Amul-TheTaste of India
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Transcript of 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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