1

UNIVERSITY OF MUMBAIS
ALKESH
DINESH MODY
INSTITUTE FOR
FINANCIAL
&
MANAGEMENT
STUDIES
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SYBMS SEM II

NAME OF THE STUDENT ROLL

NOS

SIGNATURES

AHSAN KHAN

45
AJAY 11

DHUTAWALE
ARUN IYER

28

ANAS KHAN

48

VIKAS GUPTA

25

VIVEK KAMBLE

39

Submitted to :- Prof. Anita Boabade Mam

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.

THANK YOU ONE AND ALL

Contents
What is BCG Matrix?
The BCG growth- share matrix
STARS
CASH COWS
DOGS
QUESTION MARKS
History of Amul
Reasons for Success
GCMMF Over View
Facts
Amul - Business Model
SWOT Analysis
Customer Based Market Segmentation
Industry Based Market Segmentation
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Contd.
Advertisements
Mix Product for every one
Product Mix of Amul
Amul - Product Diversification
The 3 Cs
Amul BCG Matrix
Amul Product Portfolio
What more can Amul do?
Benefits
Limitations
Conclusion
Bibliography

What Is BCG Matrix?

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.

THE BCG GROWTH-SHARE

MATRIX
It is a portfolio planning model which is based on

the observation that a companys business units can

be classified in to four categories:
Stars
Question marks
Cash cows
Dogs

It is based on the combination of market growth and

market share relative to the next best competitor.

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STARS
High growth, High market share
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.
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CASH COWS
Low growth , High market share
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.
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DOGS
Low growth, Low market share
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.

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QUESTION MARKS
High growth , Low market share
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.

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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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Success!!
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Robust Supply Chain

The vast and complex supply chain
Hierarchical network of cooperatives
Stretches from small suppliers to large

fragmented markets

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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.

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Diverse Product Mix

Amul Butter,
Milk Powder,
Ghee,
Amulspray,
Cheese,
Chocolates,
Shrikhand,
Ice cream,
Nutramul,
Milk and Amulya
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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.
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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 litres per day

Milk collection (Total - 200809):

3.05 billion litres

Milk collection (Daily Average

2008-09):

8.4 million litres

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

Dried
Skimmed Milk
Powder

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SWOT Analysis

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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

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 Risks of highly complex supply

chain system

Strong dependency on weak

infrastructure

Alliance with third parties who do

not belong to the organized sector

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Opportunities.!

Penetrate international markets

Diversify product portfolio to

enter new product categories

and expand existing categories

like processed foods,

chocolates etc

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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
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Women
Women

Kids
Kids

Youth
Youth

Calorie
CalorieConscious
Conscious

Health
HealthConscious
Conscious

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Kids
Kids

I. Amul Kool
II. Chocolate Milk
III.Nutramul Energy
Drink
IV.Amul Kool
V. Millk Shaake
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Womens
Womens

Amul Calci

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Youth
Youth
I. UtterlyDelicious
Pizza
II. Amul Emmental
Cheese
III.Amul Cheese
Spreads

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Health
HealthConscious
Conscious

I.Nutramul
II.Amul Shakti Health
Food Drink

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Calorie
CalorieConscious
Conscious

I.Amul Lite
II.Sagar Skimmed
Milk Powder
III.Amul Lite Slim
and Trim Milk
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40

Ice-cream Manufacturers

Restaurant/Food Chains

Milk

Coffee Shop Chains

Temples

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Butter/Cheese/Ghee
Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

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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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Product Mix of Amul

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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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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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BCG MATRIX

BUSINESS GROWTH RATE

High

Low

HIGH

MARKET SHARE

LOW

The 3 Cs
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

Amul Product Portfolio

Category

Market Share

Market Position

Chocolate Drink

90%

Butter, Ghee

85%

Cheese

50%

Sweets

50%

Milk Powder

40%

Ice-cream

24.75%

Chocolate

10%

3
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Market share

Amul Product Portfolio in Graph

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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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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.
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What to
do ?

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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.
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CONCLUSION
Amul one of the fastest growing industries of

India. This industry has revolutionized the

Indian dairy sector and also brought it back
from the brink of extinction .
Also it was one of the first successful
cooperative associations in India and also
now the market leader in the dairy sector .

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 www.amul.com
www.wikipedia.com
www.scribd.com
www.google.com

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