Presentation 1 Ppt Amul
Transcript of Presentation 1 Ppt Amul
Amul-The Taste of India
Case Study Presented by Kavita Bavkar
Rachana Adkar
History 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 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.
Members 13 districts cooperative milk producer union
No. of Producer Members 2.79 million
No. of Village Societies 13328
Total milk handling capacity 11.22 million liters per day
Milk collection (Total 2008 - 09) 3.05 billion liters
Milk collection (Daily average 2008 - 09)
8.4 million liters
Milk drying capacity 626 Mts per day
Cattle feed manufacturing capacity
3500 Mts per day
Facts
Reason to Success
People power Brand umbrella Low-cost price strategy Introducing higher value products The distribution network Managing supply chain Business market Co-ordination
Mix Product for Everyone Product for youth
Amul launched chocolate milk under brand name of
Amul Kool Koko targeting the youth.
Product for diabetic people
India’s first Pro-Biotic wellness Ice-cream & sugar free
delights for diabetics
Product for health conscious
Amul launched “low fat, low cholesterol bread spread’.
Product for the price sensitive India
Low Priced Amul Ice-cream & affordable sugar
whitener.
Product for urban class
Amul launched emmental gouda & pizza
mozzarelia cheese
Amul – Business Model
Raw Milk
Condensed GheeButterCream
Package MilkIce-creamBeverages
DriedSkimmed Milk
Powder
Pasteurization
Amul never forgot its “Primary Customer”
Amul collects447,000 ltrs of milk from 2.12 million farmers
Customer Based Market Segmentation
Kids
Women
Youth
Calories Conscious
Health conscious
Amul kool chocolate milk Nutramul energy drink
Amul milk shake
Amul Calci +
Amul emmental cheeseAmul cheese spread
Amul LiteSagar skimmed powderAmul Lite slim & trim
milk
NutramulAmul shakti health drink
Industry Analysis: Porter’s 5 Forces
Competitive Rivalry is high due to other
brands & Local Players
Threat of new entrants is
high because there is no
entry barriers
Bargaining power of suppliers is
low because the suppliers are
rural milk producers
Threat of substitutes is high because of availability
of other product
Bargaining power of
customer is high because
of various competitors
SWOT Analysis of Company
Strengths
• Largest food brand in India
• High quality, low price• World’s largest pouched
milk brand• Annual turnover of $
1504 million• High diverse product mix
Weaknesses• Risk of highly complex
supply chain• Strong dependency on
weak infrastructure • Alliance with third
parties who do not belong to the organized sector
Opportunities• Penetrate international
market• Diversify product
portfolio to enter new product categories and expand existing categories like processed foods, chocolate etc
Threats• Competitors – Hindustan
Lever, Nestle, Britannia etc
• Still competition from MNCs in butter
• Growing price of milk and milk products
• Ban on export of milk powder
StrengthsParent supportStrong distribution networkHigh demand of Amul Milk ChocolateCan make good utilization of established goodwill of better channelGood margin of profit
WeaknessesNo advertisements &
promotions are made for Amul chocolate.
Raw material supply – volatile prices.
Chocolate – comparatively small business unit.
OpportunitiesLow penetration consumption.Scope of launching new variants & extensions.Growing Population
ThreatsForeign
multinationals.Change is
needed according to
trend and customers
preferences.Amul has
number of competitors like Nestle, Cadbury
etc. Amul chocolate has
not those much good
advertising strategies to win over its
competitors.SWOT Analysis of
Amul Chocolate
The 3 C’s…...
Customer
Company
Competition
•Largest milk brand in asia•More than 30 dairy brands•Market leaders in ghee & butter•Very strong supply chain•Enjoys fine reputation•Quality with affordability
•Defending against Mahananda, vijay & other co-operative milk brands•Aggressive moves against Britannia, Nestle, Mother Dairy & Kwality
•Customer extremely satisfied •Moved from loose milk to package milk•Ready to new products•Improve socio-economic conditions
Amul chocolate Introduction
Introduced chocolate brand in 1974
2003 year To boost sale, Amul
launched three new chocolates in under the brands Fundoo, Bindas, and Almond bar.
As a result Amul introduced festival season pack “Rejoice” came with six chocolates
Amul Chocolate A new tag line: Amul chocolate – For someone you love. In the past year sugar free & choco zoo both have
been appriciated by consumers. Competitors –Cadbury, Nestle
Reasons of failures Lack of e-selling awareness- Amul Cyberstore Poor advertising and less use of hoardings
Competition Scenario The chocolate market in India has only 3 big players,
Cadbury (79%), Nestle (14%) & Amul (5%).
Suggestions- Amul must come up with its own boutiques Form its own shelves in retail shops & take ownership
of maintaining them. Direct school programmes
Amul Chocolate
Introduction Phase
Amul milkAmul fruit & nut
Years
Decline Sales
Low Growth Phase
New BrandsKite Bite
Nutes about youSugar freeChoco Zoo
Decline Sales
Inadequate successFailed new brands Tough Competition by Market Leaders- Cadbury(70%), Nestle
1974 1985 1999 2002 2009
What more can Amul do ? To improve further Amul can try 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 products like Amul basundi, gulab jamoon, chocolates etc which are not as popular as Amul Ice-cream. Amul must try to understand the cause of this through market research & 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 via cable channel s and newspapers sponsoring shows in TV, sports events can be great help.
Conclusion
As Amul has large number of product variety, they can focus on each criteria on each market segment. The most effective dimension would be a product differentiation among place wise. As of now there is no such company which made product variety in such segment.