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Amul ppt Presentation - largest food brand in India & Asia


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This ppt presentation explain about Amul- Largest food brand in India and Asia. this is a in-depth analysis of GCMMF.
This ppt has been prepared during my PGDM.

Published in: Education, Business, Technology
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Amul ppt Presentation - largest food brand in India & Asia

  1. 1. AMUL – Taste of India World's Biggest Vegetarian Cheese Brand World’s Largest Pouched Milk Brand December 13, 2011
  2. 2. December 13, 2011 Presented By Ajay Kumar Gupta (R. N.- 06) Brijesh Kumar (R. N.- 81) Ajay Bahadur Yadav (R. N.- 05) PGDM(2008-10),ICBM-School of Business excellence, Hyd, India AMUL – Taste of India
  3. 3. December 13, 2011 Contents …… <ul><li>AMUL, an Introduction & History </li></ul><ul><li>Reasons for Success and its Growth rate </li></ul><ul><li>AMUL- Business Model & Business Strategy </li></ul><ul><li>Industry Analysis & 3 C’s of AMUL </li></ul><ul><li>SWOT Analysis & BCG Matrix of Amul </li></ul><ul><li>Market Segmentation- Customer Based & Industry </li></ul><ul><li>Based </li></ul><ul><li>AMUL Product Portfolio & its Product Strategy </li></ul><ul><li>Competitive sustainable advantage (CSA) of AMUL </li></ul><ul><li>AMUL is going Globally……………. </li></ul>
  4. 4. INTRODUCTION & HISTORY <ul><li>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. </li></ul><ul><li>A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). </li></ul><ul><li>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”. </li></ul><ul><li>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-dollor brand. </li></ul><ul><li>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. </li></ul><ul><li>Amul has more than 150 chilling centers in various villages. </li></ul><ul><li>Dr. Verghese Kurien, former chairman of the GCMMF – the man behind the success of Amul. </li></ul>December 13, 2011
  5. 5. Reasons for Success Success!! December 13, 2011
  6. 6. Amul growth rate <ul><li>Annual Turnover of 4300 Crore (2006-07) </li></ul><ul><li>Rs 10000 Crore mark in 2010 </li></ul><ul><li>Five decade to became Rs 2000 Crore entity but the turn over doubled to over Rs 4300 crore within nine years form 1999-07 </li></ul>December 13, 2011
  7. 7. Amul - Business Model 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. December 13, 2011 RAW MILK Dried Skimmed Milk Powder Packaged Milk Ice cream Beverages Condensed Ghee Butter Cream pasteurization
  8. 8. Amul Business Strategy <ul><li>Developing demand </li></ul><ul><li>Limited purchasing power, modest consumption levels </li></ul><ul><li>A low-cost price strategy products </li></ul><ul><li>The distribution network </li></ul><ul><li>dry and cold warehouses </li></ul><ul><li>cash transactions throughout the supply chain </li></ul><ul><li>JIT improves dealers' return on investment (ROI) </li></ul><ul><li>Umbrella brand </li></ul><ul><li>common brand for most product categories </li></ul><ul><li>Alum's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks - Safal </li></ul><ul><li>Third party service providers </li></ul><ul><li>core is milk processing , production of dairy products </li></ul><ul><li>logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores </li></ul>December 13, 2011
  9. 9. Industry Analysis : Porter’s 5 Forces December 13, 2011
