Group 1 -Amul Final New

Team Members Karan Mehta

Manmath Deshpande Nikhil Joshi

Niraj Dadhaniya Priyanka Pardeshi

Shruthi Rao

Abhinav DayalAbhinav Kapoor Ashutosh ShirwaikarDhwani Shah Gauravi Patil Huma Shaikh Jyotirmoy Mukherjee

Team Members

TRAN

SFO

RMAT

ION

STA

GES

Strategicobjectives

Capabilityplatform

Portfolio ofinitiatives

Deliverymodel

Continuousimprovement

AssessHow ready are we to go there?

AspireWhere do wewant to go?

ArchitectWhat do we need to do to get there?

AdvanceHow do we keep moving forward?

ActHow do we managethe journey?

1

2

3

4

5

Executive Summary

Defining Objective

Industry, Competitor & SWOT Analysis

DSTP & Marketing

Mix

Implementation & Control

Monitor & Improvise

33

Executive Summary

Objectives• To increase sales by 100 & Net profit by 50% in 3 years

• To increase market share in Mumbai to up to 45% in 3 years

44

Indian Ice-Cream Industry Overview

Industry Snapshot:- • Market Size is 2500 Crores• Ice-Cream market is growing at around 15% Major players:-• Amul - Market Leader with market share of 36% • HUL - Kwality Walls - 2nd biggest player with market share of 14% • Mother Diary with market share of 9%• Vadilal with market share of 7%

Few Brands/ Target Consumers • Youth Centric - Chillz • Kids - Moo • Teenagers - Cornetto • Health Conscious - Amul Sugarfree & Pro-Life

Jamnalal Bajaj Institute of Management Studies Team 1

Challenges

Challenges

• Lack of cold storage chains

• Irregular supply of electricity

• Poor infrastructure for storage and transportation

• Indian ice cream industry today is worth about Rs 2,500 crore registering a growth of 15-20% annually

• Per capita consumption of ice cream in India is just about 300 ml or one scoop less than 700 ml in Pakistan, 3 litres in Chennai & 22 countries in US

• The organised sector holds about 65% of the market share while the unorganised sector has the remaining 35% market share of this industry.

• State governments have imposed a high VAT (Value-Added Tax) on ice creams, additionally; a one% excise duty

• Large no. of unorganised players who offer cheaper products of very low quality

• Indian cold storage logistics chain is very poor

• Ice cream is a highly perishable product

• Rising price of milk and allied products

Consumption and Potential


Opportunities

• FDI trend in the retail industry, the next few decades should see global ice cream majors wanting to tap into this potential, and possibly a few new domestic entrants as well

FDI

• Diversifying from just ice creams to other markets such as dairy and fruit-based products, and frozen foodsDiversification

• Manufacturers are looking to inculcate the habit of consuming ice cream as a dessert in Indian households

• The increased popularity of bulk ice cream at social functions and corporate occasions

Dessert

• Unbranded ice cream, which contributes a significant proportion of sales in semi-urban and rural India, is likely to have a reduced influence, as branded players will use local retailers to penetrate these areas

Unbranded

77

Amul India Portfolio

• The Brand ‘Amul’ is owned by The Gujarat Cooperative Milk Marketing Federation and was launched in India in 1996

• A quality control expert in Anand suggested the brand name “Amul,” from the Sanskrit “Amoolya,” "priceless" in Sanskrit

• GCMMF is Largest Food Products Marketing organization of India, with a revenue of $1.5 Billion

• It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India

• Amul offers a selection of almost 220 products with flavors ranging from exotic Honey Banana to Kesar Pista along with Sugar Free & ProLife Probiotic Wellness Ice Cream which was a first in India for the health conscious individuals

• In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999 and as of today it sells products around the world in 40 countries

88

Amul India Product Portfolio

DDairy

Products

Butter

Cheese

VHT

Kool

I

Ice Cream

Frozen Paneer

L

Liquid Milk

99

Amul India Product Portfolio

1010

Amul Ice-Creams

• Launched on 10th March in Gujarat• Entered Mumbai in 1997• First to introduce Sugar-Free & Pro-Life Probiotic Wellness Ice-Cream in India

• India’s no. 1 Ice-Cream Company• Also runs many different types of stores• ‘Real Milk. Real Ice-Cream.’• Wins because of:

