Amul Marketing(2)0000

8/3/2019 Amul Marketing(2)0000

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AMUL : Truly The Taste Of India

Presented By:

MOHAMMED SAMSHAD



History of Amul

The brand name "Amul" ("priceless" in Sanskrit).

Formed in 1946, is a dairy cooperative in India.

AMUL is based in Anand, Gujarat.

A part of the Gujarat Cooperative Milk Marketing Federation

(GCMMF)

Birth of Amul and development of India’s Dairy Cooperative

Movement.



Plants of Amul

First plant is at ANAND, which engaged in themanufacturing of milk, butter, ghee, milk powder,

flavored milk and buttermilk.

Amul Plant at Anand



Second plant is at MOGAR, which engaged in manufacturing

chocolate, nutramul, Amul Ganthia(snacks) and Amul Lite.



Third plant is at

Khatraj, which

engaged inproducing cheese.

Today, twelve

dairies are

producing different

products under the

brand name Amul.

Today Amul dairy

is 1 dairy in Asiaand no. 2 in the

world



Reasons for Success

Success!!

Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperativesStretches from small suppliers to large fragmented markets

Low Cost StrategyAmul adopted a low-cost price strategy to make its productsaffordable and attractive to consumers by guaranteeingthem value for money

Diverse Product MixAmul Butter, Milk Powder, Ghee,Amulspray, Cheese, Chocolates,Shrikhand, Ice cream,Nutramul, Milk and Amulya

Strong Distribution NetworkAmul products are available in over 500,000 retail outlets acrossIndia through its network of over 3,500 distributors.47 depots with dry and cold warehouses to buffer inventory of theentire range of products.

Technology and e-initiatives New products

Process technologyComplementary assets to enhance milk productionE-commerce.



GCMMF – Over View

GCMMF: Gujarat Cooperative Milk Marketing Federation

GCMMF is India's largest food products marketingorganization. It is a state level apex body of milk cooperativesin Gujarat which aims to provide remunerative returns to thefarmers and also serve the interest of consumers by providingquality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and PolicyAdvisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.



Facts

Members: 13 district cooperative milkproducers' Union

No. of Producer Members: 3.03 million

No. of Village Societies: 15,760

Total Milk handling capacity: 13.67 million liters per day

Milk collection (Total - 2010-11):

3.45 billion liters

Milk collection (Daily Average2010-11):

9.2 million liters

Milk Drying Capacity: 647 Mts. per day

Cattle feed manufacturingCapacity:

3690 Mts. per day



Steps Of Production Process

1. Collection of Raw Milk

2. Electronic Milk Testing

3. Methyline Blue Reduction Test

4. The dairy fixes the proportion of SNF & FAT

5. Pasteurizing and Standardizing

6.Separation Process

7. Quality Check

8. Packaging Process

9. Storage



Amul - Business Model

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization



Amul – Distribution Channel

Farmer

Village

Co-operative

Societies(with chilling

units)

Milk processingunion &

warehouses

GCMMF

WHOLESALER/C&S

RETAILER

CONSUMER

HOMEDELIVERYCONTRAC

TER

CONSUMER

Village

Co-operative

Societies(without chilling

units)

* VENTINARYSERVICE

*ANIMALHUSBANDARY

*ANIMAL FEEDFACTORY

*MILK CANPRODUCER

* AGRICULTUREUNIVERSITY

RURALMANAGEMENT

UNIVERSITY

TRUCKINGFACILITIES

CHILLINGPLANTS

Localrestaurant/

Other milk

RelatedBusiness

Milk sold tovillage &

localrestaurant



Amul – Distribution Network

300 stock keeping units.

46 sales offices.

3,000 distributors.

1,00,000 retailers with refrigerators.

