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Transcript of Amul
EXECUTIVE SUMMARY
In today’s competitive world while entering in the market it is very necessary to
have good knowledge of the potential of a particular market. The growth of a
company is invariably determined not just by its strategy, but on how it
responds to the challenges it encounters. Over the decades AMUL has
successfully countered several challenges that have come its way with
innovative responses and continuous improvement, which have enabled it to
remain stable and even convert some of these challenges into opportunities. It
is the culture of endurance that has accorded AMUL the insight and focus to
deal with the current economic environment. Drawing from its inner strength
and beliefs, AMUL responded by launching several initiatives across all its
operations in various geographies that are helping the group achieve growth
even in current times. It is also this very strategic culture that will propel AMUL
to continue on its growth trajectory in years to come.
The report provides a comprehensive insight into the company and also about
the company’s SWOT analysis. This report mainly studies in detail the various
product mix strategies of the company and also focuses on the segmentation of
both company based and industry based and helps in analysing the company’s
competitive advantage and the reason behind its success.
1.INTRODUCTION
1.1 About the company:Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement
in India. It is a brand name managed by an apex cooperative organisation, Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by some 2.9 million milk producers in Gujarat, India. It is based in Anand
town of Gujarat and has been a sterling example of a co-operative organization's
success in the long term. Dr Verghese Kurien is recognised as the man behind the
success of Amul. The Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India,
which has made India the largest producer of milk and milk products in the world. It
is also the world's biggest vegetarian cheese brand.
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all
meaning "priceless", are found in several Indian languages. Amul products have
been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul
Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
Today Amul is a symbol of many things. They are:
High-quality products sold at reasonable prices.
The genesis of a vast co-operative network.
The triumph of indigenous technology.
The marketing savvy of a farmers' organisation.
Proven model for dairy development.
Amul has justified its undisputed leadership in foods business by creating 5000
Amul preferred outlets in a record time which exclusively sell wide range of Amul
products. This has been possible due to strong brand equity and immense
consumer support. Amul Parlours are successfully operating in more than 1400
towns at high streets, residential areas, Railway Stations, Bus Stations, Educational
Institutions and a whole lot of Centres of Excellence.
1.2 Gujarat Cooperative Milk Marketing Federation:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organisation. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve
the interest of consumers by providing quality products which are good value for
money.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a
"Trading House" status. GCMMF has received the APEDA Award from Government
of India for Excellence in Dairy Product Exports for the last 11 years.
CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has
assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of
GCMMF.
Facts:
Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.9 million
No. of Village Societies: 15,322
Total Milk handling capacity: 13.07 million litres per day
Milk collection (Total - 2009-10): 3.32 billion litres
Milk collection (Daily Average 2009-10): 9.10 million litres
Milk Drying Capacity: 647 Mts. per day
Cattlefeed manufacturing Capacity: 3740 Mts per day
1.3 Awards:
GCMMF bags APEDA AWARD for 11th year in a row
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
Ramkrishna Bajaj National Quality Award-2003
Amul - The Taste Of India (Gcmmf)Receives International Cio 100 Award For
Resourcefulness
Rajiv Gandhi National Quality Award - 1999
1.4 Achievements:Amul created history in following areas:
First self motivated and autonomous farmers “organization comprising of more
than 5000000 marginal milk producers of Kaira District”.
Created Dairy co-operatives at village level functioning with milk collection
centres owned by them.
Computerized milk collection system with electronic scale and computerized
accounting system.
The first and only organization in world to get ISO 9000 standard for its farmers
co-operatives.
First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers
can provide means for the socio-economic development of the under privileged
marginal farmers.
2.AMUL BUSINESS MODEL
2.1 Objective: Deliver profitable and equitable returns to a large number of farmers for a long
period of time
2.2 Additional objective: Develop the supplier over the long term through social change.
3.SWOT ANALYSIS
3.1 Strengths:
Demand profile: Absolutely optimistic. Milk being a necessity product, the
demand will stay and the sales at GCMMF are bound to increase over a period
of time.
Margins: Quite reasonable, even on packed liquid milk. The margins are enough
to limit the entry of potential entrants.
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Flexibility of product mix: Tremendous. With balancing equipment, GCMMF has
kept adding a wide array of products to its product line.
