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Presented By :

Jyothi.BSwati Jain

Vishakha Jhaveri

Amul (Anand Milk Union Limited)

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Largest Food Brand And Business In India

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OPPORTUNITIES: Subscription Revenues to

Drive Industry Growth; Mobile TV Added Channel

Annual Turnover

4300

10000

2000

0

2000

4000

6000

8000

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1946 1999 2007 2008 2009 2010

Time Frame

INRCrores

Annual Turnover Of Rs 4300 Crore (2006-07)

Rs 10,000-crore mark over the next three years.

Four decades to become Rs 2,000-crore entity But, the turnoverdoubled to over Rs 4,300 crore within nine years from 1999 to 2007

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Formed in 1946, is a dairy cooperative movement in India.

A brand name managed by Gujarat Co-operative Milk Marketing Federation

Ltd. (GCMMF)

Jointly owned by 2.6 million milk producers in Gujarat

Spurred the White Revolution of India, which has made India the largestproducer of milk and milk products in the world.

Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China,Singapore, Hong Kong and a few South African countries

Fresh plans of flooding the markets of Japan & Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF -the man behind thesuccess of Amul.

On 10 Aug 2006 Parthi Bhatol was elected chairman of GCMMF

The white revolution has finally created a billion-dollar brand.

http://en.wikipedia.org/wiki/1946http://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/White_Revolution_%28India%29http://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Parthi_Bhatolhttp://en.wikipedia.org/wiki/Parthi_Bhatolhttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/White_Revolution_%28India%29http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/1946

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Every day Amul collects 7million litres of milk from 2.6million farmers (many

illiterate), converts the milkinto branded, packagedproducts, and deliversgoods to over 500,000 retail

outlets across the country.

Its supply chain one of the

most complicated in theworld.

Business Model

Raw

Milk

Condensed

Ghee

Butter

Cream

Packaged

Milk

Ice cream

Beverages

Dried

Skimmed

Milk

Powder

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Third party service providers

- core is milk processing , production of dairy products

- logistics of milk collection, distribution of dairy products, sale of

products through dealers and retail stores

Umbrella brand

- common brand for most product categories

- Amul's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara

brand while fruit drinks - Safal

Developing demand

- limited purchasing power, modest consumption levels

- a low-cost price strategy products

The distribution network

- dry and cold warehouses

- cash transactions throughout the supply chain

- JIT improves dealers' return on investment (ROI

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Largest milk brand in Asia marketing more than30 different brands of dairy products like cheese,ice-cream, condensed milk, ready-to-eat pizza,beverages etc.

Amul is the market leader in ghee and butter Amul Kool and Kool Caf doing well

Defending against names like Mahananda,Vijay, Milma and other co-operative milk brands Aggressive moves against FMCG and F&B

brands like Britannia, Nestle and Mother Dairyamong others..

AMUL defending its turf

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Moving consumers from loose milk to packaged

milk and gradually move them up the value

chain (tetra pack to beverages, all availableunder the Amul brand) A sound strategy likely to work. Being exposed to a brand, it is natural for a

customer to try more products Improving socio-economic condition of the

customer anchors the desire to enhance lifestyle

Defense Strategy

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Wide range of product categories caters toconsumers across all market segments. Forexample, Amul Kool is targeted at children, whileteenagers prefer Kool Caf, as it has a coolimagery associated with it.

Segmentation is not as easy in curd and low fatproducts, due to mixed audiences, various

culinary applications , eg. ghee, butter andcheese.

In India, the most used spread is ghee, thenbutter, cheese, low fat butter, margarine, cheesespread and mozzarella cheese.

Segmentation

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Changing retail environment Striking out on its own, with Amul Outlets or

parlours to deliver consumers total brandexperience

Launched in 2002, there are now 400 Amulparlours across the country, which contributed3% to the brands total turnover last year.

High profile locations: Amul parlours are todaypresent on campuses of Infosys, Wipro, IIM-A,IIT-B, Temples, Metro rail and railway stations in

Gujarat.

