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Amul
The document provides an overview of Amul, India's largest food products marketing organization. Key points: 1) Amul is owned by the Gujarat Cooperative Milk Marketing Federation (GCMMF) which links 2.8 million milk producers. 2) Amul has a wide range of dairy products and generates $1.5 billion in annual revenue. 3) Amul uses a cooperative model where milk is procured from village cooperatives and distributed through a network of unions and federations to consumers across India and 40 other countries.
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Amul
- 1. Presented by: ANKUR CHANDRA MAYANKPARASHAR DHEERAJ KHATWANI Amul HARSH JAIN Sales & MOHIT SHARMA Distribution Study RAJAT .
- 2. Overview • The Brand„Amul‟ is owned by The Gujarat Cooperative Milk Marketing Federation. • GCMMF is Largest Food Products Marketing organization of India, with a revenue of $1.5 Billion. • It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India. • White revolution of India was an initiative under the Umbrella of Amul. • Amul sells its products around the world in 40 countries.
- 3. Key Elements ofBusiness Model • Operations that are low cost, high quality and high efficiency (Competitive Edge). • Strict margins at retail and distribution ends, utilizing economies of scale to remain competitive. • High Sharing of profits with Farmers, to develop long-term relationships with them.
- 4. Product Classification D I L Dairy Products Ice Cream Butter Cheese Liquid Milk VHT Frozen Paneer Kool
- 5. Amul has awide range of products: Cheese Powder Milk For Cooking · Amul Pasteurised · Amul Spray Infant Milk · Amul/Sagar Pure Processed Cheese Food Ghee · Amul Cheese · Amul Instant Full Health Drinks · Cooking Butter Spreads Cream Milk Powder · Amul Malai Paneer · Amul Emmental · Nutramul · Sagar Skimmed Milk · Utterly Delicious Cheese Powder · Amul Shakti Pizza · Amul Pizza Health Food · Sagar Tea Coffee · Mithai Mate Mozzarella Cheese Drink Whitener · Masti Dahi · Gouda Cheese · Amulya Dairy Whitener · Pro-Biotic Dahi Product · AMUL Portfolio Bread Spreads Milk Drinks Fresh Milk Desserts · Amul Butter · Amul Kool Milk Shaake · Amul Fresh Milk · Amul Ice Creams · Amul Lite · Amul Kool · Amul Gold Milk · Amul Shrikhand · Delicious Table · Amul Kool Cafe · Amul Taaza Double · Amul Mithaee Margarine · Kool Koko Toned Milk Gulab Jamuns · Nutramul Energy Drink · Amul Lite Slim & · Amul Chocolates · Amul Kool Chocolate Milk Trim Milk · Amul Basundi · Amul Kool Flavoured · Amul Fresh Cream · Amul Yogi Yoghurt Bottled Milk · Amul Shakti Toned · Amul Kool Flavoured Milk Tetra Pack · Amul Calci+ · Amul Kool Masti Spiced · Amul Buttermilk Buttermilk · Amul Lassee · Amul Kool Thandai
- 6. The Supply Chain Dairy cooperative society at village level Milk union at district level Milk federation at state level
- 8. Village Dairy CooperativeSociety (VDCS) • Collection of surplus milk & payment based on quality & quantity. • Providing support services to the members. • Selling liquid milk for local consumers of the village. • Supplying milk to the District Milk Union
- 9. Member Unions orDepots • Procurement of milk from the VDCS • Providing input services to the producers. • Conducting training on Cooperative development • Providing management support & regular supervision to the VDCS. • Establish Chilling Centers & Dairy Plants for processing the milk. • Selling liquid milk & milk products within the District. • Process milk into various milk & milk products. • Decide on the prices of milk to be paid to milk producers.
- 10. Corporate Office Functions •Marketing of milk & milk products • Establish distribution network • Arranging transportation from the Milk Unions to the market. • Creating & maintaining a brand • Providing Technical Inputs, management support & advisory services. • Decide on the products to be manufactured at various Milk Unions (product- mix) • Conduct long-term Milk Production, Procurement, Processing & Marketing Planning • Conflict Resolution & keeping the entire structure intact
- 11. Procurement Network • Anaverage of 1,000 Farmers sell milk at a Local Cooperative society. • Each Farmer has plastic cards for identification. • The Identification Number is fed into a computer. • The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. • The Computer then calculates the amount due to a farmer on the basis of the fat content in the milk. • The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.
- 12. Policies • Regarding Ruralmarket: No different policy for Rural Market. • Differential Prices: Most of the Amul product has lower prices in state of Gujarat due to less transportation cost. • Unused Milk: Milk, once, supplied to retailer is not taken back. Retailer uses the unused milk after “Best before” date for making other dairy products such as Paneer, etc.
- 13. Sales Forecasting • RetailerForecasting. • Backend Data. • Festivals and Special Occasions. • Seasonal demand.
- 14. Distribution and Dealers DistributionChannel – From the manufacturing units to the retailers. • Amul products are available in over 800,000 retail outlets across India through its network of over 5,000 distributors. • First Leg – From manufacturing units to Depots: Amul has 65 depots across major cities of India. • Second Leg – From Depot to Wholesale Dealers: Amul has a network of over 5000 distributors . The margins offered to the distributors range between 3-5%.On every crate there is a margin of Rs 5.5 .No volume discounts to distributors, prices are fixed. • Third Leg - This is the flow of good from WD‟s to retailers, a beat plan is prepared and transportation is done on auto-rickshaws, rickshaws and bicycles.
- 15. Distributors : Rohitand Co. (Ghatkopar , Tilak Nagar, Vidyavihar) Day • Different schedules for both Tetra pack and pouch milk Schedule • Sales (in value and volume), Gross Profit, Net Profit Profit • Expenses – Staff , Rent (warehouse + delivery vans) Margins and Expenses , Electricity Bills Man Power • Staff and Roles and • Cold Storage and warehouses : FIFO storage facility • 1 day long “Product Launch Conference” Training and • Motivation : Amul-The Brand Motivation
- 16. Communication & Advertising • Corporatecampaign: The Taste of India • Amul butter girl is one of the longest run ad campaigns in the country (44 years!!!) • Umbrella Branding • Institutional Advertising • Promotion budget • Mere 1% of its turnover
- 17. Communication & Advertisements • Controversial issues and Social Messages • Amul Greetings • Newsletter and publication • Competitions , Recipes, Cricket Rankings
- 18. Outdoor • Hoardings/billboard Broadcast • Television Non-broadcast • Cinema • Newspaper Print • General interest magazine Media • Independent website Internet • Social Networking Sites
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- 21. Thank you foryour Patience