3. Chapter 1:
Introduction to AMUL
History of AMUL & GCMMF
Organizational Structure
Production Process
Processing of Milk
Production of Milk Powder
Production of Ice cream
Production of Butter
4. History of AMUL & GCMMF
Gujarat Cooperative Milk Marketing Federation (GCMMF) is
India's largest food products marketing organisation. It is a state level
apex body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of
consumers by providing quality products which are good value for
money.
Amul (Anand Milk Union Limited), formed in 1946, is a dairy
cooperative movement in India. It is a brand name managed by an apex
cooperative organisation, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by some 2.6
million milk producers in Gujarat, India. Amul is based in Anand,
Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples
of co-operative achievement in the developing economy.
Amul has spurred the White Revolution of India, which has
made India the largest producer of milk and milk products in the world.
It is also the world's biggest vegetarian cheese brand. Amul is the
largest food brand in India and world's Largest Pouched Milk Brand
with an annual turnover of US $1050 million (2006-07). Currently Amul
has 2.6 million producer members with milk collection average of 10.16
million litres per day. The brand name Amul means “AMULYA”. This
word derived from the Sanskrit word “AMULYA” which means
“PRICELESS”. A quality control expert in Anand had suggested the
5. brand name “AMUL”. Amul products have been in use in millions of
homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul
spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand
in India.
7. A systematic & well defined organizational structure plays a
vital role & provides accurate information to the top level management.
An organization structure defines a clear cut line of authorities &
responsibilities among the employess of GCMMF. The Organisation
structure of Amul is well arranged structure. At glance a person can
completely come to know about the organization structure.
Amul is leaded by the director under him five branches viz.
Factory, Marketing, Accounts, Purchase, Human Resources Department.
Factory department has a separate general manager under him there
are six braches viz. Production, Stores, Distribution, Cold Storage,
Quality, and Deep-freezing.
This department takes care of the factory work. Marketing
department has regional senior marketing manager and under him there
is aregional manager. This department takes care of the marketing
aspects of Amul.
Accounts department takes care regarding accounts i.e. day-to-
day work. Under the accountant there is one clerk. Purchase
department takes care regarding the purchase of raw materials and
many other things.
8. Production Process
Processing of Milk
Collection of Raw Milk
Raw milk is collected from different co-operatives of Gujarat. About
12,22,000 liters of raw milk is collected per day. Before this milk is
sent to the laboratory for testing the Fat & Snf proportion, the milk is
separated from the raw milk. The milk is taken from the chilling
centers to Ahmedabad with the help of trucks. After collecting the
samples of milk they are taken to the laboratory where two types of
test are conducted.
9. 1). ELECTRONIC MILK TEST
Before pasteurizing the milk the samples are taken to the laboratory.
In the laboratory with the help of machine called electronic milk
tester, the proportion of Snf & Fat is checked with phosphate solution.
When the color of the milk becomes yellow, it is sent for
pasteurization.
2). METHYLINE BLUE REDUCTION TEST
This test is conducted for checking for how long the milk will remain
fresh. To check this, 10 ml of milk is taken and 1 ml of Methyl solution
is added to it. It is then kept under water at 57 degree Celsius. After
one hour if the solution losses its color then it is called raw milk. If the
solution remains the same even after 5 hours than it is considered
fresh milk, which remains constant for a long period of time.
The dairy fixes the proportion of SNF & FAT.
After laboratory gives green signal and conforming the raw milk at
reception dock is brought into the house connected with pump is sent
to the milk processing plant. This is then chilled below 4 degree Celsius
10. and then stored in the milk silos. After that milk is processed which
has two steps Pasteurizing and Standardizing.
Pasteurizing and Standardizing
To pasteurize the milk means to kill the germs in the milk by a
particular method .In the pasteurization method the milk is first
heated at 72 degree c to 76 degree c for 15 seconds and then it is
immediately cooled below 4 degree c by this method they destroy the
pathogenic bacteria present in the raw milk. But if the right degree of
temperature is not provided there are chances that milk might contain
germs. After this process some milk goes to eparator machine and
remaining is proportionately sent for standardization.
Standardization process bifurcates the milk in 3 categories varying
according to the Snf & Fat contents. The equipment named Osta. Auto
Standardization Adjusts the Fat directly. The computer is just
ordered whether gold or standard milk is to be rationed and the same
will be received with appropriate contents.
11. Ready milk = Pasteurized + Standardized
3). Separation Process
Separator machine separates two kinds of products, skimmed milk and
cream, through channels. There are 100 disks fixed in separator
machine, which revolve at 5000 rpm(revolution per minute). It is taken
to the tanks, which has the capacity of 20000 liters. Whenever the
milk is needed from the tank , it is tested in the laboratory and the
deficit proportion Fat is added by mixing cream. This process continues
for 24 hours.
