GCMMF – GOING BEYOND AMUL

We have traversed a path few have dared to. We are continuing ona path still fewer have the courage to follow. We must pursue apath that even fewer can dream to pursue. Yet we must, because wehold in trust the aims and aspirations of millions of our countrymen.I am confident . as I know you are . that with the nation.sdairy farmers by our side we cannot fail! Let us therefore resolvethat however fulfilling our first twenty-five years have been, in thenext twenty-five years we will transform the lives of millions more,opening for them the door to an India that is the land of ourdreams.

Dr. Verghese Kurien

Historical Background -- GCMMF

1940 – Experiment at Kaira District by POLSON Dairy became most celebrated success story.

1946 – Farmers organised into Co-operatives.

1949 – Dr. Kurien appointed at DRI, Anand.

Variety of Support Services were given to Farmers.

Network of local village level & district level co-operatives formed on ANAND Pattern.

KDCMP Union became better known by brand name AMUL.

1954- Union built a plant to convert surplus milk into Milk Powder & Butter.

1958- Plant to manufacture Cheese & Baby Food.

Subsequent years saw addition of more plants to produce different products.

1973- Marketing Agency GCMMF was set up to market their products.

9 July ‘ 73 - GCMMF was registered as Co-Operative Society.

What started off as a daily procurement of 250 lts. of Milk per day in 1946, became A Milk Gaint by 1999 with 12 Dairy plants in Gujarat. -- That’s GCMMF.

Diversification Moves by GCMMF

GCMMMf’s diversification strategy can be traced to 1990s

1996 IMRB conducts a survey that consumers wanted

Based on the research GCMMF enters into the following areas: ice cream, curd, paneer, cheese and condensed milk

1997 GCMMF launches Amul ice cream positioning it to be :the real ice cream”

Increasing their product line they launch branded yoghurt which is the first of its kind in Indian markets getting the “first mover advantage” marketed as Masti Dahi.

2000 GCMMF renters the carton milk markets by launching Amul Taaza with the product differentiation being low fat and non sweetened milk.

Later the same year they launch mozzarella cheese.

Enter the ready to eat segment that is growing at a very healthy rate.

They launch vegetable pizzas, stuffed parathas and cheeseburgers.

Pizzas launched first in western Indian cities like Mumbai and Vadodara and later to different cities.

Also restructured their chocolate business by relaunching seven of its brands

Ties up with Campco for supply of cocoa beans.

The Whole Idea Behind

Pizzas launched at Rs 20-25 price range.

GCMMF plans to open 3000 retail Pizza outlets by 2005.

Technical training to be provided by GCMMF itself.

Negotiate with bulk suppliers to get vegetables at cheaper rates.

Analysts felt that the supply of cheese by GCMMF at a cheaper price would enable retailers to price their lower than their competitors.

Pizzas to become a mass consuming item. This will force pizza manufacturers to slash their prices. Eventually this will expand the market for cheese.

Competition

Liquid milk – private dairies and contractorsFestival season

Butter and cheese –Britannia, products like cheddar cheese slices

Sweet market – numerous small local producers, Hindustan lever Ltd., Nestle –readymade sweets (Gulab jamun)

Contd..,

Ice cream – Kwality and walls(HUL) has 45% market share, GCMMF - 30%, powerful regional player - Vadilal Ice Creams in Western India

Edible oils -Dhara and ITC

New threats – Cadbury and Heinz

Advertisement & Promotion

Remarkably savvy in its Advertisement & Promotion Campaigns.

It had coined truly memorable Slogans.

A campaign titled “Taste Of India” for all its products.

First Indian company to put up Bill Boards based on Current NEWS item.

Emphasized that its Ice-creams were purely vegetarian & free from Gelatin

Sponsored Television Programs as well.

“Surabhi” & “Amul India Show” being the popular ones to name.

Sponsored TWO feature films “Manthan”

& “Sardar”.

Contd.,

THANK YOU !!!