Targetting

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A mass market player, no premium offerings USP Quality with affordability Up against niche players value addition to customers Sheer size and scale of operation New offerings for health conscious and vibrant India

Health and energy drinksStamina, a health drink made from milk with addedvitamin C against Red Bull and Gatorade, milk betterthan cola. Aimed at youngsters, priced at Rs 12

Ice-creamProbiotic and sugar-free variantsChocolates

sugar-free brand called Choco-Mini to target the diabetic

Positioning

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Given this wide product portfolio, Amulsapproach is to promote its brands in a rotationalcycle of two to three years.

After ice-creams were launched in 1996, thecategory was re-visited in 1999, in order toimprove availability of the product and make itaffordable.

The focus shifted to cheese in 2001, Amul MastiChaas in 2004-05 (sales of Masti dahi grew by25%), Nutramul and Kool Kafe in 2006 and thisyear the focus is on Amul Koko coldchocolate drink

Promotion

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Uses a variety of media to communicate Most famous is billboard campaign

The endearing polka dressed girl and pun at

various issues increased brands fan following.

Below-the-line activity has grown too such asthe Amul food festival, which has been held forthe last four year between October andDecember in about 50,000 retail outlets.

The Chef Of India promo invites hotel chefs tocome up with recipes using as many Amulproducts as possible, and is conducted at city,

state and national level.

Promotion

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One of the most conservative FMCG entities GCMMF spends a mere 1% of its turnover onpromotions.

GCMMF has written and re-written rules of thegame.

Amul butter girl is one of the longest run adcampaigns in the country for 41 years.

Intelligent marketing of milk, icecream and buttermilk.

Intelligent Marketing

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Amul

Product portfolio

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Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) isdrawing up a fresh game plan for its flagship brand 'Amul FreshMilk, its main rival is mother dairy India

On Amuls future plans, Amul is expanding their processing and

packaging capacity to meet growing demands eg delhi & Mumbai.

In a bid to pump up volumes, Amul is also extending its distributionnetwork to reach new markets. "Our core strategy is to furtherconsolidate our operations in existing markets which includes

Kolkatta along with beefing up advertizing &marketing actions. Incidentally, Amul is selling its packaged milk brands on the Net too.

Mother dairy is working on similar grounds and increasing its reachand both the giants are trying to capture large packaged milk

market.

Amul milk

A l B tt

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Amul Buttercash cow in the product portfolio

Primary position as far as butter is concernedwith a market share of more than 86 per cent

Amul has introduced a number of diverse range of varied productslike cooking butter, low fat butter etc along its main product. Hencecovering all the segments in which a competitor can enter, thuscreating strong barriers and in turn playing offence to defend itsmarket position.

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Amul cheese

VariantsAmul Pasteurized Processed Cheddar CheeseAmul Processed Cheese SpreadAmul Pizza (Mozarella) Cheese

Amul as a brand investing a lot of resources in cheese because ithas to defend its position from the various attacks of its closecompetitor britannia and hence attacks itself by introducing new

variants in the cheese segment.

Amul cheese

http://www.amul.com/cheese-cheddar.htmlhttp://www.amul.com/cheese-spreads.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-mozzarella.htmlhttp://www.amul.com/cheese-spreads.htmlhttp://www.amul.com/cheese-spreads.htmlhttp://www.amul.com/cheese-spreads.htmlhttp://www.amul.com/cheese-cheddar.htmlhttp://www.amul.com/cheese-cheddar.htmlhttp://www.amul.com/cheese-cheddar.html

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The brand with the hope to double its cheese sales through itsrecent foray into the marketing of vegetable pizzas introduced amulpizzas.

Marketing analysts say that Amul's pizza marketing strategy isunique because it aims at boosting sales of an `elite' product(cheese) by pushing down prices of another `elite' product (pizza).The maximum retail price for Amul's Mozzarella cheese is now Rs48 per 250 gm, while its processed cheese slices sell at Rs 43 per200 gm. ``The pizza route would promote sales of an otherwisepremium product as cheese,'' they pointed out.

