AMUL

Presented to :-Prof. Prajakta

Group Members:- Sanchita Ghorai- M.B.A.-B.I.-7

Prathamesh Phalke- M.B.A.- B.I.- 8

Eshan Vaikar – M.B.A.-Retail-11

Parag Tiwade- M.B.A.-I.B.-17

Supriya ghogke- M.B.A.-I.B.-18

Desiree Emanuel- M.B.A.-I.B.-23

Yogesh Jadav- M.B.A.-I.B.-29

We Will Discuss:- About AMUL Co.

Vision, Mission, Objectives, Goals, Values

Policies

S.W.O.T. Analysis & P.E.S.T. Analysis

B.C.G. Matrix

Porters Five forces

Porters Value Chain

Strategies

Introduction Vision

Liberate our farmers from economic oppression and lead them to prosperity.

Mission Dairy cooperatives of Gujarat turnover of

Rs. 27000 crores by the year 2020.

Introduction Objective

Is to ensure that the maximum share of the consumer’s rupee goes back to the milk product.

Business Policies

Business Policy

In AMUL CO.

HR Policy.Training

& Development

Policy.

Compensation Policy.

Product Information

System Policy.

H.R. PolicyHR policies allow an AMUL Co. to be clear with employees on: The nature of the organization What they should expect from the

organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable

behavior The consequences of unacceptable behavior

Recruitment of Sales Force

Internal Sources.

Present PermanentEmployee.

Employee Ref.

Former Employees

Recruitment of Sales Force

External Sources.

Advertisement

Campus Interview

Employment Exchange

Unsolicited Application.

Training &

Development Policy In

AMUL CO.

On The Job Training

Off The Job Training

Out HouseTraining

Business Policies Compensation policy Product information system policy in

amul co.

SWOT Analysis

SWOT Analysis

Strengths Wide range of products Affordable prices Effective ad campaign Brand image Diversification

Weaknesses Need to focus on other products as well

SWOT Analysis

Opportunities Plans to expand through franchising. The company is going to increase the

strength of its retail outlets by adding another 15,000 outlets to its present network by the end of this year.

SWOT Analysis Threats

Increasing population Increasing requirement Difficult to expand population on milch

animal Adulteration

Water Chemicals Pesticides

PEST Analysis

Political Government owned

Policies designed by government are firstly applied to government firm for more benefits

Economical

Franchising gives financial support

FDI

Social

Employed women in lakhs of villages

Employment for the unskilled and uneducated people

Technological Sophisticated technology from abroad

BCG Matrix

BCG Matrix of Amul Cash cow

AMUL butter (normal) AMUL kool AMUL milk (fresh)

Stars AMUL butter (low fat) AMUL tazza milk (packaged) Amul cheese

BCG Matrix Question marks

AMUL chocolates AMUL lassi AMUL mithai mate

Dogs AMUL nutramul AMUL shakti

Porters Five Forces Model

Porters Five Forces Model Threat of new entrant

Economies of scale Customer/ supplier loyalty Experience Distribution channels Technology requirement high

Bargaining power of customers

Porters Five Forces Model Threat of substitutes 

Satisfaction level of substitutes No of substitutes

Bargaining power of suppliers

Competitive rivalry Demand for product Nature of competition Industry growth rates

Value Chain

The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985.

To analyze the specific activities through which firm can create a competitive advantage.

Process Of Value Chain

Activities of Value Chain Primary Activities

Inbound logistics Operations Outbound logistics Marketing & sales Services

Secondary activities Firm infrastructure Human resource management Technology Procurement

Amul’s Value Chain Process

2.2 MILLON NUMBER

FARMERS

PRODUCTIONOF MILK

10,675 COOPERATIVE

SOCIETIIES

VILLAGE COOPERATIV

ESOCIETIES 12 UNITS

10000 EMP

700 EMP 3000 500,000

RETAILERS

RETAILERS

DISTRIBUTION

DISTRIBUTION

GCMHFL

MARKETING

MILK COLLECTION

MILK PROCESSING

Amul’s Business Strategy Twin Objectives

Amul’s Business Strategy Simultaneous development of suppliers and

customers: AMUL and GCMMF adopted a number of

strategies to assure growth

Amul’s Business Strategy Improvement programs

Employees of the GCMMF meet every Friday between 10 to 11 am to discuss quality issues at a depot.

Every meeting has a PAL Purpose Agenda Limit

Amul’s Business Strategy Cost Leadership

Price its products as low as possible.

Focus on Core Activities It chose a strategy to focus on core dairy

activities and rely on third parties for other complementary needs.

Financial StrategyAMUL’s financial strategy may thus be characterized by two elements: Retention of surplus to fund growth and

development

Limited/ no credit, i.e., all transactions are essentially cash only

Initial Promotion Strategy

A boring image

Sylvester daCunha, took over the Amul account

Ansoff Matrix Aims at achieving growth through

certain modifications in the firm’s existing business.

Market Penetration Strategy

Amul is set to build up 10,000 `Amul Parlours' across the country during the year.

It is trying to get more and more customers through a more intensive distribution.

Amul trying to acquire a shelf in the yet to come Wal-Mart.

Market Development Strategy

Amul is now shifting its focus from urban to rural markets and smaller towns.

Amul is having a variation of an existing product.

Market Development Strategy

Increasing its market base for the existing products.

Amul is also increasing its market base for milk through a new version – the Amul Tazaa.

Product Development Strategy

Amul-Cool (milk based cool drink) and Amul-Kool café.

It is coming up with a chain of pizza corners.

Product Development Strategy

Stamina – the instant energy based sport drink has been launched.

Amul has recently launched a new variation of ice-cream.

Diversification Strategy Amul has identified the need to increase

its presence in newer markets and thus have come up with many new such strategies for increasing its presence in the entire market

Diversification Strategy Concentric diversification strategy

Amul has identified a segment for the health conscious people and is introducing two pro-biotic ice cream ranges.

Working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakodas.

Diversification Strategy Horizontal diversification strategy

Amul to provide something new to its older and loyal customers have come up with a facility.

Amul has to say is that the diversification has nothing to do with the increasing competition.

Diversification Strategy Conglomerate diversification strategy

"Stamina" which will be the first sports drink by an Indian company and it will be priced at only Rs 12 for 200ml which will be lower than its competitors whose price ranges around Rs.60 to 75.

Future Plan

Expansion of Distribution network Creative marketing Consumer education Product innovationwill leverage effectively on rising income

level and growing affluence among Indian consumer.

Future Plan Tapping the rising demand for new value

added products.

Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4%.

Installing Bulk Milk Chillers and Automatic Milk Collection System in all our village cooperative societies.

Future Plan Collect as much as 195 lakh kg per day

(19.5 million kg per day) of milk in the peak flush season.

We plan to double to processing capacity of our dairy plants to 20.70 million kg per day by 2020.

Milk drying capacity will also be enhanced by 200 MT’s per day.

Future Plan Plan to expand our cattle feed

manufacturing capacity more than four times to 12,000 MT’s per day by 2020.

Total investments envisaged for creating all the required infrastructure would be Rs. 2,600 crore (Rs. 20 billion) till the year 2020.

THANK

YOU