Amul b12

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Amul b12

  1. 1. GCMMF – GujaratCooperative Milk Marketing Federation Ltd Group B12
  2. 2. Dairy Map of India High Medium Low
  3. 3. DAIRY INDUSTRY IN INDIA• Dairy Cooperatives account for the major share of processed liquid milk (around 20%)• 170 Milk Producers’ Cooperative Unions spread across 22-state cooperative dairy federation.• Leading brands- Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).• Products : Pouched Milk, Butter, Cheese, Ice- cream, Flavoured Milk, Ghee, Lassi.
  4. 4. Amul1973 2011 2012-17 Roadmap for Situation Analysis 2012-17
  5. 5. Amul’s Profile The Amul Model of dairy development is a three- tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. Establishment of a direct linkage between milk producers and consumers by eliminating middlemen Milk Producers (farmers) control procurement, processing and marketing Professional management The Amul model has helped India to emerge as the largest milk producer in the world. More than 13 million milk producers pour their milk in 1, 28,799 dairy cooperative societies across the country. Their milk is processed in 176 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions. Source: Amul’s website
  6. 6. The Market ModelEconomic Socio- Aspect Cultural Aspect Source: Amul’s website
  7. 7. Amul’s Market ShareProduct Category Market Share in IndiaButter 90%Cheese 80%Ice-cream 40%Pouched Milk 25% Source: The Economic Times, Feb. 12, 2012
  8. 8. Operations InfoScale and Size $2.2 bn. Revenue; Large product portfolioProcurement From 3 million farmers; 3.45 bn. Liters milkReach 5000 dealers & 10 lakh retailersMargins Low-margin business; 2-5% Source: The Economic Times, Feb. 12, 2012
  9. 9. Amul’s Product Portfolio
  10. 10. Amul’s Export
  11. 11. BCG Matrix Analysis Market Share High Low Stars Question Marks High Ice Cream, UHT Milk, Chocolates Cheese, Flavored Milk,Market Milk Powders,Growth Cash Cows Dogs Low Pouch Milk, Ghee, Butter
  12. 12. 4I’s of Amul Improvement in Rural Economy Impact Indigenous Immovation (Imitation, Innovation) Idea
  13. 13. Competition Category Business Environment Competition Growth Pouched Milk Huge Investment Required ; Mother Dairy 6% Unorganized sector Flavored Milk Very high growth Mother Dairy, Nandini 25% Milk powder High Price ; Export Opportunities Nestle, Britannia 10% Baby Food Huge Margin, Single Major Player Nestle (95% share) 10% Ghee Home-made preferred Unorganized market 9% Butter Consumers increasing favoring low- Britannia 7% fat varieties Cheese Opportunities in rural market Britannia, Dabur 15% Ice Cream Competitive Kwality Walls, Vadilal, Mother Dairy 12% Paneer Market penetration possible Amul is the only national player 8% having >50% share of organized market. Flavored Yogurt New category and gaining quick Nestle, Danone, Cocoberry 22% acceptance, considered as a premium product Lassi Good preference for unorganized Few organized players, Mother Dairy 13% sector etc. Major competition is restaurants.
  14. 14. Trends in CompetitionMother Dairy Co-operative roots; strong in NCRParag Dairy Fast Growth rate. More than 10%Nestle Old player; have future plans in dairy segmentHUL Big player with financial musclesBritannia Strong in cheese market
  15. 15. Future GrowthProduct Category Indian Market Size 2015 (estimation)Branded Pouched Milk 50,000 cr. INRBranded Butter 1200-1400 cr. INRBranded Cheese 400-500 cr. INRBranded Ice cream 1500 cr. INRFlavored Milk 300 cr. INR
  16. 16. Trends• According to Assocham, milk production in India is likely to reach 190 million tons by 2015 with an annual turnover of INR 5 lakh crore.• PE firms could take an interest in private dairies; supply of capital for expansion• Brand wars – A+ with Nestle and more.• Increase in capacity required (current = 9+ million liters per day)
  17. 17. Perceptual Map: Guiding Factor Societal Impact Continue/Enter Discontinue / Do Not Enter Economic Impact
  18. 18. Ansoff Matrix Analysis Product Existing New Market Penetration Product Development Existing Fat Free Dessert Fresh Milk Cooking Chocolate Ghee, Milk PowdersMarkets Soups Ice Cream Lassi, Diabetic Products, Healthy products New Market Development Diversification South East Asia and South East Asia and Middle East with products like Middle East with products like Sterilized Paneer, Cow Ghee, Srikhand, Paneer & Butter Confectionery items
  19. 19. SWOT Analysis
  20. 20. Brand Positioning
  21. 21. Brand Positioning• Shift in Focus - Youth• Amul butter girl – witty topical ads – has been largely successful. Longest running campaign – should be continued• Sponsoring Netherlands in the cricket world cup• F1 race• Amul Cafes• Recently, it re-launched its theme song (leveraging digital media).
  22. 22. Future Roadmap•Promote sub-branding within the AMUL brand to target high-endcustomers• Shift in focus on youth to be continued• Go for ‘product development’ using premium products•Gain greater control over the distribution channel in major markets tocounter threats from upcoming retail formats•Emphasize Brand Management•Creation of Strategic Business Units based on distribution channels
  23. 23. Future Roadmap• Increase capacity to (triple) to drive down the prices• Focus on inbound logistics and outbound logistics to improve the margins• Increase dealers from 5000 to 10,000. Retailers from 10 lacs to 12.5 lacs (Uniform increase)• Focus on Flavored milk and yogurt market. Target 40+% market share.• Increase organized market from 15% to 40% (5% every year)• Increase the number of parlors from 6000 to 12,000. Number of cafes to 400; Number of stalls at railway stations from 177 to 350• Product development – Diabetic products. Exit Chocolate market• Revenue growth from $2.2 bn. To $ 5 bn. in next five years
  24. 24. Financials (INR Cr) 2011 2012 2013 2014 2015 2016 2017 Yoghurt & Curd 2276 2777 3388 4133 5042 6151 7505 Flavoured Milk 892 1115 1394 1742 2178 2722 3403 Total Market 3168 3892 4781 5875 7220 8874 10907 Target Market 1109 1362 1673 2938 3610 5768 7090 Revenues 277 341 469 911 1227 2134 2836 Profit Margin 10% 10% 10% 10% 10% 10% 10% Profits 28 34 47 91 123 213 284 Expected Revenue(INR Cr) Market Share Market Size Growth Rate Revenue (2017) 26717 INR CrBranded Pouched Milk 40% 56180 6% 22472 5.34 USD bn.Branded Butter 90% 1602.86 7% 1442.574Branded Cheese 85% 661.25 15% 562.0625Branded Ice-Cream 50% 1881.6 12% 940.8Nutritous Products 20% 363 10% 72.6
  25. 25. Financials Market shareTarget Market of total market 2012 25% 1st Phase 35% 2nd phase 50% 2013 28% 3rd Phase 65% 2014 31% 2015 34% 2016 37% 2017 40%
  26. 26. THANK YOU! 

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