Availability of raw material: Abundant. Presently, more than 80 per cent of milk
produced is flowing into the unorganized sector, which requires proper
channelization. Amul & GCMMF have leveraged this and has got itself a strong
base of suppliers who provide them milk throughout the year. Large number of
dairy plants in public and cooperative sectors besides several others coming up
in the private sector would result in competition. Because of this the end
consumer would benefit and a good product mix would emerge.
Technical manpower: Professionally trained, technical human resource pool,
built over last 30 years is the strength that GCMMF has. The employees of
GCCMF are highly recognized in the industry and have earned name for
themselves as well as the federation.
Enhanced Milk Production: Increase in the milk production with consequently
increased availability of milk processing has led to increase in consumption and
faster access to the consumers through effective distribution. The technology is
brought from Denmark and the production of milk has benefited from that.
Transportation: The transportation facilities and the easy availability of the
special trucks have provided a boost. Cold refrigerated trucks are there in place
and the warehouses also have the cold storage facilities that facilitate the
transportation.
Vast resources: Country has vast natural resources which offer immense
potential growth and development for dairying. Moreover the financial
resources available with the federation are immense and the reputation is such
that in case of any further requirements, it can approach any institution and
raise any form of capital.
Increasing purchase power and changing tastes of the consumers: The
purchasing power of the residents is increasing. As a result a lot of products are
being consumed. Moreover, the consuming habits are changing. As a result, the
demand for products such as butter and cheese is increasing at a very rapid
rate.
3.2 Weaknesses:
Perishability: Pasteurization has overcome this weakness partially. UHT gives
milk long life. Still perishability is there at the milk vendors end. This does result
in loss of some production. But Amul Dairy is taking steps to store milk at the
vendors end. Surely, many new processes will follow to improve milk quality
and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk yield. A
lot depends upon the monsoon in the country. This is because of the quality of
cattle feed that would be available will not have the required nutritional
content. Steps are taken to provide awareness regarding these and the
penetration of quality feed is being increased. Moreover, increased awareness
of developments like embryo transplant, artificial insemination and properly
managed animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate transportation
facility make milk procurement problematic. All these factors lead to
perishability of the procured milk. But with the overall economic improvement
in India, these problems would also get solved.
Erratic power supply: The erratic power supply would cause harm in the
processing of milk.
Underdeveloped systems: There still exist underdeveloped raw milk collection
systems in some parts of the country. However steps are being taken such as
setting up of cold storage points at key collection centers to combat the
situation.
Lack of proper implementation: Dairy development programmes have not been
fully implemented as per the needs of the region in different agro-climatic
zones.
Infrastructure: The infrastructure that is available is not up to the current world
standards. Also lack of infrastructure for offering dairy business management
programmes to the trained personnel is creating a hindrance.
3.3 Opportunities:
"Failure is never final, and success never ending”. Dr Kurien bears out this
statement perfectly. He entered the industry when there were only threats. He met
failure head-on, and now he clearly is an example of ‘never ending success’! If dairy
entrepreneurs are looking for opportunities in India, the following areas must be
tapped:
Competition: With so many newcomers entering this industry, competition is
becoming tougher day by day. But then competition has to be faced as a ground
reality. The market is large enough for many to carve out their niche. Moreover
due to competition, there is a chance to better serve the market with innovative
products.
Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of
value addition:
o Steps should be taken to introduce value-added products like khoa,
flavored milk, dairy sweets, etc. This will lead to a greater presence and
flexibility in the market place along with opportunities in the field of brand
building.
o Addition of cultured products like yoghurt and cheese lend further strength
- both in terms of utilization of resources and presence in the market place.
o Yet another aspect can be the addition of infant foods, geriatric foods and
nutritional.
Export potential: Efforts to exploit export potential are already on. Amul is
exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the
new GATT treaty, opportunities will increase tremendously for the export of
agri-products in general and dairy products in particular. There is a strong basis
of cost efficiency, which GCMMF can leverage in the world market.
Markets: The market for the traditional as wells as processed dairy products is
expanding both at the domestic and international front.
IT support: Software is now available for project formulation for dairy
enterprise. It has also computerized its production processes. Mother Dairy was
the first fully computerized dairy in India. In its Anand plant all products are
processed computerized, which does not have any hand touch during any stage
of process.
3.4 Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the
pride of place in the industry. Organized dissemination of information about the
harm that they are doing to producers and consumers should see a steady
decline in their importance.
Infestation: There are increasing incidents of chemical contaminants as well as
residual antibiotics in milk.
