Amul Turnaround Story
-
Upload
fundoobarkha -
Category
Documents
-
view
502 -
download
4
Transcript of Amul Turnaround Story
AAKIN DESAIARPAN SINHA
BARKHA GOYALDEBASMITA PATRA
BRITANNIA – The Turn Around Story
Company ProfileFounded in 1892
Wadia family holds the majority Stake of 50.96%
Major Business : Bakery (Biscuits breads Cakes Cookies) Dairy Products
Headquartered in Kolkata and Chennai
Sales of Rs 3142 crores (March 2009)
Profit of Rs 180.40 crores (March 2009)
Britannia Industries Ltd.Biscuit market : Rs. 8500 cr.
Market share : 38%CAGR : 20-22%
Cake market : Rs. 1100 cr.CAGR : 15-18%
Product Portfolio92% : Biscuit4% : Breads4% : rusks and cakes
Vinita Bali -Profile
Completed her Bachelor's Degree in Economics from LSR at the University of Delhi and
Completed her MBA at the Jamnalal Bajaj Institute of Management Studies
Pursued postgraduate studies in Business and Economics at Michigan State University
Started her career with Voltas Ltd.-a Tata Group company focusing on consumer products, where she launched Rasna soft-drink concentrate
Contd……In 1980, Vinita joined Cadbury India.
Coca-Cola Company chose her as its worldwide Marketing Director in 1994
Vinita joined her mentor at Coke, Sergio Zyman at the Zyman Group in July 2003 as a Managing Principal and Head of the Business Strategyinita
Joined as Chief Executive Officer of the Company in January 2005
Appointed Managing Director on 31st May 2006.
Problems before 2007Fall in market share from 47% in2003 to 31.6% in
2006
Competition from Parle, Priya-gold and ITCPricing AdvertisingQuality
No major product launch, except Tiger Brand in 2005
No growth in Dairy even after 7 years
Problems before 2007
Rising revenues, yet falling market share
Lack of long-term strategy and aggression
Low employee morale
Acquisition threat
Low margins in dairy products
Lack of control over distribution channel
Corporate Strategy
Operational strategies
Increase in operational capacity by 60%
Reduce baking time
ISO 9001-2000 and HACCP certification
KPMG, appointed to enhance the supply chain
Re-usage of waste heat of the ovens
Investment in high-speed packing machinesFrom 80-140 packets per minute
Operational strategies (Contd)
Standardization of processes and procedure to meet product consistency
Investment in tax free region of Rudrapur in Uttaranchal
Investment in energy conservationUsage of alternate cheaper fuelsUsage of recovery technologyImprovement in throughput rateReduction in electricity consumption through spot cooling
systemDevelopment of in-house expertise
Product Strategies
Tapping into new occasional segmentsRemove the trans-fat from its biscuitsFortification of biscuits with micro-nutrientsMulti-grain biscuitsBreads fortified with minerals and vitamins
Product Strategies (Contd)Dairy products
Concentration on cheese, which has 37% sharePowdered Milk
Biscuits 7 power brands in 2009Change in packaging (Rs. 2,5)Five assortments of biscuits and cakes (gifting)Concentration on marie, treat and gooddayPrice kept same, quantity reduced
Marketing strategies
Leveraging on three growth vectors of Brand, Geography ,Channel.
Aggressive advertising
Created different SKUs
Investment in infrastructure to expand distribution
Brands as profit centers, rather geographies
Indian Bakery Scenario
Breads50%Biscuits
34%
Other bakery product
16%
Indian Bakery Market
Biscuit Competition
40%
30%
9%
12%
9%
Market Share
BritanniaParle ITC LtdSurya Biscuits (Priya)Regional
Bread Competitors
Modern44%
Britannia36%
Local players20%
Bread Market
Dairy Competitors75 % to 80 % of this sector is unorganised
In the meager organized sector major players are:1. Amul2. Mother diary3. Various Regional Players
In the powdered milk segment major players are1. Amuliya2. Everyday
Other FunctionsAdministration
Investment in Information technologyPerformance driven culture
Financial -Commodity futures and hedging
strategiesResearch & Development
Product innovation and development
Impact of the strategies
Impact of energy conservationElectricity consumption, reduced by 23.3%Fuel consumption reduced by 6.3%
R & DNew productsCost reduction through better processesImplementation of alternate fatsStandardization of processes and procedure
to meet product consistency
Future Strategies
Water Segment
Range of finger licking products under treat brand
To enter in the growing markets through acquisition and collaboration
Can enter into breakfast items, ready to cook and ready to eat.