Amul – The Taste of IndiaAmul – The Taste of India

Group – MKT(MAJOR)- 4

Group Members - MANNI KUMAR SINGH PRATIK PRASAD VIJAY KUMAR MD. MASOOD TULIKA NANDY HARSHITA TIWARI SOURAV HAZRA DEBASISH SAHA

GCMMF – Over ViewGCMMF – Over View

GCMMF: Gujarat Cooperative Milk Marketing Federation

GCMMF is India's largest food products marketing organization. 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.

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.

History of AmulHistory of Amul Amul (Anand Milk Union Limited), formed in 1946, is a dairy

cooperative movement in India.

It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

FactsFacts

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day

Amul - Business Model Amul - Business Model

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

The 3 C’s…The 3 C’s…

•Customers extremely satisfied•Ready to try more products with new flavours•Improved socio-economic conditions•Product for different segments

•Largest Dairy brand in Asia•More than 30 dairy brands•Market leader in ghee,ice-cream & butter•Very strong supply chain•Enjoys Fine reputation•Quality with Affordability

•Defending againsts• HUL(KWALITY WALLS)• HAVMOR, BASKIN ROBBINS brands

•Aggressive moves against LOCAL BRANDS

Industry Analysis : Porter’s 5 ForcesIndustry Analysis : Porter’s 5 Forces

Bargaining Power of Customers is High because of

Various competitors

Threat of substitutes is high

because ofavailability of Other products

Threat of new entrantsIs high because

There are no entrybarriers

Competitive Rivalry is High due to

Other brands andLocal players

Bargaining Power of Suppliers is low

because the suppliersAre rural milk

producers

Customer Based Market SegmentationCustomer Based Market Segmentation

Kids

Women

Calorie Conscious

Health Conscious

Youth

Amul FUNDOO, FROSTIK, DOLLIES

Amul PRO-LIFE

Amul SWIRL, TRICONE, SUNDAE, MALAI KULFI

Amul SUGAR- FREE

Amul PROBIOTIC

Industry Based Market SegmentationIndustry Based Market Segmentation

RETAIL OUTLETS

HOTELS AND RESTAURANTS

CATERERS

FLIGHT KITCHENS

APO’S, ICE-CREAM PARLOURS

MANUFACTURING UNITS

DISTRIBUTION CHANNEL

Reasons for SuccessReasons for Success

Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets

Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money

Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya

Strong Distribution Network Amul products are available in over 500,000 retail outlets across I 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-initiatives

New products Process technology Complementary assets to enhance milk production E-commerce.

Success!!

Sales Turnovers

YEARTURNOVER Rs.(million)

1994-1995 111401995-1996 137901996-1997 155401997-1998 188401998-1999 221921999-2000 221852000-2001 225882001-2002 233652002-2003 274572003-2004 289412004-2005 292252005-2006 377362006-2007 427782007-2008 525542008-2009 67113

SYMPTOMS

Fall in sales figure Complaint from customers Entry into catering into market Entry of competitors Consumers are buying different brands

PROBLEM FORMULATION

Sales promotion activities Local brands of Ice-cream have a large

market share Consumers are not brand loyal Consumers have tendency to buy different

brand for different form of Ice-creams

PROBLEM IDENTIFICATION

Increase in number of competitors

Falling market share

STUDY BACKGROUND- SWOT

STRENGTH:-

The Amul ice-creams brand is one of the top 3 brands. As it’s an Indian brand its popular as a family brand. It is available in all metropolitan cities and is in the reach of middleclass &

above middleclass. It is available in many flavors and most of these are Indian flavors is liked

by Indians. They are available in various sizes. They are available in reasonable prices. There are many premium varieties. AMUL ice-creams are not deserts containing 13% pure milk, thus are

good for health. Annual turn-over of rs. 67113 million in the yr. 2008-09

CONTD..

WEAKNESS:-

The durability of Amul ice-creams is not really good, it melts very soon. Company’s policy of “No Credit”, centralized management following

traditional principles and procedures of marketing. It does not have many outlet centers, unable to supply the demand. Not a famous brand among youngsters who are the main customers of

ice-cream. Vendors not very happy with the profit margin (both retailers and

distributors). No adequate advertisement and sales promotion activities done to

enhance the sales of AMUL ICE CREAMS as compared to competitors Alliances with Third Parties, the Deep-freezer providers

CONTD…

OPPURTUNITY:-

Niche market for probiotic products Increase in Catering business, Air-kitchens, Hotels, Malls etc. International markets Growth of Ice-cream market @ 26% Pre-existence in Dairy Industry Marketing federation has a network of 4,000 Amul parlours, of which 2,000

were added in 2008-09 "Ice-cream ‘Scooping’ parlours, the latest addition to the retailing revolution

CONTD….

THREATS:-

The biggest threat for Amul ice-cream industry would be its competitors i.e. competition from the unorganized sector as well as MNC’s.

A slight change in the price of the ice-cream would shift its customers to another brand.

Foreign players like Baskin- Robbins entering Indian market with new premium brands at feasible prices.

Local brands like Havmour, Dinshaw’s, Windy’s etc is penetrating into the market eating up the market share of Amul at a gradual speed.

Retailers are being easily manipulated by competitors by additional bonus, incentives which Amul doesn’t provides.

Fluctuations in the price of raw materials, esp. milk.

WHAT WENT WRONG

WHO WAS WRONG ??

FLOW OF FEED BACK..

OBJECTIVES

Sell 12,00,000 lts. of ice-creams in Mumbai Metro.

Achieve growth @ 20% compared to 15% Enter into new untapped markets in Mumbai

Metro Increase the sales volume of products like

probiotic and sugar free

CONSTRAINTS

Unhappy sales force, both retailers n distributors

Policies like “NO CREDIT” n “ADVANCE PAYMENT”

Myopic approach, Traditional policies n practices

Maintain “Leader Position” in ice-cream market

Intense competition from local, regional, national as well as international brands

What more can Amul do?What more can Amul do?

They can come up with new flavours which would be able to attract the youth.They should not restrict themselves to departmental stores in fact come with new luxury brands which can be available in hotels and they should come up with more of their own ice-cream parlours.They should use a strategy similar to what they used in case of butter (Utly butterly girl ).They should come up with offers for purchase of ice-cream in wholesale market esp. CATERERS, etcOffers should run all throughout the year; not only in winters. There should emphasis for special occasions. There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these productsThough Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

THANK YOU !!!!THANK YOU !!!!