Quality: The quality of the milk is found to be poor as compared to the
international standards. One of the reasons for these according to the EU and
America is the method of milching the milk. In these nations the milk is hands by
the farmers owning the cattle do milched with the help of machines, while in
India.
Exploitation: The liberalization of the Dairy Industry is likely to be exploited by
the multinationals. They will be interested manufacturing the milk products,
which yield high profits. It will create milk shortage in the country adversely
affecting the consumers.
Subsidy by Western Nations: There have been incidences wherein the Western
nations subsidizing the dairy products by a few means like transportation.
Because of such reasons the final price of the product goes below the prices
prevailing in the Indian Market. Hence it proves a threat to GCMMF’s and other
Indian dairy products.
Creation of Non Tariff Barriers by Developed Nations: The Developed Nations
have created Non Tariff Barriers related to Quality of the milk specifically. They
want that the milk be processed with potable Air and Water. They also want
that the milching of cattle be done with the help of machines. However this type
if system is yet to evolve in India. Because of these reasons they are reducing
the market potential of Indian made products, where GCMMF holds a lions
share.
The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental
and weaknesses and threats are transitory. Any investment idea can do well only
when you have three essential ingredients: entrepreneurship (the ability to take
risks), innovative approach (in product lines and marketing) and values (of
quality/ethics).
4.COMPETITION
Amul has a competitive sustainable advantage. This lies in the procurement part. Its
ability to collect 7 million liters of milk from 2.6 million farmers and convert it into
Rs. 6 crore worth products and distribute them to 5 lakhs retailers is a tough job.
The competitors:The various competitors of Amul product –wise is given as under:
5.AMUL SALES TURNOVER
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
6.MARKETING MIX
6.1 PRODUCT:
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
UHT Milk Range:
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:
Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,
Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate)
Amul Kool Cafe
Amul Kool Koko
Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)
Health Beverage:
Amul Shakti White Milk Food
6.1.1 The different product for different people:
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 CheeseAmul Cheese Spread
Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim MilkNutramulAmul Shakti Health Food Drink
Industry Based Market Segmentation
Milk
Butter/Cheese/Ghee
Ice-cream Manufacturers
Restaurant/Food Chains
Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Coffee Shop Chains
Amul never forgot its “primary customer”
Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)
Product for youth
Amul launched Chocolate milk under brand name of ‘Amul Kool Koko’ targeting the
youth.
Product for diabetic people
India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
Product for the health conscious
Amul Launched “low fat, low cholesterol bread spreads”
Product for the price sensitive India
Low Priced Amul Ice Creams and affordable ‘sagar’ whitener
Product for the urban class
Amul launched emmental, gouda and pizza mozzarella cheese
6.1.2 Amul product mix:
Amul Product Portfolio
Amul mainly produces dairy product which falls under nondurable goods category but
also produces durable goods
Examples
Durable Goods:-Milk Powders, Ready to Serve Soups
Non Durable Goods: - Fresh Milk, Cheese Range & Ice creams
Dairy Non -diary
Fresh Milk
Veg. Oils
Snacks
Instant FoodCheese products
Milk Drinks & Desserts
Bread Spreads
Bread Spreads Cheese Desserts
Butter Shredded Pizza Cheese. AMUL Shrikhand Mango,
Saffron, Almond Pistachio,
Cardamom)
Low Fat Bread Spread. Emmental Cheese. AMUL Amrakhand.
Cooking Butter. Gouda Cheese. AMUL Mithaee
Gulabjamuns.
Malai Paneer (cottage
cheese) Frozen and Tinned.
AMUL Mithaee
Gulabjamuns Mix.
Utterly Delicious Pizza. AMUL Mithaee Kulfi Mix.
Cooking Health Drink
Amul/SagarPureGhee Nutramul
AmulMalaiPaneer AmulShaktiHealthFoodDrink
MithaiMate
Pro biotic‐ Dahi
MastiDahi
UtterlyDeliciousPizzaProduct Mix- Width
Prod
uct M
ix L
engt
h
Milk Drinks Powder Milk Fresh Milk
Amul Kool Milk Shake Amul Spray Infant Milk food Amul Fresh Milk
Amul Kool Amul Instant Full Cream milk Amul Gold Milk
Amul Kool Cafe Sagar Skimmed Milk Powder Amul Taaza
Double TonedMilk
Kool Koko Sagar Tea Coffee Whitener Amul Lite Slimand
Trim Milk
Nutramul Energy
Drink
AmulyaDairyWhitener AmulFreshCream
Amul Kool Flavoured
Bottled Milk
AmulShaktiToned
Milk
Amul Kool Flavoured
TetraPack
AmulCalci+
Amul Masti Spiced
Buttermilk
Amul Buttermilk
AmulLassee
AmulKoolThandai
Prod
uct M
ix L
engt
hProduct Mix- Width
Prod
uct M
ix L
engt
h
Product-Width
The width of a product mix refers to the total number of items in the mix.
