Worlds Biggest Vegetarian Cheese Brand

Worlds Largest Pouched Milk Brand

Presented By -- hARSHAD BAFNA -- RISHABH CHOPRA

~ AMUL, an Introduction & History ~ Reasons for Success and its Growth rate ~ AMUL- Business Model & Business Strategy ~ IndustryAnalysis & 3 Cs of AMUL ~ SWOT Analysis & BCG Matrix of Amul ~ Market Segmentation- Customer Based & IndustryBased ~ AMUL Product Portfolio & its Product Strategy ~ Competitive sustainable advantage (CSA) of AMUL ` AMUL is going Globally.

Introduction & History

Formed in 1946, is a dairy cooperative movement in India with 250
liters of milk per day with name KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). The brand name Amul means AMULYA (suggested by a quality control expert in Anand). This word derived form the Sanskrit word AMULYA which means PRICELESS. Amul has spurred the white revolution of India, which has made India the largest producer of milk and milk products in the world and the White Revolution has finally created a billion-dollar brand. Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world d, which is matter of proud for Gujarat and whole India. Amul has more than 150 chilling centers in various villages. Dr. Varghese Kurien, former chairman of the GCMMF the man behind the success of Amul.

REASON FOR SUCCESS

Robust Supply Chain Low Cost Strategy

SUCCESS !!

Diverse product mix

Amul Butter, Ghee, Milk Powder, Cheese, Chocolate, Shrikhand, Ice Cream, Amulspray, Milk, Nutramul And Amulya

Strong Distribution network Technologhy And E-Initiatives

Amul Growth Rate

Annual Turnover of 4300 Crore (2006-07) Rs 10000 Crore mark in 2010 Five decade to became Rs 2000 Crore entity but the turn over doubled to over Rs 4300 crore within nine years form 1999-07
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

Annual Turnover
AGR:32%

10000

4300

0
1946

2000
1999 2007 2008 2009 2010

Amul Bussiness MOdel

RAW MILK

Condensed Ghee Butter Cream

Packaged Milk Ice cream Beverages

Dried Skimmed Milk

Powder

Every day Amul Collects 7 million liters of milk from 2.6 million formers, converts the milk into branded, packed products and delivers goods to over 5,00,000 retail outlets across the country. Its supply chain one of the most complicated in the world.

Amul Bussiness Strategy

Developing demand
Limited purchasing power, modest consumption levels A low-cost price strategy products

The distribution network

Dry and cold warehouse Cash transaction throughout the supply chain JI T improves dealers returns on investments (ROI)

Umbrella brand
common brand for most product categories Alum's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks - Safal

Third party service providers

core is milk processing , production of dairy products logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores

SWOT analysis of AMUL

Strengths
Largest food brand in India & Asia High Quality, Low Price Introduced TQM Worlds Largest Pouched Milk Brand Annual turnover of 4300Crore(2006-07) Highly Diverse Product Mix Robust Distribution Network

Weakness
Strong dependency on weak infrastructure & completely dependent on villages for its raw materials Risks of highly complex supply chain system Short self life of its Products Alliance with third parties who do not belong to the organized sector

Opportunities
Penetrate international markets Diversify product portfolio to entre new products categories and expand existing categories like processed foods, chocolates etc. Use internet to sell its products

Threats
Competitors- Hindustan lever, Nestle, Britannia and Local players Stiff competitions from MNCs in butter Growing price of milk and milk products Ban on exports of milk powder The yield of India cattle still much lower than other dairy countries.

Industry Analysis: Porters 5 Forces

Threat of new entrants Is high because There are no entry barriers

Bargaining Power of Suppliers is low because the suppliers Are rural milk producers

Competitive Rivalry is High due to Other brands and Local players

Bargaining Power of customers is High because of various competitors

Threats of substitutes is high because of availability of Other products

The 3 Cs Model ..
Aggressive moves against Britannia, Nestle, mother Dairy and Kwality Customer extremely satisfied Moves from loose milk to Packaged milk.

Largest milk brand in Asia Market leader in ghee and butter Very strong supply chain

Amul - BCG Matrix

High Amul IceCream

Amul cheese

Business growth rate

Amul chocolate Amul butter

Low

Amul chocolate drink High Relative Market Share Low

Customer Based market Segmentation

Kids
Women

Amul Kool, Chocolate, Milk, Nutramul Energy Drink, Amul Kool Milk

Amul Calci +
Utterly Delicious Pizza Amul Pizza Cheese Amul Cheese Spread Amul Lite, Sagar Skimmes Milk Powder, Amul Lite Slim and Trim Milk

Youth
Calorie Conscious
Health Conscious

Nutramul, Amul Shakti Health Food Drink

Industry Based Market Segmentation

Ice-cream Manufactures
Restaurant/Food Chains
Coffee shop Chains Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Amul Competitors

Amul Product Portfolio

Category Market Share Market Position

Butter
Milk Powder Cheese Ice- Cream Sweets
Chocolate Drink

85%
40% 50%
24.75% (HUL-28.22%, Mother Diary- 8.66%)

1
1 1 2 1 1 3

50% 90%
10% (Cadbury- 70%)

Chocolate

Mix Product for every one

o Amul never forget its primary customer - Amul collects 7 million liters of milk from 2.6 million formers(many ittiterate) o Product for youth - Amul launches Chocolate milk under brand name AMUL KOOL KOKO targeting the youth o Product for diabetic people -Indias First pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

Mix Product for every one

oProduct for the health conscious
- Amul Launched low fat, low cholesterol bread spreads

oProduct for the price sensitive India

- Low Priced Amul Ice Creams and affordable sagar whitener

oProduct for the urban class

- Amul launched emmental, gouda and pizza mozzarella cheese

Advertisements

AMUL is well known for its innovative hoardings as shown in this slide.

