Overview• The Brand „Amul‟ is owned by The Gujarat Cooperative Milk Marketing Federation.• GCMMF is Largest Food Products Marketing organization of India, with a revenue of $1.5 Billion.• It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India.• White revolution of India was an initiative under the Umbrella of Amul.• Amul sells its products around the world in 40 countries.
Key Elements of Business Model• Operations that are low cost, high quality and high efficiency (Competitive Edge).• Strict margins at retail and distribution ends, utilizing economies of scale to remain competitive.• High Sharing of profits with Farmers, to develop long-term relationships with them.
Product Classification D I LDairy Products Ice Cream Butter Cheese Liquid Milk VHT Frozen Paneer Kool
Amul has a wide range of products: Cheese Powder Milk For Cooking · Amul Pasteurised · Amul Spray Infant Milk · Amul/Sagar Pure Processed Cheese Food Ghee · Amul Cheese · Amul Instant Full Health Drinks · Cooking Butter Spreads Cream Milk Powder · Amul Malai Paneer · Amul Emmental · Nutramul · Sagar Skimmed Milk · Utterly Delicious Cheese Powder · Amul Shakti Pizza · Amul Pizza Health Food · Sagar Tea Coffee · Mithai Mate Mozzarella Cheese Drink Whitener · Masti Dahi · Gouda Cheese · Amulya Dairy Whitener · Pro-Biotic Dahi Product · AMUL PortfolioBread Spreads Milk Drinks Fresh Milk Desserts· Amul Butter · Amul Kool Milk Shaake · Amul Fresh Milk · Amul Ice Creams· Amul Lite · Amul Kool · Amul Gold Milk · Amul Shrikhand· Delicious Table · Amul Kool Cafe · Amul Taaza Double · Amul Mithaee Margarine · Kool Koko Toned Milk Gulab Jamuns · Nutramul Energy Drink · Amul Lite Slim & · Amul Chocolates · Amul Kool Chocolate Milk Trim Milk · Amul Basundi · Amul Kool Flavoured · Amul Fresh Cream · Amul Yogi Yoghurt Bottled Milk · Amul Shakti Toned · Amul Kool Flavoured Milk Tetra Pack · Amul Calci+ · Amul Kool Masti Spiced · Amul Buttermilk Buttermilk · Amul Lassee · Amul Kool Thandai
The Supply Chain Dairy cooperative society at village level Milk union at district level Milk federation at state level
Village Dairy Cooperative Society (VDCS)• Collection of surplus milk & payment based on quality & quantity.• Providing support services to the members.• Selling liquid milk for local consumers of the village.• Supplying milk to the District Milk Union
Member Unions or Depots• Procurement of milk from the VDCS• Providing input services to the producers.• Conducting training on Cooperative development• Providing management support & regular supervision to the VDCS.• Establish Chilling Centers & Dairy Plants for processing the milk.• Selling liquid milk & milk products within the District.• Process milk into various milk & milk products.• Decide on the prices of milk to be paid to milk producers.
Corporate Office Functions• Marketing of milk & milk products• Establish distribution network• Arranging transportation from the Milk Unions to the market.• Creating & maintaining a brand• Providing Technical Inputs, management support & advisory services.• Decide on the products to be manufactured at various Milk Unions (product- mix)• Conduct long-term Milk Production, Procurement, Processing & Marketing Planning• Conflict Resolution & keeping the entire structure intact
Procurement Network• An average of 1,000 Farmers sell milk at a Local Cooperative society.• Each Farmer has plastic cards for identification.• The Identification Number is fed into a computer.• The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine.• The Computer then calculates the amount due to a farmer on the basis of the fat content in the milk.• The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.
Policies• Regarding Rural market: No different policy for Rural Market.• Differential Prices: Most of the Amul product has lower prices in state of Gujarat due to less transportation cost.• Unused Milk: Milk, once, supplied to retailer is not taken back. Retailer uses the unused milk after “Best before” date for making other dairy products such as Paneer, etc.
Sales Forecasting• Retailer Forecasting.• Backend Data.• Festivals and Special Occasions.• Seasonal demand.
Distribution and DealersDistribution Channel – From the manufacturing units to the retailers.• Amul products are available in over 800,000 retail outlets across India through its network of over 5,000 distributors.• First Leg – From manufacturing units to Depots: Amul has 65 depots across major cities of India.• Second Leg – From Depot to Wholesale Dealers: Amul has a network of over 5000 distributors . The margins offered to the distributors range between 3-5%.On every crate there is a margin of Rs 5.5 .No volume discounts to distributors, prices are fixed.• Third Leg - This is the flow of good from WD‟s to retailers, a beat plan is prepared and transportation is done on auto-rickshaws, rickshaws and bicycles.
Distributors : Rohit and Co. (Ghatkopar , Tilak Nagar, Vidyavihar) Day • Different schedules for both Tetra pack and pouch milk Schedule • Sales (in value and volume), Gross Profit, Net Profit Profit • Expenses – Staff , Rent (warehouse + delivery vans)Margins and Expenses , Electricity BillsMan Power • Staff and Roles and • Cold Storage and warehouses : FIFO storage facility • 1 day long “Product Launch Conference”Training and • Motivation : Amul-The Brand Motivation
Communication &Advertising• Corporate campaign: The Taste of India• Amul butter girl is one of the longest run ad campaigns in the country (44 years!!!)• Umbrella Branding• Institutional Advertising• Promotion budget • Mere 1% of its turnover
Communication &Advertisements• Controversial issues and Social Messages• Amul Greetings• Newsletter and publication• Competitions , Recipes, Cricket Rankings
Outdoor • Hoardings/billboard Broadcast • TelevisionNon-broadcast • Cinema • Newspaper Print • General interest magazine Media • Independent website Internet • Social Networking Sites