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• Roll No.

C004 Name- Tanveer Singh Mug-shot/Photo [-]


• Roll No. C009 Name Raman Gupta Mug-shot/Photo [-]
• Roll No. C012 Name Ayush Kumar Mug-shot/Photo [-]
• Roll No. C023 Name Sanchit Shandilya Mug-shot/Photo [-]
• Roll No. C033 Name Raj Vinaika Mug-shot/Photo [-]
Name of the Company: Amul

Main/proposed business of the company:


The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the
village level federated under a milk union at the district level and a federation of member unions at the state
level.
Establishment of a direct linkage between milk producers and consumers by eliminating middlemen.
Milk Producers (farmers) control procurement, processing and marketing
Professional management.

Company Logo

Tag-line : The taste of India; Utterly butterly delicious Amul


• Vision- Amul’s vision is to provide more and more satisfaction to the farmers, employees and
distributers.

• Mission- We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the
tasteand nutritional requirements of the customers of the world, through excellence in marketing byour
committed team. Through co-operative networking, we are committed to offering quality products that
provide best value for money.”
VALUES
• Always working with integrity- Conducting our operations with integrity and with respect for the
many people, organizations and environments our business touches has always been at the heart of our
corporate responsibility.
• Positive impact- We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various other ways in which
we engage with society.
• Continuous commitment- We're also committed to continuously improving the way we manage our
environmental impacts and are working towards our longer-term goal of developing a sustainable business.
• Setting out our aspirations- Our Corporate Purpose sets out our aspirations in running our business.
It's underpinned by our Code of Business Principles which describes the operational standards that everyone
at Unilever follows, wherever they are in the world. The Code also supports our approach to governance and
corporate responsibility.
• Working with others- We want to work with suppliers who have values similar to our own and work
to the same standards we do. Our Supplier Code, aligned to our own Code of Business Principles, comprises
eleven principles covering business integrity and responsibilities relating to employees, consumers and the
environment.
Strategic Objectives
• The objective of Amul, the dairy cooperative in India, is to spur the White Revolution in the
country and make India the largest producer of milk and milk products in the world. The
cooperative is shared between over 2.8 million dairy producers and the three-tier Amul Model
has increased India's milk production on an incredible scale.
Strategic Elements: Integration
1. Forward Integration
When it comes to forward integration there’s Amul has done incredibly well in managing its value
chain and selling its product directly to the end consumers by reducing the distribution costs and
the savings is passed on to the end consumers . Amul has launched Fresh Paneer which is free from
harmful chemicals as well as expanded into cheese segment which has a market share of 65%.

2. Backward Integration
Amul procures the raw milk from about 2.8 million milk farmers everyday who are registered with
Amul. It’s the largest milk company in India both by volumes and revenues. No other firm is now
where near as no one else is able to source milk at the same prices which amul gets. Its able to do
this as it’s a co-operative owned by these farmers hence procurement becomes easy and a
sustainable advantage.
Strategic Elements: Diversification
• In 2001, Amul entered fast food market in India with the launch of vegetable pizza under the
brand Snowcap in Ahmedabad, Gujarat. The pizzas were offered in four flavours: plain tomato-
onion-capsicum, fruit pizza (pineapple-topped), mushroom and Jain pizzas (pizzas without onion
or garlic).GCMMF launched the pizzas in the Rs.20-25 price range. The existing players in the pizza
market, like Dominos, Pizza Hut offered pizzas at nothing less than Rs.39.
• Amul entered into the following areas: ice cream, curd,paneer3, cheese, and condensed milk.
In1997, Amul launched ice creams after Hindustan Lever acquired Kwality.
• In November 2000, Amul decided to promote mozzarella cheese, which was used in pizza.The
growing demand for mozzarella cheese from pizza making companies like Pizza Hut and Dominos
Pizza was expected to give Amul cheese sale an additional push.
• Amul Identified the working class women as a new segment and has introduced frozen easy to
cook stuffed parathas, matarpaneer and paneerpakoras which makes them easy to cook quality
tasty food in less time.
Strategic Elements: Merger and Acquisition
• Prabhat Dairy is integrated milk and dairy products company in
Maharashtra, India, catering to institutional and retail customers.
Prabhat Dairy plans to increase its annual turnover to ₹2,000 crore in
next two years from ₹1,400 crore logged in last fiscal by launching its
products across India and introducing new value-added products such
as cheese, paneer, shrikhand, curd, ice-cream, flavoured and ultra
heat treated milk.
• Merging with Amul gives them required infrastructure including
depots, dealers and distributor network for all India.
Financial Objectives
• AMUL is Asia’s no. 1 and world’s second number co-operative dairy. It
has large market and dairy network in every state of India and across
the India, like central Asian countries, Bangladesh, Thailand,
Indonesia, Malaysia, Singapore, etc.
• Amul aims to double exports turnover this fiscal
• Threats of New Entrants:
GCMMF enjoys economies of scale. No regional competitor has raised to a national level in this industry.
Amul has already gained brand preferences and customer loyalty and has a very good reputation at both
Indian and International level. Also, Amul has a well-planned distribution channel and use of specialised
know-how is the key success reason.
• Bargaining Power of Supplier:
Bargaining power of suppliers is not very high as there are thousands of small level milk providers to Amul.
• Bargaining Power of Buyers:
Bargaining power of buyers is high as there are low switching costs and variety of competitor products
available.
• Rivalry among Competitors:
Rivalry for different products is different as in all product categories, there are local as well as international
brands available.
• Threat of Substitutes:
It is high as there are different substitutes available for all the products.
STRENGTH WEAKNESSS
Cost of Operations
High market share
Low market share in chocolates segment
Excellent brand equity for Amul.
Excellent quality management Strong competition from international &
Strong distribution network domestic players in the ice cream segment
Rural presence
Good product portfolio

OPPORTUNITY THREAT
Introduce new products in the chocolate Strong competition from international players
segment can reduce the market share of Amul.
Amul can tie-up with hotels, resorts, Economic slowdown and inflation can affect
restaurants etc. business
It can increase its reach in rural markets
• Strengths- Amul has a strong growth as its turnover for previous year increased by almost 18% and growth
revenue by 67% making it the world’s thirteenth longest dairy organization. Although Amul’s distribution network
is wide and dispersed. It has managed to maintain it’s quality throughout the word. The global mascot used in
their advertising is their icon throughout the world.

• Weakness- With too many international brands in competition with amul, it now finds difficult to control it’s
cost of operations and thus is facing huge competition especially in international market. The shelf life of most of
the dairy products is limited which makes the company vulnerable to losses.

• Opportunity- Since Amul has seen good growth in most of the countries, it can further expand its product
portfolio as the company has now developed a brand name investing pulse, spices, grains (Business standard
2016).
Amul can also incorporate advertising in it’s operations especially exploring into the emerging internet and social
media marketing.

• Threat- The local competition in the international markets as well as emerging competition in the local market
from the international brands is a threat to the operations of Amul.
Major competition faced by Amul is in the ice-cream market with new brands emerging. Fluctuating inflation rate
in India can effect the market of Amul as it directly affects the purchasing power of the customers.
Thank You!!

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