4). Quality Check
Pasteurized milk is sent to the quality Assurance laboratory of the
dairy plant. Within 14 seconds the FAT & SNF proportion is received
regarding 30 lack liters of milk. The total investment put into the lab
by the dairy plant is Rs. 6 crores. The laboratory only checks and
12. analyses the powder, milk and ghee. There is a separate ice cream
analyzing laboratory.
5). Packaging Process
After the milk is sent for the packaging to the milk packing station in
the dairy plant. In the milk packaging stations there are huge pipelines
and behind them there is polyfil machine from which the material to
pack milk comes out. From each of these 12 machines 100 pouches are
packed in one single minute.
6). Storage
Then the milk is sent to the cold storage of the dairy where the milk is
stored until it is dispatched. Here the milk is stored is temperature
ranging from 5 degree c to 10 degree c, it is maintained with the help
of exhaust fans having silicon chips. About 40000 liters of milk is
dispatched from the cold storage of the dairy plant every day. The
damaged pouches are kept aside and the milk is once again put to the
tank.
13. Production of Milk Powder
For converting milk powder first of all water content is evaporated in
condensing plant. By this process they get condensed milk, it is used as
a raw material. There after the milk is sent to the drying plant. The
14. spray drying plant is huge in size with a height of 70 feet. <br /> The
plant is divided into many floors to enable easy use of the plant. First
of all raw material i.e. condensed milk is put into the first floor of the
plant along with air at 200 degree c. By this process the remaining
water, which the condensed milk might have retained is also evaporated
and milk comes as powder but this is not the last stage. This powder is
again put into a machine called calandaria, where it is turned into a real
milk powder. Its capacity is around 1000 liters per 15 minutes. Then
again the milk powder is put into a Dense Waise Vessel. Here the lumps
are removed and the uniform milk powder is sent up. After processing
the milk powder is sent for quality checking at quality assurance
laboratory. After the quality confirms the milk powder is
differentiated by adding different flavors to them like elaichi,
chocolate, and sugar free powder. There after they are packed in tin &
boxes. Afterwards it is stored at storage department.
15. Production of Ice cream
Preparation oflce Cream Mix :
In this stage the ingredients like cream, water, sugar and other
sweeteners, colouring and flavouring agents, stabilizers and
emulsifiers are dissolved and mixed in an unfrozen stage. In
modem manufacturing systems, the mix is then homogenized,
standardized and pasteurized.
Semi-Freezing the Ice Cream Mix:
This is the stage where the ice cream mix is semi frozen and air
is whipped into it by a Freezer. Here the ice cream mix freezes
at 27- 28 degree Fahrenheit.
Fruit Feeding:
For ice creams with fruit and nut pieces, at this stage the small
and ground pieces of fruits and nuts are injected into the semi
frozen ice cream. For plain flavoured ice creams like vanilla,
strawberry, pine apple or mango flavoured ice creams, this step is
not required.
Extruding and Packcing :
16. In this step the semi frozen ice cream is extruded from the
freezer and filled into different packaging containers.
Hardening:
Here the semi frozen and packed ice cream is hardened by a
blast freezer at a temperature of -25 to -45 degrees
Fahrenheit. Here the ice cream freezes to a temperature
ofminimum-15 degree Fahrenheit usually within 8-12 hours of
duration.
Storing the finished Product: After hardening , the finished
product of ice cream ready for sale, is stored in a Deep Freezer
or Walk-in Freezer at a temperature in between -10 and -20
degrees Fahrenheit ( -22 and -40 degree Celsius).
22. Curd Products
* Yog Sweetened Flavoured Dahi (Dessert)
* Amul Masti Dahi (fresh curd)
* Amul Lite Dahi
* Amul Prolife probiotic Dahi
* Amul Masti Spiced Butter Milk
* Amul Lassee
Amul Icecreams
* Vanilla Royale
* Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
23. * Nut-o-
Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
* Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh St
rawberry, Black Currant, Santra Mantra, FreshPineapple)
* Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
* Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Cho
cocrunch, Megabite, Cassatta)
* Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake M
agic)
* Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
* Amul ProLife Probiotic Ice cream
Chocolate & Confectionery
* Amul Milk Chocolate
* Amul Fruit & Nut Chocolate
* Amul Bindazz
* Amul Rejoice
Brown Beverage
* Nutramul Malted Milk Food
24. Milk Drink
* Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, R
ose, Chocolate, Butterscotch)
* Amul Kool Cafe
* Amul Kool Koko
Health Beverage
* Amul Shakti White Milk Food
30. Product line & Product Mix Decisions
Product line
The product line is a subset of the product mix. The product line
generally refers to a type of product within an organization. As the
organization can have a number of different types of products, it will
have similar number of product lines.
Product line of Amul
31. Product Mix
The complete range of products present within a company is known as
the product mix. Product mix is a combination of total product lines
within a company.
The product mix of Amul includes Milk, Bread Spreads, Cheese, Dahi,
Ghee, Mithai, Ice-Cream, Paneer and Beverages.
