INDIA IN GLOBAL BUSINESS OPERATIONS

VENKATESH DAMODHARANI-YEAR MBA

SRI KRISHNA COLLEGE OF ENGINEERING AND TECHNOLOGY

SELECTED COMPANY

ABOUT THE COMPANY

TYPE : CO-OPERATIVE INDUSTRY : DAIRY/FMCG CURRENT CHAIMAN : JETHABHAI PATEL REVENUE : US$3.4 billion (2014–15) NO.OF.EMPLOYEES : 3.6 MILLION(2015) TAGLINE : ”THE TASTE OF INDIA”

SLOGAN : “UTTERLY BUTTERLY DELICIOUS”

OPERATIONS OF AMUL

Follows “THREE TIRE COOPERATIVE STRUCTURE”

Also called as “AMUL MODEL” or “AMUL PATTERN” of diary cooperatives.

AMUL MODEL

Milk collection is done at the village dairy society (VDC)

Milk procurement and processing at the District Milk Union

Milk products marketing at the state milk federation.

COLLECTION OF MILK BY VDC Collection of surplus milk from the producers of

the village and payment based on quality and quantity

Providing support services to the members like veterinary first aid, artificial insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales, conducting training on animal husbandry and dairying

Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union.

PROCUREMENT AND PROCESSING

Milk procurement and processing is done by the DISTRICT MILK UNION

The procured milk is processed at various plants at Cattle Feed Plant KanjariKhatraj DairyKheda DairyKolkatta DairyPune DairyPunjab DairySikkim DairyVirar DairyUSA Dairy

MARKETING BY STATE MILK FEDERATION Marketing of milk and milk products processed/manufactured by

Milk Unions Establish a distribution network for marketing of milk and milk

products Arranging transportation of milk and milk products from the Milk

Unions to the market Creating and maintaining a brand for marketing of milk & milk

products Decide on the prices of milk and milk products to be paid to Milk

Unions Decide on the products to be manufactured at Milk Unions and

capacity required for the same Arranging finance for the Milk Unions and providing them technical

know-how.

MARKETING OF AMUL

Continuously introducing the INNOVATIVE products that meet the aspirational needs of the consumers

Today available in over 40 countries.

S.T.P SEGMENT : PEOPLE WHO NEED MILK AND MILK PRODUCTS FOR DAY TO DAY USE

TARGET GROUP : LOWER, MIDDLE & UPPER MIDDLE CLASS FAMILIES

POSITIONING : AN INDIAN BRAND PRODUCING SUPERIOR QUALITY PRODUCTS

World's Largest

Pouched Milk

Brand

World's Biggest

Vegetarian Cheese

Brand

LARGEST FOOD BRAND AND BUSINESS IN INDIA

THE MARKETING MIX

Product• Dairy Products• Cooking Products

Price• Low Pricing Strategy

Place• Rural & Urban Market• International Market

Promotion• Advertisements

Customer Based Market Segmentation

Health Conscious

Kids Women

Youth Calorie Conscious 13

Kids

I. Amul Kool

II. Chocolate Milk

III. Nutramul Energy Drink

IV. Amul Kool

V. Millk Shaake

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Womens

Amul Calci

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Youth

I. UtterlyDelicious Pizza

II. Amul Emmental Cheese

III. Amul Cheese Spreads

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Health Conscious

I. Nutramul

II.Amul Shakti Health Food Drink

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Calorie Conscious

I. Amul Lite

II.Sagar Skimmed Milk Powder

III.Amul Lite Slim and Trim Milk

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SUCCESSFUL PRODUCT STRATEGY

1. Product Positioning Strategy- Low price Amul Ice - Creams made Kwality walls

life hell. Chocolate milk was launched ‘Amul Kool koko’

2. Product Re-Positioning Strategy- Jaldhara – Narmada Neer

3. Product Overlap Strategy – Amul Processed Cheese Vs Cheese Spread Nutramul Energy Drink Vs Amul Kool

4. Product Design Strategy – Use of Utterly – Butterly Girl since 1967

5. Product Elimination – Eliminated Jaldhara – bottled water

SUCCESSFUL PRODUCT STRATEGY

6. Diversification Strategy –

Dairy Products Eg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads,

Cheese Products

Non Dairy Products Eg: Vegetable Oils , Snacks, Instant Food

SUCCESSFUL PRODUCT STRATEGY

Given this wide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years.

After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable.

The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink

Promotion

Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various

issues increased brand’s fan following.

Promotion

Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets.

The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amul’s website.

Slogan Likho Disneyland Dekho Contest

Promotion

Amul Maharani contest: in this contest questions about Amul are asked

Promotion

ADVERTISEMENTS AMUL is well known for its innovative hoardings. Find below a

few:

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ADVERTISEMENTS

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GLOBAL MARKET OF AMUL

EXPANSION TO FOREIGN SHORES

Considering the presence of a million Indian families in U.S, Amul anticipated market at U.S

GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.

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

BRITTANIA NESTLE HUL CADBOURY MOTHER DAIRY

Competitors :

Butter Britannia NestleCheese BritanniaBaby Food Nestle HeinzDairy Whitener Segment Nestle BritanniaIce creams HLL

Different segments& Different Competitors

Chocolates & Confectionaries

Cadbury NestlePizza Pizza Hut Dominos Nirulas Frozen pizzaCurd Nestle Mother DairyUltra High Treated Milk Nestle Britannia

Sweet Condensed milk

NestleCottage Cheese (Paneer)

BritanniaMilk Additives

Cadbury Smithkline

BeechamFlavored Milk

Britannia Nestle

REASONS FOR SUCCESS

Robust Supply ChainLow Cost StrategyDiverse Product MixStrong Distribution NetworkTechnology and E-Initiatives.

Amul has risen from Indian soil and it remains Indian in every

sense. There is ample scope in the low priced segment as also in other

categories. There are a significant number of retailers who are currently

stocking more than two brands. Amul has the opportunity to capture the more evolved young

adults and children who are open to new products provided they meet their expectations.

CONCLUSION

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, Baby food products,

II) 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 products

III) Though 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.

WHAT MORE CAN AMUL DO?

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Queries

EFFORT NEVER DIES