, $15.04 billion USD (08-09)

Employees :735 employees of Marketing Arm. However,

real pool consist of 2.8 million milk producers

Website: www.amul.com

CRISIL assigned "AAA/Stable/P1+" to the various bank

facilities of GCMMF.


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Competitive

rivalry is highdue to otherbrands and

local players

Threat of newentrants is high coz

there are no entry

barriers

Bargainingpower of

customers ishigh coz ofvarious

competitors

Threat of substitutes ishigh coz of availability

of other products

Bargainingpower of

suppliers islow coz thesuppliers are

rural milkproducers


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Are extremely satisfied

Moved from loose milk topackaged milk

Ready to try more products

Improved socio-eco

conditions

Largest milk brand in Asia

More than 30 dairy brands

Market leader in ghee and butter

Very strong supply chain

Enjoys fine reputation

Quality with affordability

Defending against

Mahananda, Vijaya,Milma, and other

cooperative milk

brands

Aggressive moves

against Britannia,

Nestle, Mother Dairy,Kwality

CSA

Intelligent marketing


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Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504


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GCMMF bags APEDA AWARD for 11th year in arow [06-07]

Amul Pro-Biotic Ice-cream Gets TheInternational Dairy Federation MarketingAward At World Dairy Summit [2007]

Ramkrishna Bajaj National Quality Award[2003]

Amul - The Taste Of India (GCMMF) ReceivesInternational Cio 100 Award ForResourcefulness [2003]

Rajiv Gandhi National Quality Award 1999

ISO 9001 and HACCP Certification , Australia

1st food company in Asia

one of the 100 companies in the world


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BRAND VALUE OF AMUL

LOW COST STRATEGY

ROBUST SUPPLY CHAIN

DIVERSE PRODUCT MIX

STRONG DISTRIBUTION

NETWORK

TECHNOLOGY AND e-INITIATIVES


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State Marketing Federation

All dairies in a State (GCMMF in Gujarat)

22 State Federations in India

District Milk Processing Unions

Every district in the state

12 district unions in Gujarat

170 unions all over India

Village Co-operative Societies

All villages in a district

72,774 villages in India

Milk Producers

All milk producers in a village

2.1 million in Gujarat

9.31 million in India


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Veterinary Services

Pelleted Cattle Feed

Education on Animal Husbandry

Facilities for Artificial Insemination

Genetic improvement of indigenous cattle


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SegmentationConsumer based

Industry based

Not so easy

Targeting Amul parlours

Positioning A mass market player, no premium offerings USP Quality with affordability Amul as Taste of India - creating value

New offerings for health conscious and vibrant India


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One of the mostconservative FMCG entities

GCMMF spends amere 1% of its turnover onpromotions.

Amul butter girl is one ofthe longest run adcampaigns in the countryfor 43 years!!!


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Amul Ice-cream 1996

Category re-visited in 1999

Amul Cheese in 2001 Amul Masti Chaas in 2004-05

Nutramul and Kool Kafe in 2006

Amul Koko cold chocolate drink in 2009


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"Amul Utterly

Delicious" parlours.

Ahmedabad,

Bangalore, Baroda,

Delhi, Mumbai,

Hyderabad and Surat.

Prominent locations.

Amul franchisee plans.


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ERP initiatives 94

Tata Consultancy Services

Implementation project - Enterprise- wise Integrated

Application System (EIAS).

AMCUSautomate milk producers logistics.

Zonal offices, regional offices and members dairies -VSATs

Geographic Information Systems (GIS)

IIM A supplemented Amuls IT - Dairy Information SystemKiosk(DISK).

www.amul2b.com

Plans to introduce Internet banking services and ATMs


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Decided by the GCMMF by conducting market

Price is inclusive of several elements like,

Cost of milk.

Labour cost.

Processing cost.

Packaging cost.

Advertising cost.

Transportation cost.

Sales promotion costs.

Taxes etc.


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Ice cream: Amul parlours; launched Fundoo

to combat HULs Max Pizza: Launched ready to cook pizza Utterly

delicious

Butter: Protect market share with price Curd: Alignment with other milk coops

Dairy whiteners: Dominate with Amulya


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1st sparksAug 02

Mother Dairy cuts prices in butter war with Amul [05]

NDDB -free sugar with its milk. GCMMF- discount on vanilla ice cream against

purchase of Amul milk [Mar 06]

GCMMF sold 2,000 tons skimmed milk powder to Mother Dairy [Mar 06]

Amul-Rs 30 off on vanilla ice cream after returning the 30 empty pouches of Amul

milk.[06]

NDDB plans to import 10,000 MT skimmed milk powder to meet the domestic

demand. [Sep 09]

NDDB - 6,000 litre of milk @ Rs 330 per kilo fat to milk pourers (MPs) @

Surendranagar [ Oct 09]


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Capital structure

Working capital

Sources of capitalFederation

Fix deposit of society

Interest from bank like SBI, BOB,

Share Capital of AMUL


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Less control over milch yield

Cannot accommodate transport delays(perishables)

Dependence on poor infrastructure for supply(roads, electricity etc)

Increasing population , increasing requirement

Adulteration

Saturation point not far away

Unorganized players Other dairy co-operative societies

Competitors are companies, not bound byinherent obligations of co-operatives


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U.S.A, Nepal, South Africa, Kenya, Bhutan, Bangladesh,

Thailand, Australia, and Gulf countries etc

Prospective markets- Russia, UAE, Japan, Sri Lanka

Agreement with Wal-mart

Agreement with Glaxo

Amuls growth rate in international market : ~34%


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Product improvisation -Amul basundi, gulab

jamun, chocolates etc. Advertising Cable channels, newspapers etc.

Strengthen liquidity and working capital

Supply chain add-ons Venture into processed fruits and vegetables.

Try nullifying threats


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23713737 Amul the Taste of India

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