UNIVERSITY OF MUMBAI’S

ALKESH DINESH
MODY INSTITUTE
FOR FINANCIAL
& MANAGEMENT
STUDIES
NAME OF THE STUDENT ROLL SIGNATURES
NOS
AHSAN KHAN 45
AJAY DHUTAWALE 11
ARUN IYER 28
ANAS KHAN 48
VIKAS GUPTA 25
VIVEK KAMBLE 39
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
 What is BCG Matrix?
 Chart
 The BCG growth- share matrix
 STAR
 CASH COWS
 DOGS
 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 C’s…
 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
1970’s.

 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 company’s 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.
 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.
 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.
 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: 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:
 RAW MILK

pasteurization

Condensed
Packaged Milk
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
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 Café

V. Millk Shaake
 Womens

Amul Calci
 Youth

I. UtterlyDelicious
Pizza

II. Amul Emmental

Cheese

III.Amul Cheese
Spreads
 Amul Kool ,Chocolate
,Milk,Nutramul Energy
Kids Drink,Amul Kool Milk Shake.

Women Amul Calcli.

Utterly Delicious Pizza,

Amul Emmental Cheese,
Youth Amul Cheese Spreads

Amul Lite Sagar Skimmed

Calorie Conscious Milk Powder,
Amul Lite Slim and Trim
Milk.

Health Conscious Nutramul , Amul Shakti

Health Food Drink
 Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Milk Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

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

- India’s 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, •Customers extremely satisfied
Vijay, Milma & other co-operative •Moved from loose milk to
milk brands •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
 High
BUSINESS GROWTH RATE

Low

HIGH LOW
MARKET SHARE
%
 Category Market Share Market Position

Chocolate Drink 90% 1

Butter, Ghee 85% 1

Cheese 50% 1

Sweets 50% 1

Milk Powder 40% 1

Ice-cream 24.75% 2

Chocolate 10% 3
Amul – Product Portfolio in Graph
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 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.
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 company’s 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
India’s 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.