  10. 10. The 3 C’s Model … <ul><li>Customers extremely satisfied </li></ul><ul><li>Moved from loose milk to </li></ul><ul><li>Packaged milk </li></ul><ul><li>Ready to try more products </li></ul><ul><li>Improved socio-economic </li></ul><ul><li>conditions </li></ul><ul><li>Largest milk brand in Asia </li></ul><ul><li>More than 30 dairy brands </li></ul><ul><li>Market leader in ghee & butter </li></ul><ul><li>Very strong supply chain </li></ul><ul><li>Enjoys Fine reputation </li></ul><ul><li>Quality with Affordability </li></ul><ul><li>Defending against Mahananda, </li></ul><ul><li>Vijay, Milma & other co-operative </li></ul><ul><li>milk brands </li></ul><ul><li>Aggressive moves against </li></ul><ul><li>Britannia, Nestle, Mother Dairy </li></ul><ul><li>and Kwality </li></ul>December 13, 2011
  11. 11. SWOT Analysis of amul <ul><li>Weaknesses </li></ul><ul><li>Strong dependency on weak infrastructure & completely dependent on villages for its raw materials </li></ul><ul><li>Risks of highly complex supply chain system </li></ul><ul><li>Short self life of its Product </li></ul><ul><li>Alliance with third parties who do not belong to the organized sector </li></ul><ul><li>Opportunities </li></ul><ul><li>Penetrate international markets </li></ul><ul><li>Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc. </li></ul><ul><li>Use internet to sell its products </li></ul><ul><li>Threats </li></ul><ul><li>Competitors - Hindustan Lever, Nestle, Britannia and local players </li></ul><ul><li>Stiff competition from MNCs in butter </li></ul><ul><li>Growing price of milk and milk products </li></ul><ul><li>Ban on export of milk powder </li></ul><ul><li>The yield of India cattle still much lower than other dairy countries. </li></ul><ul><li>Strengths </li></ul><ul><li>Largest food brand in India & Asia </li></ul><ul><li>High Quality, Low Price </li></ul><ul><li>Introduced TQM </li></ul><ul><li>World's Largest Pouched Milk Brand </li></ul><ul><li>Annual turnover of 4300 Crore(2006- 07) </li></ul><ul><li>Highly Diverse Product Mix </li></ul><ul><li>Robust Distribution Network </li></ul>
  12. 12. Amul – BCG Matrix <ul><li>Business </li></ul><ul><li>growth </li></ul><ul><li>Rate </li></ul>Relative Market Share High Low High Low Amul Chocolate Amul Butter Amul Cheese Amul Chocolate drink Amul Ice-cream December 13, 2011
  13. 14. Customer Based Market Segmentation Kids Women Calorie Conscious Health Conscious Youth Amul Kool, Chocolate, Milk Nutramul Energy Drink, Amul Kool Millk Amul Calci + Utterly Delicious Pizza Amul Pizza Cheese Amul Cheese Spread Amul Lite, Sagar Skimmed Milk Powder, Amul Lite Slim and Trim Milk Nutramul, Amul Shakti Health Food Drink December 13, 2011
  14. 15. Industry Based Market Segmentation Milk Butter/Cheese/Ghee Ice-cream Manufacturers Restaurant/Food Chains Bakery & Confectionaries Pizza Retailers Snacks Retailers Coffee Shop Chains December 13, 2011
  15. 16. Amul Competitors December 13, 2011 Product s/Brands Competitors Butter Britannia, Nestle Cheese Britannia Baby Food Nestle, Heinz Dairy Whitener Segment Britannia, Nestle Ice creams HUL Chocolates & Confectionaries Cadbury, Nestle Pizza Pizza Hut, Dominos, Nirulas Frozen Pizza Curd Nestle, Mother Dairy Ultra High Treated Milk Britannia, Nestle Sweet Condensed Milk Nestle Paneer Britannia Milk Additives Cadbury, Smithkline Beecham Flavored Milk Britannia, Nestle
  16. 17. Amul – Product Portfolio December 13, 2011 Category Market Share Market Position Butter 85% 1 Milk Powder 40% 1 Cheese 50% 1 Ice-cream 24.75% (HUL-28.22%, Mother Dairy – 8.66%) 2 Sweets 50% 1 Chocolate Drink 90% 1 Chocolate 10% (Cadbury- 70%) 3
  17. 18. Mix… Product for every one <ul><li>Amul never forgot its “primary customer” </li></ul><ul><li>- Amul collects 7 million liters of milk from 2.6 million formers(many illiterate) </li></ul><ul><li>Product for youth </li></ul><ul><li>- Amul launched Chocolate milk under brand </li></ul><ul><li>name of ‘Amul Kool Koko’ targeting the youth </li></ul><ul><li>Product for diabetic people </li></ul><ul><li>- India’s First Pro-Biotic Wellness Ice cream & </li></ul><ul><li>Sugar Free Delights For Diabetics </li></ul>December 13, 2011
