GLOBSYN BUSINESS SCHOOL

Batch - PGDM 07

Group - XIII

Date - 15/01/2009

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Amul_the Taste of India

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Down The Memory Lane

Meeting at ‘Samarkha village’ near ‘Anand’ on 4th Jan, 1946

Dr. Rajendra Prasad laying foundation of Amul on 15th Nov, 1954

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65%

15%

10%10%

MARKET SHARE

AMUL

NUTRELITE

NESTLE

OTHER

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34%

33%

26%

7%

AmulBUTTER USERS

CHILDREN

TEEN AGERS

YOUNG

OLD

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Mascot

High quality-Low price

Value for money

Demand profile

Flexibility of promotion

Availability

Strengths :

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o Perishability

o Poor Packaging

o Lack of control over yield

(milk) quality

o Inadequate transportation

facility

o Make milk procurement

problematic

Weaknesses :

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Value addition

Export potential

International markets - like Japan

Rural India

Opportunities :

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Threats:

Globalization- foreign players

may enter ‘Indian Market’

Threat of duplicity

More and more hybrid cows &

pilled milk

The quality of Amul butter is

falling 10

STP Analysis of Amul Butter

Children 7-12 yrs.

Segmentation :

Matured 30 yrs & above

Youngsters 20-29 yrs.

Teenagers 13-19 yrs.

Indian Market

Urban Segment

Rural Segment

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Target Market

Age Group

Urban( in Mllns).

Rural(in Mllns.)

2007 2010(estimtd)

2007 2010(estimtd)

Children 98 103 228 240

Teenage 75 72 175 168

Young 68 80 159 187

Matured 83 81 194 189

Total 324 336 756 784

Total Populatn. 1080 (2007) 1120 (2010)

Children & Teenagers of Urban & Sub-urban market

The entire Rural Segment

Young & Matured people of the Urban Segment

with customized products

Core Target Consumers :

International Market

12Source : www.nationmaster.com

Positioning : Young

Mature

Expensive Economic

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Amul Products

A. Amul Butter

B. Amul Lite

C. Table Margarine

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Amul Can Produce…..

Amul Flavour

ed Butter

It is not just abreak fast any

more !!

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AmulFlavoured Butter

Amul can launch new flavors for kids & teenagers .. . . .

Flavors – Vanilla , Strawberry ,

Mango , Chocolate , Coffee

Strawberry

Chocolate

Mango

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AmulLiquid Butter New product for

Indian market Liquid Butter can be

used for cooking purpose Essential for housing

and commercial purposes

“Purer than purest”

Liquid Butter

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AmulCan

Produce.. . .

Amul Creamery

Butter

Melting moments…….. Passionate

perfection

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AmulCreamery Butter

It can be used as

a dip for snacks

Delectable & easily available

“I love Butter”

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“ sugar

free , , ,

tension free ”

No fat.. No cholesterol

“No Fear At All”

Sugar Free

Butter

AmulCan Produce.. . .

Amul Sugar Free

Butter

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AmulBody Butter

Nourish and smooth your skin

with this luscious, thick body butter

Unique formula delivers

lasting non-greasy, high-intense moisture

“ Use body butter and your Skin

will be smooth as ever . . .”

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BotanicalGarden

Sangria

Honeysuckle

Fragrance

Free

Body Butter Fragrances

Helps in reducing pores caused by ACNES & PIMPLES – ‘Ayurveda’

Rich in vit- A, vit- B12 & vit- K

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Positioning :

Young

Mature

Expensive Economic

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FLAVOURED BUTTER

CREAMERY BUTTER

CREAMERY BUTTER

SUGAR FREE BUTTER

LIQUID BUTTER

BODY BUTTER

Amul Packaging

1. Storable

2. Durable3.

Portable

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FEATURES

1.10 pouch packets of liquid butter per Container

2.Plastic made

3.Can be used as a container for other purposes

Amul Packaging

“Compact kitchen”

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Amul Packaging

Amul Butter Stick

“ No pain, only

gain”

Handy

Trendy

Easy to use

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Primarily Launching in :

• BOMBAY : ADLABS

• KOLKATA : FORUM

• BANGALORE : INOX

• CHENNAI : ABIRAMI

Place Strategies

Amul Food Court:

Targeting Urban Population

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Hear & Near

Ration Shops : Intended to create the habit among

LIGs - Urban & Sub-Urbs

Typically a Low Priced – Medium Quality Product

With the help of Govt. Subsidies or Selling at BEP

Details :

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Rural Market

70% of the Indian Population still lives in Rural Areas A market consisting of 705 million people Opportunities for ‘Market-Development’ as well as ‘Diversification’

Huge Opportunity as :

70%

30%

Population in India (July, 2007)

RuralUrban

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Production of Dairy Products

Low - Medium

Moderate

High

Place - Planet Earth

Japan

India

EU

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Japan now consumes 90 million tons /year About 0.8 kg per person A third of what Americans eat A tenth of the French or Germans

A Japanese Dream

Consumption :

Current Market Conditions :

Severe Butter shortage in Japan – 2008

Butter prices are firmly upward

Empty dishes, awaiting non-replaceable butter

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Japanese Dream Contd.. .

