INTRODUCTION

The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is formed in the year 1946 a US$ 2.2 billion turnover institution (2010-11). It is a institution built up with a network of over 15,712 Village Co-operative Societies and 500,000 plus members Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today has 3 million milk producer members in India .

Amul is one of the largest producer of milk and milk products in the world.
Members: No. of Producer Members: No. of Village Societies: 13 district cooperative milk producers' Union 2.79 million 13,328

Total Milk handling capacity: 11.22 million litres per day Milk collection (Total - 2008- 3.05 billion litres 09): Milk collection (Daily Average 2008-09): Milk Drying Capacity: Cattlefeed manufacturing Capacity: 8.4 million litres 626 Mts. per day 3500 Mts per day

BRAND ELEMENTS
Character / Mascot Name Logo

Brand Element
URL Jingle

Tagline/ Slogan

1. 2. 3. 4. 5.

6.

Keller Brand Elements Model Brand Name: Amul is the acronym of Anand Milk Union Limited. The Logo: The Tagline / Slogan: The taste of India The Jingle: Utterly, butterly, delicious ..Amul. The Character / Mascot: The Amul moppet has been the mascot of Amul since 1967, sporting a young girl in red polka dot frock with 'utterly butterly delicious jingle. The URL: www.amul.com

MOTTO The main motto of AMUL is to help farmers. Farmers were the foundation stone of AMUL. The system works only for farmers and for consumers, not for profit. The motto of AMUL is to provide quality products to the consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of money to the farmers. VISION Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The AMUL apparition was to run the organization with cooperation of four main parties, the farmers, the representatives, the marketers, and the consumers. QUALITY POLICY They have motivated and devoted work force of who are committed to produce wholesome and safe foods of excellent quality to remain market leaders through deployment of quality management system, state of art technology innovation and eco- friendly delightment of customer and betterment of milk producer

Various products and their ranges of AMUL, India

Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul Cow Milk Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener Amul Kool Flavoured Milk, Amul Kool Caf, Amul Kool Koko,Amul Kool Milk Shake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Cheese Range

Fresh Milk

UHT Milk Range

Milk Powders

Milk Drink

Curd Products Pure Ghee Sweetened Condensed Milk Mithaee Range (Ethnic Sweets) Ice-cream Chocolate & Confectionery Health Drink Brown Beverage

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul Lassee, Amul Yoghurt Amul Pure Ghee, Sagar Pure Ghee Amul Mithaimate Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar Ladoos Sundae Range, probiotic,,sugarfree and probiotic Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo, Amul Bindass, Amul Fundoo Stamina Instant Energy Drink Nutramul Malted Milk Food

SALES TURNOVER FROM (1994-2011, AMUL INDIA)

SALES TURNOVER 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 RS (MILLION) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 US $ (IN MILLION) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172

Distribution & Procurement Network

Supply Chain at Amul

Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.

GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.

Distribution & Procurement strategy

Amul Strategy

Collection Chain Weighing the milk Determination of the fat content

Supply Chain
Storing the milk

Processing the milk

Calculation of the purchase price

Distributing the milk

Network
Available in over 5 lakh outlets in a network of around 4000 distributors 47 depots with dry and cold warehouses to buffer inventory of all its products

Advance demand draft basis from wholesale dealers

The channel network

Distribution channel- downstream flow

Procurement channel- upstream flow

Down-stream flow own First leg

Manufacturing units to company depots using 9 and 18 MT trucks Frozen food-below 18C Dairy wet-0-4C

Second leg
Depots to WDs Transport through insulated 3 and 5 MT TATA 407 s

Third leg
WDs to retailers Transport through rickshaws according to the beat plan

Up-stream flow
Milk is taken to VCS by farmers by bicycles Transportation of milk from the co operatives to the manufacturing units through trucks equipped with tankers equipped to carry milk

Amul working to collect milk

AMUL introduced an electronic automatic milk collection system in 691 milk collection centres, The system weighs the milk and measures its fat content at the time of delivery to the centre. This system reduced time required for collecting the milk. It enabled immediate payments to the farmer

MILK-O-TESTER

electronic weighing scale

AMUL S BUSINESS GROWTH STRATEGY

TWIN OBJECTIVES

long-term, sustainable growth to its member farmers

value proposition to a large customer base by providing milk and other dairy products at low price

Product Development Strategy

Amul-Cool (milk based cool drink) and Amul-Kool caf Stamina the instant energy based sport drink has been launched
packaged buttermilk is aimed to be another non-carbonated cool drink in the Amul Cool range

Market Penetration Strategy

Amul is set to build up 10,000 `Amul Parlours' across the country Amul trying to acquire a shelf in the yet to come Wal-Mart.

Market Development Strategy

Amul is now shifting its focus from urban to rural markets and smaller towns. Amul is capturing the market of diabetic and health conscious people through sugar free ice-cream, which is a variation of an existing product Amul is also increasing its market base for milk through a new version the Amul Tazaa. Tazaa is the long-life version of milk which has a longer shelf life as compared to normal fresh milk.

Diversification Strategy

Concentric Diversification Strategy

Introducing two pro-biotic Ice cream ranges, Amul Sugarfree and Amul Profile  Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.