Product strategy of Amul

Product Positioning Strategy Product Re-Positioning Strategy Product Overlap Strategy Product Design Strategy Product Elimination Diversification Strategy Value Marketing Strategy

Product Positioning
Placing a product in that part of the market where it will receive favorable Reception compared to competing products. Positioning of Amul is TASTE of INDIA. It has created value for everyone on value chain, be it customer or farmers. USP- Quality with affordability Indias First Pro- Biotic Wellness Ice cream& Sugar Free Delights For Diabetics Low priced Amul Ice cream made Kwality Walls life hell.

Positioning Continued.
Flank Attack
Age Wise.. Aug 25 2007 Amul launches Chocolate milk under brand name of AMUL KOOL KOKO. This is targeted at teenagers and youths. Nov 11, 2007: Amul in multinational Arean With Snack Launch: Munch Time. Flavors: Masala, Mint and Tomato. New Product Activity. Nov 26,2007: Amul Launches Fresh Panner (Free From Any Harmful Chemicals)

Flank Attack---Expanding its Cheese Segment.

Current market share 50%

Product Repositioning
New Competition Change in consumer preference Wrong original positioning Amul marketed bottle water product named JALDHARA but to less potential in the market it Turned out to be blunder. Now Amul is all set to launch bottled water NARMADA NEER

Product Overlaps
Situation where company decides to Complete against its own brands. Powdered milk Health and price Conscious. SAGAR Vs Amulya. USP: Sagar is affordable whitener for health conscious one. Cheese spreads Specific Vs General Amul Processed Cheese Vs Cheese Spread USP: Cheese spread is highly accepted spread for regular use. Milk drinks Nutramul Energy Drink Vs Amul Kool

Product design Strategy

Whether to offer standard or customized prducts. Amul has offered a mix of both standard and customized products. Use of Utterly-Butterly Girl: Using since 1967, Entered in the Guinness Book of World Records for being the longest running campaign Ever.

Product Elimination & Diversification

Product reaches the stage Seeking unfamiliar products where continued support is no or market or both in the pursuits of growth. longer justified where performance is falling short of Secrets of Amuls Diversification Philosophy: expectations, it is desirable to pull the product Progressive addition of higher value products while out of the market place. maintaining the desire growth in existing products. It eliminated Amul introduced products JALDHARA a decade ago as Bottled water product with consistent value addition but never left the core do not have potential philosophy of providing mill customers. at basic & at affordable price

Amul Products Diversification

Benefits of Diversification &Value Marketing Strategy

High Growth Expansion of network Advantage of each underline objectives. Commitment to quality.
Providing a product that works as claimed, is accompanied by decent service, and is delivered on time. Value for money The generation for awareness. Fostering of Loyalty.

Amul has Competitive sustainable advantage (CSA) over its competitors

Amuls CSA lies in its procurement part ,the ability to collect 7million liters of milk from 2.6 million formers, convert them into goods worth Rs 6crore and distribute them to 5,00,000 retailers across country ,is not easy. No other dairy in India has such a sustainable procurement network. Managing the large scale supply chain of Amul which begins from milk producer and ends with supply to customer from retailer is very critical job. It requires lot of dedication and hard work from all members of the corporation and also distributors and retailers across country.

Intelligent Marketing of Amul

Intelligent Marketing
o One of the most conservative FMCG entities GCMMFSpends a mere 1% of its turnover on n promotions. o GCMMF has written and re-written rules of the game. o Amul butter girl is one of the longest run ad campaigns in the country for 41 years. o Intelligent marketing of milk, ice cream and butter milk. o GCMMF (AMUL) Beats Recession, Achieves, A Turnover Of Rs. 6700Crores (June 05, 2009)

Amul is going globally..

GCMMF has signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, shrikhand, Nutramul, Amuls Mithaee Gulab Jamuns are few of the products marketed in US markets. 50% of Americans being medically obese & if Amul is really looking to capture the hearts of the 2nd and 3rd of Indians, offering low-fat versions of its brands, would make a lot of commercial sense. Hence targeting the large Indian community in the US markets with its niche products like Mithai, Packaged ready to eat foots market, it can definitely expand its market to a large extent.

Overseas markets- Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malaysia , Nepal, Pakistan, Hong Kong and a few South African countries. Fresh plans of flooding the markets of Japan & Srilanka. Tie up with Glaxo to sell baby food

What more can Amul do??

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, chocolates 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 Amuls hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media via cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

WHY AMUL
Physique: Taste, Quality Relationship: Sociable Reflection: Value oriented Personality: Simple, Indian Culture: Co-operative, sharing Self image: Proud Indian, Fun loving

THANK YOU

References:
Google search engine. www.amul.com www.indiadairy.com EBSCO online Library . http://marketingpractice.blogspot.com http://www.fmcgmarketers.blogspot.com http://www.indianfoodindustry.net www.ibef.org