5,00,000 non-refrigerated retail outlets



Customer Based Market Segmentation

Kids

Women

Calorie Conscious

Health Conscious

Youth

Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shaake

Amul Calci +

Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreadsv

Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk

NutramulAmul Shakti Health FoodDrink



Industry Based Market Segmentation

Milk

Butter/Cheese/Ghee

Ice-cream Manufacturers

Restaurant/Food Chains

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Coffee Shop Chains



Advertisements

AMUL is well known for its innovative hoardings. Find belowa few:



Mix… Product for every one

Amul never forgot its “primarycustomer”

Amul collect on an average 9.4 million litres ofmilk per day from their producer members andsmall farmers.

Product for youthAmul launched Chocolate milk underbrand name of „Amul Kool Koko‟ targeting the youth

Product for diabetic peopleIndia‟s First Pro-Biotic Wellness Ice cream

& Sugar Free Delights For Diabetics

http://images.google.co.in/imgres?imgurl=http://static.ibnlive.com/pix/sitepix/02_2008/fortified_foods_248.jpg&imgrefurl=http://ibnlive.in.com/news/more-urban-women-opting-for-fortified-foods-now/60058-17.html&usg=__AEgwQyhtrFO6rmW6slzey8o-vRI=&h=178&w=248&sz=19&hl=en&start=8&sig2=MYxOATKmB_NBTlssq8szaw&tbnid=sMSc5GoYArdFjM:&tbnh=80&tbnw=111&prev=/images%3Fq%3Ddiet%252Bconcious%252Bworking%252Bindian%252Bwoman%26gbv%3D2%26hl%3Den&ei=9DAtSqWvFoKQsAawtuSeDA



Product for the healthconsciousAmul Launched “low fat, low

cholesterol bread spreads”

Product for the pricesensitive IndiaLow Priced Amul Ice Creams

and affordable „sagar‟ whitener

Product for the urban classAmul launched emmental, goudaand pizza mozzarella cheese

http://images.google.co.in/imgres?imgurl=http://cache.daylife.com/imageserve/02HifIq1HOcRn/610x.jpg&imgrefurl=http://www.daylife.com/photo/02HifIq1HOcRn&usg=__N29MbNHW8ef3y4pEbgZ-61drc9Y=&h=388&w=610&sz=78&hl=en&start=6&sig2=LJSj1p0nZ3R-CLHMaJ5ndA&tbnid=8GvwKeglUsa7sM:&tbnh=87&tbnw=136&prev=/images%3Fq%3Dindian%252Bbuying%252Bvegetables%26gbv%3D2%26hl%3Den&ei=ozQtSt_4MMuEsAaOuYDkCQ



AMUL- Product Diversification

Seeking unfamiliar products or markets in the pursuits of growthwith 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”



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 packagedwater in market. The product was abandoned.

Now Amul is all set to re-launch bottled water “NARMADANEER”



Amul – BCG Matrix

Relative Market Share

High

Business

growth

Rate

Low

High Low

Amul Cheese

Amul Ice-cream

Amul Chocolate

Amul Chocolate drink

Amul Butter



Struggle - Amul Chocolates

Low

Growth

Phase

Introduction

Phase

Amul Milk,Amul Fruit and

Nut

DeclineSales

New BrandsRejoice,Kite Bite,Nuts about youSugar FreeChoco Zoo

Decline

Sales

Inadequate Success

Failed new brands

Excessive discounts10% Market share

Tough competition by

Market Leaders –

Cadbury (70%), Nestle



AMUL’S- Vision, Mission Objectives

Vision: Liberate our farmers from economic oppression and

lead them to prosperity

Mission: Dairy Cooperatives of Gujarat to reach a turnover of Rs. 27000crores by the year 2020

Objective: is to ensure that the maximum share of the consumer’s rupee

goes back to the milk producers



Suggestions and Recommendations

Company should start printing packaging date onmilk pouch.

Consider on the supply of product in the peak season.

250 ml milk pouch should make available to retailers forselling, because lower income family has intention to buysmall pouch milk.

Incentives & schemes should be given to the retailers.

Provide reasonable Margin to retailers as compared tocompetitors, this motivates them to promote company’smilk and milk products

Amul Marketing(2)0000

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