Fahad Tanki : 15Gauri Shetty: 18

Harsh Sachdeva : 19Meenal Phadke : 31

Parth Nagar : 36Rishil Shah : 41Varun Jain : 50

AMUL: The Success in the Ice-Cream Segment

• Amul was formally registered on 14th Dec 1946 .

• The brand name AMUL sourced from Sanskrit word “Amoolya” which means “Priceless”.

• AMUL [ Anand Milk Union Limited ] is the product of co-operative movement in India.

• The Amul Pattern has established itself as a unique appropriate mode for rural development .

PRELUDE TO THE COMPANY

Secret Behind Amul’s Success..!!• Bring at the command of the rural

milk producers the best of the technology.

• It provides a support system to the milk producers without disturbing their agro-economic systems.

• Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers.

Supply Chain and Huge Distribution network

The distribution network• It comprises of

1) 300 stock keeping units 2) 46 sales offices

3) 1 lakh retailers with refrigerators 4) 18000 strong cold chain• Amul products are available in over 500,000

retail outlets across India through its network of over 3,500 distributors.

• There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

RANGE OF PRODUCTSBreadspreadsCheese RangeMithaee RangeMilk RangePure GheeInfant Milk RangeMilk PowdersSweetened Condensed MilkCurd ProductsMilk Drinks

Sales Figures…Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

Launched on 10th March, 1996 in Gujarat

Platform of ‘Real Milk. Real Ice Cream’In 1997, entered Mumbai followed by Chennai in 1998 and Kolkata & Delhi in 2002.

Nationally in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country.

This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market share of HLL.

Not only has it grown at a phenomenal rate but has added a vast variety of flavors to its ever growing range.

Currently it offers a selection of 220 products.Amul has always brought newness in its

products and the same applies for ice creams.In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India.

THE PRODUCT RANGE

Prolife Ice Cream

Sugar Free Probiotic

Swirl

Cones

Sticks

Novelties

Always something New

Introducing Amul Exotica…

RECOGNITIONSISO 9000-HACCP certified plants

No. 1 in Quality by “INSIGHT” magazine

Best Value for Money brandAmul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

The CompetitionMajor Competitor being Walls (by HUL)

has a market share of only 9% as compared to 38% of Amul

i.e. 4 times more than its nearest competitor

As far as Mother Dairy is concerned it is a sister concern as a part of GCMMF, so ultimately the profit falls in their kitty.

The other players like Vadilal, Pastonji, Havmor etc. are highly regionalised.

Walls Vs. AmulKwality Walls’ Promotion: Amul’s Promotion:

i.Candy for the classes i. Candy for the masses

ii. Value packaging ii. Cool packaging

iii. Unique flavours iii. Maximum flavours

iv. Niche launches iv. Aggressive launches

v. Decent reach v. Good reach

Kwality Walls’ Pricing: Amul’s Pricing:

i. 750 ml pack-Rs 65. i. 1.25 litre party pack-Rs 65.ii. 400 ml pack-Rs 40 ii. 500 ml Vanilla-Rs 35.

iii. 135 ml Super Cornetto-Rs 30. iii. 180 ml Mega Bite cone-Rs 20

What worked for Amul…For any new player to enter this market, three things are critical: Decentralized manufacturing facilities

Efficient cold chain Growing market

And Amul had all of the above in place.

How…Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time: due to price differential, quality of products and of course the brand name.

Their Motto…They have survived and grown on the basis of: co-operative culture, co-operative networking, market acumen and respect for both producer and the consumer.

What’s Different…Amul Parlour Approvals : 4535

Cyberstores Rural Reach

SWOT Analysis

STRENGTHS OPPORTUNITIESMarginsProduct mixAvailability of raw

materialTechnical

manpowerEnhanced Milk

ProductionTransportation &

StorageVast resourcesIncreasing

purchase power

Value additionExport potentialMarketsIT support

WEAKNESS THREATSLogistics of

procurementErratic power

supplyLack of control

over yield

InfestationExploitationCreation of Non

Tariff Barriers by Developed Nations

MICHAEL PORTERS FIVE FORCES MODELRIVALRY AMONG COMPETING FIRMS

In the FMCG industry rivalry among competitors is very fierce. There are scarce because the industry is highly saturated and the competitors try to snatch their share of market. They use all kinds of tactics from intensive advertisement campaigns to promotional stuff and price wars etc. so overall the intensity of rivalry is very high.

POTENTIAL ENTRY OF NEW COMPETITORSThe industry does not have any measures with which it

can control the entry of new firms. The resistance is very low and the structure of the industry is so complex the new firms can easily enter and also offer tough competition due to cost effectiveness. Thus potential entry of new firms is highly viable.

POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTSThere are complex and never ending consumer needs

and no firm can satisfy all needs alone. The wide range of choices and needs give a sufficient room for new product development that can replace existing products.

BARGAINING POWER OF SUPPLIERSThe bargaining power of suppliers of raw materials and

intermediate good is very high. The most important factor here is the importance of quality. There is ample number of substitute suppliers available. There is no monopoly situation in the supplier side because the suppliers are also competing among themselves.

BARGAINING POWER OF CONSUMERWith ice cream there are virtually no

important end consumers. However if AMUL focuses on the consumer as retailer then the importance of the few powerful and growing grocery chains represents a significant hurdle. This is offset by the almost complete lack of potential for backward integration and the relative insignificance of ice cream to this customer group.

StrategiesBrand presence & associationAggressive LaunchValue MarketingUmbrella brandBetter PricingUtilization of existing supply chainGood QualityContinuous InnovationMaintaining the Image

CONCLUSION

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