– Price Differential– Quality of Products– Brand Name

• Also, present widely through outlets like Kiosks, Railway stalls, Café Amul – QSR, Amul Scooping Parlours

1111

Amul Ice-Cream Portfolio

1212

Amul Ice-Cream Portfolio

Quick Service Restaurant & Parlours• Amul Scooping parlours (simple ice-cream kiosks), Amul

parlours without a kitchen (just sandwiches, ready to eat stuff & ice-creams etc.) and then Cafe Amul (with a hot kitchen serving fresh food and snacks)

• First two quick service restaurants at Ahmedabad and Bangalore

• QSR offers consumers recipes such as pizzas, burgers, sandwiches, dosa, pavbhaji, sundaes and milk shakes apart from the milk products that Amul manufactures

• Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore

• One can enjoy world class ice creams, Sundaes, shakes and other ice cream concoctions in a cosy and nice ambience at Amul Cafes & Parlours

1414

Major Competitors in Mumbai

• Strengths:– The major strength of the Mother Dairy is a

recognized BRAND name– The increasing demand for these products– 62% market share in Delhi NCR region

• Weaknesses:– Scarce Mother Dairy Outlets– Less Margin given to the Outlet owners to match the existing competitors

1515


• Strengths:– Strong brand awareness– Never-ending focus on fun combined with our commitment to innovation and a

quality customer experience is important when you're considering investing in a business

– Baskin-Robbins has over 5,000 global locations in over 40 countries and we are continually opening new franchises.

– More than 1000 flavors of ice-cream in the library include low fat and no sugar ice-cream

– Provide several services for different age group– Good support from the master franchisor

• Weaknesses:– Not all branches offer the same products– The customers might not be able to buy their favorite ice cream flavor at all

branches in their area– Quite expensive initial investment– Some people might find it difficult to open their own Baskin-Robbins ice cream

parlor

1616


• Strengths:– Natural Ice Cream does not use the traditional ice cream making- manual,

slow & laborious, but it uses 3 steps- Boil milk in a kadai, make rabri and cool it and they call it TQT method- taste, quality and traditional method

– No stabilisers or artificial colours– 15 fruit flavours in 3 months– Combining traditional ice cream with fruit- super hit– Instant hit- Sitafal, first sunday after launch- 300 scoops– Extension- tender coconut, chikoo, jamun, musk-melon, papaya, apricot, water

melon, melon, pineapple, jack fruit– "We became popular purely by word of mouth”– 2009- 100 natural flavours, now combinations and Consistency in flavours-

biggest challenge

• Weaknesses:– Targeting only premium segment crowd– Higher price point

1717


• Strengths:– Good quality– Good services and commission to the dealer – Good brand image– Customer satisfaction– Verities– Reasonable price

• Weaknesses:– Improper delivery– Improper packaging– Replacement problem

1818


• Strengths:– Distinctive competency of providing unique ice creams will provide it a

competitive advantage over its local competition– As a first-mover in an untapped niche market, Gelato is faced with an exciting

opportunity to establish a new market by introducing new products

• Weaknesses:– Gelato major organizational weakness is its lack of experience in niche market

like India.– Legal and bureaucratic obstacles can be faced during the opening of the

business– Introduction of Indian flavors requires to hire local manpower and they need

to be trained.

19

SWOT Analysis

S W

O T

trengths eaknesses

hreatspportunities

1. Good product range include various flavors, party packs, sticks, cones etc2. Good quality and packaging, and good advertising3. Amul is one of the most respected top-of-the-mind brands4. Also launched probiotic and sugarfree icecreams5. Offers over 200 products across India

1. Growing competition form international and other brands means limited market share2. Limited international presence as compared to leading global brands3. Family pack packaging

1. High End ice-cream to tap the higher income group also2. Tie-up with food chains, restaurants3. Mobile vans for better visibility

1. Kulfi in rural markets2. Local ice creams and sweet dishes3. Health conscious people refraining from sweets4. Other competitor s like Kwality Walls, Baskin Robbins, Vadilal etc

Research & Analysis

Amul; 10

Vadilal; 7

Havmor; 6

Mother Dairy; 5

Natural's; 11

Baskin & Robbins, 8

Kwality Wall's; 8

Others; 7

Consumers of each brand

Primary Research: 62 Respondents across varied age groups

Packaging Cone Tagline/Jingle

Taste

24

1619

24

33

8

43

19

Brand Recall

Aided Unaided

Freshness

Variety

Convenience

Customization

1

6

2

7

45

78

6

4

8

4

Feelings Attributes

4-20 yrs. 21-40 yrs. 41+ yrs.

