Amul

• + ANJALINARAYANAN 5 months ago Introduction Defining FMCG

Industry Products which have a quick turnover, and relatively low cost are known
as Fast Moving Consumer Goods (FMCG). FMCG products are those that get
replaced within a year. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics, tooth
cleaning products, shaving products and detergents, as well as other non-durables
such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may
also include pharmaceuticals, consumer electronics, packaged food products, soft
drinks, tissue paper, and chocolate bars. A subset of FMCGs are Fast Moving
Consumer Electronics which include innovative electronic products such as
mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These
are replaced more frequently than other electronic products. White goods in
FMCG refer to household electronic items such as Refrigerators, T.Vs, Music
Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast
growing industries in India. According to the AC Nielsen India study, the industry
grew 5.3% in value between 2004 and 2005.
http://www.chillibreeze.com/articles_various/fmcg-in-india.asp Creating a strong
brand identity, leveraging new product categories and growing the customer base
are core concerns for consumer product companies. Firms are looking to
maximize profits and market share in a highly competitive environment that
includes such challenges and risks as demanding customers, consolidation and
global expansion.
http://www.deloitte.com/view/en_AU/au/industries/consumerbusiness/fmcg/index
.htm FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those
consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are...

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Amul - Presentation Transcript

1.
2. INTRODUCTION
o Amul – The Taste of India
o AMUL means “priceless”
o Today amul is a symbol of
o many things
o Multi-dimensional impact
o on rural economy and society
3.
o Amul’s birth is indelibly linked to the freedom movement in India.
o The first Amul cooperative was the result of a farmers.
o Sardar Vallabhbhai Patel vision to organise farmers.
o Dr. Verghese Kurien, who founded Amul.

HISTORICAL BACKGROUND OF AMUL

4.
o Established in 1946 - two societies collected 250 lures of milk.
o
o Competed with Polson’s to supply milk to Bombay.
o
o 1952 - Bombay Government terminated Polson’s contract and signed with
AMUL.
o 1955 - Dairy and milk powder plant was established with aid from the
United Nations Children's Fund (UNICEF).
o
 FACTS ABOUT THE KAIRA DISTRICT COOPERATIVE MILK
PRODUCER’S UNION (AMUL)

5.
o
o 1960 - AMUL pioneered production of milk powder and baby food from
buffalo milk.
o AMUL - meets producer demand for critical inputs, veterinary services,
artificial insemination and feed.
o
o Today AMUL members supply more than 1 million lures of milk per day.
o
o AMUL sells 400 tonnes of cattle feed every

CONTD…

6.
o Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organization.
o Amul initiated the dairy co-operative movement.
o Today, this movement is being replicated in 70,000 villages in over 200
districts in India.

THE GUJARAT COOPERATIVE MILK MARKETING FEDERATION

7.
o Amul Dairy has organized over 10,000 village cooperatives.
o Rise in export of Amul products.
o Every day Amul collects 4,47,000 litres of milk.
o Today, 173 milk producers cooperative unions and 22 federations play a
major role

THE GROWTH ERA

8. HISTORY OF AMUL
o Dairy cooperative
o Largest food brand in India
o Situation of farmers
o GCMMF contribution to Amul
9. INTRODUCTION AND CONTRIBUTION OF DR.VERGHESE kURIEN
(CHAIRMEN)
o Milk Procurement
o Sales
o Distribution
o Cooperative Development
10. PRODUCTS OFFERED BY AMUL
11. SWOT ANALYSIS
o Milk vendors
o Competition
o Flexibility in market
o Export
o potential
o Problem in distribution
o Perishability
o Competition
o Technical manpower
o Demand
o Margins
12. ICE CREAM CHOCOLATES LIQUID FRESH MILK BUTTER PIZZA
COMPETITION
13.
o BUSINESS MODEL
o Follows a unique business model
o Protect he interest of milk-producing farmers
o ORGANISATIONAL STRUCTURE
o The cooperative came to be known as the "Anand pattern"
cooperative system.
o It has a three-tier structure.
o Each tier is economically independent.
14.
o PRODUCT DEVELOPMENT
o Cooperative system
o Profitability
o Committed to the farmers
o DISTRIBUTION NETWORK
o 300 stock keeping units,
o 46 sales offices,
o 3,000 distributors,
o 1,00,000 retailers with refrigerators and
o 5,00,000 non-refrigerated retail outlets...
15. MISSION 2020
o Vision :liberate our farmers from economic oppression and lead them to
prosperity
o Mission 2020: dairy cooperatives of Gujarat turnover of Rs. 27000 crores
by the year 2020
o Objective: is to ensure that the maximum share of the consumer’s rupee
goes back to the milk producers
16. FUTURE PLANS
o Expansion of distribution network, creative marketing, consumer
education and product innovation, we will leverage effectively on rising
income levels and growing affluence among Indian consumers.
o Tapping the rising demand for new value-added products.
 17. CONTD…
o Milk shed area will increase to 231 lakh kg per day (23.1 million kg per
day), at an annual growth rate of 4%
o Installing Bulk Milk Chillers and Automatic Milk Collection Systems in
all our village cooperative societies.
o Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk
in the peak flush season.
o Satellite dairies with combined processing and liquid milk packaging
capacity of 50 LKPD will be established in major metro market
18. CONTD…
o We plan to double to processing capacity of our dairy plants to 20.7
million kg per day, by 2020
o Milk drying capacity will also be enhanced by 200 MT’s per day
o Plan to expand our cattle feed manufacturing capacity, more than four
times to 12,000 MT’s per day, by 2020.
o Total investments envisaged for creating all the required infrastructure
would be Rs. 2,600 crores (Rs. 26 billion) till the year 2020
19. CONCLUSION
o AMUL’S Philosophy
o Trustworthy of 1,000 million Indians

