Amul-TheTaste of India

8/8/2019 Amul-TheTaste of India

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y Amul (Anand Milk Union Limited), formed in 1946, is a dairycooperative movement in India.

y It is managed by Gujarat Co-operative Milk Marketing FederationLtd. (GCMMF).

y AMUL is based in Anand, Gujarat and has been a sterling exampleof a co-operative organization's success in the long term. TheAmul Pattern has established itself as a uniquely appropriatemodel for rural development.

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


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Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperatives

Stretches 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 guaranteeing

Them 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 across

India through its network of over 3,500 distributors.

47 depots with dry and cold warehouses to buffer inventory of the

entire range of products.

Technology and e-initiativesNew products

Process technology

Complementary assets to enhance milk productionE-commerce.

Success!!


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y GCMMF: Gujarat Cooperative Milk Marketing Federation

y GCMMF is India's largest food products marketing organization. Itis a state level apex body of milk cooperatives in Gujarat whichaims to provide remunerative returns to the farmers and also

serve the interest of consumers by providing quality productswhich are good value for money.

y CRISIL, India's leading Ratings, Research, Risk and Policy Advisorycompany, has assigned its highest ratings of "AAA/Stable/P1+" tothe various bank facilities of GCMMF.


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Members: 13 district cooperative milkproducers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million liters per day

Milk collection (Total - 2008-09):

3.05 billion liters

Milk collection (Daily Average2008-09): 8.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturingCapacity:

3500 Mts. per day


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Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3


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RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization


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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


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Milk

Butter/Cheese/GheeButter/Cheese/Ghee

Ice-cream Manufacturers

Restaurant/Food Chains

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Coffee Shop Chains


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Product Pricing

Place Promotion

Strategy


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y Tracks consumer needs and theyrechanging lifestyles, and accordinglydevelops products to suit their needs.

y Product quality plays a paramount role andso does packaging.

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y Amul never forgot its primarycustomer

- Amul collects 447,000 ltrs of milkfrom 2.12 million farmers (manyilliterate)

y Product for youth

- Amul launched Chocolate milk underbrand

name of Amul Kool Koko targeting theyouth

y Product for diabetic people

- Indias First Pro-Biotic Wellness Icecream &

Sugar Free Delights For Diabetics


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y Product for the healthconscious

- Amul Launched low fat, lowcholesterol

bread spreads

y Product for the pricesensitive India

- Low Priced Amul Ice Creams andaffordable sagar whitener

y Product for the urban class

- Amul launched emmental,gouda and pizza mozzarella cheese


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Secret Philosophy

Progressive addition of higher value products

while maintaining the desired growth in existingproducts.

Amul introduced products with consistent value

addition but never left the core philosophy of

providing milk at a basic, affordable price

Seeking unfamiliar products or markets inthe pursuits of growth with both dairy and non-dairy products


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y The main USP of AMUL brands is its low pricing.

y It hits at the transnational by reducing its prices on itas product portfolio.

y The competitive advantage is its backwardintegrations strategy, which helps, substantially in costreduction.

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y Any food company requires a dedicated cold changenetwork.

y AMUL boasts of the largest cold network (18000

refrigerators) in India, as compared to any othercompany.

y It is surprising to note that its sell pizzas in ruralmarkets too.

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y AMUL spends very less on its advertising budget, butspends it very effectively.

y It has the power of an umbrella brand- AMUL, which

is highly respected brand name and enjoys the trust of1000 million households.

y Thanks to its brand mascot, the Amul girl, the co-operative has been able to get away with spending just

one per cent of its revenues on advertising.

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y In contrast, its competitors spend anywhere between 7

to 10 percent on advertising.y Amuls positioning its Value for Money.

y It uses the service of Da Cunha Associates and FCBUlka for its advertising efforts.

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AMUL is well known for its innovative hoardings. Find below afew:


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Customer

Company

Competitor

Customers extremely satisfiedMoved from loose milk topackaged milkReady to try more productsImproved socio-economicconditions

Largest milk brand in AsiaMore than 30 dairy brandsMarket leader in ghee & butterVery strong supply chainEnjoys Fine reputationQuality with Affordability

Defending against Mahananda,Vijay, Milma & other co-operativemilk brands

Aggressive moves againstBritannia, Nestle, Mother Dairy

and Kwality


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WeaknessesRisks of highly complexsupply chain systemStrong dependency on weakinfrastructureAlliance with third parties

who do not belong to theorganized sector

Opportunities

Penetrate internationalmarketsDiversify product portfolio toenter new product categoriesand expand existingcategories like processedfoods, chocolates etc

Threats

Competitors - HindustanLever, Nestle and BritanniaStill competition from MNCsin butterGrowing price of milk andmilk productsBan on export of milk powder

StrengthsLargest food brand in IndiaHigh Quality, Low PriceWorld's Largest Pouched MilkBrandAnnual turnover of US $1504

millionHighly Diverse Product MixRobust Distribution Network


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Business

growth

Rate

Relative Market Share

High Low

High

Low

Amul Chocolate

Amul Butter

Amul Cheese

Amul Chocolate drink

Amul Ice-cream


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To improve further Amul can try out the following ideas:I) Amul can venture out on new products like Toned

milk, Condensed milk that can be used for sweets, Babyfood products,

II) There are certain product like Amul basundi,gulab jamoon, choclates etc which are not as popular asAmul ice cream. Amul must try to understand the cause ofthis through thorough market research and work onimproving these products

III) Though Amuls hoardings are a huge success, itcan penetrate even better in the rural areas by advertisingthrough the media viz cable channels and newspapers.Sponsoring shows in TV, sports events can be of greathelp.


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Amul-TheTaste of India

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