By Group No.
.1 Group Members Deepti Anand -066 Kanad Kale -101 Rajesh Karia -102 Vinayak Chauhan -111 Gurtej Oshan -116 Sourabh Dubey -120
History of Amul
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). The Amul Pattern has established itself as a uniquely appropriate model for rural development.
Amul has spurred the White Revolution of India.
It is also the world's biggest vegetarian cheese brand.
GCMMF Over View
GCMMF is India's largest food products marketing organization. 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. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
Amul Model
Facts
Year of Establishment Members No. of Producer Members No. of Village Societies Total Milk handling capacity per day Milk Collection (Total - 2010-11) 1973
17 District Cooperative Milk Producers' Unions (13 Members & 4 Nominal Members)
3.03 Million 15,712 13.67 Million litres per day 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
Sales Turnover -(2010-11)
3690 Mts. per day
Rs. 9774 Crores (US $2.2 Billion)
AMULS BUSINESS STRATEGY
TWIN OBJECTIVES
long-term, sustainable growth to its member farmers
value proposition to a large customer base by providing milk and other dairy products a low price
ORGANIZATION STRUCTURE
LEVEL MEMBERS District level Chairpersons, Registrar of Co-operatives, NDDB Representative, Technical Expert, CEO DECISION-MAKING Price paid to district unions (fixed across unions) Product mix and quantity Price paid to village co-operative societies
State Federation
District
Chairpersons of Village Dairy Co-operative Societies, BOD, MD
Village
Milk Producers, Managing Committee
Membership Price paid to milk suppliers
Manufacturing Process
RAW MILK
pasteurization
Condensed
Packaged Milk Ice cream Beverages
Ghee Butter Cream
Dried Skimmed Milk Powder
Farmers/Milk Producers
Village Cooperative Societies (without Chilling Units) Network Services * Veterinary Services * Animal Husbandry * Animal Feed Factory * Milk Can Producers * Agriculture University * Rural Mgmt Institute * Trucking Facilities Village Cooperative Societies (with Chilling Units) Local Restaurants/Other Milk related businesses Milk Sold to Village & Local Residents
Milk Processing Union & Warehouses Warehouses
Chilling Plants
Wholesalers/C&S Retailers Home Delivery Contractors
SUPPLY CHAIN PROCESS
CONSUMERS
CONSUMERS
SWOT Analysis
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 Weaknesses 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
Threats
Penetrate international markets Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
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
The 3 Cs
Defending againsts HUL(KWALITY WALLS) Gokul & mother`s dairy Cadbury`s, BASKIN ROBBINS etc. Aggressive moves against LOCAL BRANDS
Competitor Customer
Customers extremely satisfied Ready to try more quality products Improved socio-economic conditions Product for different segments
Company
Largest Dairy brand in Asia More than 30 dairy brands Market leader in ghee,ice-cream & butter Very strong supply chain Enjoys Fine reputation Quality with Affordability
Industry Analysis : Porters 5 Forces
Threat of new entrants Is high because There are no entry barriers
Bargaining Power of Customers is High because of Various competitors
Competitive Rivalry is High due to Other brands and Local players
Bargaining Power of Suppliers is low because the suppliers Are rural milk producers
Threat of substitutes is high because of availability of Other products
Customer Based Market Segmentation
Kids Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Milk Shake Amul Calci + Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreadsv
Women
Youth
Calorie Conscious
Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk
Health Conscious
Nutramul Amul Shakti Health Food Drink
Market Penetration Strategy
Amul is set to build up 10,000 `Amul Parlours' across the country Amul trying to acquire a shelf in Bharti-WalMart Easy Day chain.
Market Development Strategy
Amul is now shifting its focus from urban to rural markets and smaller towns. Amul is capturing the market of diabetic and health conscious people through sugar free ice-cream, which is a variation of an existing product. Amul is also increasing its market base for milk through a new version the Amul Tazaa. Tazaa is the long-life version of milk which has a longer shelf life as compared to normal fresh milk.
Product Development Strategy
Amul-Cool (milk based cool drink) and Amul-Kool caf Stamina the instant energy whey based sport drink has been launched
packaged buttermilk is aimed to be another noncarbonated cool drink in the Amul Cool range
Diversification Strategy
Concentric Diversification Strategy
Ice cream ranges, Amul Sugarfree and Amul Profile. Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.
AMUL POSTERS
Why Amul is AMUL ?
Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money
Success!!
Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya Strong Distribution Network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.
Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.
Amul Relief Trust
GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area.
GREEN REVOLUTION
GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK PRODUCERS OF DAIRY COOPERATIVES. AMUL Coops plant more than 239.38 lakhs trees. The Village Dairy Cooperative Societies of Gujarat as a mark of respect for our nation decided to an event on every Independence Day and accepted 15th August (Independence Day) as a "Green Revolution Day by Afforestation to Protect Mother Earth from Pollution,Climate change and Global Warming".
Mission 2020
Turnover of 27000 crore. (three fold increase in the group turn over.)
Milk production 33.1 million liter/day.
Milk drying capacity 200 mt/day
Findings &Recommendations
Bcoz of Low profit margin almost all retailers are not interested in selling Amul milk. All retailers get Amul milk from company selected distributors.
250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.
Incentives & schemes should be given to the retailers. Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote companys milk and milk products
THANK YOU !!!
