strategies of amul

1. World’s
Largest
Pouched
Milk
World’s Brand
Biggest
Vegetarian
Cheese
Brand

2. Presented By
-- hARSHAD BAFNA
-- RISHABH CHOPRA

3. ~ AMUL, an Introduction & History
~ Reasons for Success and its Growth rate
~ AMUL- Business Model & Business Strategy
~ IndustryAnalysis & 3 C’s of AMUL
~ SWOT Analysis & BCG Matrix of Amul
~ Market Segmentation- Customer Based &
IndustryBased
~ AMUL Product Portfolio & its Product Strategy
~ Competitive sustainable advantage (CSA) of AMUL
` AMUL is going Globally…………….

4. Introduction & History
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”.
Amul has spurred the 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 d, 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.

5. REASON FOR SUCCESS
Robust Supply Chain
Low Cost Strategy
SUCCESS Diverse product mix
Amul Butter, Ghee, Milk Powder, Cheese,
!! Chocolate, Shrikhand, Ice Cream, Amulspray,
Milk, Nutramul And Amulya
Strong Distribution network
Technologhy And E-Initiatives

6. Amul Growth Rate
Annual Turnover of 4300 Crore (2006-07)
Rs 10000 Crore mark in 2010
Five decade to became Rs 2000 Crore entity but the turn over
doubled to over Rs 4300 crore within nine
years form 1999-07
Annual Turnover 10000
10000
9000
8000 AGR:32%
7000
6000
5000
4300
4000
3000 2000
2000
1000 0
0
1946 1999 2007 2008 2009 2010

7. Amul — Bussiness MOdel
RAW MILK
Condensed Packaged Milk Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
Every day Amul Collects 7 million liters of milk from 2.6 million
formers, converts the milk into branded, packed products and delivers
goods to over 5,00,000 retail outlets across the country.
Its supply chain one of the most complicated in the world.

8. Amul Bussiness Strategy
Developing demand
 Limited purchasing power, modest consumption levels
A low-cost price strategy products
The distribution network
Dry and cold warehouse
Cash transaction throughout the supply chain
JI T improves dealers returns on investments (ROI)
Umbrella brand
common brand for most product categories
Alum's sub-brands , edible oil products - Dhara, mineral water - Jal
Dhara brand while fruit drinks - Safal
Third party service providers
core is milk processing , production of dairy products
logistics of milk collection, distribution of dairy products,
sale of products through dealers and retail stores

9. SWOT analysis of AMUL
Strengths Weakness
Largest food brand in India & Asia Strong dependency on weak
High Quality, Low Price infrastructure & completely dependent
Introduced TQM on villages for its raw materials
World’s Largest Pouched Milk Brand Risks of highly complex supply chain
Annual turnover of system
4300Crore(2006-07) Short self life of its Products
Highly Diverse Product Mix Alliance with third parties who do not
belong to the organized sector
Robust Distribution Network
Threats
Opportunities Competitors- Hindustan
Penetrate international markets lever, Nestle, Britannia and Local players
Diversify product portfolio to Stiff competitions from MNC’s in
butter
entre new products categories and
Growing price of milk and milk
expand existing categories like products
processed foods, chocolates etc. Ban on exports of milk powder
Use internet to sell its products The yield of India cattle still much
lower than other dairy countries.

10. Industry Analysis: Porter’s 5 Forces
Threat of new
entrants Is high
because There
are no entry
barriers
Bargaining Competitive Bargaining
Power of Rivalry is Power of
Suppliers is High due to customers is
low because Other High because
the suppliers brands and of various
Are rural milk Local players competitors
producers
Threats of
substitutes is
high because of
availability of
Other products

11. The 3 C’s Model …..
 Customer extremely
Aggressive moves against satisfied
Britannia, Nestle, mother Dairy and Moves from loose milk to
Kwality Packaged milk.
Largest milk brand in Asia
Market leader in ghee and butter
Very strong supply chain

12. Amul - BCG Matrix
High Amul Ice-
Cream
Amul cheese
Amul chocolate
Business
growth rate Amul butter
Low Amul chocolate drink
High Low
Relative Market Share

13. Customer Based market Segmentation
Amul
Kids Kool, Chocolate, Milk, Nutram
ul Energy Drink, Amul Kool
Milk
Women Amul Calci +
Utterly Delicious Pizza
Youth Amul Pizza Cheese
Amul Cheese Spread
Calorie Amul Lite, Sagar Skimmes
Conscious Milk Powder,
Amul Lite Slim and Trim Milk
Health Conscious Nutramul, Amul Shakti
Health Food Drink

14. Industry Based Market Segmentation
Ice-cream
Manufactures
Restaurant/Food
Chains
Coffee shop
Chains
Bakery &
Confectionaries
Pizza Retailers
Snacks Retailers

15. Amul Competitors

16. Amul – Product Portfolio
Category Market Share Market Position
Butter 85% 1
Milk Powder 40% 1
Cheese 50% 1
24.75% (HUL-28.22%,
Ice- Cream Mother Diary- 8.66%) 2
Sweets 50% 1
Chocolate Drink 90% 1
Chocolate 10% (Cadbury- 70%) 3

