K. B.

College
Project on

Strategic Management
( on AMUL company )

PRESENTED BY
Heena Patel (36) Anagha Bagawe (03) Manali Redkar (44) Tanbir Sain (05) Jyoti Soni (49) Sneha Pagare ( )

Acknowledgement

ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.I WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO Mrs. SUCHITA FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED ME TO COME UP WITH THIS PROJECT.

Contents
1; Acknowledgement 2; vision & mission 3; Introduction 4; products 5; Reasons for Success 6; SWOT Analysis 7; Case study 8; BCG matrix 9; The 3c for Amul 10 Product life cycles 11;suggestion 12;conclusion

Vision & Mission

Vision of Amul India: Air to liberate farmers form economic oppression and lead them to prosperity and also serve the interest of consumers by providing affordable quality products. Mission of Amul India: To have threefold increase to the current group turnover of diary cooperatives of Gujarat of Rs 9600 Crores by the Year 2020.

INTRODUCTION
THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited . AMUL was formed under the dairy cooperative movement in India in 1946. Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. 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. AMUL is the brand under this organization. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi G Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

Anagha Products of Amul

Anagha

Amul India Product Portfolio in Graph

Anagha Reasons for Success!!

Robust Supply Chain: Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets. Low Cost Strategy: 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: Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya. Strong Distribution Network: 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: Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.

SWOT ANALYSIS ON AMUL

SWOT analysis of Amul

Strengths:

1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers. 2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers. 3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do. 4. People are quite confident for the quality products provided by Amul. 5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses. 6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses:
1. There are various big players in the chocolate market, which acts as major competitors restricting their growth. 2. Lack of capital invested as compared to other companies. 3. Improper distribution channel in India.

Opportunities:
1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting. 2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

Threats:

1. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle. 2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 3. New companies entering in Indian market like Fantasie fine poses lot problems for Amul.

CASE STUDY (on SWOT)

Amul cuts butter supplies by 25% on low milk output
CHANDIGARH/AHMEDABAD: Blame it on poor monsoon if your toast goes without butter for the next two weeks. Low milk production has led the countrys top butter producer Amul to cut its supplies by 25%. The shortage is so acute in the 16,000-tonne branded butter market that even marginal players like Britannia, Mother Dairy, and Verka are not able to fill in the void left by Amul. Though the players are witnessing a rise in demand for their products, they are still unable to meet the demand. The branded butter market in India is worth Rs 1,000 crore and Gujarat CoOperative Milk Marketing Federation (GCMMF) that markets Amul brand of dairy products controls about 90% of it. As reported by ET earlier, milk production that usually rises post monsoon may see a shortfall owing to the delayed monsoon. According to estimates, the demand for butter is growing at 7-8% annually. The demand typically shoots up during the festival season. However, the Rs 6,711-crore Amul has no inventories despite its 13 district member union network. The co-operative says it will be able to resume supplies normally only after its members start procuring higher milk quantities. So far, GCMMF, that gives priority to liquid milk, has managed to retain stable supplies. The demand for milk and milk products has gone up by around 30% this year. Delayed and poor monsoon has worsened the situation. Meanwhile, reports on adulteration in milk and butter early this year have compelled a large section of consumers to opt for a trusted brand like Amul, GCMMF chief general manager RS Sodhi said. Meanwhile, the situation is severe in the north where demand for milk fat shoots up ahead of the festive season. We market close to 400 tonne of fat that goes as high as 600 tonne during the festive season. Now, we are facing acute shortage of milk fat on account of longer summer that has affected milk procurement by 2030% compared to the corresponding period in the previous year, said VK Singh, MD, Milkfed that markets Verk brand of dairy products.

BCG Matrix Model

Deepika

BCG Matrix Model

The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor.

When should WE use the BCG matrix model?

Each product has its product life cycle, and each stage in product's life-cycle represents a different profile of risk and return. In general, a company should maintain a balanced portfolio of products. Having a balanced product portfolio includes both high-growth products as well as low-growth products. A high-growth product is for example a new one that we are trying to get to some market. It takes some effort and resources to market it, to build distribution channels, and to build sales infrastructure, but it is a product that is expected to bring the gold in the future. An example of this product would be an iPod. A low-growth product is for example an established product known by the market. Characteristics of this product do not change much, customers know what they are getting, and the price does not change much either. This product has only limited budget for marketing. This is the milking cow that brings in the constant flow of cash. An example of this product would be regular Colgate toothpaste. But the question is, how do we exactly find out what phase our product is in, and how do we classify what we sell? Furthermore, we also ask, where does each of our products fit into our product mix? Should we promote one product more than the other one? The BCG matrix can help with this.

