sales and distribution amul icecreams
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Transcript of sales and distribution amul icecreams
Rahul [email protected]
K j somaiya institute of management studies and researchm Mumbai
• AMUL means "priceless" in Sanskrit• In millions of homes since 1946• Turnover: Rs. 52.55 billion in 2007-08
Amul : A symbol ofHigh-quality products sold at reasonable pricesGenesis of a vast co-operative networkTriumph of indigenous technologyProven model for dairy development.
Gujarat Cooperative Milk Marketing Federation
India's largest food products marketing organization.Intends to be largest food company in India.State level apex body of milk cooperatives in Gujarat Aims to provide remunerative returns to the farmers Also serve the interest of consumers by providing quality products which are good value for money.
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million litres per day
Milk collection (Total - 2007-08): 2.69 billion litres
Milk collection (Daily Average 2007-08):
7.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing Capacity:
3090 Mts per day
BORN on 10th March, 1996 in Gujarat1997-Mumbai 1998- Chennai2002-Kolkata and DelhiMarket share of 38% against 9%of HLLJanuary 2007, Amul introduced SUGAR FREE & Pro Life Probiotic Wellness Ice Cream, which was a first in India
Sales Forecasting Methodology
Mostly based on the empirical data
Trend Growth Analysis
Based on Industry Growth rate
Target Setting
• A relatively new entrant industry,
• Size of market: Rs. 2000 crores,
• Branded market : Rs 700 crore.
• 200 million litres by 2010 from 85 litres in 2007.
• Parlours to increase from 600 to 10,000 by 2010.
Territory Allocation
• Gut – feel, Cherry picking should be discouraged – but is it?
• Recommended ways:– Geographic distribution.– Size of potential market.
Amul Distribution: An extraordinary story
• Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country
Supply Chain at Amul
GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.
Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.
How Ice Cream Flows?
How Ice Cream Flows?
Manufacturing Units
• 1200 distributors added in small towns in India in 2007-08
• Number of Distributors in India - 6828• Distribution through Cyber store• Number of dealers in India - 3666
Partners in Distribution
Assets in Distribution
• With 40 product categories • 300 stock keeping units • 47 depots• 100,000 retailers with refrigerators • a 18,000-strong cold chain • 500,000 non-refrigerated retail outlets• Decentralized facilities
Distribution Network
• Depots with dry and cold warehouses to buffer inventory of the entire range of products
• Transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies
• Philosophy of maintaining cash transactions throughout the supply chain
Distribution Network
• Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises
• This just-in-time inventory strategy improves dealers' return on investment (ROI)
• All GCMMF branches engage in route scheduling and have dedicated vehicle operations
Policy regarding unsold/spoilt goods
• If product crosses the shelf life, the retailer bears the costs.
• If the product gets spoilt during the transportation or if there is any customer complaint, Amul bears costs.
• Unsold goods are not returned to the manufacturer.
• No reverse logistics.
Marketing & Sales
Ice cream sales low in smaller towns.
• 3 pronged policy:– Expanding reach –
• Snowcap - ice cream mix-• Amul Preferred Outlet -
Administered VMS.• Café Amul for urban
centres• Hybrid Model -
– Price advantage• Sourcing • Promotion
– Innovations: • Pro-biotic , • Pro-biotic Sugar Free Ice
cream
Shortening the Channel
• Amul Parlours– 2300 Amul Parlours in 2007-08– Goal of setting up 10,000 outlets by March 2010
• Web based ordering
Amul Parlours: A Glimpse
APO for Urban Centers APO for Rural Centers
APO for Tier II cities
Current Promotion Strategies
• Promotion of healthy products– Probiotic for diabetic– Stamina Candy for young kids (with vitamin c)
• Cyber store- people can buy amul products in over 100 cities.
• Amul stores- targeting campuses
Current Marketing Strategies
• Bombard the consumers with variety• Planning to open 10 outlets everyday.• Planning to launch the biggest cone
available-180 ml• Premium brick packs to target take home
segment
Rural MarketingRural Marketing
• Real Milk... Real Iceream..
Thank you!
Picture abhi baaki hai mere dost!!
A glimpse into the longest running hoarding campaign of all times...