Amul aimed to do to pizza what it has already done for ice-cream.They wanted pizzas to become a mass consumption item likekulcha chola or chole bhature. And done in the case of ice-cream,they intended to force other pizza manufacturers to also slash

Amul pizzas

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Amul ice creams-

24.75 per cent share in the Rs 525 crore Indian

market, Mother Dairy share of 8.66% & themarket leader HUL- kwality walls with 28.22% Amul being the 2nd to the market leader is playing offence at its best. Delhi and the National Capital Region, which was hitherto deemed

to be Mother Dairy domain in the icecream sector, has already seen

Amul move in with vengence- market penetration strategy

Amul's Pro-biotic Ice-cream-flanking strategy targeted at healthconcious individuals

In a country like India where we have waterborne diseases likediarrhoea, eating a spoonful or two of pro-biotic ice-cream wouldkeep the family healthy and strong. The product was launched withthis in view. Amul was the first in the country to introduce pro-bioticice-cream and pro-biotic sugar free ice-cream. Hence it also has firstmover advantage.

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Amul chocolates- market share of roughly 10per cent compared with 70 per cent share of

the market leader, Cadbury. The company has maintained a chocolate portfolio for more than 20

years, the dairy products major never posed a threat to marketleaders such as Cadbury and Nestle.

Amul is reworking its strategy in the chocolate category to push itschocolate product sales. Now, with a new product portfolio, it isplanning to create a space for itself. In the chocolate business,Amul's strategy is to identify the market gaps and try and fill them.They have done this in the past with their Sugar free and ChocoZoo, both of which have been appreciated by the consumers. Now.Amul intends to concentrate on the niche segment when it comes tothe chocolate range & occupy a position in the shape basedchocolate segment & introduce new variants in the same.-Flankingstrategy

http://www.amul.com/http://www.amul.com/

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SagarAmul ghee-20 per cent share in the

ghee market Amul has decided to restrict the brand in Gujarat and

Maharashtra.Its a dominant player here and uses defence strategyto safeguard its position.Ghee is already dominated by local co-operative brands and it will continue with Sagar ghee as a regional

brand. With the baseline `Flavour of Festivals', Sagar Ghee ispromoted before every festival in both these States to build demandfor the brand.

Amul is trying to promote Sagar on the value for money platform. In

fact, in the past, the brand used cartoons from R.K. Laxman to drivehome the image of a brand for the common man. Today, however,the brand is being advertised based on images from festivals

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Sagar

skimmed milk powder-40 per cent share

Amuls milk powder continues to enjoy a national presence although

it enjoys a strong franchise in the North-Eastern, Eastern and partsof the Southern markets.

The almost 40-year-old brand of Sagar has also been extended to atea and coffee whitener and has been made available nationally.

Amul also has the Amulya brand of dairy whiteners, which is at apremium to the Sagar brand by almost 25 per cent. Hence the brandis targeting 2 segments together with its brands of milk power,

amulya & sagar. Thus creating barriers by segmentation for entry ofcompetitors.

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Sagar

Amulspray-baby milk powder

Nestle is the market leader in the segment. This is a category wherebrand loyalties are very strong as mothers want the best for theirbabies. Heinz is the only other significant competitor to Nestle in thissegment. Nestle's Cerelac and Nestum together have around 80%market share and Heinz's Farex has close to 18% share.

In infant formula also Nestle's Lactogen formula and Lactogenstandard formula are the leading brands with around 75% marketshare. Other brands are Heinz's Lactodex Farex, Wockhardt'sRaptakos, and Amul's Amulspray which occupy the rest of themarket.

The market for milk powder is already saturated and there is noneed to expand the range is what has been decided by Amul. Thisozone is not its core competency.

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Gujarat Cooperative Milk Marketing Federation had signed anagreement with Wal-Mart to stock its shelves with products under itsAmul brand name. Amul processed cheese, pure ghee, Shrikhand,Nutramul, Amul's Mithaee Gulab Jamuns are few of the productsmarketed in the US markets.

50 per cent of Americans being medically obese, and if Amul isreally looking to capture the hearts of the second- and third-generation Indians, offering low-fat versions of its brands, wouldmake a lot of commercial sense.

Hence targeting the large Indian community in the US markets withits niche products like mithai, packaged ready to eat foods market itcan definitely expand its market to a large extent.

