Amul rural marketing


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amul rural marketing

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  • Amul rural marketing

    1. 1. <ul><li>Presented to- Presented By- </li></ul><ul><li>N.H.Mullick Anil Kumar </li></ul><ul><li>Faculty-ISMC Roll No.-PG07-01 </li></ul><ul><li>PGPIMC </li></ul>
    2. 2. <ul><li>The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $ 1068 million turnover institution. </li></ul><ul><li>It is an institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members </li></ul><ul><li>Managed by an Apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 3.11 million milk producers in Gujarat, India </li></ul>
    3. 3. <ul><li>Currently Amul has 3.11 million producer members with milk collection average of 6.3 million litres/day. </li></ul><ul><li>Amul is the largest producer of milk and milk products in the world. </li></ul>2007-08 1068 850 2005-06 672 2004-05 616 2003-04 575 2002-03 500 2001-02 500 2000-01 493 1999-00 493 1998-99 455 1997-98 450 1996-97 400 1995-96 355 1994-95 US $ (million) Sales Turnover
    4. 4. Amul’s products range includes milk powders , milk, butter , ghee, cheese , curd , chocolate , ice cream , cream , shrikhand, paneer , gulab jamuns , basundi, Nutramul brand and others.
    5. 12. . Members: 2 district milk producing units Number of Producer Members: 3.11 million Number of Village Societies: 11,962 Total Milk Handling Capacity: 9.91 million litres per day Daily Average Milk Collection 6.3 million litres Milk Drying Capacity: 511 metric tons per day Cattle feed Manufacturing Capacity 2340 metric tons per day Sales Turnover: US $1068 million Biggest Strength: Supply Chain Management AMUL INFRASTRUCTURE IN RURAL INDIA
    6. 13. Farmers Village Cooperative Societies (with Chilling Units) Village Cooperative Societies (without Chilling Units) Local Restaurants/Other Milk related businesses Milk Sold to Village & Local Residents Milk Processing Union & Warehouses Warehouses Wholesalers Retailers Home Delivery Contractors CONSUMERS Network Services * Veterinary Services * Animal Husbandry * Animal Feed Factory * Milk Can Producers * Agriculture University * Rural Mgmt Institute * Trucking Facilities Chilling Plants CONSUMERS AMUL SUPPLY CHAIN
    7. 14. Collection Chain Supply Chain Weighing the milk Determination of fat content Calculation of the purchase price <ul><ul><li>Storing the milk </li></ul></ul>Processing the milk <ul><ul><li>Distributing the milk </li></ul></ul>Amul Co-operative Society Strategy
    8. 15. Establishment of Co-operative Society <ul><li>A milk producer becomes a member by buying a share from the co-operative after agreeing to sell milk only to it. </li></ul><ul><li>Each society has a milk collection center/unit </li></ul><ul><li>where farmers bring their milk in the morning and in evening. </li></ul><ul><li>There are 1million farmers organized into village milk producer’s co-operative societies and procurement of milk is 6.3 million litres per day. </li></ul>
    9. 16. <ul><li>AMUL introduced an electronic automatic milk collection system in 691 milk collection centres , </li></ul><ul><li>The system weighs the milk and measures its fat content at the time of delivery to the centre. </li></ul><ul><li>This system reduced time required for collecting the milk. </li></ul><ul><li>It enabled immediate payments to the farmer </li></ul>AMUL MILK COLLECTION UNIT electronic weighing scale MILK-O-TESTER
    10. 17. AMUL INITIATIVE IN DEVELOPING RURAL RETAILING <ul><li>Establish telecenters and enhance technology in villages </li></ul><ul><li>To purchase all milk that member farmers produced </li></ul><ul><li>To sell liquid milk at affordable prices so as to serve a large number of consumers </li></ul><ul><li>To develop and deliver services that will improve lives of people in the network </li></ul><ul><li>To hire professional managers, to run the federation and unions, whose values </li></ul><ul><li>included upliftment of rural poor. </li></ul>