17. Mix… Product for every one
o Amul never forget 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

18. Mix… Product for every one
oProduct for the health
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

19. Advertisements
 AMUL is well known for its innovative hoardings as shown
in this slide.

20. Product strategy of Amul
Product Positioning Strategy
Product Re-Positioning Strategy
Product Overlap Strategy
Product Design Strategy
Product Elimination
Diversification Strategy
Value Marketing Strategy

21. Product Positioning
Placing a product in that part of the market where it will receive
favorable
Reception compared to competing products.
Positioning of Amul is “TASTE of INDIA”. It has created value for
everyone on value chain, be it customer or farmers.
USP- Quality with affordability
India’s First Pro- Biotic Wellness
Ice cream& Sugar Free Delights
For Diabetics
Low priced Amul Ice cream
made Kwality Walls life hell.

22. Positioning Continued….
Flank Attack
Age Wise.. Aug 25 2007
Amul launches Chocolate milk under brand
name of “AMUL KOOL KOKO”.
This is targeted at teenagers and youths.
Nov 11, 2007: Amul in multinational Arean With
Snack Launch: “Munch Time”.
Flavors: Masala, Mint and Tomato.
New Product Activity.
Nov 26,2007: Amul Launches “Fresh Panner”
(Free From Any Harmful Chemicals)
Flank Attack---Expanding its Cheese Segment.
Current market share 50%

23. Product Repositioning
 New Competition
Change in consumer preference
Wrong original positioning
Amul marketed bottle water product named
“JALDHARA” but to less potential in the market it
Turned out to be blunder.
Now Amul is all set to launch bottled water
“NARMADA NEER”

24. Product Overlaps
Situation where company decides to
Complete against its own brands.
 Powdered milk
 Health and price Conscious.
“SAGAR Vs Amulya”.
USP: Sagar is affordable whitener for health conscious one.
 Cheese spreads
 Specific Vs General
“Amul Processed Cheese Vs Cheese Spread”
USP: Cheese spread is highly accepted spread for regular use.
 Milk drinks
“Nutramul Energy Drink Vs Amul Kool”

25. Product design Strategy
“Whether to offer standard or customized prducts.”
Amul has offered a mix of both standard and customized
products.
Use of Utterly-Butterly Girl:
Using since 1967,
Entered in the Guinness Book of World Records for being
the longest running campaign Ever.

26. Product Elimination & Diversification
 Product reaches the stage Seeking unfamiliar products
where continued support is no or market or both in the
longer justified where pursuits of growth.
performance is falling short of Secrets of Amul’s
expectations, it is Diversification Philosophy:
desirable to pull the product Progressive addition of
out of the market place. higher value products while
maintaining the desire growth
It eliminated in existing products.
“JALDHARA” a decade Amul introduced products
ago as Bottled water product with consistent value addition
do not have potential but never left the core
customers”. philosophy of “providing mill
at basic & at affordable price”

27. Amul Products Diversification

28. Benefits of Diversification
&Value Marketing Strategy
High Growth Providing a product that
Expansion of works as claimed, is
network accompanied by decent
service, and is delivered on
Advantage of each
time.
underline Value for money
objectives. The generation for
Commitment to awareness.
quality. Fostering of Loyalty.

29. Amul has Competitive sustainable
advantage (CSA) over its competitors
Amul’s CSA lies in its procurement part ,the ability to collect
7million liters of milk from 2.6 million formers, convert them
into goods worth Rs 6crore and distribute them to 5,00,000
retailers across country ,is not easy. No other dairy in India
has such a sustainable procurement network.
Managing the large scale supply chain of Amul which begins
from milk producer and ends with supply to customer from
retailer is very critical job. It requires lot of dedication and
hard work from all members of the corporation and also
distributors and retailers across country.
Intelligent Marketing of Amul

31. Intelligent Marketing
o One of the most conservative FMCG entities
GCMMF-
Spends a mere 1% of its turnover on n promotions.
o GCMMF has written and re-written rules of the
game.
o Amul butter girl is one of the longest run ad
campaigns
in the country for 41 years.
o Intelligent marketing of milk, ice cream and butter
milk.
o GCMMF (AMUL) Beats Recession, Achieves, A
Turnover Of Rs. 6700Crores (June 05, 2009)

32. Amul is going globally…..
GCMMF has signed an 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…

33. What more can Amul do??
Amul can try out 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.

34. WHY AMUL
Physique: Personality:
Taste, Quality Simple, Indian
Culture:
Relationship: Co-operative,
Sociable sharing
Self image:
Reflection: Proud Indian, Fun
Value oriented loving

35. THANK YOU

36. References:
Google search engine.
www.amul.com
www.indiadairy.com
EBSCO online Library .
http://marketingpractice.blogspot.com
http://www.fmcgmarketers.blogspot.com
http://www.indianfoodindustry.net
www.ibef.org