Presented by:

DIVYA BODDU 09020242007 SIIB MBA-AB

 1929 Peston Edul Polson established Polson Model Dairy at Anand to manufacture butter, ghee and casein. 1944 Inauguration of Bombay Municipal Corporation Milk Supply. Monopoly rights were awarded to Polson for Procuring milk from Kaira. 1946 KDCMPUL formed to counter exploitation by Polsons Dairy (Anand) And so did GCMMF and brand Amul correspondingly

Pandit Jawaharlal Nehru, Indira Gandhi, Morarji Desai and others at the inauguration of Amul Dairy.

Amul Dairy, Anand [today]

Type :Cooperative Headquarters: Anand, India Key people: Chairman, GCMMF - P. G. Bhatol Industry :Dairy Products Revenue :INR 67.11 billion, $15.04 billion USD (08-09) Employees :735 employees of Marketing Arm. However, real pool consist of 2.8 million milk producers Website: www.amul.com CRISIL assigned "AAA/Stable/P1+" to the various bank facilities of GCMMF.

Threat of new entrants is high coz there are no entry barriers

Bargaining power of suppliers is low coz the suppliers are rural milk producers

Competitive rivalry is high due to other brands and local players

Bargaining power of customers is high coz of various competitors

Threat of substitutes is high coz of availability of other products

Defending against Mahananda, Vijaya, Milma, and other cooperative milk brands Aggressive moves against Britannia, Nestle, Mother Dairy, Kwality CSA Intelligent marketing

Are extremely satisfied Moved from loose milk to packaged milk Ready to try more products Improved socio-eco conditions

Largest milk brand in Asia More than 30 dairy brands Market leader in ghee and butter Very strong supply chain Enjoys fine reputation Quality with affordability

Sales Turnover

Rs (million)

US $ (in million)

1994-95
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01

11140
13790 15540 18840 22192 22185 22588

355
400 450 455 493 493 500

2001-02
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

23365
27457 28941 29225 37736 42778 52554

500
575 616 672 850 1050 1325

2008-09

67113

1504

 GCMMF bags APEDA AWARD for 11th year in a row [06-07] Amul Pro-Biotic Ice-cream Gets The International Dairy Federation Marketing Award At World Dairy Summit [2007] Ramkrishna Bajaj National Quality Award [2003] Amul - The Taste Of India (GCMMF) Receives International Cio 100 Award For Resourcefulness [2003] Rajiv Gandhi National Quality Award 1999

ISO 9001 and HACCP Certification , Australia 1st food company in Asia one of the 100 companies in the world

ROBUST SUPPLY CHAIN LOW COST STRATEGY

DIVERSE PRODUCT MIX

STRONG DISTRIBUTION NETWORK TECHNOLOGY AND e-INITIATIVES BRAND VALUE OF AMUL

State Marketing Federation All dairies in a State (GCMMF in Gujarat) 22 State Federations in India

District Milk Processing Unions Every district in the state 12 district unions in Gujarat 170 unions all over India

Village Co-operative Societies All villages in a district 72,774 villages in India

Milk Producers All milk producers in a village 2.1 million in Gujarat 9.31 million in India

Veterinary Services

Pelleted Cattle Feed

Education on Animal Husbandry Facilities for Artificial Insemination Genetic improvement of indigenous cattle

 Segmentation
Consumer based Industry based Not so easy

Targeting
Amul parlours

Positioning

A mass market player, no premium offerings USP Quality with affordability Amul as Taste of India - creating value New offerings for health conscious and vibrant India

 One of the most conservative FMCG entities GCMMF spends a mere 1% of its turnover on promotions. Amul butter girl is one of the longest run ad campaigns in the country for 43 years!!!

Amul Ice-cream 1996 Category re-visited in 1999 Amul Cheese in 2001 Amul Masti Chaas in 2004-05 Nutramul and Kool Kafe in 2006 Amul Koko cold chocolate drink in 2009

 "Amul Utterly Delicious" parlours. Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Prominent locations. Amul franchisee plans.

 ERP initiatives 94 Tata Consultancy Services Implementation project - Enterprise- wise Integrated Application System (EIAS). AMCUS automate milk producers logistics. Zonal offices, regional offices and members dairies -VSATs Geographic Information Systems (GIS) IIM A supplemented Amuls IT - Dairy Information System Kiosk(DISK). www.amul2b.com Plans to introduce Internet banking services and ATMs

 Decided by the GCMMF by conducting market Price is inclusive of several elements like, Cost of milk. Labour cost. Processing cost. Packaging cost. Advertising cost. Transportation cost. Sales promotion costs. Taxes etc.

 Ice cream: Amul parlours; launched Fundoo to combat HULs Max Pizza: Launched ready to cook pizza Utterly delicious Butter: Protect market share with price Curd: Alignment with other milk coops Dairy whiteners: Dominate with Amulya

1st sparks Aug 02 Mother Dairy cuts prices in butter war with Amul [05] NDDB -free sugar with its milk. GCMMF- discount on vanilla ice cream against purchase of Amul milk [Mar 06] GCMMF sold 2,000 tons skimmed milk powder to Mother Dairy [Mar 06] Amul-Rs 30 off on vanilla ice cream after returning the 30 empty pouches of Amul milk.[06] NDDB plans to import 10,000 MT skimmed milk powder to meet the domestic demand. [Sep 09] NDDB - 6,000 litre of milk @ Rs 330 per kilo fat to milk pourers (MPs) @ Surendranagar [ Oct 09]

 Capital structure Working capital Sources of capital Federation

Fix deposit of society Interest from bank like SBI, BOB, Share Capital of AMUL

 Less control over milch yield Cannot accommodate transport delays (perishables) Dependence on poor infrastructure for supply (roads, electricity etc) Increasing population , increasing requirement Adulteration Saturation point not far away Unorganized players Other dairy co-operative societies Competitors are companies, not bound by inherent obligations of co-operatives

 U.S.A, Nepal, South Africa, Kenya, Bhutan, Bangladesh, Thailand, Australia, and Gulf countries etc Prospective markets- Russia, UAE, Japan, Sri Lanka Agreement with Wal-mart Agreement with Glaxo Amuls growth rate in international market : ~34%

 Product improvisation -Amul basundi, gulab jamun, chocolates etc. Advertising Cable channels, newspapers etc. Strengthen liquidity and working capital Supply chain add-ons Venture into processed fruits and vegetables. Try nullifying threats