INDIA IN GLOBAL BUSINESS
OPERATIONS
VENKATESH DAMODHARAN
I-YEAR MBA
SRI KRISHNA COLLEGE OF ENGINEERING AND
TECHNOLOGY
SELECTED COMPANY
ABOUT THE COMPANY
 TYPE : CO-OPERATIVE
 INDUSTRY : DAIRY/FMCG
 CURRENT CHAIMAN : JETHABHAI PATEL
 REVENUE : US$3.4 billion (2014–15)
 NO.OF.EMPLOYEES : 3.6 MILLION(2015)
 TAGLINE : ”THE TASTE OF INDIA”
SLOGAN : “UTTERLY BUTTERLY
DELICIOUS”
OPERATIONS OF AMUL
 Follows “THREE TIRE COOPERATIVE
STRUCTURE”
 Also called as “AMUL MODEL” or “AMUL
PATTERN” of diary cooperatives.
AMUL MODEL
Milk collection is done at the village dairy
society (VDC)
Milk procurement and processing at the
District Milk Union
Milk products marketing at the state milk
federation.
COLLECTION OF MILK BY VDC
 Collection of surplus milk from the producers of
the village and payment based on quality and
quantity
 Providing support services to the members like
veterinary first aid, artificial insemination
services, cattle-feed sales, mineral mixture sales,
fodder and fodder seed sales, conducting training
on animal husbandry and dairying
 Selling liquid milk for local consumers of the
village
 Supplying milk to the District Milk Union.
PROCUREMENT AND PROCESSING
 Milk procurement and processing is done by the DISTRICT
MILK UNION
 The procured milk is processed at various plants at
Cattle Feed Plant Kanjari
Khatraj Dairy
Kheda Dairy
Kolkatta Dairy
Pune Dairy
Punjab Dairy
Sikkim Dairy
Virar Dairy
USA Dairy
MARKETING BY STATE MILK FEDERATION
 Marketing of milk and milk products processed/manufactured by
Milk Unions
 Establish a distribution network for marketing of milk and milk
products
 Arranging transportation of milk and milk products from the Milk
Unions to the market
 Creating and maintaining a brand for marketing of milk & milk
products
 Decide on the prices of milk and milk products to be paid to Milk
Unions
 Decide on the products to be manufactured at Milk Unions and
capacity required for the same
 Arranging finance for the Milk Unions and providing them technical
know-how.
MARKETING OF AMUL
Continuously introducing the
INNOVATIVE products that meet the
aspirational needs of the consumers
Today available in over 40 countries.
S.T.P
 SEGMENT : PEOPLE WHO NEED MILK
AND MILK PRODUCTS FOR
DAY TO DAY USE
 TARGET GROUP : LOWER, MIDDLE & UPPER
MIDDLE CLASS FAMILIES
 POSITIONING : AN INDIAN BRAND
PRODUCING SUPERIOR
QUALITY PRODUCTS
LARGEST FOOD BRAND AND BUSINESS IN INDIA
THE MARKETING MIX
Product
• Dairy Products
• Cooking Products
Price
• Low Pricing
Strategy
Place
• Rural & Urban Market
• International Market
Promotion
• Advertisements
Health Conscious
Kids Women
Youth Calorie Conscious
13
Kids
I. Amul Kool
II. Chocolate Milk
III.Nutramul Energy Drink
IV. Amul Kool
V. Millk Shaake
14
Womens
Amul Calci
15
Youth
I. UtterlyDelicious
Pizza
II. Amul Emmental
Cheese
III.Amul Cheese
Spreads
16
Health Conscious
I. Nutramul
II.Amul Shakti Health
Food Drink
17
Calorie Conscious
I.Amul Lite
II.Sagar Skimmed
Milk Powder
III.Amul Lite Slim
and Trim Milk
18
SUCCESSFUL PRODUCT STRATEGY
1. Product Positioning Strategy-
 Low price Amul Ice - Creams made Kwality walls
life hell.
 Chocolate milk was launched ‘Amul Kool koko’
2. Product Re-Positioning Strategy-
 Jaldhara – Narmada Neer
3. Product Overlap Strategy –
 Amul Processed Cheese Vs Cheese Spread
 Nutramul Energy Drink Vs Amul Kool
4. Product Design Strategy –
 Use of Utterly – Butterly Girl since 1967
5. Product Elimination –
 Eliminated Jaldhara – bottled water
SUCCESSFUL PRODUCT STRATEGY
6. Diversification Strategy –
 Dairy Products
Eg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads,
Cheese Products
 Non Dairy Products
Eg: Vegetable Oils , Snacks, Instant Food
SUCCESSFUL PRODUCT STRATEGY
 Given this wide product portfolio, Amul’s approach is
to promote its brands in a rotational cycle of two to
three years.
