Indias Amul: Keeping up with the timesProblem at Hand:Should Amul continue within the cooperative framework or transform into a corporation?Amuls strategy was successful but if it did not change, risk of being left behind.Description: Amul Amulya priceless pride of swadeshi Philosophy: Value for many and value for money Operation Flood Advertising Campaign Sylvester Dacunha Give us this day our daily bread Utterly butterly deliciousThree tier cooperative society structure: Village level dairy cooperative society District union State federation board (of directors)Pros of Amul: 80 % revenue paid to farmers compared to 70 % paid by other Indian diaries. Largest retail chain in the country Trusted of Indian consumers that Amul will charge the correct price Spent less than 1% on advertising which is way low than the spending of its competitorsDifferentiating traits of Amul: No promotions or offerings for free dont bribe consumers Queues for milk collection were strictly on first come first serve basis chipping away abhorrent (caste based biases) No single national level competitor across all categories No corruptionBreakthroughs: Ice-cream real milk real ice-cream targeting kwality walls which is made from vegetable fat Added frozen foods like frozen pizzas & frozen yogurt Had 4 different distribution channels frozen, fresh, chilled & ambient Opened ice cream parlors & also experimented with fast food restaurants that served pizzas and burgers Nestle failed as a butter brand supply chain partners didnt find it profitable no traffic Attempt to attract young consumers Sponsoring sports, awards to school children

Threats: Multinationals like Nestle, Unilever targeting with premium dairy products Walmart & Carrefour likely to squeeze margins Younger generations were shying from dairy farming Amuls farmers formed largest vote bank to keep it free of political interests Secondary source of income mainly managed by women of the householdMain problem:Sons wife would rather work in city and make half the money rather than take the mothers jobOpinion:Amul has been running the organization very effectively for many years, any change in the structure like making into a corporation would mean that the power of the organization is vested in few individuals. This may cause misuse of power. The trust of farmers may take a dent which further causes the worry of farmers moving out of this sector.One thing is for sure we cannot let the industry die on its own yet we cannot force the younger generation to work with cattle. The country will always need food grains & milk products i.e. agriculture and dairy sector. The people who are in the agriculture sector will continue to be in it due to the growing demand, these people can act as potential prospects for taking care of the cattle also. In that case the organization(Amul) can make amends to cater to the needs of agriculture sector and in return the milk industry can operate as usual if not more effectively.