Key Insights:•The emphasis on ‘Convenience to Buy’ & ‘Freshness’ attributes increases towards older age groups – who are the actual ‘Decision Makers’.•‘Customization’ & ‘Variety’ attributes catch the attention of ‘Users’ & ‘Influencers’.•Brand Recall is higher from ‘Packaging’ & ‘Tagline’.

Research & Analysis

Price Margin Quality Variety Pack Avail-ability

Taste Schemes

Services

Amul 65 60 71 69 66 62 67 71 62

Kwality Wall's 45 52 61 72 70 71 74 61 68

Mother Dairy 51 48 68 56 69 59 69 55 60

Vadilal 70 72 66 64 58 67 63 70 65

5

15

25

35

45

55

65

75

Retailer’s Preferences

Research & Analysis

Amul Kwality Wall’s Natural’s Baskin & Robbins Vadilal Mother

Dairy Havmor

Quality/Taste

Value for Money

Freshness

Variety

Experience

Customization

Convenience to buy

Research & AnalysisBrand Attribute/Positioning Matrix

Key Findings:

•Ice-cream brands of good taste & quality prosper in Mumbai

•A decent mix of both the Ice-cream Outlets & Products co-exist and flourish

•The success of Kwality Wall’s & Baskin & Robbins suggests that ‘Value for Money’ has little say in this category

•The two key weak areas for Amul are – ‘Customization’ & ‘Convenience to Buy’

•Also, the overall Brand Experience is not strongly established

•The ‘Variety’ of products although good, can be improved upon

•Retailers have a lower preference of ‘Amul’ on account of Lower Margins, Poor Availability & Lack of Proper Service

Research & Analysis

Research & AnalysisKey Areas to be Worked Upon:

•Leverage on the unique model of having take-home ice-creams & eat-in parlours

•Redress distribution glitches

•Improve service to the retailer

•Improvize on product offerings in both, the parlours as well as take-home

•Emphasize on the ‘Experience’ & create an ‘Emotional Connect’

•Improve Visibility & Availability for the customer

•Increase ‘Reach & Variety & Experience’ through ‘No. of Outlets Expansion’ & ‘Customization Options’

Low Involvement Product More ‘Impulse’ Buy than ‘Rational’

Brand Recall & Availability should be high

Research & Analysis

2727

BasisHaagen-Dazs

Baskin Robbins

Nestle

Swensen's

Naturals

Kwality Wall's

King's

Amul

MacD

Vadilal's

Mother Dairy

Narula

0

50

100

Brand Perceptual MapPremiumFlavourPureVarietyConsistent

Source: CMIE Report

2828

Differentiation

Product Ethos

Freshness

Healthy

100% Pure Milk

Customized

‘Pure Milk’ strategyQC spend and quality consistency should have

major focus

Strict norms on use of preservatives and specifically mentioned shelf-life

Prolife and Probiotic variants separates Amul from competition in this target segment –

India’s first sugar free variant

Missing piece of the puzzle. Gelato and custom made variants

• The clear differentiation would be in terms of the addition of the customized segment into the portfolio• In sync with Amul’s red ocean strategy – matching competition at every price points

2929

Differentiation

Prolife500ml, 80ml

Shahi Anjeer

Vanilla With

Choco Sauce

Probiotic500ml, 80ml

Shahi Anjeer

Vanilla With Choco Sauce

Sundae

125 ml

Cheese-n Strawberr

y

Double Sundae

Black Current

Sundae Magic

Fundoo

Balls

Sticks and

Cones500ml, 120ml, 80ml

Frostik

Candy

Tricone

Butterscotch

Chococrunch

Kulfi

Block500ml,

1.25l, 1.5l, 2.2l

Vanilla

Two-in-One

Butterscotch

Chocolate

Fruit-n-Nut

Alphonso Marvel

Cups100ml,

90ml, 40ml

Vanilla

Strawberry

Butterscotch

Chocolate

Kaju

Alphonso

Pista

Custom

Dairy125ml,

1lGelato

Gourmet

Custom Made

Sundae

Custom Made Cones

Portfolio

3030

• Cones• Blocks

Take Home

• Sundae and Other Variants

Eat Out

• Block - Pilot• Customized Variants - Subsequent Launch

Home Delivery

Major Capex –1. Amul Shoppé – Lease rentals2. Employees – Salary and telephone charges3. IT Infra – IT infra partner