 After ice-creams were launched in 1996, the category
was re-visited in 1999, in order to improve availability
of the product and make it affordable.
 The focus shifted to cheese in 2001, Amul Masti
Chaas in 2004-05 (sales of Masti dahi grew by 25%),
Nutramul and Kool Kafe in 2006 and this year the
focus is on Amul Koko — cold chocolate drink
Promotion
 Uses a variety of media to communicate
 Most famous is billboard campaign
 The endearing polka dressed girl and pun at various
issues increased brand’s fan following.
Promotion
 Amul food festival, which has been held for the
last four year between October and December in
about 50,000 retail outlets.
 The Chef Of India contest invites people to come
up with recipes using as many Amul products as
possible. The recipe can be submitted on Amul’s
website.
 Slogan Likho Disneyland Dekho Contest
Promotion
 Amul Maharani contest: in this contest questions about Amul
are asked
Promotion
ADVERTISEMENTS
 AMUL is well known for its innovative hoardings. Find below a
few:
26
ADVERTISEMENTS
27
GLOBAL MARKET OF AMUL
EXPANSION TO FOREIGN SHORES
 Considering the presence of a million Indian families in U.S,
Amul anticipated market at U.S
 GCMMF had 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
the US markets.
 50 per cent of Americans being medically obese, and Amul
is really looking to capture the hearts of the second- and
third-generation Indians by offering low-fat versions of its
brands, would make a lot of commercial sense.
 BRITTANIA
 NESTLE
 HUL
 CADBOURY
 MOTHER DAIRY
:
Butter
 Britannia
 Nestle
Cheese
 Britannia
Baby Food
 Nestle
 Heinz
Dairy Whitener Segment
 Nestle
 Britannia
Ice creams
 HLL
Chocolates &
Confectionaries
 Cadbury
 Nestle
Pizza
 Pizza Hut
 Dominos
 Nirulas Frozen pizza
Curd
 Nestle
 Mother Dairy
Ultra High Treated Milk
 Nestle
 Britannia
Sweet Condensed
milk
 Nestle
Cottage Cheese
(Paneer)
 Britannia
Milk Additives
 Cadbury
 Smithkline
Beecham
Flavored Milk
 Britannia
 Nestle
REASONS FOR SUCCESS
Robust Supply Chain
Low Cost Strategy
Diverse Product Mix
Strong Distribution Network
Technology and E-Initiatives.
 Amul has risen from Indian soil and it remains Indian in every
sense.
 There is ample scope in the low priced segment as also in other
categories.
 There are a significant number of retailers who are currently
stocking more than two brands.
 Amul has the opportunity to capture the more evolved young
adults and children who are open to new products provided they
meet their expectations.
CONCLUSION
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.
WHAT MORE CAN AMUL DO?
34
Queries
EFFORT NEVER DIES

Amul

  • 1.
    INDIA IN GLOBALBUSINESS OPERATIONS VENKATESH DAMODHARAN I-YEAR MBA SRI KRISHNA COLLEGE OF ENGINEERING AND TECHNOLOGY
  • 2.
  • 3.
    ABOUT THE COMPANY TYPE : CO-OPERATIVE  INDUSTRY : DAIRY/FMCG  CURRENT CHAIMAN : JETHABHAI PATEL  REVENUE : US$3.4 billion (2014–15)  NO.OF.EMPLOYEES : 3.6 MILLION(2015)  TAGLINE : ”THE TASTE OF INDIA” SLOGAN : “UTTERLY BUTTERLY DELICIOUS”
  • 4.
    OPERATIONS OF AMUL Follows “THREE TIRE COOPERATIVE STRUCTURE”  Also called as “AMUL MODEL” or “AMUL PATTERN” of diary cooperatives.
  • 5.
    AMUL MODEL Milk collectionis done at the village dairy society (VDC) Milk procurement and processing at the District Milk Union Milk products marketing at the state milk federation.
  • 6.
    COLLECTION OF MILKBY VDC  Collection of surplus milk from the producers of the village and payment based on quality and quantity  Providing support services to the members like veterinary first aid, artificial insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales, conducting training on animal husbandry and dairying  Selling liquid milk for local consumers of the village  Supplying milk to the District Milk Union.
  • 7.
    PROCUREMENT AND PROCESSING Milk procurement and processing is done by the DISTRICT MILK UNION  The procured milk is processed at various plants at Cattle Feed Plant Kanjari Khatraj Dairy Kheda Dairy Kolkatta Dairy Pune Dairy Punjab Dairy Sikkim Dairy Virar Dairy USA Dairy
  • 8.