  18. 19. Mix… Product for every one <ul><li>Product for the health conscious </li></ul><ul><li>- Amul Launched “low fat, low cholesterol </li></ul><ul><li>bread spreads” </li></ul><ul><li>Product for the price sensitive India </li></ul><ul><li>- Low Priced Amul Ice Creams and affordable ‘sagar’ whitener </li></ul><ul><li>Product for the urban class </li></ul><ul><li>- Amul launched emmental, gouda and pizza mozzarella cheese </li></ul>December 13, 2011
  19. 20. Advertisements <ul><li>AMUL is well known for its innovative hoardings. Find below a few: </li></ul>December 13, 2011
  20. 21. Product Strategy Of Amul <ul><li>Product Positioning Strategy </li></ul><ul><li>Product Re-Positioning Strategy </li></ul><ul><li>Product Overlap Strategy </li></ul><ul><li>Product Design Strategy </li></ul><ul><li>Product Elimination </li></ul><ul><li>Diversification Strategy </li></ul><ul><li>Value Marketing Strategy </li></ul>December 13, 2011
  21. 22. Product Positioning <ul><li>Placing a product in that part of the market where it will receive a favorable reception compared to competing products. </li></ul><ul><li>Positioning of Amul is “ Taste of India ”. It has created value for everyone in value chain, be it customers or farmers. </li></ul><ul><li>USP- Quality with affordability </li></ul><ul><li>India’s First Pro-Biotic Wellness Ice cream </li></ul><ul><li>& Sugar Free Delights For Diabetics. </li></ul><ul><li>Low Priced Amul Ice Creams made </li></ul><ul><li>Kwality Walls life hell. </li></ul>December 13, 2011
  22. 23. Positioning Continued.. <ul><li>Flank Attack. </li></ul><ul><li>Age Wise.. Aug 25 2007 </li></ul><ul><li>Amul launches Chocolate milk under brand name </li></ul><ul><li>of ‘Amul Kool Koko’. </li></ul><ul><li>This is targeted at teenagers and youths. </li></ul><ul><li>Nov 11, 2007: Amul in Multinational Arena With Snack Launch: “Munch Time”. </li></ul><ul><li>Flavors: Masala ,Mint and Tomato . </li></ul><ul><li>New Product Activity. </li></ul><ul><li>Nov 26, 2007 : Amul Launches “Fresh Paneer” (Free From Any Harmful Chemicals) </li></ul><ul><li>Flank Attack —Expanding its Cheese Segment. </li></ul><ul><li>Current market share 50%. </li></ul>December 13, 2011
  23. 24. Product Repositioning <ul><li>New Competition </li></ul><ul><li>Change in consumer preference </li></ul><ul><li>Wrong original positioning </li></ul><ul><li>Amul marketed bottled water product named “JALDHARA” but due to less potential in the market it turned out to be blunder. </li></ul><ul><li>Now Amul is all set to launch bottled water “NARMADA NEER”. </li></ul>December 13, 2011
  24. 25. <ul><li>Powdered Milk </li></ul><ul><li>Health and price Conscious. </li></ul><ul><li>“ SAGAR Vs Amulya”. </li></ul><ul><li>USP: Sagar is affordable whitener for health conscious one. </li></ul><ul><li>Cheese Spreads </li></ul><ul><li>Specific Vs General </li></ul><ul><li>“ Amul Processed Cheese Vs Cheese Spread” </li></ul><ul><li>USP: Cheese spread is highly accepted spread for regular use. </li></ul><ul><li>Milk Drinks </li></ul><ul><li>“ Nutramul Energy Drink Vs Amul Kool” </li></ul>Product Overlap Situation where company decides to compete against its own brands. December 13, 2011
  25. 26. Product Design Strategy <ul><li>“ Whether to offer standard or customized products.” </li></ul><ul><li>Amul has offered a mix of both standard and customized products. </li></ul><ul><li>Use of Utterly-Butterly Girl: </li></ul><ul><ul><li>Using since 1967. </li></ul></ul><ul><ul><li>Entered in the Guinness Book Of World Records for being the longest running campaign ever. </li></ul></ul>December 13, 2011
