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AJAY DHUTAWALE
ARUN IYER
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ANAS KHAN
VIKAS GUPTA
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VIVEK KAMBLE
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Topic : -
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my Prof. Anita Bobade Mam as well as our Director who gave us golden opportunity to do this wonderful project on the topic BCG Matrix of AMUL. While studying this project I gained lot of knowledge and information. Secondly I would also like to thank my Parents and Friends who helped me a lot in finishing this project within the limited time. I have made this project not only for marks but to also increase my knowledge.
STAR
QUESTION MARKS
History of Amul GCMMF Over View Facts Amul - Business Model SWOT Analysis Customer Based Market Segmentation Industry Based Market Segmentation
Advertisements Mix Product for every one Products Mix of Amul Amul - Product Diversification The 3 Cs Amul BCG Matrix Chart Amul Product Portfolio What more can Amul do? Benefits Limitations Conclusion
BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s.
According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.
It is a portfolio planning model which is based on the observation that a companys business units can be classified in to four categories:
It is based on the combination of market growth and market share relative to the next best
competitor.
Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.
They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.
Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage.
Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.
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.
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.
Members:
RAW MILK
pasteurization
Condensed
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
Risks of highly complex supply chain system Strong dependency on weak infrastructure Alliance with third parties who do not belong to the organized sector
Penetrate international markets Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
Competitors Hindustan uniLever, Nestle and Britannia Still competition from MNCs in butter Growing price of milk and milk products Ban on export of milk powder
Kids
Women
Youth
Calorie Conscious
Health Conscious
Kids
I. Amul Kool II.Chocolate Milk III.Nutramul Energy Drink IV.Amul Caf V. Millk Shaake
Womens
Amul Calci
Youth
I. UtterlyDelicious Pizza II. Amul Emmental Cheese III.Amul Cheese Spreads
Kids
Women
Amul Kool ,Chocolate ,Milk,Nutramul Energy Drink,Amul Kool Milk Shake. Amul Calcli. Utterly Delicious Pizza, Amul Emmental Cheese, Amul Cheese Spreads Amul Lite Sagar Skimmed Milk Powder, Amul Lite Slim and Trim Milk.
Youth
Calorie Conscious
Health Conscious
Ice-cream Manufacturers
Restaurant/Food Chains
Milk
Temples
Pizza Retailers
Snacks Retailers
Butter/Cheese/Ghee
few:
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 - Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
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
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
Defending against Mahananda, Vijay, Milma & other co-operative milk brands Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality
Competitor
Customer
Customers extremely satisfied Moved from loose milk to packaged milk Ready to try more products Improved socio-economic conditions
Company
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
High
BUSINESS GROWTH RATE
Low
HIGH
MARKET SHARE
LOW
Category
Chocolate Drink Butter, Ghee Cheese Sweets Milk Powder Ice-cream
Market Share
90% 85% 50% 50% 40% 24.75%
Market Position
1 1 1 1 1 2
Chocolate
10%
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 Amuls 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.
BENEFITS
BCG MATRIX is simple and easy to understand. It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. It is used to identify how corporate cash resources can best be used to maximize a companys future growth and profitability.
Wht to do ?
BCG MATRIX uses only two dimensions, Relative Market share and Market Growth rate. Problems of getting data on market share and market growth. High market share does not mean profits all the time. Business with low market share can be profitable too.
Thus one can see that Amul is no doubt Indias number one Milk Product Brand. But for it to stay there it will have to keep on coming out with innovative ideas which is favorable for the current market. It has to analyze the current market and visualize its future opportunities for its Star and Cash Cow products so that they can stay above the rest.