Major Differentiator –4. Trained call staff5. Agility6. Online experience

Differentiation

Services • Major Service Extension• Telephonic/online orders• Phase I roll out in blocks by Q3 2013• Phase II premium dairy by Q4 2013

• Special Amul Kiosks to be setup in major locations of Mumbai• Determine density based on the purchase data• Employ trained employees to take online orders• IT infrastructure to track online order

3131

Basis

Under 15

15–64 65+ Total0

50010001500

Population Growth20002005201020152020

25%

35%20%

15%5%

Consumer Segments5-1415-2526-4041-5556+

Middle-heavy buyer spread will continue to grow in that direction...

West35%

North30%

East15%

South20%

Ice Cream Consumption By Region

Put together, Delhi and Gujarat consume about 30% of the total ice-cream in the country. The west region leads the total national consumption with 35% mark

• Demand for 500 ml and one-litre packets has doubled in recent years• Though the volumes come from traditional flavours (60% block), consumers like experimenting• International flavours, including different varieties of chocolate, are going to be in this season

3232

SegmentationGeographic

• The AMUL Shoppé will be distributed as per the segment done based on major hawking zone shown to the right

• Separate trade license and DBA to be done

• Further segments are to be done based on the amount of spending on ice cream per region – this information will be available through the point of sales data

3333

SegmentationDemographic

25%

35%

20%

15%5%

Consumer Segments

5-1415-2526-4041-5556+

• Major consumer segments are divided into distinct age groups as per sales data

• The groups 15-25 is the most price sensitive group

• The group between 26-55 has the greatest purchasing power among all segments

3434

Targeting

25%

35%

20%

15%5%

Consumer Segments

5-1415-2526-4041-5556+

• The major focus should be on the groups 26-55 as the product is aspirational in nature and most of the time an impulse buy

• The age group 15-25 is the most price sensitive group, hence should be excluded from the premium dairy segment of products

• At the same time, Mumbai being a corporate hub, presents an opportunity for bulk corporate deals

3535

Competitive PositioningHaagen-DazsBaskin Robbins

Nestle

Swensen's

Naturals

Kwality Wall'sKing'sAmul

MacD

Vadilal's

Mother Dairy

Narula

0

50

100

PremiumFlavourPureVarietyConsistent

• Referring back to the perceptual map, we can identify that, Amul lacks the premium dairy image in the consumer’s mindshare

• At the same time, Amul already has a brand perception of a pure product

• This is a complimentary attribute in position matrix which aptly fortifies the premium image – as we equate pure quality with premium

• The positioning for customizable premium dairy is as shown to the right

“Real Milk Personal Ice Cream”