European Opportunity :

Supplying butter is thus easier

Operating through a complicated distribution system

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Govt. Interventions

Unable to meet the requirements

Processes Existing process:

C u s t o m e r s

R e t a i l e r s

HOC / Zonal Offices

Wholesalers

Manufacturer

ORDER

DELIVERY

O D

DO

O D

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Processes

Perishability

Variability

Drawbacks :

Counter Strategy :

An advanced Info-sys aided, ‘Value Delivery Network’

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Delivering Values

Member Dairies

SuppliersTransport

-ers

Head office

ZoneZone

DepotDepot

Depot

Retailers/ direct consumer base

E R P

EIAS

GIS

INTRANET

Retail B2B

B2C

portal

SCM

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QUALITY & Price

QUALITY HIGH PRICE MEDIUM PRICE

LOW PRICE

HIGH PREMIUM HIGH VALUE SUPER VALUE

MEDIUM OVER CHARGING

MEDIUM VALUE

GOOD VALUE

LOW RIP OFF FALSE ECONOMY

ECONOMYExpect M

ore, Pay Less

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Suggested Price Chartfor Urban Areas:

PRODUCT 50 GM 100 GM 150 GM 500 GM

FLAVOURED BUTTER

RS.24-28

LIQUID BUTTER

RS.10-12 RS.15-20 RS.75-80

AMUL CREAMERY

RS.45-55

AMUL SUGAR FREE BUTTER

RS.19

AMUL MILK BUTTER

RS.6 RS.10

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25 gm = Rs 10

50 gm = Rs 17

500 gm = Rs 85 - 90

100 gm =

Rs 20

Suggested Pricing

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Rs. 17

Rs. 25

Competitive Pricing

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Rs. 180/-

?Rs 150 /- only

Competitive Pricing

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Particulars Flavored butter

Rs.

Body butterRs.

Creamery Butter

Rs

Per 100 gm Per 100 gm Per 100 gm

Materials 03 10 05

Labour 5 12 10

Variable Over Head 07 33 20

Fixed Overhead 05 05 05

Total Cost 20 60 40

Profit 05 15 05

Sale Price 25 75 4542

PRODUCT 50 GM 100 GM 150 GM 500 GM

NORMAL BUTTER

RS.15-16

LIQUID BUTTER

RS.7-9 RS.12-14 RS.55-65

Suggested Price Chartfor Rural Areas:

Rs.

18

Rs.

12

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INTERNATIONAL PRICING

NORMAL BUTTER 100 GM

Japan Market Price(excluding taxes)

Yen 175 = 93 INR.

Indian Cost Rs. 13

Export Cost Rs. 35

Distribution Channel Costs

Rs. 25

Total Cost Rs. 73

Profit Rs. 10

Selling Price Rs. 83

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PROMOTING Amul

Try it, U will like it…. . .

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Product Demonstratio

n

Village mela

Arranging

farmer meets

Rural Market

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Rural Market

Folk Theatre

Puppet show

“ Sentiments Signified”

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Rural Market

“ Amul ka khela dekho

”

“Amul ka Jadoo

”48

Amul ka heroes

Rural Market

Rural live role play by dummies on current events

Wall painting , sign board

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Rural Market

Rural market : Free gift

“ Jitna khaoge utna

paoge”

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67%

17%

8%

5% 3%

MEDIA PREFERENCE TO WATCHADVERTISEMENT

TELEVISION

HOARDINGS

NEWSPAPER

MAGAZINES

OTHERS

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II “Going Green” Easily Visible

Covering Larger Area

Fresh & Healthy

Lower Costs

Advertisements

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I TV Advertisements

Urban promotion

Tie ups with ‘SPAs’ - Body Butter

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“Amuleauty !!!”

Interactive T.V. Shows

In front of Retail outlets

Outside Restaurants

Outside Fast-food Shops

In front of Railway Canteens

VENDING MACHINE

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Tie ups with Mc Donald’s, CCD, KFC etc. – Edible Butter

Urban promotion

Amul “Sabse Healthy Kaun???”

The Amul Healthy - Man of India

Urban promotion

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FREE SAMPLES

SCRATCH & WIN

Urban promotion

In SCHOOLS

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Urban promotion

Patronage awards Amul Mobile Games

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Tie –up with ‘NOKIA’

Characters of Amul Butter Girl, Amul butter featured celebs

Global Expansion

INTERNATIONAL

MARKET

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International Market

FOODEX JAPAN

Introducing new products To create an impression

Increasing sales

Increasing share of customers

TASTE-FEST

EUROPE

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Participation in Trade shows

International Market

Scintillating Sculptures

Making your life easy

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International Market

SPONSORINGPopular Local Sports

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Acknowledgements

We wish to express our sincere thanks to

Prof. Prabir Guha , HOD Marketing of ‘Globsyn Business School’, for giving us the opportunity to work

as a team on our marketing project. Prof. Malay Bhattyacharya. Prof. Jayanta Mitra. Prof. Asish Lahiri.

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References :

Ayurveda

Retailers & Distributers of Amul Butter in Kolkata

Britannica Encyclopedia

www.amul.com www.google.com www.nationalmaster.com www.asahi.com

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Abhishek Basak Aindrila Buxy Ananya chakraborty Aniruddha saha Arindam gupta Arnab dutta

Presented By :

Thank You