Amul The Taste of India

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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.

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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

Diverse Product Mix

Success!!

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.
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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.

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Facts
Members:

13 district cooperative milk

producers' Union

No. of Producer Members:

2.79 million

No. of Village Societies:

13,328

Total Milk handling capacity:

11.22 million liters per day

Milk collection (Total - 200809):

3.05 billion liters

Milk collection (Daily Average

2008-09):

8.4 million liters

Milk Drying Capacity:

626 Mts. per day

Cattle feed manufacturing

Capacity:

3500 Mts. per day

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Amul - Business Model

RAW MILK

pasteurization

Condensed
Ghee
Butter
Cream

Packaged Milk
Ice cream
Beverages

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Dried
Skimmed Milk
Powder

Industry Analysis : Porters 5 Forces

Threat of new entrants
Is high because
There are no entry
barriers

Bargaining Power
of Customers is
High because of
Various
competitors

Competitive Rivalry
is

High due to

Other brands and

Local players

Threat of
substitutes is high
because of
availability of
Other
products
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Bargaining Power
of Suppliers is low
because the suppliers
Are rural milk
producers

SWOT Analysis
Strengths

Weaknesses

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

Opportunities

Threats

Penetrate international markets

Diversify product portfolio to
enter new product categories and
expand existing categories like
processed foods, chocolates etc

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
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Customer Based Market Segmentation

Amul Kool Chocolate Milk
Nutramul Energy Drink
Amul Kool Millk Shaake

Kids
Kids
Women
Women

Amul Calci +
Utterly Delicious Pizza
Amul Emmental Cheese
Amul Cheese Spreadsv

Youth
Youth
Calorie
CalorieConscious
Conscious

Amul Lite
Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk

Health
HealthConscious
Conscious

Nutramul
Amul Shakti Health Food
Drink

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Industry Based Market Segmentation

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Milk

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Butter/Cheese/Ghee
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Advertisements
AMUL is well known for its innovative hoardings. Find below a

few:

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Advertisements

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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

- Indias First Pro-Biotic Wellness Ice
cream &
Sugar Free Delights For Diabetics
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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
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Product Mix of Amul

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Amul - Product Diversification

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

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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

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The 3 Cs
Defending against Mahananda,
Vijay, Milma & other co-operative
milk brands

Customers extremely satisfied

Moved from loose milk to
packaged milk
Ready to try more products
Improved socio-economic
conditions

Aggressive moves against

Britannia, Nestle, Mother Dairy
and Kwality

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
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Amul BCG Matrix

High

Business
growth
Rate

Amul Ice-cream

Amul Chocolate

Amul Cheese
Amul Butter

Low

Amul Chocolate drink

High

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Relative Market Share

Low

Amul Product Portfolio

Category

Market Share

Butter, Ghee

85%

Milk Powder

40%

Cheese

50%

Ice-cream

24.75%

Sweets

50%

Chocolate Drink

90%

Chocolate

10%

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Market Position

Struggle - Amul Chocolates

.

Low

Growth
Phase

Decline

Sales

Introduction

Decline
Sales

Phase

Amul Milk,
Amul Fruit and
Nut

New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo
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Inadequate Success
Failed new brands
Excessive discounts
10% Market share
Tough competition by
Market Leaders Cadbury
(70%), Nestle

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 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.

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Thank You !!

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