33. Factors affecting Pricing
Costs
Businesses have to sell more than they spend to make profit and stay in
business. If a product costs $10 to produce, setting a price of $5 is
not financially viable, since the company takes a loss on each unit sold.
Companies should consider the cost of producing a product as well as
other operating expenses when considering product prices. The price
of products should exceed production costs and leave enough money
left over to pay for operating expenses like rent, insurance and taxes
for a business to make money.
Competing Products
In most markets, consumers have the choice of buying several similar
products. The prices that competitors set for their products are an
important consideration for small businesses that are introducing new
products. If a company sets prices too far above competitors,
consumers may shop elsewhere. Setting prices too low can also be
dangerous as it could start a bidding war where competitors slash
prices in an attempt to retain market share, resulting in lower profit
margins for all companies in the industry.
Consumer Demand
34. Small businesses often focus on innovate products that meet the needs
of specific niche markets within larger markets. Marketing research,
such as surveys given to potential customers, can help business
managers gauge the level of demand for new products and the amount
that the average consumer is willing to pay for a new product.
Consumers may be willing to pay a premium for new products with
special features that fulfill needs that are not met by other products.
Product Positioning
The prices a company sets influences the way consumers view the
company and the quality of its products. When a company sets low
prices, it is signal to consumers that the company is a discount retailer
that sells cheap products. Inexpensive products are often associated
with low quality, regardless of the actual quality of the products.
Companies that set high prices position themselves as upscale or luxury
brands. Managers should consider the image they wish to promote for
their company and products when setting prices.
35. Strategies of Pricing
Amul has a strategy of low cost pricing. In case of Amul, when Amul
started, there were no national players and the dairy market was
unorganized. During the introduction stage itself, Amul had a vision to
provide their products to end customers at the best affordable rates.
And the same vision is in place even today.
36. Chapter 4:
Distribution Decision & Placing
Distribution Channel
Vertical Marketing System of
Amul
Retailing Decision of Amul
38. Most producers work with marketing intermediaries to bring
their products to market.The marketing intermediaries make up a
marketing channel also called distributioncannel. Distribution channels
are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption.
GCMMF has an excellent distribution. It is its distribution
channel, which has made it so popular. GCMMF’s products like
milk and milk products are perishable. It becomes that much important
for them to have a good distribution.
39. Vertical Marketing System of Amul
VMS is the one in which main members of the formally or informally
coordinated distribution channel that is producer, wholesaler and
retailer work together as a unified group in order to achieve
customer’s needs and achieve greater efficiency, eliminate channel
conflicts arising due to individual objectives, achieve economies of
scale.
There are three types of VMS –
1. Corporate vertical marketing system
2. Contractual vertical marketing system
3. Administered vertical marketing system
Amul uses Corporate vertical marketing system . Corporate vertical
marketing system brings all the members of the distribution channel,
from manufacturing to stores under the ownership of one business.
This ownership can be from any member of the channel.
40. Retailing Decision of Amul
Retail marketing is the process of bringing a product directly to
customers in a retail store. It involves the planning, promotion, and
presentation of a product.
Amul is using direct retailing:-
Amul has recently entered into direct retailing through “Amul
utterly delicious” parlours created in major cities.
Amul has plant to create a large chain of franchise cutlets to be
managed by franchisees the country.
More than 2000 parlour with turnover of rs 200 crore.
The franchisees will have a prebuilt shop/place in a good location
either owned or rented. The franchisees is expected to bear the
entire cost .
Our wholesale dealers will supply stock at the parlour and the
franchisee will avail retail margin. Retail margin will vary from product
to product. Franchisees need not pay any royalty or share any revenue
with Amul.
42. Advertising Analysis of Amul
Product
Advertisement and Campaigning
• Amul hired sylvester dachunha in 1996. since than they are designing
their Marketing campaigns.
• In the 1980s, cartoon artist Kumar Morey and script writer Bharat
Dabholkar had been involved with sketching the Amul ads the latter
rejected the trend of using celebrities in advertisement campaigns.
• The campaign was widely popular and earned a Guinness world record
for the longest successful running ad campaign in the world.
• The White Revolution of India inspired the notable Indian film-maker
Shyam Benegal to base his film Manthan (1976) on it.
43. • Amul Girl and uttaly Butterly Delicious campaign was highly successful
in Indian Market in every segment.
44. Sales Promotion
In order to maintain costs at lower levels, Amul India has never spent
more than 1% of its budget on advertising and promotion.
The Amul mascot, a cute and chubby girl usually dressed in a polka dot
dress, is universally recognisable in India.
The ads by Amul is designed as a series of hoardings with designs
relating to day-to-day issues.
45. Amul has sponsor many television shows for its promotion of product
like, Amul-Star voice of India, Amul- Master chief India, Amul- Master
chief India Juniors, etc….
