AMUL : Truly The Taste Of India

Presented By:
MOHAMMED SAMSHAD

History of Amul

The brand name "Amul" ("priceless" in Sanskrit).

Formed in 1946, is a dairy cooperative in India.

AMUL is based in Anand, Gujarat.

A part of the Gujarat Cooperative Milk Marketing Federation (GCMMF) Birth of Amul and development of Indias Dairy Cooperative Movement.

Plants of Amul
First plant is at ANAND, which engaged in the

manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

Amul Plant at Anand

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia(snacks) and Amul Lite.

Third plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is 1 dairy in Asia and no. 2 in the world

Reasons for Success

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

Diverse Product Mix

Success!!

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.

GCMMF Over View

GCMMF: Gujarat Cooperative Milk Marketing Federation 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.

Facts
Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 201011): Milk collection (Daily Average 2010-11): Milk Drying Capacity: 13 district cooperative milk producers' Union 3.03 million 15,760 13.67 million liters per day 3.45 billion liters 9.2 million liters 647 Mts. per day

Cattle feed manufacturing Capacity:

3690 Mts. per day

Steps Of Production Process

1. Collection of Raw Milk 2. Electronic Milk Testing 3. Methyline Blue Reduction Test 4. The dairy fixes the proportion of SNF & FAT 5. Pasteurizing and Standardizing 6.Separation Process 7. Quality Check 8. Packaging Process 9. Storage

Amul - Business Model

RAW MILK

pasteurization

Condensed

Packaged Milk Ice cream Beverages

Ghee Butter Cream

Dried Skimmed Milk Powder

Amul Distribution Channel

Farmer
Village Cooperative Societies(wi th chilling units)
Village Co-operative Societies(wit hout chilling units)

Local restaurant/ Other milk Related Business

Milk sold to village & local restaurant

CHILLING PLANTS

VENTINARY SERVICE

Milk processing union & warehouses

*ANIMAL HUSBANDARY *ANIMAL FEED FACTORY *MILK CAN PRODUCER * AGRICULTURE UNIVERSITY RURAL MANAGEMENT UNIVERSITY TRUCKING FACILITIES

GCMMF
WHOLESALER/ C&S
HOME DELIVERY CONTRAC TER CONSUMER

RETAILER

CONSUMER

Amul Distribution Network

300 stock keeping units. 46 sales offices. 3,000 distributors. 1,00,000 retailers with refrigerators.

5,00,000 non-refrigerated retail outlets

Customer Based Market Segmentation

Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Millk Shaake

Kids
Women

Amul Calci + Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreadsv Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk

Youth
Calorie Conscious

Health Conscious

Nutramul Amul Shakti Health Food Drink

Industry Based Market Segmentation

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Milk

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Butter/Cheese/Ghee

Advertisements
AMUL is well known for its innovative hoardings. Find below a few:

Mix Product for every one

Amul never forgot its primary customer Amul collect on an average 9.4 million litres of milk per day from their producer members and small farmers. Product for youth Amul launched Chocolate milk under brand name of Amul Kool Koko targeting the youth

Product for diabetic people Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

 Product for the health

Amul Launched low fat, low cholesterol bread spreads

conscious

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

AMUL- Product Diversification

Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products Secret Philosophy Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced products with consistent value addition but never left the core philosophy of providing milk at a basic, affordable price

Amul - Product Abandonment

10 years back, Amul took a shot at bottled water through Jaldhara which was produced by NDDB. However the venture failed owing to less demand for packaged water in market. The product was abandoned. Now Amul is all set to re-launch bottled water NARMADA NEER

Amul BCG Matrix

High Amul Ice-cream

Business growth Rate

Amul Cheese
Amul Butter

Amul Chocolate

Low

Amul Chocolate drink

High Relative Market Share

Low

Struggle - Amul Chocolates

Low

Growth Phase Inadequate Success Failed new brands Excessive discounts 10% Market share Tough competition by Market Leaders Cadbury (70%), Nestle

Decline

Sales

Introduction
Phase Amul Milk, Amul Fruit and Nut

Decline Sales

New Brands Rejoice, Kite Bite, Nuts about you Sugar Free Choco Zoo

AMULS- Vision, Mission Objectives

Vision: Liberate our farmers from economic oppression and

lead them to prosperity

Mission: Dairy Cooperatives of Gujarat to reach a turnover of Rs. 27000 crores by the year 2020 Objective: is to ensure that the maximum share of the consumers rupee goes back to the milk producers

Suggestions and Recommendations

Company should start printing packaging date on milk pouch. Consider on the supply of product in the peak season. 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