Introduction to Industry

• India is the largest milk producer in the world

• Milk production was 88.08 mmt in (03- 04) & expected to
reach 250 mmt by 2020.
• India contributes to world milk production rise from 12-15 %
& it will increase up to 30-35% (year 2020)
• Indian dairy sector was worth US$ 62.67 & expected to cross
US$ 108 by 2011.
• Market growth rate: 4% (volume terms)
• Top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Maharashtra…..
• About 75% of milk is consumed at the household level
 Introduction & History
• Formed in 1946, is a dairy cooperative movement in India with 250 litres
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 from 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 in Asia & No.2 in the world, which is the matter
of proud of Gujarat & 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.
Amul Growth Rate
 The 3 C’s Model
• Defending against Mahananda, Vijay, •Customer’s expremely
Milma & other Co-operative milk brands satisfied
•Aggressive moves against Britannia, •Moved from loose milk to
packaged milk.
Nestle, Mother Diary & Kwality
•Improved socio-economic
• Has Competitive sustainable advantage.
conditions.

•Largest milk brand in India

•More than 30 dairy brands
•Market leader in Ghee & Butter
•Very strong Supply Chain
•Quality With Affordability
 Amul - Business Model

Every day Amul collects 7 million litres of milk from 2.6 million formers, converts
the milk into branded, packed products & delivers goods to over 5 lacs retails
outlets across the country. Its supply chain one of the most complicated in the
world.
 Amul Competitors
PRODUCTS / BRANDS COMPETITORS
Butter Britannia, Nestle
Cheese Britannia
Baby Food Nestle. Heinz
Dairy Whitener Segment Britannia, Nestle
Ice Creams HUL
Chocolates & Confectionaries Cadbury, Nestle
Pizza Pizza Hut, Dominos, Smokin jones
Curd Nestle, Mother Dairy
Ultra High Treated Milk Britannia, Nestle
Sweet Condensed Milk Nestle
Paneer Britannia
Milk Additives Cadbury, Smithkline Beecham
Flavored Milk Britannia, Nestle
 AMUL – BCG Matrix

• Need to perform product innovation for Amul

chocolate, masti dahi, amul lassi,
• Disinvestment in Nutramul & Amul Shakti
 AMUL – PRODUCT PORTFOLIO
CATEGORY MARKET SHARE MARKET POSITION

BUTTER 85% 1

MILK POWDER 40% 1

CHEESE 50% 1

ICE-CREAM 38% (HLL - 9%, ) 2

SWEETS 50% 1

CHOCOLATE DRINK 90% 1

CHOCOLATE 10% (CADBURY – 70%) 3

 Promotion
• Spends a mere 1% of its turnover on promotion.
• Amul butter girl is one off the longest rub add campaigns in
the country for 43yrs.
• Amul uses rational promotion strategy to be in touch with
customer throughout.
• Amul promets itself by conducting various contest such as
– Chef of the year
– Amul Maharani of the year.
• Amul sponsors various movies, and TV shows
– Auml Star Voice of India
– Amul Master chef.
• Gives away excellence awards for school children every year.
 Advertisement
AMUL is well known for its innovative hoardings
 Place
• Amul’s success to day is partly because of its strong
supply chain design.
• To reach out its customer more directly, has come up
with Amul parlours.
• These are called “ Utterly delicious Parlours”
• Till date there are about 400 amul parlours across
the country.
• Parlours are at prominent locations such as
campuses of Infosys, wipro, Metros….
 Pricing
• Decided by conducting market survey to check
validity and feasibility of prices.
• Price is inclusive of several elements likes
– Cost of milk
– Labour cost
– Processing cost
– Packaging cost
– Advertising cost
– Transportation cost
– Sales promotion cost
– Taxes etc
Industry Analysis : Porter’s 5 Forces
 SWOT Analysis of Amul
•STRENGTHS
•Largest food brand in India & Asia
•High Quality Low Price
•Introduced TQM
•World’s largest Pouched Milk Brand
•Annual Turnover of 4300 crs. (06-07)
•Highly Diverse Product Mix
•Ro bust Distribution Network
•OPPORTUNITIES
•Penetrate international markets
•Diversify product portfolio to enter new
product categories & expand existing categories
like processed foods, chocolates etc.
•Use internet to sell its products
•WEAKNESS
•Strong dependency on weak infrastructure
& completely dependent on villages for its
Raw material.
•Risks of highly complex supply chain
system.
•Short self life of its product
•Alliance with third parties who do not
belong to the organized sector
•THREATS
• Competitors – HUL, Nestle, Britannia and
local players
•Stiff competition from MNC’s in butter
•Growing price of milk & milk products
•Ban on exports of milk powder
•The yield of Indian cattle still much lower
than other diary countries
Customer Based Marget Segmentation

Amul kool,Chocolate,Milk,
Kids Energy drink.
Women Amul Calci +
Utterly Delicious Pizza,Amul
Youth Pizza Cheese & Amul Chees
Spread
Calorie Amul Lite,Skimmed Milk
conscious Powder, Slim & Trim Milk

Health Nutramul, Amul Shakti

conscious Health Food Drink
Industry Based Marktet Segmentation
Ice-Cream
Manufactures

MILK Restaurant
/ Food chains

Coffee Shop Chains

Snacks Retailers
BUTTER
CHEESE Pizza Retailers
GHEE
Bakery &
Confectionaries
MIX Product for every one

Amul never forgot its “ Primary

Customer”

Product for Youth

Product for Diabetic people

MIX Product for every one

Product for Health Conscious

Product for price sensitive

India

Product for Urban Class

 Product Positioning

• A mass market player, no premium offering

• “AMUL” as “Taste of India”.
• USP – Quality with affordability.
• India’s 1st Probiotic wellness ice-cream & sugar free
delights for diabetics.
• Low priced Amul Ice-creams made Kwality Walls life
hell.
Amul’s Product Diversification
 Benefits of Diversification Value
Marketing Strategy
• High Growth
• Expansion of network
• Advantage of each underline objectives.
• Providing a product that works as claimed, is
accompanied by decent service,& is delivered
on time.
• Commitment to quality.
• Value for money.
• The generation for awareness.
 Amul Goes Global
• Amul already present in countries such as
USA, Nepal, South Africa, Thailand, Australia
etc..
• Prospective Markets – Russia, Japan, Sri Lanka
• Agreement with Wal-mart
• Agreement with Glaxo
 THE WAY AHEAD
• Product improvisation
• Amul hording are successful. But there is a
need to advertise by cable channel, News
paper to reach the rural areas.
• Amul can venture out on new products like
Toned Milk, Condensed Milk that can be used
for sweets, Baby food products.
 WHY AMUL
Physique :
Personality : Simple,
Taste, Quality
Indian

Relationship : Culture : Co-operative,

Sociable Sharing

Reflection : Self-Image : Proud

Indian, Fun Loving
Value Oriented
Thank You