Customizable

Product

Pure and Consistent

Real Milk

3636

Brand Image

AmulPhysique• Taste• Quality

Relationship• Sociable

Reflection• Value Oriented

Self-Image• Proud Indian• Fun Loving

Culture• Co-operative, Sharing

Personality• Indian• Market Leader

Competitive Position• At par with international standards

• Constant Innovator

It’s not a brand image makeover but image extension

3737

Brand Positioning Bull’s Eye

Brand PositionBrand

Position

Core Proposition

Pure Milk & Quality Product

Substantiator

Specially Designed Healthy

Products

Indigenous Manufacturing

Amul Milk & Distribution Network

Market leader, quality manufacturer, wide variety

3838

Product

Prolife500ml, 80ml

Shahi Anjeer

Vanilla With

Choco Sauce

Probiotic500ml, 80ml

Shahi Anjeer

Vanilla With

Choco Sauce

Sundae125 ml

Cheese-n Strawberr

y

Double Sundae

Black Current

Sundae Magic

Fundoo

Balls

Sticks and Cones

500ml, 120ml, 80mlFrostik

Candy

Tricone

Butterscotch

Chococrunch

Kulfi

Block500ml, 1.25l,

1.5l, 2.2l

Vanilla

Two-in-One

Butterscotch

Chocolate

Fruit-n-Nut

Alphonso Marvel

Cups100ml, 90ml,

40ml

Vanilla

Strawberry

Butterscotch

Chocolate

Kaju

Alphonso

Pista

Customized Dairy

125ml, 1l

Gelato

Gourmet

Custom Made

Sundae

Custom Made Cones

Product Mix

Product Length, Width and Depth are indicated in the figure

3939

Product Suggestions

• Amul should provide small pack of milk Ice-cream

• Amul should also start making wafer Ice-cream because sale of wafer Ice-cream of mother diary and nestle is very high in Mumbai region

• Improve the variety of ice-cream with competitive prices

• The custom made Gelato, gourmet, cone and sundae variants should be added to the portfolio

• To revamp Amul Tri-cone to compete with Cornetto

4040

Ice Cream Makers

Changing the product ethos –From stereotype to ultimate customization.

Ice Cream Makers-

Benefits• Total customization• Revenue from selling the machines• More purchase due to wastage• On demand

Sample Baskin Robbins Ice Cream Maker

4141

ServiceHome Delivery

• Online / Telephone order – Toll Free number• Pilot – customized variants• Customers should be able to select

• Material / Waffle of the cone• Base layer• Middle layer• Top crust & toppings• Add ons – such as fudge cakes, brownies or pretzels

• Online order tracking and time bound delivery• Delivery charge would be levied above the billing amount

4242

Service

Sample online order tracker

4343

Suggested Packaging

• Hamara Apna Deep Freezer has an opaque door - > Change it to transparent• Inclusion of Amul Girl on the logo of Amul Ice Cream

SUGGESTED LOGO

4444

Pricing

Major costs

Raw material cost

Milk

Sugar

Transportation

Other costs• Cocoa• Dry fruits• Waffle• Freezers• Packaging


Pricing

• Wide range of products from low cost to premium

Product Range (Rs.) Range (Rs.)

Frostik 10-20 20

Tricone (120ml) 20/22 30-40

Take away packs (405 g + 405 g) 120-180 185

Premium

Product Range (Rs.) Range (Rs.)

Exotica range (540 g) 130-150

Swirl (405 g) 80-100 180

Sugar Free (540 g) 120-140

Low cost Amul Kwality walls

4646

Pricing

Real milk Real ice-cream

Not competing with the likes of Baskin & Robins

Price sensitive audience

Therefore, We suggest not to alter with the current price pointsIssues:• Current packaging of take away packs have to be improved, might raise the prices slightly

• Sugar price deregulation might add pressure on maintaining the same prices


Major source of RevenueAmul has around 8000 amul scooping parlours around India- Hindustan times Jan 2013

Margin earned from Amul scooping parlors – Rs.75000/month- Amul website

Amul Total revenue 1120 cr.Revenue from Amul scooping parlors

720 cr.

Revenue from retail shops 400 cr.

Since major portion of the revenue is obtained from the scooping parlors, as seen later, our promotion strategy would be aimed more towards these parlors and improving their serviceability

4848

Current Suppliers

Mumbai Supplier

4949

Amul Distribution Network

5050

Farmers2.1m households

VCs 11,000

MUs(12) 12000 employees

GCMMF

Distributors 3,666(10% on billing)

Retailers 500,000

(17.5% on MRP)Consumers

GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.Bracket figures indicate the margins.

Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.

Amul Supply Chain

5151

Amul Ice Cream Distribution

5252

Distribution Features

Partners• 6828 distributors in India• More small time distributors being

added each year• Distribution through Cyber Store• Almost 5000 dealers across India• Tie ups with deep refrigeration chains

like Carrier, HADF, Voltas etc.