Also known for food brand Cadbury

o Introduction

Ask a kid ‘what’s the occasion to eat the chocolate’, and pat will come the
reply, nothing but still I want to eat it.

Chocolates as a segment thrive on excitement and innovation. And this

segment has huge scope in India for the following few reasons.

Indian’s love sweets.

§ Younger generations of Indian’s are more comfortable with the idea of

eating and sharing chocolate.

§ Affluence, and spending power of Indian consumers is increasing day by

day.

§ Currently Indian markets offer huge potential as it has 2nd largest

population base in the world.

§ Fast expanding large retail format is an added advantage for the

chocolate segment, which is expected to further boost their sale.

§ For India chocolates is a new and happening concept, as against almost

 saturated chocolate market of west.

Presented below are few statistic’s about the various Impulse buying
segment products’ and their market share.

§ Snack Foods Market Size : Rs 4500 crore (ET 26/02/07)

(Branded Snack Food Market :Rs 1300 crore( ET 26/02/07))

§ Soft Drinks Market Size : Rs 6000 crore (ET 21/02/07)

§ FMCG Market : Rs 64000 crore ( ET 07/02/07)

§ Chocolate Bar market size : Rs 350 crore

§ Ice cream market size : Rs 1000 crore

§ Carbonated Soft Drink Market size : Rs 5000 crore

Chocolate Market In India

Facts & Figures

ü Chocolate market is estimated to be around 1500 crores (Danielson)

growing at 18-20% p.a.

ü Cadbury is the market leader with 72% market share in organized

chocolate market.

ü The per capita consumption of chocolate in India is 300 gram compared

with 1.9 kilograms in developed markets such as the United Kingdom.

ü Over 70 per cent of the consumption takes place in the urban markets.

ü Margins in the chocolate industry range between 10 -20 %, depending

on the price point at which the product is placed.

ü Chocolate sales have risen by 15% in 2007 to reach 36, 000 tones
according to one estimate.

ü...

Cadbury
Cadburys
History and Overview
Cadbury India contributes about 4 per cent to the global revenues of Cadbury Schweppes,
and the number is steadily growing. For example, the net profits almost tripled from 25
crores to 73 crores from 1998 to 2002, while its sales grew from 420 crores to about 800
crores for the same period.
Products, Sales and Growth
Cadbury India accounts for a lion's share of the Indian chocolate market, with about 60-
70 percent. The flagship product of the company is Cadbury Dairy Milk which was first
launched in 1905, and is still a market leader today. In fact, Diary Milk worldwide sales
have grown by 7% during the first half of this year. Cadbury Diary Milk constitutes about
30% of Cadbury India's turnover, with a volume share of 26.7% in the urban market and
a value share of 30.7%. It is followed by brands such as 5-star, Perk and Gems. Bournvita
is another major brand for the company as it constitutes about 22% of the company's
worldwide sales.
In April 2003, Cadbury India's foreign parent acquired Pfizer's interests in the
confectionery business for $4.2 billion which included the Warner-Lambert product
portfolio, known best for Halls, Clorets and Chiclets. This is a testimonial to the strategic
brilliance of the company, as the sales numbers have been growing ever since. In India,
the confectionery market may be huge in volumes but making money on it remains a
tough task due to its low margins(unit prices of 50p – Re.1). But, Cadbury has been
tasting success with its age-old Eclairs which continue to bag almost 50 per cent of the
market for confectioneries.
The Road Ahead
Cadbury has decided to focus on a few of its key brands such as _Cadbury Dairy Milk,
Bournvita, Eclairs and Halls_ to drive growth for the company. The company has
successfully revamped its chocolates division by following a strategy of regular product
launches and marketing its existing chocolates in smaller packs. It is expected to continue
with this...