Amul - DISTRIBUTION CHANNEL
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Transcript of Amul - DISTRIBUTION CHANNEL
Compiled byAyushi Srivastava, Chandan Pandey, Gursimran Singh Sethi,
Jaya maurya, Raj Singh, Rohit kumar
TABLE OF CONTENTS
Introduction.Distribution channel.Type of channel design.Problems faced by Amul/ recommendations.Visit to Amul outlet.Conclusion.
Introd
uction
• Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
• Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat.
• Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products.
• Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.
AMUL DISTRIBUTION CHANNEL
Distributors Retailers Consumers
AMUL DISTRIBUTION CHANNEL
• Village dairy cooperative society (DCS) is formed by milk producers.
• Each DCS has a milk collection centre, member's milk is tested for quality with payments based on the percentage of fat and SNF.
• At the end of each year, a portion of the DCS profits is used to pay each member a patronage bonus based on the quantity of milk poured.
• District Cooperative Milk Producers' Union is owned by dairy cooperative societies.
• Union buys all the societies' milk• Processes and markets fluid milk and products, and also
provides a variety of services to the VDCS.
• The cooperative milk producers' unions in a state form a State Federation which is an apex marketing body responsible for marketing of milk and milk products of member unions.
1st tier
2nd tier
3rd tier
TYPE OF CHANNEL DESIGN
Analysing consumer
needs
Setting channel
objectives
Identifying major channel
objectives
Evaluation
• Segments to serve ?• Which channels to use.
• Types of intermediaries• Number of marketing
intermediaries• Responsibilities of
intermediaries.
• Economic criteria.• Control issues.
SUCCESS OF AMUL
• Provides an assured market at
remunerative
prices for producers' milk besides
acting as
a channel to market the product.
• Enabled the consumer an access
to high quality milk and milk
products.
• Used the best of technology
to help the farmers.
• Its supply chain.
• Its wide product portfolio.
• Amul concentrates on breaking
the bulk.
PROBLEMS FACED BY AMUL / RECOMMENDATION
• Distribution channel.• Competition from
established companies.• Expansion to chocolates.• Low profit margin to
retailer.
• Should use more Television advertisements
• Should provide offers during festive season
• Setup more production units.
VISIT TO AMUL STORE
LEARNINGS
First hand
knowledge.
Problem faced by
outlets.
Brand Loyalty.
Value Pricing.
CONCLUSION
Amul meant different things to different people :To a Milk Producer … A life enriching experience
To a Consumer … Assurance of having wholesome milkTo a Mother … A reliable source of nourishment for her child
To the Country … Rural Development and Self Reliance
Thank you