PRESENTATION ON

GUIDED BY: PRESENTED BY:

MANISH SIR AMIT SHARMA
GOURAV JAIN
Kaira District Co-operative Milk Producers’ Union Ltd., Anand.
 ANAND MILK FEDERATION LIMITED

THE KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS’ UNION LIMITED
ANAND
 ROAD MAP
 Introduction
 History
 In the year 1946 the first milk union was established. This union
was started with 250 liters of milk per day.

 The union was known as KAIRA DISTRICT CO-OPERATIVE

MILK PRODUCERS UNION.

 This union selected the brand name AMUL in 1955.

 The brand name Amul means “AMULYA”. This word derived

form the Sanskrit word “AMULYA” which means “PRICELESS”.

 The successful pattern of Amul cooperatives ,in 1965 , the prime

minister of India, shri Lal Bahadur Shastri, created The National
Dairy Development Board(NDDB) .
 CONT……..
 In 1973,Amul was managed by Gujarat Co-
operative Milk Marketing Federation Ltd.
(GCMMF).
 Amul has spurred the White Revolution of
India.
 Plants
First plant is at ANAND, which engaged in the manufacturing of
milk, butter, ghee, milk powder, flavored milk and buttermilk.
Second plant is at MOGAR, which engaged in manufacturing
chocolate, nutramul, Amul Ganthia and Amul lite.
Third plant is at Kanjari, which produces cattle feed.
 Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name
Amul.
Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world,
which is matter of proud for Gujarat and whole India.
 GCMMF – OVER VIEW
 GCMMF: Gujarat Cooperative Milk Marketing
Federation.

 It was established in 1973.

 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(credit rating information services of India limited), 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.
 THE MAN WHO BEHIND THE AMUL
Dr. VERGHESE KURIEN
 The father of White revolution in India

and also called Milkman of India .

 He was the chairman of the GCMMF.

 He was also the chairman of NDDB.

 He was awarded by Ramon magsaysay for community

leadership.
 He was awarded by BHATAR PADMA SHRI, PADMA
BHUSHAN,AND PADMA VIBHUSAN.
 SERVICES OFFERED BY AMUL

 Medical facilities for the cattle of former

 Cattle feeding

 Artificial insemination (Cattle Breeding )

 Free animal vaccination

 Former education programs

 AMUL also provide the scholarship to children of

member of society.
 HUMAN RESOURCE MANAGEMENT
DEPARTMENT
 Recruitment, Selection & Induction.
 Training & Development.

 Performance appraisal.

 Promotions & Transfers.

 Wage & Salary Administration.

 Retirement Benefits.

 Employee Turnover.

 Compensation.

 Industrial Relation.

 Welfare Activities.

 Time Keeping Department.

 Personal Records.
 L ar g est
's
World ed Milk
Pouch nd
Bra

l d' s Bi ggest
Wo r ian
Vegetar nd
Bra
Cheese
 AMUL - BUSINESS MODEL

RAW MILK

pasteurization

Condensed
Packaged Milk
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
CONT…
 Every day Amul collects 7 million litres of milk from 2.6
million farmers (many illiterate), converts the milk into
branded, packaged products, and delivers goods to over
500,000 retail outlets across the country.

 Its supply chain one of the most complicated in the

world.
 Developing demand
- limited purchasing power, modest
consumption levels
- a low-cost price strategy products

The distribution network

- dry and cold warehouses
- cash transactions throughout the supply chain
- JIT improves dealers' return on investment
(ROI
Umbrella brand
- common brand for most product categories
- Amul's sub-brands , edible oil products - Dhara, mineral water
- Jal Dhara brand while fruit drinks - Safal

Third party service providers

- core is milk processing , production of dairy
products
- logistics of milk collection, distribution of dairy
products, sale of products through dealers and
retail stores
 Moving consumers from loose milk to packaged milk
and gradually move them up the value chain (tetra
pack to beverages, all available under the Amul brand)
 A sound strategy likely to work.

 Being exposed to a brand, it is natural for a customer

to try more products
 Improving socio-economic condition of the customer
anchors the desire to enhance lifestyle
 Wide range of product categories caters to consumers
across all market segments. For example, Amul Kool
is targeted at children, while teenagers prefer Kool
Café, as it has a cool imagery associated with it.

 Segmentation is not as easy in curd and low fat

products, due to mixed audiences, various culinary
applications , eg. ghee, butter and cheese.
“In India, the most used spread is ghee, then butter,
cheese, low fat butter, margarine, cheese spread and
mozzarella cheese.
 Changing retail environment
 Striking out on its own, with Amul Outlets or parlours
to deliver consumers total brand experience

 Launched in 2002, there are now 400 Amul parlours

across the country, which contributed 3% to the
brand’s total turnover last year.
High profile locations: Amul parlours are today
present on campuses of Infosys, Wipro, IIM-A, IIT-B,
Temples, Metro rail and railway stations in Gujarat.
 A mass market player, no premium offerings
 USP – Quality with affordability
 Up against niche players – value addition to customers
 Sheer size and scale of operation
 New offerings for health conscious and vibrant India –

Health and energy drinks

Stamina, a health drink made from milk with added vitamin C
against Red Bull and Gatorade, milk better than cola. Aimed at
youngsters, priced at Rs 12

Ice-cream
Probiotic and sugar-free variants
Chocolates
sugar-free brand called Choco-Mini to target the diabetic
 Given this wide product portfolio, Amul’s approach is
to promote its brands in a rotational cycle of two to
three years.