Assets• Retailers being provided deep freezers

through HADF• 300 stock keeping units• 18000 strong cold chain• Decentralized facilities• 47 depots with cold storage facilities

Network• Depots to buffer entire product range

inventory• Cash transactions maintained

throughout the supply chain• JIT strategy to improve dealers’ ROI• Route scheduling strategies and

dedicated vehicle operations

Unsold/Spoilt Goods Policy• Retailer bears cost if product crosses

shelf life• In case of transportation errors or

customer complaint, Amul bears cost• Unsold goods returned to

manufacturer• No Reverse Logistics

5353

Distribution Analysis

Problems:-

• Retailer mindset that deep freezers involve high initial investment

• Flawed replacement strategy

• Supply Unavailability Problems

• Deep Freezer servicing errors

• Increase in electricity bills of retailers

• Cases of non-delivery within stipulated time

Recommended Solutions:-

• Regular distributor visits

• Put in place schemes for rewarding good retailers

• Increase distribution man-power

• Meet customer complaints on time

• Put in place measures to provide prompt after sales service

5454

Amul Ice Cream Parlours

5555

Place Recommendations

Key Findings:-

• Current Amul preferred outlets (APOs) – 8000

• Retail outlets - around 80000

• Less presence in modern retail

• Traditional Presence challenged by competitors

• Less number of Brand Outlets

• Low Brand Recall

Recommendations:-

• Atleast one more Contract Supplier or Manufacturer in Mumbai

• Expansion to places having good connectivity

• Premium Facility Outlets to be opened at strategic locations

• Increased presence in key Modern Retail stores

• Creating robust distribution system by rectifying errors

5656

Place Expansion

• Introduction of Café Amul chains in Mumbai

• Amul Railway Parlors at all stations

• Amul Ice Cream Push Carts at major locations

• Tie ups with major retailers like Big Bazaar and D-Mart

5757

Future Amul Parlours: A Glimpse

APO for Urban Centers APO for Rural Centers

APO for Tier II cities

Promotions• Continue with ‘1+1 Free - Amul Double Supreme’ & ‘Flavor of

the Month’ schemes due to high success rate

• AMUL should sponsor for the socio-cultural activities

organized in Mumbai like the ‘Kala Ghoda’ & ‘Bandra Carnival’

& have intensive sampling exercises

• In Mumbai, Amul can improve its market share by regular

performance of promotional activities, they should adopt it by

attracting hoardings, banners and advertisement in magazines

and newspaper• Fun Carnivals outside parks, offices, etc

Promotions

Shop Sign Boards & Supply Trucks Hoardings giving good visibility at low cost

Promotions• Amul Kiosks in major metro malls with special discount on

the custom and probiotic variants to increase trials

• “Happy Ice-Cream Hours” – to increase non-peak hours sales

• Deals with franchisee's like Subway to have an Amul Ice-

Cream counter

• Customized multi-flavoured "Happy Ice-Creams" for Birthday

Bulk Orders

• The endearing Amul girl and pun at various issues to

increase brand recall, but depicting Ice-creams as well

• Marketing strategy competitions for B-school students

Promotions

An Ad Campaign positioning Amul as a “Family Ice cream” & “Family Outing Experience” to hit the emotional cords of the target Market – ‘Let’s go out for an Amul Ice-Cream’

Promotions – Social Media

Link twitter feed to Facebook & Use hash tags such as #amulicecreams, #goout foramulicecream & #realmilkpersonalicecreams

• Consumer interaction via forums & Users • Facebook Page Activity Increase through puzzles, riddles, etc.• Facebook Logout Ad• Facebook Page should be exclusive to ‘Amul Ice-creams’ Promotions & not

other Amul Products• Current website interaction like ‘Your Recipe’, ‘Kid’s Recipe’, etc. should

also be included on the FB page

Fans to share videos & upload them, generate views & shares. Winners will get gift hampers, special holiday packages, special gift coupons, etc.