  26. 27. Product Elimination & Diversification <ul><li>Product reaches the stage where continued support is no longer justified where performance is falling short of expectations, it is desirable to pull the product out of the market place. </li></ul><ul><li>It eliminated “ JALDHARA ” a decade ago as Bottled water product do not have potential customers”. </li></ul><ul><li>Seeking unfamiliar products or markets or both in the pursuits of growth. </li></ul><ul><li>Secrets of Amul’s Diversification Philosophy : </li></ul><ul><li>Progressive addition of higher value products while maintaining the desired growth in existing products. </li></ul><ul><li>Amul introduced products with consistent value addition but never left the core philosophy of “providing milk at a basic and at affordable price” </li></ul>December 13, 2011
  27. 28. Amul’s Product Diversification December 13, 2011
  28. 29. Benefits of Diversification & Value Marketing Strategy <ul><li>High Growth </li></ul><ul><li>Expansion of network </li></ul><ul><li>Advantage of each underline objectives. </li></ul><ul><li>Providing a product that works as claimed, is accompanied by decent service, and is delivered on time. </li></ul><ul><li>Commitment to quality. </li></ul><ul><li>Value for money </li></ul><ul><li>The generation for awareness. </li></ul><ul><li>Fostering of Loyalty </li></ul>December 13, 2011
  29. 30. Amul has Competitive sustainable advantage (CSA) over its competitors <ul><li>Amul’s CSA lies in its procurement part ,the ability to collect 7 million liters of milk from 2.6 million formers, convert them into goods worth Rs 6 crore and distribute them to 5,00,000 retailers across country ,is not easy. No other dairy in India has such a sustainable procurement network. </li></ul><ul><li>  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. </li></ul><ul><li>Intelligent Marketing of Amul </li></ul>December 13, 2011
  30. 31. December 13, 2011
  31. 32. Intelligent Marketing <ul><li>One of the most conservative FMCG entities GCMMF- Spends a mere 1% of its turnover on promotions. </li></ul><ul><li>GCMMF has written and re-written rules of the game. </li></ul><ul><li>Amul butter girl is one of the longest run ad campaigns in the country for 41 years. </li></ul><ul><li>Intelligent marketing of milk, ice cream and butter milk. </li></ul><ul><li>GCMMF (AMUL) Beats Recession, Achieves, A Turnover Of Rs. 6700 Crores (June 05, 2009) </li></ul>December 13, 2011
  32. 33. Amul is going globally…… <ul><li>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, Amul’s Mithaee Gulab Jamuns are few of the products marketed in US markets . </li></ul><ul><li>50% of Americans being medically obese & if Amul is really looking to capture the hearts of the 2 nd and 3 rd 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 product, it can definitely expand its market to a large extent. </li></ul><ul><li>Overseas markets- Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malasia , Nepal, Pakistan, Hong Kong and a few South African countries, </li></ul><ul><li>Fresh plans of flooding the markets of Japan & Srilanka. </li></ul><ul><li>Tie up with Glaxo to sell baby food.. </li></ul>December 13, 2011
  33. 34. What more can Amul do? To improve further 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, choclates 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 Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. December 13, 2011
  34. 35. WHY AMUL Physique : Taste, Quality Personality : Simple, Indian Self-Image : Proud Indian, Fun loving Reflection : Value Oriented Culture : Co-operative, Sharing Relationship : Sociable
  35. 36. Thank You
  36. 37. References: <ul><li>Google search engine. </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>EBSCO online Library . </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>12/13/11 Ajay Kumar Gupta PGDM, ICBM-SBE, Hyderabad [email_address]