Amul’s Ready to Eat Pizza

Presented by:-Rajnish Singh(A-53)Sanket Sharma(A-51)

Presented to:-Prof. Shahir Bhatt

Introduction

Amul is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

Revenue - $ 1.55 billion (USD).

Ready to eat Pizza was launched in 25 cities in July 2001.

The initial price of the pizza was Rs. 20, which made it an instant success.

“Innovation Marketing and focus on the masses are our core strength against our rivals.” B.M. Vyas, Former MD, GCMMF.

Strategy Used

Used “Teach and treat” classes.

Moitriyee Mukherjee, the food technologist, tasted pizza at all the major Fast Food outlets in Gujarat and learned different types of recipes.

Formed a team of 25 women and groomed them as Pizza trainers.

Armed with Amul’s pizza chesse, they spread out to 200 different cities all across the country.

In over 15,000 classes, “Amul taught housewives how to make Pizzas.”

Cont..

It was a project to test and create a market for the low priced pizza.

In Delhi alone, its 96 franchisee used to sell 50 pizzas a day on week days and 600 on weekend.

Amul planned to spread 3,000 outlets across 100 cities to sell three lakhs pizzas a day.

Their Strategy- “ We first study the strategies of our competitors and then devise our own strategy based on small innovations before launching a product.”

Objective

Pizza was smaller category than even Namkeens.

It was aimed at consolidation of its position in the chesse market further, where it already enjoys 75%of its total sales.

The dairy market was no longer protected. MNC were allowed to enter the sector.

High competition from Britannia, Le Bon, Nestle, Laughing Cow, Kraft.

Initial success of Pizzas and good margins( Rs. 8 per pizza) means that they may be able to recover the cost in about two months.

Market thrust strategy

Selling 6 inch pizza at Rs. 20 created immense opportunity for the company.

To introduce Swadeshi tang, the company provided recipe book to all the franchisee holders prepared by Amul.

The investment by retailer was Rs. 3,500.

Mozzarella chesse introduced by Amul was the best suited for the pizza.

The 70000 pizzas sold around 150 outlets across the country is expected to increase dramatically.

Downfall

Introduction of new items like Parathas, matar paneer and paneer pakoras.

Goof ups with the new brand Snowcap rather than Amul brand.

Mostly, when the mother brand is very successful, then the company should extend the brand name.

Amul should have used its own brand name.

Snowcap resembles to cool and calm but not hot, fresh and tasty.

The staff serving pizza well not served properly.

Cont.. Knock out punch by competitions

Pizza hut has 137 franchisees all across the country.

The other fast food chains made tie ups with other big brand. Eg. Pizza hut with Pepsi.

The concept of Tandoori Pizza or Pan India Pizza introduced by Pizza hut.

Pizza hut provided great services and experiences to the customer with wide range of offering and inviting ambience.

Dominos has more than 200 stores in every major metros.

It worked on 3-tier model serving to all the classes of the society.

It established the reputation of home delivery specialist. Capable of delivering pizza in 30 minutes.

It started happiness hotline, was first one to start this facility for the customer.

Questions

Is there a problem of absurd assumption of competencies that is being faced by the company?

Is the right kind of brand building emerging through these efforts? How far can you stretch a brand across categories?

In the case of ready to eat pizza in particular, is it the execution that failed the company or the plan to enter value added services in a big way that caused the downfall?

THANK YOU