    11. 18. Amul Marketing in Rural Sector in India <ul><li>Advertisements on Aakashwani </li></ul><ul><li>Advertisements on Aakashwani </li></ul><ul><li>Hoardings </li></ul><ul><li>Posters </li></ul>
    12. 20. Pricing Strategy <ul><li>Adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. </li></ul>
    13. 21. e-initiative <ul><li>Implementation of GIS (Geographic Information System) which helps in tracking movement at Milk Collecting Centers. </li></ul><ul><li>Establishment of The Dairy Information and Services Kiosk (DISK). </li></ul><ul><li>Data analysis and decision support to help rural milk collection society in improving its performance. </li></ul><ul><li>Data analysis to improve productivity yield from cattle. </li></ul><ul><li>Farmers with facilities to place orders for goods and service offered by different agencies in the dairying sector and collaborates on subjects of interest. </li></ul>
    14. 23. Services offered at this centers are: <ul><li>Information service related to dairying </li></ul><ul><li>Access to multimedia database on innovations captured by SRISHTI (NGO working IIM-A) from all the villages over Gujarat. </li></ul><ul><li>Communication facilities such as e-mail, fax, net phone. </li></ul><ul><li>Banking centers for payment for the farmers by using the milk cards which are already in place </li></ul><ul><li>The e-governance and e-procurement </li></ul><ul><li>Effective medium of communication for the rural areas. </li></ul>
    15. 24. Collecting Data from the Villages
    16. 26. Project Goals <ul><li>To build transparency among the farmers towards cooperative society </li></ul><ul><li>Training the rural people towards the quality supply of milk </li></ul><ul><li>Getting the whole activity chain of GCMMF under uninterrupted information flow network. </li></ul><ul><li>To reduce the pilferage </li></ul><ul><li>To remove the complexity associated with the village cooperative society milk collection process. </li></ul><ul><li>Empowering the rural masses towards self-development activities </li></ul><ul><li>To build the competencies in the area of it </li></ul><ul><li>To build the transparency and trust amongst the rural people towards the cooperative system. </li></ul><ul><li>To face the global competition by effective decision-making. </li></ul>
    17. 27. <ul><li>Radical changes in business processes - eliminating middlemen and bringing the producers closer to the customers. </li></ul><ul><li>Improved delivery mechanisms and transparency of business operations. </li></ul><ul><li>Due to this process, AMUL is able to collect six million litres of milk per day. </li></ul>REAPING RETURNS
    18. 28. <ul><li>Huge reduction in processing time for effective payments to the farmers from a week to couple of minutes after implementing the electronic collection unit. </li></ul><ul><li>Processing of 10 Million payments daily, amounting to transactions worth USD 2 million in cash daily. </li></ul><ul><li>Controlling the movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. </li></ul>REAPING RETURNS
    19. 29. <ul><li>Uses automated milk collection system units for collection of milk </li></ul><ul><li>Use of data analysis software for forecasting milk production and increasing productivity </li></ul><ul><li>All zonal, regional and member diaries connected through Internet. </li></ul><ul><li>One of the first five Indian organization to have web presence. </li></ul><ul><li>Made IT education compulsory for all its employees. </li></ul><ul><li>Opted for the .coop domain to position its brand in a distinct way. </li></ul>AMUL’S IT ROADMAP
    20. 30. Competitive Strategy <ul><li>Matching demand and supply. </li></ul><ul><li>Vast and complex supply chain. </li></ul><ul><li>Developing demand. </li></ul><ul><li>Introducing higher value products. </li></ul><ul><li>Umbrella Branding Strategy. </li></ul><ul><li>e-initiative strategy. </li></ul>
    21. 31. WHY AMUL IS ? Physique : Taste, Quality Personality : Simple, Indian Self-Image : Proud Indian, Fun loving Reflection : Value Oriented Culture : Co-operative , Sharing Relationship : Sociable
    22. 32. Thank You