    MARKETING BY STATEMILK FEDERATION  Marketing of milk and milk products processed/manufactured by Milk Unions  Establish a distribution network for marketing of milk and milk products  Arranging transportation of milk and milk products from the Milk Unions to the market  Creating and maintaining a brand for marketing of milk & milk products  Decide on the prices of milk and milk products to be paid to Milk Unions  Decide on the products to be manufactured at Milk Unions and capacity required for the same  Arranging finance for the Milk Unions and providing them technical know-how.
  • 9.
    MARKETING OF AMUL Continuouslyintroducing the INNOVATIVE products that meet the aspirational needs of the consumers Today available in over 40 countries.
  • 10.
    S.T.P  SEGMENT :PEOPLE WHO NEED MILK AND MILK PRODUCTS FOR DAY TO DAY USE  TARGET GROUP : LOWER, MIDDLE & UPPER MIDDLE CLASS FAMILIES  POSITIONING : AN INDIAN BRAND PRODUCING SUPERIOR QUALITY PRODUCTS
  • 11.
    LARGEST FOOD BRANDAND BUSINESS IN INDIA
  • 12.
    THE MARKETING MIX Product •Dairy Products • Cooking Products Price • Low Pricing Strategy Place • Rural & Urban Market • International Market Promotion • Advertisements
  • 13.
  • 14.
    Kids I. Amul Kool II.Chocolate Milk III.Nutramul Energy Drink IV. Amul Kool V. Millk Shaake 14
  • 15.
  • 16.
    Youth I. UtterlyDelicious Pizza II. AmulEmmental Cheese III.Amul Cheese Spreads 16
  • 17.
    Health Conscious I. Nutramul II.AmulShakti Health Food Drink 17
  • 18.
    Calorie Conscious I.Amul Lite II.SagarSkimmed Milk Powder III.Amul Lite Slim and Trim Milk 18
  • 19.
    SUCCESSFUL PRODUCT STRATEGY 1.Product Positioning Strategy-  Low price Amul Ice - Creams made Kwality walls life hell.  Chocolate milk was launched ‘Amul Kool koko’ 2. Product Re-Positioning Strategy-  Jaldhara – Narmada Neer
  • 20.
    3. Product OverlapStrategy –  Amul Processed Cheese Vs Cheese Spread  Nutramul Energy Drink Vs Amul Kool 4. Product Design Strategy –  Use of Utterly – Butterly Girl since 1967 5. Product Elimination –  Eliminated Jaldhara – bottled water SUCCESSFUL PRODUCT STRATEGY
  • 21.
    6. Diversification Strategy–  Dairy Products Eg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads, Cheese Products  Non Dairy Products Eg: Vegetable Oils , Snacks, Instant Food SUCCESSFUL PRODUCT STRATEGY
  • 22.
     Given thiswide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years.  After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable.  The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink Promotion
  • 23.
     Uses avariety of media to communicate  Most famous is billboard campaign  The endearing polka dressed girl and pun at various issues increased brand’s fan following. Promotion
  • 24.
     Amul foodfestival, which has been held for the last four year between October and December in about 50,000 retail outlets.  The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amul’s website.  Slogan Likho Disneyland Dekho Contest Promotion
  • 25.
     Amul Maharanicontest: in this contest questions about Amul are asked Promotion
  • 26.
    ADVERTISEMENTS  AMUL iswell known for its innovative hoardings. Find below a few: 26
  • 27.
  • 28.
  • 29.
    EXPANSION TO FOREIGNSHORES  Considering the presence of a million Indian families in U.S, Amul anticipated market at U.S  GCMMF had 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 the US markets.  50 per cent of Americans being medically obese, and Amul is really looking to capture the hearts of the second- and third-generation Indians by offering low-fat versions of its brands, would make a lot of commercial sense.
  • 30.
     BRITTANIA  NESTLE HUL  CADBOURY  MOTHER DAIRY :
  • 31.
    Butter  Britannia  Nestle Cheese Britannia Baby Food  Nestle  Heinz Dairy Whitener Segment  Nestle  Britannia Ice creams  HLL Chocolates & Confectionaries  Cadbury  Nestle Pizza  Pizza Hut  Dominos  Nirulas Frozen pizza Curd  Nestle  Mother Dairy Ultra High Treated Milk  Nestle  Britannia Sweet Condensed milk  Nestle Cottage Cheese (Paneer)  Britannia Milk Additives  Cadbury  Smithkline Beecham Flavored Milk  Britannia  Nestle
  • 32.
    REASONS FOR SUCCESS RobustSupply Chain Low Cost Strategy Diverse Product Mix Strong Distribution Network Technology and E-Initiatives.
  • 33.
     Amul hasrisen from Indian soil and it remains Indian in every sense.  There is ample scope in the low priced segment as also in other categories.  There are a significant number of retailers who are currently stocking more than two brands.  Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations. CONCLUSION
  • 34.
    To improve furtherAmul 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. WHAT MORE CAN AMUL DO? 34
  • 35.
  • 36.