Conglomerate Diversification Strategy

priced at only Rs 12 for 200ml which is lower than its competitors whose price ranges around 25 to 30 Rs.

Horizontal Diversification Strategy

Newer products with newer technologies Order the food through the internet

Developing markets for its high value products by graduating customer segments from low value products

Demand growth strategy

Maintaining a healthy level of customer base for its base products

Improvement Programs
Employees of the GCMMF meet every Friday between 10 to 11 am to discuss quality issues at a depot. Every meeting has a Purpose, Agenda and Limit (PAL).

Coordination
GCMMF ensures the distribution of final products by coordinating with retailers and dealers Unions take care of the supply side of things such as monitoring milk collection, supplying animal feed, educational activities; all ensuring that the product reaches the consumer in time.

Promotional Activities

Advertisement strategy
Emotional touch: Since 1967 amul product mascott has been the very recoginazable amul girl showing up on hoadrings and products wrappers with the equally recognizable tagline The utterly butterly delicious amul . Through this Amul Girl amul cerated emotional touch with the consumers. Advertisement as per the situation: Amul focuses more and more on effective advertising. They advertise their product to co-relate amul girl with current scenerio. Some examples are: contd .

Through all the events taking place in the country, Amul always had a reply to it. It always remains up to date with current affairs. The first escalator in Mumbai in 1979 is celebrated with a slogan Automatically Amul

When the city witnissed a power shortage, the amul girl said take a cut for power.

Amul Integrated Marketing Communication

Communication Strategies: Amul mainly uses indirect action advertising to create a long term relationship with the consumer & never adopted aggressive selling practices. Mainly two type of communication strategy was adopted by Amul.

1. Consumer Advertising 2. Institutional Advertising

Media Platform: Amul has used following medial platform for creating a high brand equity. 1. Broadcast Media: Television 2. Non Broadcast Media: Cinema- amul.tv.com

3. Print Media: Newspapers, General interest Magazines 4. Internet or Social Media: Independent websites, Portals, CSR activities. 5. Outdoor Media: Hoarding / Billboards

Mental Map to Brand Mantra

Mental Map: A mental map is generally a visual depiction of the core brand association. From this mental map AMUL define the brand Mantra. Brand mantra for Amul butter is given here.

Healthy Reliable Traditional Sporty Youthful

Brand Mantra:
Youthful

Cheerful Cultural Ethnic Family Oriented Fun Loving

Fun Loving

Cheerful

Reliable

Healthy

Brand Values & Brand Equity

Brand Values: The core values of the company are: To provide remunerative returns to farmer, give the best quality product to consumer, and the best possible price. Sources of Brand Equity:  Not only the core values Core team associated with the brand is still the same helped them maintain consistency in communication. Strategy of Umbrella branding has also helped established the brand firmly. Amuls utterly butterly campaign is the longest running campaign. Playing the role of a social observer through its weekly comments amul girl. Taste of India tagline is in line with their positing strategy.

Point of Comparison
Points of parity  Product itself  Packaging (Size)  Cost Points of disparity  Quality  National Presence  First mover

Exports

 GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years.

Major Exported Products of AMUL

Consumer Consumer Packs Milk Packs Life) Amul UHT (Long
Amul Gold Extra Cream Milk Amul Amul Gold Extra Cream Milk Slim and Trim Milk Amul Milk Amul Taaza Full CreamPure Ghee Amul Mithaee Gulabjamun Amul Slim and Trim Milk

Bulk Packs
Amul Full Cream Milk Powder

Amul UHT Milk (Long Life) Amul Taaza Full Cream Milk Amul Skimmed Milk Powder

Amul Pure Ghee Amul Fresh Cream Amul Mithaee Gulabjamun Kool Beverages Amul Nutramul Brown Beverage Flavoured Milk Butter Milk Amul Fresh Cream Lassee Amul Kool Beverages Amulspray
Flavoured Milk Amul Butter Amul Shrikhand Butter Milk Amul Cheese Lassee

Nutramul Brown Beverage

Amulspray Amul Butter Amul Shrikhand Amul Cheese Amul Malai Paneer Amul Ice Cream

Amul Malai Paneer Amul Ice Cream Bulk Packs Amul Skimmed Milk Powder Amul Full Cream Milk Powder

Major export Areas of AMUL

Bahrain USA Afghanistan China Japan Nepal Qatar Bangladesh Hong Kong UAE Kuwait Thailand Philippines Sri Lanka Singapore Kenya Malaysia Australia New Zealand

AMUL INICIATIVE IN DEVELOPING RURAL RETAILING

Insurance against natural calamities Establish telecenters and enhance technology in villages To charge for each service provided to the supplier To purchase all milk that member farmers produced To sell liquid milk at affordable prices so as to serve a large number of consumers To develop and deliver services that will improve lives of people in the network To hire professional managers, to run the federation and unions, whose values included upliftment of rural poor.

SWOT ANALYSIS
Technical manpower Demand Margins Problem in distribution Perishability Competition

Flexibility in market Export potential

Milk vendors Competition

SWOT
Indian origin
creating feeling of oneness in the mind of the customers.

manufactures only milk and milk products

purely vegetarian providing quality confidence

aiming at rural segment

large area of loyal customers

Thank you

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Important Points