3. Contents
*AMUL, an introduction & history
*Reasons for success and its growth rate
*AMUL- business model & business strategy
*Industry analysis & 3C’S of Amul
*SWOT analysis & BCG matrix of AMUL
*Market segmentation- customer based & industry based
*AMUL product portfolio & its product strategy
*Competitive Sustainable Advantages (CSA) of AMUL
*AMUL is going globally
4. INTRODUCTION &
HISTORY
• Formed in 1946, is a dairy co-operative 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
experts in “Anand”). This word derived from 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 product in the world and the
white revolutions has finally created a Billion-Dollar brand.
• Today Amul dairy is No-1 dairy in Asia and No-2 in the world, which is
matter of proud for Gujarat and whole India.
• Amul has more than 150 chilling centers in various villages.
• Dr. Verghese Kurien, former chairman of the ‘GCMMF’ – the man
behind the success of Amul.
5. Reason Behind Success
SUCCESS
Robust supply chain
Low cost strategy
Technology and e- initiatives Strong Distribution Network
The Brand Value Of Amul = Quality
Diverse Product Mix
Amul Butter, Milk Powder, Ghee, Amul Spray,
Cheese, Chocolates, Ice Creams, Nutramul ,
Milk And Amulya
6. Amul business model
Raw milk
Condensed
Ghee, Butter
cream
Packaged milk
Ice cream
Beverages
Dried
Skimmed milk
powder
PASTEURIZATION
Every day AMUL collects 7 million liters of milk from 2.6
million farmers, converts the milk into branded tagged
products and delivers goods to over 5 lakhs retail outlets
across the country.
Its supply chain one of the most complicated in the world
7. AMUL BUSINESS STRATEGY
Developing demand
*Limited purchasing
power, modest
consumption levels
*a low cost price strategy
products
Umbrella Brand
*common brand for most
product categories
The distribution network
*dry and cold warehouses
*cash transaction throughout the
supply chain
*JIT improves dealers’ return on
investment (ROI)
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
8. Industry Analysis:
Porter’s 5 Forces
Threat of new entrants is
high because there are no
entry barriers.
Bargaining power of
customers is high because of
various competitors
Competitive
rivalry is high due
to other brands
and local players
Threat of
substitutes is high
because of
availability of
other products
Bargaining power of
suppliers are low because
the suppliers are rural milk
producers
11. The 3C’S Model
Company
Defending Against
Mahananda,vijay ,Milma
& Other Co-operative
Milk Brands
Aggressive Moves
Against
Britannia,nestle,mother
Dairy And Kwality
Customer extremely
satisfied
Moved from loose milk
to packaged milk
Ready to try more
products
Improved socio
economic condition
Largest Milk Brand In Asia
More Than30 Dairy Brands
Market Leader In Ghee & Butter
Very Strong Supply Chain
Enjoys Fine Reputation
Quality With Affordability
12. SWOT ANALYSIS OF AMUL
Strengths
Largest food brand in India & Asia
High quality , low price
Introduced TQM
World’s Largest Pouched milk brand
Annual turnover of 41000 crores (2018-19)
Highly diverse product mix
Robust distribution network
Weaknesses
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 Product
Alliance with third parties who do not
belong to the organized sector
Opportunities
Penetrate international markets
Diversify product portfolio to enter
new product 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 competition from MNCs in butter
Growing price of milk and milk products
Ban on export of milk powder
The yield of India cattle still much lower
than other dairy countries.
16. GCMMF’s SUPPLY CHAIN
Farmers
Village cooperative
societies(with chilling units)
Village cooperative
societies(without chilling
units)
Local restaurants
/other milk related
business
Milk solid to
village &local
resident
Chilling plantsMilk processing
union &
warehouse
GCMMF
warehouse
Wholesalers
Retailers
Home delivery
contractors
Network
services
Veterinary services
Animal husbandry
Animal food
factory
Milk can producer
Agriculture
university
Rural management
institute
Trucking facilities
17. Intelligent Marketing
One of the most conservative FMCG entities
GCMMF- Spends a mere 1% of its turnover on
promotions.
GCMMF has written and re-written rules of the
game.
Amul butter girl is one of the longest run ad
campaigns in the country for 51 years.
Intelligent marketing of milk , Ice-creams and Butter
Milk.
GCMMF (AMUL) Beats Recession, Achieves, A