7/29/2019 mrktcase

1/15

GCMMF-Going beyond

Amul

7/29/2019 mrktcase

2/15

Presentationby

Group-9ANIL 1221511PRADEEP 1221525SANTOSH 1221534BHARATHI 1221544SHALINI 1221558

7/29/2019 mrktcase

3/15

Gujarat Cooperative Milk Marketing Federation(GCMMF) is India's largest food products marketingorganisation.

formed in 1946, it is a dairy cooperative movement inIndia

Manages the brand Amul Companys product range includes milk, ice creams,

chocolates and ready-to-eat products

INTRODUCTION

7/29/2019 mrktcase

4/15

1996

19971999

Diversifies andenters into cheese,condensed milk &paneer

GCMMF launchedice creams Launched branded

yoghurt

7/29/2019 mrktcase

5/15

2000Launched AmulTaaza and

promotedmozzarella cheese

Planned to open3000Pizza retail franchiseoutlets

2001

Set sales target andmarketed productsunder SnowCapbrand

2005

7/29/2019 mrktcase

6/15

Weaknesse There are various big player

chocolate market, which actcompetitors restricting thei

Lack of capital invested as cother companies.

Improper distribution chann

Exposure to risks relating togovernment regulations andconditions, including epidem

Strengths: The company is having Indian origin thus

creating feeling of oneness in the mind of thecustomers.

It manufactures only milk and milk productswhich is purely vegetarian thus providingquality confidence in the minds of thecustomers.

It is aiming at rural segments, which covers alarge area of loyal customers, which othercompanies had failed to do.

Amul has its base in India with its butter andso can easily promote chocolates with outfearing of loses.

SWOT ANALYSIS

7/29/2019 mrktcase

7/15

Threats: The major threat is from other c

hold the majority share of consmarket i.e. Cadburys and Nestl

There exists no brand loyalty inmarket and consumers frequenbrands .

New companies entering in Ind

Fantasies fine poses lot of pro

Opportunities: There is a lot of potential for growth and

development as huge population stay inrural market where other companies are nottargeting.

The chocolate market is at growth stagewith very less competition so byintroducing new brand and intensiveadvertising there can be a very good scopein future.

SWOT ANALYSIS

7/29/2019 mrktcase

8/15

QUESTIONS FOR DISCUSSION

7/29/2019 mrktcase

9/15

1. WHY DO YOU THINK GCMMF WAS DIVERSIFYINPIZZAS, KETCHUPS, AND OTHER EATABLES?

In 2000, sales target of 0.1mn litres of carton milk per day Decided to promote mozzarela cheese which is used in

pizzas. Then they set a sales target of Rs 10 bn by 2006.

Decided to enter ready-to-eat segment. To expand the market for cheese, they started selling

pizzas at a low price.

7/29/2019 mrktcase

10/15

The products were to be marketed under the SnowCap brand. TheSnow Cap brand would also include tomato sauce and ketchup.

Amul would have little control over the quality of the pizzas. That waswhy Amul was marketing the pizzas under the brand name SnowCap.

2. Why do you think GCMMF used the brand name SnowCap forits pizzas and not Amul ?

7/29/2019 mrktcase

11/15

PENETRATION PRICING

3. What kind of pricing strategy has GCMMF adopted to sell pizzasunder the brand name of Snowcap? Is it the right approach?

7/29/2019 mrktcase

12/15

Penetration pricing is the pricing technique of setting a

relatively low initial entry price, often lower than the eventualmarket price, to attract new customers. The strategy works onthe expectation that customers will switch to the new branbecause of the lower price. Penetration pricing is most

commonly associated with a marketing objective of increasingmarket share or sales volume, rather than to make profit in theshort term

WHAT IS PENETRATION PRICING ?

http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brand

7/29/2019 mrktcase

13/15

AMUL adopted a low price strategy to make their productsaffordable and guarantee value to the consumer. The success ofthis strategy is well recognized and remains the main plank ofAMUL's strategy even today. The choice of product mix and thesequence in which AMUL introduced its products is consistent withthis philosophy.

HOW THIS STRATEGY WORKED FOR AMUL

7/29/2019 mrktcase

14/15

Price was an advantage that Amul enjoyed over its competitors Diversification strategies of Indian food product companies The caselet focuses on the company's entry into the ready-to-eat

segment. The caselet provided details for the launch of GCMMF'spizza products

GCMMF's move would force the existing players to reduce their prices in the long runner SnowCap brand and diversificationstrategy

CONCLUSION

7/29/2019 mrktcase

15/15