Introduction to the company Amul "priceless" in Hindi. The brand name "Amul," from the Sanskrit "Amoolya," meaning Precious was suggested by a quality control expert in Anand, formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 3.1 million milk producers in Gujarat, India. Amul is based in Anand, Gujarat and has been an example of a cooperative organizations success in the long term.
REASONS FOR SUCCESS Robust Supply Chain Low Cost Strategy Diverse product mix Amul Butter, Ghee, Milk Powder, Cheese, SUCCESS!! Chocolate, Shrikhand, Ice Cream, Amulspray, Milk, Nutramul And Amulya Strong Distribution network Technologhy And E-Initiatives
Amul Growth RateAnnual Turnover of 4300 Crore (2006-07)Rs 10000 Crore mark in 2010Five decade to became Rs 2000 Crore entitybut the turn over doubled to over Rs 4300crore within nineyears form 1999-07 12000 10000 8000 6000 4000 2000 0 1946 1999 2007 2008 2009 2010
Members : •2 district milk producing unitsNumber of producer • 3.11million members members: Number of village • 11,962 villages societies: • 9.91million litres per dayTotal milk handling capacity: Daily average milk • 6.31million litres collection • US$1068million in 2011 Sales turnover: • supply chain management Biggest strength :
1. Creative advertising 2.High brand presence 3.High visibility 4.Excellent product quality and trusted name 1. Low product range/ taste 1. Smaller packages 2.No frills packaging for rural customers at1. Growing lower costmarket share of 3.New tastes/varietiesother players 4.Tieup with restaurants/food chains/pizza parlors
Demand for Amul products The demand for Amul can never fall because of the types of products produced by them. They produce quality products and have won the hearts of Indian people and is become the taste of India for more than 60 years. Due to the customer and industry based approach of the company
Customer Based Market Segmentation Amul Kool Chocolate Milk Kids Nutramul Energy Drink Amul Kool Millk Shake Women Amul Calci + Utterly Delicious Pizza Amul Emmental Cheese Youth Amul Cheese SpreadsCalorie Conscious Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk Nutramul Health Conscious Amul Shakti Health Food Drink
STRATEGY As its product lists, GCMMF has capitalized on the value added segment with a wide range of Amul cheeses. The Amul brand represents value for money to the Indian consumer and its cheese portfolio is competitively priced and of assured quality. The company has been aggressively marketing its cheese products, to the extent of even moving away from its umbrella brand strategy and introducing a new mascot, the Amul Cheese Boy.
STRATEGY When low cost pizzas were introduced, Amul adopted an innovative and successful strategy of increasing sales of an elitist product (cheese) by reducing the price of another elitist product (pizzas). Especially since 2005, the company has focused on expanding its already strong distribution network to smaller cities as cheese demand has rapidly expanded beyond the large metros.
Oligopoly competition Definition: Strategy to sellAn oligopoly is a market form inwhich a market or industry is • Create goodwill in thedominated by a small number of market due to lesssellers (oligopolists). number of sellers.The word is derived, by analogy • There is less competitionwith "monopoly", from the Greek they become the priceὀλίγοι (oligoi) "few" + πωλεῖν(polein) "to sell". makerBecause there are few sellers, each • They maintain theiroligopolist is likely to be aware of quality to be the taste ofthe actions of the others. India.