amul case study
TRANSCRIPT
CASE STUDY ONAMUL
A MARKETING MANAGEMENT PRESENTATION
PRESENTED BY:-RAJNISH DEO
FLORINA THOMASMANTOO KUMARSAROJ THAKUR
NISHANT SWAROOP
PGDM (GEN)DSBS,2011-13
UTTERLY BUTTERLY DELICIOUS AMUL
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.
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.
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.
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).
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.
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)
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
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
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!!
DISTRIBUTION CHANNEL
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
BUSINESS MODEL
RAW MILK
Condensed
GheeButterCream
Packaged Milk
Ice creamBeverages
DriedSkimmed MilkPowder
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
INDUSTRY BASED MARKET SEGMENTATION
Milk
Butter,Cheese,Ghee
Restaurants, Coffee ShopChain
Ice Cream Manufacturers
Bakery & Confectioneries, Pizza Outlets, Snack Outlets.
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
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
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
PRODUCT MIX
ADVERTISEMENTSOne Can Easily Recognize the so called
TOPICALS By AMUL
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.
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.
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.
Any Quer ies ? ??