Example: The total number of items is 8. (Bread spreads, cheese, desert, cooking, health drink,
milk drinks, powder milk & fresh milk
Product-length
The length of a product mix refers to the total number of items in the mix.
Example:
The total Length of Amul’s Product mix is 42
The Total width of Amul’s Product mix is 8 ( No of lines)
Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6
Product Depth
The depth of a product mix refers to how many variants are offered of each product in the line
Amul’s Product Depth
Name of product Variants PriceAmul Butter 100g Pack Rs. 25
Amul Butter 500g Pack Rs. 122
Delicious Table Margarine 100g Pack Rs. 13
Delicious Table Margarine 500g Pack Rs. 60
Amul Lite lowfat Breadspread 200g Tub Rs. 32
Name of Product Variants Price
Amul Cheese 400g Tin (EOE) Rs. 117
Amul Cheese Slices 200g Pack Rs. 77
Amul Cheese Chiplets 200g Pack Rs. 66
Amul Cheese 1kg Block Rs. 233
Amul Cheese Spread 200g Tub Rs. 50
Amul Pizza Cheese 200g Pack Rs. 55
Amul Emmental
Cheese
400g Pack Rs. 160
Amul Gouda Cheese 250 g Rs. 115
Amul Gouda Cheese 1 kg Rs. 440
Amul Malai Paneer 200g Dice Pack Rs. 36
Amul/Sagar Pure
Ghee
1 Litre Tin Rs. 265
Amul/Sagar Pure
Ghee
500ml Pouch Rs. 125
Amul/Sagar Pure
Ghee
2 Litre Tin Rs. 495
Amul/Sagar Pure
Ghee
5 Litre Tin Rs. 1,225
Amul Pure Ghee 1 Ltr Refill Rs. 260
Amul/Sagar Pure
Ghee
1 Ltr Pouch Rs. 242
Amul Shrikhand 500g cup
Elaichi
Rs. 53
Amul Shrikhand 500g cup
Mango
Rs. 55
Amul Shrikhand 500g cup Kesar Rs. 66
Name of Product Variants Price
Amul Shrikhand 500 g Badam
Pista
Rs. 61
Amul Mithaee Gulabjamun 1kg Tin Rs. 115
Amul Mithaee Gulabjamun 500g Tin Rs. 64
Nutramul 500g Refill Rs. 110
Amul Chocolates 35g Milk Rs. 15
Amul Chocolates 35g Fruit & Nut Rs. 16
Amul Almondbar 35g Rs. 15
Amul Chocozoo 232g Tin Rs. 125
Amul Chocozoo Tub 500 g Rs. 180
Amul Taaza Double Toned Milk 1 Litre Tetra Rs. 35
Amul Taaza Double Toned Milk 200 ml Tetra Rs. 9
Amul Tazza Toned Milk - Nothern
Eastern States
1 Litre Tetra Rs. 38
Amul Gold Milk 1 Litre Tetra Rs. 39
Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40
Amul CALCI + high calcium milk 1 Litre Brik Rs. 42
Mithaimate sweetened Condensed Milk 400g Can Rs. 58
1 Lit Tetra Brik Rs. 113Name of Product Variants Price
Amulspray IMF 500 g Pouch Rs. 110
Amulspray IMF 500g Refill Rs. 111
Amulspray IMF 500g Tin Rs. 115
Amulspray IMF 1 kg Pouch Rs. 202
Amulspray IMF 1 kg Tin Rs. 222
Sagar Skimmed Milk Powder 500g Pouch Rs. 110
Amulya Dairy Whitener 500g Pouch Rs. 113
Amulya Dairy Whitener 500g Refill Rs. 114
Amulya Dairy Whitener 1 kg Pouch Rs. 227
Amul Shakti Health Food Drink
(Kesar Almond)
500g Refill Rs. 115
Amul Kool (Kesar, Elaichi, Rose) 200ml Bottle Rs. 12
Amul Kool (Kesar, Elaichi, chocolate) 200ml Tetra Rs. 12
Amul Kool Kesar 250 ml can Rs. 25
Amul Kool Cafe 200 ml Glass Bottle Rs. 15
Amul Kool Cafe 250 ml Can Rs. 22
Amul Kool Cafe 200 ml Tetra Brik Rs. 15
Amul Kool Koko 250 ml Can Rs. 22
Amul Kool Millk Shake (Mango,
Strawberry & Badam)
220 ml Can Rs. 22
Amul Kool Millk Shake (Mango,
Strawberry)
180 ml Tetra Pack Rs. 15
Amul Fresh Cream 200 ml Tetra Brik Rs. 30
Amul Fresh Cream
Amul Masti Spiced Butter milk 200ml Tetra Brik Rs. 10
Amul Masti Spiced Butter milk 1 Litre Tetra Brick Rs. 35
Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12
Amul Basundi l Ltr Tetra Brick Rs. 103
Amul Mithai mate 400 g EOE can Rs. 58
Line stretching
Every company’s product line covers a certain part of the total possible range. Line
stretching occurs when a company lengthens its product line beyond its current range. The
company can stretch its line down market, up-market or both ways.
