amul case study

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CASE STUDY ON AMUL A MARKETING MANAGEMENT PRESENTATION PRESENTED BY:- RAJNISH DEO FLORINA THOMAS MANTOO KUMAR SAROJ THAKUR NISHANT SWAROOP PGDM (GEN) DSBS,2011-13

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Page 1: Amul case study

CASE STUDY ONAMUL

A MARKETING MANAGEMENT PRESENTATION

PRESENTED BY:-RAJNISH DEO

FLORINA THOMASMANTOO KUMARSAROJ THAKUR

NISHANT SWAROOP

PGDM (GEN)DSBS,2011-13

Page 2: Amul case study

UTTERLY BUTTERLY DELICIOUS AMUL

Page 3: Amul case study

ANAND MILK UNION LIMITED {AMUL} Formed in 1946 at ANAND Distt in the State

of GUJRAT, INDIA.

Amul has spurred the White Revolution of India which has made India the largest producer of milk & milk products in the world.

It is also the world’s biggest Vegetarian Cheese brand.

Page 4: Amul case study

INTERNATIONAL SPREAD

Amul has entered overseas markets such Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hongkong & a few South African Countries.

Its bid to enter Japanese market in 1994 but had not succeeded, but now it has fresh plans of flooding the Japanese market.

Page 5: Amul case study

HISTORICAL BACKGROUND OF AMULAmul’s birth is indelibly linked to the freedom movement in India.

The first Amul cooperative was the result of a farmers.

Sardar Vallabhbhai Patel vision to organise farmers.

Dr. Verghese Kurien, who founded Amul.

Page 6: Amul case study

THE KAIRA DISTRICT COOPERATIVE MILK PRODUCER’S UNION (AMUL)Established in 1946 - two societies collected 250 litres of milk.  Competed with Polson’s to supply milk to Bombay.  1952 - Bombay Government terminated Polson’s contract and signed with AMUL. 1955 - Dairy and milk powder plant was established with aid from the United Nations Children's Fund (UNICEF). 

Page 7: Amul case study

CONTD… 1960 - AMUL pioneered production of milk powder and baby food from buffalo milk. AMUL - meets producer demand for critical inputs, veterinary services, artificial insemination and feed.  Today AMUL members supply more than 9.2 million litres of milk per day. AMUL sells 3690 tonnes of cattle feed every year.

Page 8: Amul case study

FACTS…Year of Establishment 1973

Members17 District Cooperative Milk Producers'

Unions (15 Members & 2 Nominal Members)

No. of Producer Members 3.03 MillionNo. of Village Societies 15,712

Total Milk handling capacity per day 13.67 Million litres per day

Milk Collection (Total - 2010-11) 3.45 billion litres

Milk collection (Daily Average 2010-11) 9.2 million litres (peak 12 million)

Milk Drying Capacity 647 Mts. per day

Cattlefeed manufacturing Capacity 3690 Mts. per day

Sales Turnover -(2010-11) Rs. 9774 Crores (US $2.2 Billion)

Page 9: Amul case study

THE AMUL MODEL

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

Page 10: Amul case study

3 TIER STRUCTUREVillage level200 membersCommittee of 8-9 members

District levelBoard of Directors- 12900 Members (approx)

State FederationMembers are chairpersons of district level Co-operative & Ex-official members.Representative from NDDBRegistrar of Co-Operative of the state concerned

Page 11: Amul case study

REASONS FOR SUCCESS

Robust Supply Chain

Low Cost St rategy

DiverseProduct Mix

St rongDist r ibut ionNetwork

Technology and e- in i t ia t ives

Success!!

Page 12: Amul case study

DISTRIBUTION CHANNEL

Page 13: Amul case study

SWOT ANALYSISWeaknesses

•Risks of highly complex supply chain system•Strong dependency on weak infrastructure•Alliance with third parties who do not belong to the organized sector

Opportunities•Penetrate international markets•Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

Threats•Competitors - Hindustan Lever, Nestle and Britannia•Still competition from MNCs in butter•Growing price of milk and milk products•Ban on export of milk powder

Strengths•Largest food brand in India •High Quality, Low Price•World's Largest Pouched Milk Brand•Annual turnover of US $1504 million •Highly Diverse Product Mix•Robust Distribution Network

Page 14: Amul case study

BUSINESS MODEL

RAW MILK

Condensed

GheeButterCream

Packaged Milk

Ice creamBeverages

DriedSkimmed MilkPowder

Page 15: Amul case study

CONSUMER BASED MARKET SEGMENTATION

Kids

Women

Calorie Conscious

Health Conscious

Youth

Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Milk Shake

Amul Calci +

Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreads

Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim MilkNutramulAmul Shakti Health Food Drink

Page 16: Amul case study

INDUSTRY BASED MARKET SEGMENTATION

Milk

Butter,Cheese,Ghee

Restaurants, Coffee ShopChain

Ice Cream Manufacturers

Bakery & Confectioneries, Pizza Outlets, Snack Outlets.

Page 17: Amul case study

BCG MATRIX OF AMUL

Business growth

Rate

Relative Market ShareHigh Low

High

Low

Amul Chocolate

Amul Butter

Amul Cheese

Amul Chocolate drink

Amul Ice-cream

Page 18: Amul case study

AMUL PRODUCT FOR EVERYONE

Amul never forgot its “primary customer”

- Amul collects 447,000 liters of milk from 2.12 million farmers (many illiterate)

Product for youth - Amul launched Chocolate milk under

brand name of ‘Amul Kool Koko’ targeting the

youth

Product for diabetic people - India’s First Pro-Biotic Wellness Ice cream

& Sugar Free Delights For Diabetics

Page 19: Amul case study

CONTD… Product for the health

conscious - Amul Launched “low fat, low

cholesterol bread spreads”

Product for the price sensitive India

- Low Priced Amul Ice Creams and affordable ‘sagar’ whitener

Product for the urban class - Amul launched emmental,

gouda and pizza mozzarella cheese

Page 20: Amul case study

PRODUCT MIX

Page 21: Amul case study

ADVERTISEMENTSOne Can Easily Recognize the so called

TOPICALS By AMUL

Page 22: Amul case study
Page 23: Amul case study

CASE REVIEW QUESTIONS

Q:- Descr ibe consumer behavior in the context of a commodity l ike mi lk .

Consumption on daily basis. Females are the main decision maker for the

milk. Preferences on Purity & Price. Brand Matters.

Page 24: Amul case study

Q:- What are the market segments that Amul can penetrate? Are there any other segmentat ion al ternat ives avai lable to Amul?

Two Segments- Consumer & Industry.

Alternative Segments- Railways, Educational Institutions, Export.

Page 25: Amul case study

Q:- I f you were the market ing chief of Amul , what other innovat ions would you make in your market ing strategy?

More consumer Centric. Installing Bulk Milk Chillers and Automatic Milk

Collection Systems in all our village co-operative societies.

Advertising on Local Cable Network, Radio etc. Creating Awareness.

Page 26: Amul case study

Any Quer ies ? ??