Expansion to foreign shores

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Butter

Britannia

Nestle

Cheese

Britannia

Baby Food

Nestle

Heinz

Dairy Whitener Segment

Nestle

Britannia

Ice creams

HLL

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Chocolates & Confectionaries

Cadbury

Nestle

Pizza

Pizza Hut Dominos

Nirulas Frozen pizza

Curd

Nestle

Mother Dairy

Ultra High Treated Milk

Nestle

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Sweet Condensed milk

NestleCottage Cheese(Paneer)

BritanniaMilk Additives

Cadbury Smithkline Beecham

Flavored Milk

Britannia Nestle

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BNZFL is a joint venture between Britannia Industries Ltd.and the Fonterra Cooperative Group, New Zealand, a dairycooperative group.

The company focuses entirely on the dairy business, withcheese being its flagship product. The other products itsells are dairy whiteners, butter, ghee (Indian clarifiedbutter) and a malt drink- Anlene. All products are marketedunder the 'Britannia MilkMan' brand.

Its turnover in 2005-2006 is US$ 24 million with about 50%coming from processed cheese, 30% from the dairywhitener and the remaining 20% from butter and gheesales.

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BNZF only sells in the processed cheese segment and

has five variations of processed cheese in the market,besides a cheese dip product. Over half of thecompany's revenues come form the processed cheesesegment.

BNZF cheese is priced at a premium in the market, onereason being that the cheese is sourced from cow's milk(unlike Amul, that sources its cheese from buffalo milk).

Cheese products:Cheese cubes, Cheese singles

(regular and Slim variants), Britannia Milkman MalaiChaska- a soft, fresh and creamy dairy spread, whichhas a mild, tangy taste, Britannia cheese spread indifferent flavors like Masala Herbs, Spicy Cilantro,Peppy Pepper etc., and Pizza cheese.

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Britannia Flavored Milk in tetrapaks are popular. Otherproducts in the milk range include products like SweetLassi (buttermilk) and Cold Coffee in 200 ml tetrapaks.The Lasssi is priced at Rs. 10 while the Cold Coffee ispriced at Rs. 12.

The firm has also entered the fresh pastuerised milkmarket, dominated by Government-owned milkmarketers

The firm has started supplying dresh paneer (cottagecheese) in and around Delhi, the national capital.

The firm also has in its portfolio Daily Fresh Dahi(curd) and has just launched Low fat Dahi in 2008

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Strategy

In 2001 Besides focusing on competitive pricing, BNZF has adopted a

three-pronged strategy of freshness (lower pipeline stock),availability (improve distribution network) and visibility (moreshelf space at modern trade).

It recently entered some fresh milk markets, such as Delhiand Kolkata, where GCMMF does not have a presence. It isconcentrating on just 30 cities, and that too through selectclass A & B outlets, for butter and cheese. It is not playing thenational game with GCMMF.

Being No 2in the butter and cheese market afterAmul which

holds more than 86% (combined butter & cheese market) itshould be following Offense strategy by attacking thestrengths of Amul cheese market.

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Nestl India is a subsidiary of Nestle S.A., world'sbiggest food company and a leading Swiss giant.

Nestle India's business can be broadly classified intofour categories ---milk products and nutrition (infantmixes, yoghurt, milk), prepared dishes and cookingaids, beverages (coffee and malted drinks) andchocolate and confectionary.

Company has a wide presence across India with itsportfolio of strong brands Nescafe, Maggi,Milkybar,Milo,KitKat,Bar-one,Polo,Munch,Milkmade,Nestea,Nestle Milk, NestleFresh 'n' Natural Dahi and NESTLE Jeera Raita

The company is focused on growing its market sharethrough renovation and innovation of its existingbrands in India.

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Nestle Dairy whitener The loose milk market is estimated to be around Rs470

billion, the processed milk market is only Rs 10000 crores.Milk powder market is only 7% of the whole milk market.

There are two types of milk powders

a. Whole milk powderb. Skimmed milk powder.

Everyday is a major player in the Dairy whitener category

that is a part of the skimmed milk category. The dairywhiteners are used for tea making.

http://photos1.blogger.com/blogger/1270/405/1600/everyday1.jpg

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Nestle Everyday

Everyday was launched in 1986 now have a marketshare of around 22%. The category is facing the majorobstacle of consumer perception towards this category.The consumers perceive that loose milk is fresh. And withabundant milk supply, milk powders were able topenetrate only 4.7% of the entire market.

