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Amul – The Taste of India

Amul – The Taste of India. 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).

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Amul – The Taste of India

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  1. Amul – The Taste of India www.pptmart.com

  2. 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). • AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. 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. www.pptmart.com

  3. 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 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. www.pptmart.com

  4. 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. www.pptmart.com

  5. Facts www.pptmart.com

  6. RAW MILK pasteurization Condensed Ghee Butter Cream Packaged Milk Ice cream Beverages Dried Skimmed Milk Powder Amul - Business Model www.pptmart.com

  7. Industry Analysis : Porter’s 5 Forces www.pptmart.com

  8. 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 • 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 www.pptmart.com

  9. 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 Youth Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk Calorie Conscious Health Conscious Nutramul Amul Shakti Health Food Drink www.pptmart.com

  10. Industry Based Market Segmentation Ice-cream Manufacturers Restaurant/Food Chains Coffee Shop Chains Milk Temples Bakery & Confectionaries Pizza Retailers Snacks Retailers Butter/Cheese/Ghee www.pptmart.com

  11. Advertisements • AMUL is well known for its innovative hoardings. Find below a few: www.pptmart.com

  12. Advertisements www.pptmart.com

  13. Mix… Product for every one • Amul never forgot its “primary customer” - Amul collects 447,000 ltrs 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 www.pptmart.com

  14. Mix… Product for every one • 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 www.pptmart.com

  15. Product Mix of Amul www.pptmart.com

  16. Amul - Product Diversification 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” Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products www.pptmart.com

  17. 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” www.pptmart.com

  18. The 3 C’s… • Defending against Mahananda, • Vijay, Milma & other co-operative • milk brands • Aggressive moves against • Britannia, Nestle, Mother Dairy • and Kwality • Customers extremely satisfied • Moved from loose milk to • packaged milk • Ready to try more products • Improved socio-economic • conditions • Largest milk brand in Asia • More than 30 dairy brands • Market leader in ghee & butter • Very strong supply chain • Enjoys Fine reputation • Quality with Affordability www.pptmart.com

  19. Amul – BCG Matrix Business growth Rate High Amul Ice-cream Amul Chocolate Amul Cheese Amul Butter Amul Chocolate drink Low High Low www.pptmart.com Relative Market Share

  20. Amul – Product Portfolio www.pptmart.com

  21. Struggle - Amul Chocolates . Low GrowthPhase Inadequate Success Failed new brands Excessive discounts 10% Market share Tough competition by Market Leaders – Cadbury (70%), Nestle Decline Sales Decline Sales Introduction Phase Amul Milk, Amul Fruit and Nut New Brands Rejoice, Kite Bite, Nuts about you Sugar Free Choco Zoo www.pptmart.com

  22. What more can Amul do? To improve further 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, choclates 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 viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. www.pptmart.com

  23. Thank You !! www.pptmart.com

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