Facebook Log-out Ad

Promotions• Consumers face problems for navigating in

modern retail stores & also for an impulse buy product, it is important to remind the customer of your presence

• Also, Blue casting can be used at outlets as an innovative & interactive sales promotion technique

Promotions – ‘Spread-a-Smile Campaign’• Aimed at increasing repurchase

• To be implemented mainly at AMO’s & Scooping Parlours &

Café AmulA card will be given which will be stamped on every visit within a month

Every 2nd visit to the store, Rs.2 will be donated towards a Rural Education Program

Every 3rd visit, you get a 30% discount

Every 5th visit, you get a free scoop of select flavours & Rs. 2 will again be donated for the Rural Education Program

Visits Spread-a-Smile

1 Visit again & Spread Smiles

2 Thank you for your donation of Rs. 2

3 Get a 30% discount

4 Thank you for your donation of Rs. 2

5 Get a scoop for free


Implementation – Retailers “Push More”

1 point for each SKU sold

100-199 points per month=

Special Incentive Programs

200 + points per month = Star of the month &

Special Incentives

Traditional Retailers: “Push More”

SOS – Stock Out SMS

Information tracked by a central system

When inventory falls below a certain level: “Place Order”

Traditional Retailers: Service Improvement – ‘SOS’ or ‘Stock Out SMS’ Scheme

67

Enhancing the Eco system

Support raised for Metros in form of Umbrella carts for easy accessibility, better penetration and open visibility

Support for class 2 towns in form of cycle carts for easy accessibility, better penetration and cost effectiveness

Branding across by Carts

• Provide necessary nutrition

• Safety IssuesBasic

• Easy Availability• Proper PackagingExpected

• Good Quality Products• All lines of products at one stop

Desired

• Promotional Offers• Complementary giftsUnanticipated

Customer Value hierarchy

6868

Organization – Aeroplane Model

• Treat people as you’d like to be treated.• Produce the best for less.• Measure, manage and share what’s important.• Think big and grow.• Incentivize what you want to change.• Set the bar high, train, never stop learning.• Promote from within.• We are not ordinary, we are exceptional.

6969

Issues and Controls

Issues at the Distributor’s end

• Lack of knowledge at retailer’s end on the aspect of stocking in the refrigerator

• Employing less number of vehicles than required• Lack of efficiency in handling the goods during transit as well as

handover to retailers• Lack of personnel efforts and will to push for maximizing orders

from more and more outlets• Stocking in the vehicles can be better in order to reduce damage(Distributors under the scope -South Mumbai, Borivali, Airoli)

7070

Issues and Controls

Issues at the Retailer's end

• The cardboard packaging for ‘Family packs’ is poor• Fridge maintenance is poor due to lack of frequent monitoring• Dummy packs – Empty sealed packets of candy bars• Exchanging of damaged goods is tedious and claims are not given • 1 or 2 pieces less• Damage due to Electricity shortage • Coverage norms not clear

7171

Issues and Controls

• Products lacks freshness in appearance• Family packs become soggy and pasty many a times due to constant

melting and freezing occurring due to power-cut• The Cones lose the crunch and the solidity due to improper stocking

and liquidation of the Ice-cream in power-cuts• The Ice-creams in the cones as well as the cups not cold enough• Family packs cannot be consumed over a period of time and have to

be consumed when the pack is opened

Issues at the Consumer's end

7272

Recommendations

• Reduction in amount stocked leading to lesser damage due to prolonged pressurizing

• The norms for the maintenance of the fridge (between the refrigerator Companies and AMUL) must be made clear to levy off the responsibility

• Post the warranty period, the task can be outsourced and retailers can be encouraged with free AMC for a year or two

• Train current sales force to report fridge-related issues and communicate the process for acquiring quality maintenance

7373

Recommendations

• Empty packs/1 or 2 pieces less– Distributor’s argument: “The packages are made as per weight prescribed

and thus empty packets are ‘Extra’ in number. The pieces are stolen during transit and delivery”

Retailers’ argument: “Number of packets replaced with empty packets”– This can be taken care by monitoring of the goods while they are

being delivered

• Exchanging of damaged goods is tedious and claims are not given – Norms and conditions for exchange of damaged goods should be

clear and well communicated– Preventive measures for reducing the damage should be

communicated failure of compliance to which shall disqualify the argument for replacement of goods/ refund


Control – Monitoring & Advance

Allocating Organizing

Monitoring Interacting

Skills in Evaluating ResultsDifferentiating between poor strategy/good implementation and good strategy/poor implementation