While Everyday faces stiff competition from Amul'sAmulya and Britannia's Milkman, the major competition isfrom the ordinary milk.

Adding more nutrients , variants and identifying multipleuses are the only option in this nascent market.

Expand the market or increase the usage situations

http://photos1.blogger.com/blogger/1270/405/1600/everyday1.jpghttp://photos1.blogger.com/blogger/1270/405/1600/everyday1.jpghttp://photos1.blogger.com/blogger/1270/405/1600/everyday1.jpghttp://photos1.blogger.com/blogger/1270/405/1600/everyday1.jpg

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It wants to give GCMMF competition across the entire dairyline. Will be busy protecting the dominance of its Cerelac andMilkmaid brands, against the impending price-led onslaughtfrom GCMMF's Amul Infant Milk Substitute and Mithai Mate,which will now be produced from a spanking new 8,000 tonne

a year facility at Mehsana. Nestle India has access to its Switzerland-based parent,

Nestle SA's investments (global expenditure was Rs 6,500crore in 2007) in research and development and advancedtechnology for foods and beverages

Likewise, Nestle Fresh N' Natural Slim Dahi (fat free), NestleMilkmaid Fruit Yoghurt (fat free with real fruits), Nestle Nesvita(fat free with probiotics, for healthy digestion), Nestl CerelacStage 4 and Nestl Nan with DHA (both infant foods) werealso launched.

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Cadbury Schweppes is the No.1 confectionery and thirdlargest soft drinks company in the world. We manufacture,market and distribute branded chocolates, confectioneryand beverages that bring smiles to millions of consumersacross 180 countries

Cadbury India began its operations as a trading concernin 1947. The company today employs nearly 2000 peopleacross India.

Currently Cadbury India operates in three sectors viz.

Chocolate Confectionery, Milk Food Drinks and in theCandy category. In the Chocolate Confectionery business, Cadbury has

maintained its undisputed leadership over the years and

has market share of over 70% - the highest Cadbury

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In the Milk Food drinks segment our main product isBournvita - the leading Malted Food Drink (MFD) in thecountry.

Similarly in the medicated candy category Halls is theundisputed leader.

We recently entered the gums category with the launchof our worldwide dominant bubble gum brand Bubbaloo.

Bubbaloo is sold in 25 countries worldwide

.

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Strategy

Since 1965 Cadbury has pioneered thedevelopment of cocoa cultivation which gives it astrong unbending foundation in chocolates segmentin India.

Being the market leader it follows the Defensestrategy.

It re-launched three brands: 5 Star, Gems, and

Bournvita recently. It is looking at its strategy afreshto gain a toehold in the sugar confectionery market,and to reduce its traditional dependence onchocolates.

http://in.jobstreet.com/jobs/2008/3/default/60/1316728.htm?fr=R

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Unilever, the major shareholder in HLL, is the world's

largest ice-cream company selling in more than 80countries (could be more, by now), mainly under thebrand name Walls.

The Rs 1,200-crore branded ice creams sector is

dominated by HLL with 37% market share followed byAmul with 27% market share. With a growth in sales of nearly 40 per cent in 2006 and

with HLL making profits in the category for the second

year in succession, the company is bullish. The market potential is huge, with ice cream

consumption in the country very niche, at around 500 mlper capita, compared with 2-4 litre in Singapore and an

eye-popping 25 litre in the US.

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Strategy The strategy of promoting Kwality Walls as an umbrella

brand for its ice creams, rather than a product-drivenpromotion, has helped to build the brand well. The FMCG major's ice-cream business eliminated

several stock-keeping units, rationalised manufacturinginfrastructure and brought its focus down to six mainline

cities only, where 60 per cent of the ice-cream marketexists. It is also planning to extend Unilevers retail brand

Kwality Walls Swirls parlors in accordance with thegrowing number of shopping malls in India.

Sailesh Venkatesan, category head, Ice Creams,HLL said: Our growth will be driven by increasingthe availability and offering innovative products ataffordable price points.

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Thank you

Questions?