Deepika

The BCG matrix reaches further behind product mix. Knowing what we are selling helps managers to make decisions about what priorities to assign to not only products but also company departments and business units.

What is the BCG matrix and how does the BCG model work?
Placing products in the BCG matrix results in 4 categories in a portfolio of a company:

BCG STARS (high growth, high market share)

Stars are defined by having high market share in a growing market. Stars are the leaders in the business but still need a lot of support for promotion a placement. If market share is kept, Stars are likely to grow into cash cows.

BCG QUESTION MARKS (high growth, low market share)

These products are in growing markets but have low market share. Question marks are essentially new products where buyers have yet to discover them. The marketing strategy is to get markets to adopt these products. Question marks have high demands and low returns due to low market share. These products need to increase their market share quickly or they become dogs. The best way to handle Question marks is to either invest heavily in them to gain market share or to sell them.

BCG CASH COWS (low growth, high market share)

Cash cows are in a position of high market share in a mature market. If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. Because of the low growth, promotion and placement investments are low. Investments into supporting infrastructure can improve efficiency and increase cash flow more. Cash cows are the products that businesses strive for.

BCG DOGS (low growth, low market share)

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

Are there any problems with the BCG matrix model?

Some limitations of the BCG matrix model include:

The first problem can be how we define market and how we get data about market share

A high market share does not necessarily lead to profitability at all times The model employs only two dimensions market share and product or service growth rate Low share or niche businesses can be profitable too (some Dogs can be more profitable than cash Cows) The model does not reflect growth rates of the overall market The model neglects the effects of synergy between business units Market growth is not the only indicator for attractiveness of a market.

BCG Matrix for Amul India

This matrix shows the product of the Amul. Here some of the product is belongs to the star Its show that the growth rate of the product is very high. And the market share is also very high. These product is high profitable for the company. Some to the product is belonging to ? These product Growth rate is high but the market share is very low. So company should focus to increase the market share of these products. Which product is belongs to the cash cow company should focus to convert these product to star. And rest of the product which is dog the company should try to end that product and prelaunch the new products.

The 3 Cs for Amul India

Product Life CYCLE (Amul Ice creams)

 Introduction Stage
Since its launch in 1996, Amul Ice Creams have consistently combated competition like Kwality Walls, Mother Dairy and other brands. The customers have shown huge faith in the quality of Amul Ice Creams and today its the No. 1 ice cream brand of the country. Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul has been able to write such a success story because of the quality of its products, economic pricing and the belief consumers have in the brand.

Growth Stage
While growing at a phenomenal pace, Amul has always taken care to offer delectable flavours to all age groups across the society. Over the years, Amul has added diverse flavours to its range of ice creams so that one can have variety of choice Amul offers a selection of almost 220 products with flavours ranging from exotic Honey Banana to Kesar Pista and many more. Apart from the delicious individual novelties Amul also has ice creams for the health conscious. In January 2007, Amul introduced Sugar Free & Wellness Ice Cream which was a first in India

Maturity Stage
Seize the opportunity to partner with Indias leading Ice Cream Brand Today people like to spend quality time with their family outside the home. With increasing income they love to spoil themselves with a variety of choices. Keeping up with the latest trend Amul has started Ice Cream Scooping Parlours across the country. One can enjoy world class ice creams, Sundaes, shake s and other ice cream concoctions in a cozy and nice ambience at these parlors. Its fun time for the entire family. Currently Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore. Apart from these, there are more Amul Scooping Parlours coming up in different parts of the country. These Parlours have been well received by customers and are doing upbeat business.

 Decline Stage
IN this the demand for Amul ice creams gets effected due to introduction of new competitors .

Suggestion.

To earn more or more profit and make the customer loyal toward the amul product the company should focus of his existing customer and also provide the better services. We know that the food product is necessary for the public today. Every person wants to eat the fresh milk product. Reduce the cost of some product. Focus on all class people. Focus on lower income people. Provide better service in term of lowest cost. Provide proper knowledge to customer. Add some new product of his basket.

Conclusion
Thus this brings us to the end of ARE project report. WE hope that WE have been able to bring forth the point for which we had undertaken the project. They had put much efforts on their creativity. Amul is one of the successful business houses and other companies should learn from Amul that how to do their business in a corporately socially responsible manner. Amul has proved a point.

Bibliography.
www.wikkipedia.com www.amul.com www.scribd.com
Book: Strategy Management

THANK YOU