 Afterice-creams were launched in 1996, the category

was re-visited in 1999, in order to improve availability
of the product and make it affordable.
The focus shifted to cheese in 2001, Amul Masti
Chaas in 2004-05 (sales of Masti dahi grew by 25%),
Nutramul and Kool Kafe in 2006 and this year the
focus is on Amul Koko — cold chocolate drink
 Uses a variety of media to communicate
 Most famous is billboard campaign

 The endearing polka dressed girl and pun at various

issues increased brand’s fan following.

 Below-the-line activity has grown too — such as the

Amul food festival, which has been held for the last
four year between October and December in about
50,000 retail outlets.
 The Chef Of India promo invites hotel chefs to come
up with recipes using as many Amul products as
possible, and is conducted at city, state and national
level.
 Oneof the most conservative FMCG entities —
GCMMF — spends a mere 1% of its turnover on
promotions.

 GCMMF has written and re-written rules of the game.

 Amul butter girl is one of the longest run ad

campaigns in the country for 41 years.
 Intelligent marketing of milk, icecream and butter
milk.
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.
 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 - 2008- 3.05 billion liters

09):
Milk collection (Daily Average 8.4 million liters
2008-09):
Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing 3500 Mts. per day

Capacity:
 INDUSTRY ANALYSIS : PORTER’S 5
FORCES
Threat of new entrants
Is high because
There are no entry
barriers

Competitive Rivalry Bargaining Power

Bargaining Power
is High due to
of Customers is of Suppliers is low
High because of Other brands and because the suppliers
Various Local players Are rural milk
competitors producers

Threat of
substitutes is high
because of
availability of
Other products
 SWOT ANALYSIS
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
Opportunities
•Penetrate international markets
•Diversify product portfolio to
enter new product categories and
expand existing categories like
processed foods, chocolates etc
Weaknesses
•Risks of highly complex supply
chain system
•Strong dependency on weak
infrastructure
•Alliance with third parties who do
not belong to the organized sector
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
THE AMUL PRODUCTS
MARKET PRESENCE

 Demographics
Age- from 5 yrs – 80 yrs.
Sex- No bar
Income- low to high
Occupation-Any sector (not necessary)
Education- Lower to higher

 Psychographics
Personality- No discrimination.
Life style- a basic normal life to high class living std
Buying Motives-It is generic with butter category, renowned butter available in
market, loved by all consumers.
CUSTOMER BASED MARKET
SEGMENTATION

Amul Kool Chocolate Milk

Nutramul Energy Drink
Kids
Kids Amul Kool Millk Shaake
Amul Ice Creams

Women
Women
Amul Calci +

Utterly Delicious Pizza

Youth
Youth
Amul Emmental Cheese
Amul Cheese Spreadsv

Amul Lite
Calorie
CalorieConscious
Conscious Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk

Nutramul
Health
HealthConscious
Conscious Amul Shakti Health Food
Drink
 INDUSTRY BASED MARKET
SEGMENTATION
Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Milk

Temples

Bakery & Confectionaries

Pizza Retailers

Butter/Cheese/Ghee
Snacks Retailers
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

- India’s First Pro-Biotic Wellness Ice
cream &
Sugar Free Delights For Diabetics
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
PRODUCT MIX OF AMUL
 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”
 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”
 THE 3 C’S…
•Defending against Mahananda,
Vijay, Milma & other co-operative •Customers extremely satisfied
milk brands •Moved from loose milk to
•packaged milk
•Ready to try more products
•Aggressive moves against •Improved socio-economic
Britannia, Nestle, Mother Dairy conditions
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
 AMUL – PRODUCT PORTFOLIO
Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3
 ADVERTISEMENTS
 AMUL is well known for its innovative hoardings. Find below a
few:
ADVERTISEMENTS
Annual Turnover Of Rs 4300 Crore (2006-07)

Rs 10,000-crore mark over the next three years.

Four decades to become Rs 2,000-crore entity But, the turnover

doubled to over Rs 4,300 crore within nine years from 1999 to 2007

Annual Turnover 10000

10000

8000
INR Crores

6000
: 32%
4300 CAG R
4000
2000
2000

0
1946 1999 2007 2008 2009 2010
Time Frame
ADVERTISEMENTS
SOME TV ADD
AMUL MASCOT
 The term mascot – defined as a
term for any person, animal, or
object thought to bring luck[1] –
colloquially (informally)
includes anything used to
represent a group with a
common public identity, such
as a school, professional sports
team, society, military unit, or
brand name.
 COMPETITORS

 Brittania
 Nestle

 HLL

 Cadboury

 Mother Dairy
 STRUGGLE - AMUL CHOCOLATES

. Low
Growth Inadequate Success
Phase Failed new brands
Excessive discounts
10% Market share
Tough competition by
Market Leaders – Cadbury
(70%), Nestle
Decline
Sales

Decline
Introduction Sales
Phase
Amul Milk, Amul
Fruit and Nut

New Brands
Rejoice,
Kite Bite,
Nuts about you
Sugar Free
Choco Zoo
 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 thorugh market research and work on improving
these products

III) Though Amul’s 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.
 CONCLUSION
 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 , Amul uses only 1
percent of its turnover for promotions .This
shows that it is not always necessary to spend
millions on promotion when you have creativity.
 ! !
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