Example: Amul is now aggressively adopting the down market stretch by introducing
(CHHOTA AMUL Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to
individual of low income group.)
Amul has been introducing products with consistent value addition but never left the core
philosophy of “Providing milk at a basic, affordable price”
6.2 PRICE
Survival.
Capture market share.
To provide service to all income group
Amul butter:
100gm– Rs.18
Competitor: Mother Diary 100gm- Rs.19
Amul cheese:
200gm– Rs.55
Competitor: Britannia cheese–200gm– Rs.70
Amul Ghee:
1Lit.– Rs.190
Competitor: Gits. 1Lit.-Rs.210
Amul Kool Milkshake
200ml– Rs.15
Competitor Nestle Milk Shake –200ml–Rs.20
6.3 PROMOTION Advertising philosophy "to be simple, fresh and innovative".
The clean, emotion-based ads.
Amul ads-creative, apt forth current situation.
The Amul ads are one of the longest running ads based on a theme, now vying for the
Guinness records
1% of its turnover on promotions.
Not spending more than Rs 2crore on Amul butter.
Billboard campaign
First billboard came up in 1967
For the first one year the ads made statements of some kind
Later many topical adds came into existence
When Mumbai first saw the beginning of the Hare Rama Hare Krishna movement
Amul came up with a clincher—‘Hurry Amul, Hurry Hurry India’
Promotion by events
Amul Chef of the Year, 2009 contest: in this, the participants are required to use as
many Amul products as possible.
Amul Maharani Contest, 2008-09: in this, the participants are required to fill up
questionnaires and then there is a lucky draw.
Amul Food Festival Contest
Winners of Slogan likho Disney land dekho contest
Winners of" Amulya Fly to Bangkok Contest
Sponsoring amul star voice of india
Amul publishes some books periodically. Basically they are related to Amul or dairy
industry
Amul also gives away academic excellence awards for school children every year. They
are called Vidya Shree – for 10th std and Vidya Bhushan – for 12th std students.
6.4 PLACE
Amul-Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
Its supply chain one of the most complicated in the world.
Amul has plans to create a large chain of such outlets to be managed by franchisees
throughout the country
Channel
Online (Internet):
- Amul cyber store
- Ice-cream cyber store
Direct retailing through "Amul Utterly Delicious" parlours
- Major cities Ahmadabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat.
- Presently 1,500 parlours and plan to open 10,000 of them by 2012
Retailers
- Currently online are Chennai and Calcutta
- Chennai, Kolkata, Nasik, Jalgaon, Aurangabad, Delhi, Raipur, Jodhpur, Udaipur, Pune,
Siliguri/Durg, Kota.
Wholesalers
- Producer Cooperatives: This type of distribution organization is formed by agricultural
producers for selling their produce in the local market.
- Network of over 3,500 distributors
Coverage
India:
- Covering 13,000 villages benefiting 2.7 million farmers
- Collection 447,000 liters of milk/day from 2.12 million farmers.
- Delivery of goods to over 500,000 retail outlets across the country
- Members: 13 district cooperative milk producers 'Union
- No. of Producer Members: 2.7 million
- No. of Village Societies: 13,141
International Markets: Available in over 40 countries.