Customer Reach

Customer Engagement Brand Loyalty Increased Sales

Out

com

es o

f Bra

ndin

g Ca

mpa

ign

Control – Monitoring & Advance

• EXPECTED IMPACT - AWARENESS x BUZZ x TRIALS x ASSOCIATIONS = BRAND LOYALTY

• Continuous Monitoring: Target vs. Actuals through SMART Metrics – Specific,

Measurable, Attainable, Resources, Time


Implementation Strategy & Timeline

Year 1

Q1–Q2

• Implement the proposed changes in positioning & differentiation of the brand• For first two quarters work on improving the distribution network, availability, accessibility & visibility• Work on BTL promotions extensively during this time• Start with retailers’ incentive schemes , sales promotions & sampling exercises at different places• Maintain an ATL:BTL spend ratio of 20:80

Year 1

Q3–Q4

• Work on the social media plan, increase advertising spends• Implement the “Family Experience” & “Happy Ice-Cream Hours” scheme• Work on expansion of outlets & product lines• Flourish Customization options• Maintain an ATL:BTL spend ratio of 40:60

Year 2 & 3

• Implement ‘Spread-a-Smile’ Campaigns in the second year• ‘SOS’ scheme for Retailers in the second year• Implement ‘BlueCasting’ in the third year• ‘Try & look into new supplier avenues for reducing pressure on single supplier• Maintain an ATL:BTL spend ratio of 30:70

7777

P&L Glide Path

• 77

Particulars Amount(`)Sales 79,20,00,000

Raw materials consumed 22,76,00,000

Selling and Distribution expense 6,20,00,000

Advertisement 4,52,60,000

Delivery Expense 5,40,80,000

Packaging Cost 3,88,00,000

Employee cost 7,72,00,000

Direct labour and Prime cost 6,45,60,000

Other costs 5,89,60,000

Depreciation 3,38,40,000

Net income 12,97,60,000

P&L Glide Path FY13

Particulars Amount

Sales 55,44,00,000

Raw materials consumed 27,98,32,000Selling and Distribution expense

2,20,80,000Advertisement

1,91,12,000Delivery Expense

1,26,08,000Packaging Cost

1,71,92,000Employee cost

5,72,56,000Direct labour and Prime cost

4,21,92,000Other costs

4,12,72,000Depreciation

2,36,88,000Net income

4,81,68,000

P&L Glide Path FY 14 Q1

Particulars Amount

Sales 18,97,00,000

Raw materials consumed 8,16,10,000

Selling and Distribution expense 79,46,400

Advertisement 69,66,900Delivery Expense 42,02,000

Packaging Cost 57,09,900

Employee cost 1,50,64,000



Depreciation 76,72,000

Net income 3,09,54,600


Particulars Amount

Sales 15,12,00,000Raw materials consumed 6,42,98,800Selling and Distribution expense

79,46,400Advertisement

35,89,000Delivery Expense

42,02,000Packaging Cost

45,51,100Employee cost




76,72,000Net income

2,03,04,600


ParticularsAmount

Sales 23,41,50,000Raw materials consumed 11,81,75,500Selling and Distribution expense

40,93,600Advertisement

69,67,000Delivery Expense

42,02,000Packaging Cost

70,47,900Employee cost




76,72,000Net income

3,46,24,100


ParticularsAmount

Sales 14,14,00,000 Raw materials consumed 6,42,98,800 Selling and Distribution expense

40,93,600 Advertisement

35,89,000 Delivery Expense

42,02,000 Packaging Cost

40,45,400 Employee cost

1,50,64,000 Direct labour and Prime cost

1,09,53,600 Other costs

99,99,400 Depreciation

76,72,000 Net income

1,74,82,200

P&L Glide Path FY 15

Particulars Amount

Sales 90,10,00,000

Raw materials consumed 45,47,34,700 Selling and Distribution expense

3,20,67,200Advertisement

2,22,20,000Delivery Expense

2,50,18,000Packaging Cost

2,79,31,000Employee cost


6,69,85,000 Other costs

5,11,77,300 Depreciation

3,38,40,000Net income

12,04,83,700

P&L Glide Path FY 16

Particulars Amount

Sales 1,05,70,00,000

Raw materials consumed 53,34,67,900 Selling and Distribution expense 4,40,20,000

Advertisement3,12,60,000

Delivery Expense3,02,45,000

Packaging Cost3,27,67,000

Employee cost6,80,80,000



Depreciation3,38,40,000

Net income 16,64,10,800

Group 1 -Amul Final New

Documents

Transcript of Group 1 -Amul Final New