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Amul (Anand Milk Union Limited)
This document contains a presentation by various group members on Amul, an Indian dairy cooperative. The presentation covers Amul's history, growth, business model, diverse product portfolio, competitors, SWOT analysis, use of the BCG matrix, marketing strategies, reasons for success, and plans for global expansion. It shows that Amul was formed in 1946 and is now the largest dairy brand in Asia. It collects milk from 2.6 million farmers daily and converts it into over 150 dairy products. Key factors in Amul's success have been its affordable pricing, product diversification, robust supply chain and popular advertising campaigns. It aims to further grow globally and introduce new product lines.
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Amul (Anand Milk Union Limited)
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- 2. ROLL NO. NAME OFMEMBERS 134 SUNEET HEREKAR 121 ANIKET SALVI TOPIC NAME Introduction, History Growth Rate & Business Model, Diverse Product Mix 128 SANDESH BHIRADE 98 MANISHA MORE 124 RACHIT JAJOO 101 PRAGATI KEDAR The 3 C’S Model Mix… Product for every one Amul Competitors AMUL – PRODUCT PORTFOLIO SWOT Analysis BCG Matrix & The BCG Growth- Share Matrix 4 P’s of marketing,Advertisement,Reasons For Success, Amul is going globally,Conclusion
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- 5. WE WILL MISSYOU MILK MAN OF INDIA THANK YOU FOR GIVING US HAUSLA, PRAGATI AND ANAND REST IN PEACE TO HONORABLE DR. VERGHESE KURIEN BY OUR GROUP MEMBERS
- 6. Introduction History Growth Rate &Business Model Diverse Product Mix The 3 C’S Model Mix… Product for every one Amul Competitors Amul – product portfolio SWOT Analysis BCG Matrix & The BCG Growth- Share Matrix 4 P’s of marketing Advertisement Reasons For Success Amul is going globally Conclusion
- 7. 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. •A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). •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”.
- 8. •Amul has spurredthe 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-dollar brand. •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. •Amul has more than 150 chilling centers in various villages. •Dr. Varghese Kurien, former chairman of the GCMMF – the man behind the success of Amul.
- 9. Annual Turnover OfRs 4300 Crore (2006-07) Rs 10,000-crore mark over the next three years. Four decades to become Rs 2,000-crore entity But, the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007 Annual Turnover 10000 10000 INR Crores 8000 6000 4300 4000 2000 2000 0 1946 1999 2007 2008 Time Frame 2009 2010
- 10. Every day Amulcollects 7 million liters of milk from 2.6 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country. Its supply chain one of the most complicated in the world. Raw Milk Condensed Packaged Milk Dried Ghee Butter Cream Ice cream Beverages Skimmed Milk Powder
- 11. Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Icecream, Nutramul, Milk and Amulya 11
- 12. •Defending against Mahananda, Vijay,Milma & other co-operative milk brands •Customers extremely satisfied •Moved from loose milk to •packaged milk •Ready to try more products •Improved socio-economic conditions •Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality Competitor Customer Company •Largest milk brand in Asia •More than 30 dairy brands •Market leader in ghee & butter •Very strong supply chain •Enjoys Fine reputation •Quality with Affordability
- 13. o Amul neverforget its “primary customer” - Amul collects 7 million liters of milk from 2.6 million formers(many ittiterate) o Product for youth - Amul launches Chocolate milk under brand name “AMUL KOOL KOKO” targeting the youth o Product for diabetic people -India’s First pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
- 14. oProduct for thehealth conscious - Amul Launched “low fat, low cholesterol bread spreads” oProduct for the price sensitive India - Low Priced Amul Ice Creams and affordable ‘sagar’ whitener oProduct for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese
- 16. Category Butter Milk Powder Cheese Ice- Cream Sweets ChocolateDrink Chocolate Market Share Market Position 85% 1 40% 1 50% 24.75% (HUL-28.22%, Mother Diary- 8.66%) 1 2 50% 1 90% 1 10% (Cadbury- 70%) 3
- 17. Largest food brandin India & Asia High Quality, Low Price Introduced TQM World’s Largest Pouched Milk Brand Annual turnover of 4300Crore(2006-07) strength Highly Diverse Product Mix Robust Distribution Network Strong dependency on weak infrastructure & completely dependent on villages for its raw materials Risks of highly complex supply chain system weakness Short self life of its Products Alliance with third parties who do not belong to the organized sector
- 18. Penetrate international markets Diversifyproduct portfolio to entre new products categories and expand existing categories like processed foods, chocolates etc. Use internet to sell its products Opportunities Competitors- Hindustan lever, Nestle, Britannia and Local players Stiff competitions from MNC’s in butter Threats Growing price of milk and milk products Ban on exports of milk powder The yield of India cattle still much lower than other dairy countries.
- 19. BOSTON CONSULTINGGROUP (BCG) MATRIX is developed by “ BRUCE HENDERSON” OF THE BOSTON CONSULTING GROUP IN THE EARLY 1970’s. According to this technique, businesses or product are classified as low or high performers depending upon their market growth rate and relative market share.
- 20. It is aportfolio planning model which is based on the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs It is based on the combination of market growth and market share relative to the next best competitor. 20
- 21. Star are leadersin business. They also require heavy investment, to maintain its market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.
- 22. Most businesses startof as question marks. They will absorb great amounts of cash if the market share remain unchanged, (low). Question marks have potential to become ater and eventually cash cow but can also become a dog. Investment should be high for question marks
- 23. They are foundationof the company and often the star of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible. They are located in an industry that is mature, not growing or declining.
- 24. Dogs are thecash traps. Dogs do not potential to bring in much cash. Number of dogs in the company should minimized. Business is situated at a declining stage.
- 25. High Amul IceCream Amul cheese Amulchocolate Business growth rate Low Amul butter Amul chocolate drink High Low Relative Market Share
- 28. Cost of milk. Laborcost. Packaging cost. Processing cost. Advertisement cost. Transportation cost. Sales promotion cost. Taxes etc.
- 29. Uses of varietyof media to communicate. Most famous in bill board Amul Butter girl is one of the longest run ad Campaign using like Amul star voice of India.
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- 35. Product diversification Use updated Technology Easy Availability Test &Trust Promotions Success factor of Amul Pricing Strategy
- 36. GCMMF has signedan 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. 50% of Americans being medically obese & if Amul is really looking to capture the hearts of the 2nd and 3rd 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 market, it can definitely expand its market to a large extent. Overseas markets- Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malaysia , Nepal, Pakistan, Hong Kong and a few South African countries. Fresh plans of flooding the markets of Japan & Srilanka. Tie up with Glaxo to sell baby food…
- 37. Amul can tryout 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, chocolates 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 via cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.
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