Locations
The major markets are the US, WestIndies, countries in Africa, the Gulfregion, Singapore,
the Philippines, Thailand, Japan and China. Some Amul Parlours in the country run by the
company or its wholesale dealers:
- Delhi Metro Rail Corporation
- The Somnath Temple
- National Institute of Design
- Infosys Technologies in Bangalore, Mysore & Pune
- Wipro campus in Bangalore
- L.J. College, Ahmedabad
- Ahmedabad Airport
- Surat Municipal Corporation
- Gujarat State Raod Transport Corporation
- Jubilee Mission Medical College, Trichur,Kerala
- Sanjay Gandhi Hospital Parlour, Amethi
- Indian Institute of Management, Kolkata
- Café Amul, MDG, Gandhinagar
Inventory
- 47 depots with dry and cold ware houses of entire range of products.
- Total Milk handling capacity: 10.21 million liters per day
- Milk collection (Total-2007-08): 2.69 billion liters
- Milk collection (DailyAverage2007-08): 7.4 million liters
- Milk Drying Capacity: 626Mts. Per day
- Cattle feed manufacturing Capacity: 3090 Mts per day
Transport
- Transport cans
- Engages in route scheduling
- Has dedicated vehicle operations.
Assortment
Amul’s dominance: Products like cheese, butter, liquid milk and yogurt sectors
Amul’s success today is partly because of its strong supply chain design.
Below is the schematic diagram of Amul’s supply chain.
With products being highly perishable, the supply chain ought to have to maintain correct
temperature, humidity etc and the chain should move fast. To reach out its consumers more
directly and let them the total brand experience, Amul has come up with Amul parlours.
These are called “Utterly delicious parlours”. They have come up in major cities like
Ahmadabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat already, and many
more starting up real soon. Till date there are about 400 Amul parlours across the country.
These parlours are set at prominent locations such as campuses of Infosys, Wipro, IIM-A, IIT-
B, temples, Metros etc.
7.RECOMMENDATIONS
1. Amul has a relatively good distribution network, but still company is not able to fulfill the
demand of outlet in the peak season when demand is very high. Here company should
consider on the supply of product in the peak season.
2. Supply should be regular to all the outlets including those that lie in the pocket roads
and not just in the outlets which lie on the easily accessible routes.
3. Since the penetration of Amul products in eateries is the worst among all the channels,
the company ought to adopt strategy like supplying free menu cards, which has the
company logo printed on them, this will not only increase the penetration of the product
in the outlets, but also improve the market sales.
4. The company should also ask its distributors to supply its products on a bill to bill based
credit system with at least all the reliable retailers, so that the product penetration in
the outlets increases in terms of percentage of units stocked at a time in the outlet, this
would also look appealing to the customer who would instead like to pick up the product
at first glance.
5. Credit is the 2nd biggest factor that influences the penetration of the product into the
retail outlet. So company should give the credit to all outlets.
6. Given the fact that margin offered to the retailer is not similar in the case of the
competitor‟s product. For this fact, the company should give good margin to the
retailers than the competitors.
7. Due to the lack of awareness of milk product in cochin, the company should be
advertised of the product by print and electronic media specially in local channel and
newspapers.
8. Discount is also an important factor of stocking decision for retailers. So, company
should give discount to all retailers for influencing the stocking.
9. Company should also give the replacement offer to those outlet which is running with
small business.
10. Only fresh product should be supply in the outlet.
11. Amul should take proper steps to improve service because although being in the top slot
in butter and cheese supplies it does not get the sales in chocolates.
12. The company should use brand ambassadors to attract all age groups.
13. Amul should give local advertisements apart from the advertisements given at the
national level. Local advertisements must mention the exclusive Amul shops of the city.
8. CONCLUSION
Amul is a well known brand and a market leader in dairy products. It has maximum market
share in milk, butter and cheese which are its core products. Amul is a cooperative
organisation but chocolate making is a profitable industry. So Amul must concentrate on
profit making through the chocolate industry. With the help of research the company can
find out its weak points in chocolate product and can increase its market share by rectifying
its mistakes.
Amul must come up with new promotional activities so that people become aware of
Amul chocolates.
Quality is the dominating factor which influences consumers to buy Amul products but
prompt availability of other chocolate brands and aggressive promotional activities
attracts customers towards them and also increases their sales.
People are mostly satisfied with the overall quality of Amul chocolates, but for the
existence in the local market it must use aggressive selling techniques.