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Topic- Amul- Repositioning to Establish ‘Youth Connect’

BIRTH OF AMUL

Amul formed in 1946, is a dairy cooperative movement in India.

It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

•Amul grew from strength to strength ultimately becoming synonymous with the milk revolution in india.•As of 2012, amul held a market share of 25% in indian dairy.•The turnover for the financial year(2010-11) was US $2.2 billion. Its dairy milk procurement was at around 12 million liters (peak period) per day from 15,712 villages milk cooperative societies.

The Amul Model

.Establishment of a direct linkage between milk producers and consumers by eliminating middlemen

• Milk Producers (farmers) control procurement, processing and marketing

•Professional management

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Product strategy they follow…….!!!!

Product Position Strategy.Product repositioning strategy.Product overlap strategy.Product design strategy.Production elimination strategy.Diversification strategy.

• Largest food brand in India • High Quality, Low Price• World's Largest Pouched Milk Brand• Annual turnover of US $1504 million • Highly Diverse Product Mix• Robust Distribution Network

• Risks of highly complex supply chain system

• Strong dependency on weak infrastructure

• Alliance with third parties who do not belong to the organized sector

• Penetrate international markets

• Diversify product portfolio to enter new product categories

• Expand existing categories like processed foods, chocolates etc.

• Competitors - Hindustan Lever, Nestle, Mother Dairy, Britannia ,Goverdhan Milk etc..

• Still competition from MNCs in butter

• Growing price of milk and milk products

• Ban on export of milk powder

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•Largest milk brand in Asia•More than 30 dairy brands•Market leader in ghee & butter•Very strong supply chain•Enjoys Fine reputation•Quality with Affordability

•Customers extremely satisfied•Moved from loose milk to •packaged milk•Ready to try more products•Improved socio-economic conditions

The 3 C’s…

FactsFactsMembers: 13 district cooperative milk

producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Daily Average 2008-09):

8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity:

3500 Mts. per day

Amul – Product Portfolio in Graph Amul – Product Portfolio in Graph

Mar

ket

shar

e

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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

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

2013-14 181434 3024

2014-15 207330 3410

Expansion to foreign shores

GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name.

Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.

50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and third-generation.

Amul Flaavyo Yoghurt

Product Details•Product Name - Amul Flaavyo Yoghurt.•Description - Flavoured Probiotic Yoghurt.•Packing - 100 g Cup.

Product Specifications•Composition - Toned Milk, Sugar, Fruit Pulp Compound, Stabilizer , Active Probiotic Culture and Vitamins.•Nutritional Information - 117 kcal/100gm.•Shelf Life - Best Before 15 days from Packaging.•Storage condition - Keep Under Refrigeration below 8°C.

Amul is the market leader with more than 40% market share and only brand having national presence in more than 1,500 cities across length & breadth of India. It reaches out to consumers from Kashmir to Kanyakumari.It makes Amul icecream, “India’s only National Ice Cream Brand!”.

Amul launches epic: A super premium range of ice cream.

YouthYouth

Utterlydelicious pizza

Amul emmental cheese

Amul cheese spreads

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Health ConsciousHealth Conscious

Nutramul

Amul shakti health food drink

Calorie ConsciousCalorie Conscious

• Amul lite

• Sagar skimmed milk powder

• Amul lite slim and trim milk

Events For Youth

• 2011- sponsored the netherland cricket team for CRICKET WORLD CUP 2011 .

• 2011- in F1 event ,sponsoring sauber team at the FIRST INDIA GRAND PRIX.

• 2012- sponsored indian contingent for olympic events held in london.

• Uses a variety of media to communicate.

• Most famous is billboard campaign.

• The endearing polka dressed girl and pun at various issues increased brand’s fan following.

• AMUL sponsored the Singing Competition AMUL Star Voice of India, Amul music ka maha mukabla.

Promotion

Sensex falls – July’15

Political clout disrupts flight schedules! –

July’15

Vyapam scam gets murkier- July’15

Debt crisis intensifies! – July’15

Latest Lalit Modi controversy – June’15

Lalit Modi’s allegations against CSK players! – July’15

Inspite of promises, Mumbai civically unprepared! – June’15

Action@amul - 2015May 21,

2015With 51% growth in two years, Amul achieves turnover of Rs. 20733 crores

Mar 27, 2015Visit of Shri Ashok Kumar Angurana, Secretary & Smt. Rajni S. Sibal, Joint Secretary (CDD), Govt. of India to Anand.

Mar 26, 2015 Participants of "Dairy Asia - Towards sustainability"

Mar 26, 2015 KCC Annual Boxing Day Hockey 2014 - Players in Amul T Shirts

Jan 20, 2015Visit of Dr. Sanjeev Kumar Balyan, Minister of State, Ministry of Agriculture to Anand.

Jan 13, 2015Visit of H.E. Mr. Tshering Tobgay, Honourable Prime Minister of Bhutan to Anand

• Amul has risen from Indian soil and it remains Indian in every sense.

• There is ample scope in the low priced segment as also in other categories.

• There are a significant number of retailers who are currently stocking more than two brands.

• Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.