PRESENTATION ON

PRESENTED TO:-PROF .ROSE JOHN

PRESENTED BY:-SUNEET HEREKARANIKET SALVIMANISHA MORESANDESH BHIRADERACHIT JAJOO PRAGATI KEDAR

ROLL NO. NAME OF MEMBERS TOPIC NAME

134 SUNEET HEREKAR Introduction, History

121 ANIKET SALVI Growth Rate & Business Model, Diverse Product Mix

128 SANDESH BHIRADE The 3 C’S ModelMix… Product for every one

98 MANISHA MORE Amul CompetitorsAMUL – PRODUCT PORTFOLIOSWOT Analysis

124 RACHIT JAJOO BCG Matrix & The BCG Growth- Share Matrix

101 PRAGATI KEDAR 4 P’s of marketing,Advertisement,Reasons For Success, Amul is going globally,Conclusion

Amul (Anand Milk Union Limited)

WORLD’S BIGGESTVEGETARIANCHEESE BRAND

WORLD’SLARGESTPOUCHEDMILK BRAND

WE WILL MISS YOU MILK MAN OF INDIATHANK YOU FOR GIVING US HAUSLA, PRAGATI AND ANAND

REST IN PEACE TO HONORABLE DR. VERGHESE KURIEN BY OUR GROUP MEMBERS

IntroductionHistoryGrowth Rate & Business ModelDiverse Product MixThe 3 C’S ModelMix… Product for every oneAmul CompetitorsAmul – product portfolioSWOT AnalysisBCG Matrix & The BCG Growth- Share Matrix4 P’s of marketingAdvertisementReasons For Success Amul is going globallyConclusion

FLOW OF PRESENTATION

IntroductionFormed in 1946, is a dairy cooperative movement in India with 250 liters of milk per day with name KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION.•A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).•The brand name Amul means “AMULYA” (suggested by a quality control expert in Anand). This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”.

HISTORY •Amul has spurred the white revolution of India, which has made India the largest producer of milk and milk products in the world and the White Revolution has finally created a billion-dollar brand.•Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world , which is matter of proud for Gujarat and whole India.•Amul has more than 150 chilling centers in various villages.•Dr. Varghese Kurien, former chairman of the GCMMF – the man behind the success of Amul.

Annual Turnover

4300

10000

2000

0

2000

4000

6000

8000

10000

1946 1999 2007 2008 2009 2010

Time Frame

INR

Cro

res

CAGR: 32%

Annual Turnover Of Rs 4300 Crore (2006-07) Rs 10,000-crore mark over the next three years. Four decades to become Rs 2,000-crore entity But, the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007

Growth rate

Business model

Every day Amul collects 7 million liters of milk from 2.6 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country.

Its supply chain one of the most complicated in the world.

Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya

11

Diverse Product Mix

The 3 C’s…

Customer

Company

Competitor

•Customers extremely satisfied•Moved from loose milk to •packaged milk•Ready to try more products•Improved socio-economic conditions

•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

•Defending against Mahananda,Vijay, Milma & other co-operative milk brands

•Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality

Mix… Product for every one

o Amul never forget its “primary customer” - Amul collects 7 million liters of milk from 2.6 million formers(many ittiterate)

o Product for youth - Amul launches Chocolate milk under brand name “AMUL KOOL KOKO” targeting the youth

o Product for diabetic people -India’s First pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

Mix… Product for every one

oProduct for the healthconscious - Amul Launched “low fat, low cholesterol bread spreads”

oProduct for the pricesensitive India - Low Priced Amul Ice Creams andaffordable ‘sagar’ whitener

oProduct for the urban class - Amul launched emmental,gouda and pizza mozzarella cheese

AMUL COMPETITORS

85%

AMUL – PRODUCT PORTFOLIO

Category Market Share Market Position

Milk Powder

Chocolate Drink

Cheese

Butter

Sweets

Ice- Cream

Chocolate

24.75% (HUL-28.22%,Mother Diary- 8.66%)

1

1

1

2

1

1

3

50%

50%

90%10% (Cadbury- 70%)

40%

SWOT Analysis

Strong dependency on weak infrastructure & completely

dependent on villages for its raw materials

Risks of highly complex supply chain system

Short self life of its ProductsAlliance with third parties who do not belong to the organized sector

Largest food brand in India & Asia High Quality, Low Price

Introduced TQMWorld’s Largest Pouched Milk

Brand Annual turnover of 4300Crore(2006-07)

Highly Diverse Product MixRobust Distribution Network

strength

weakness

Penetrate international marketsDiversify product portfolio to entre new products categories and expand existing

categories like processed foods, chocolates etc.

Use internet to sell its productsCompetitors- Hindustan lever, Nestle,

Britannia and Local playersStiff competitions from MNC’s in butterGrowing price of milk and milk products

Ban on exports of milk powderThe yield of India cattle still much lower than

other dairy countries. Threats

Opportunities

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 product are classified as low or high performers depending upon their market growth rate and relative market share.

WHAT IS BCG MATRIX?

THE BCG GROWTH-SHARE MATRIX

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. 20

Star are leaders in business.They also require heavy investment, to maintain its 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.

STAR High growth, High market share

Most businesses start of as question marks.They will absorb great amounts of cash if the market share

remain unchanged, (low).Question marks have potential to become ater and eventually

cash cow but can also become a dog.Investment should be high for question marks

QUESTION MARKS High growth, LOW market share

They are foundation of the company and often the star 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.

CASH COWS LOW GROWTH, HIGH MARKET SHARE

Dogs are the cash traps.Dogs do not potential to bring in much cash.Number of dogs in the company should minimized.Business is situated at a declining stage.

DOGSLOW growth, LOW market share

AMUL - BCG MATRIX

Amul Ice- Cream

Amul chocolate

Amul butter

Amul chocolate drink

Low

Amul cheese

High

Business growth rate

Low

High

Relative Market Share

4 P’S OF MARKETING1. PRODUCT

4 P’S OF MARKETING2. PLACE

Cost of milk.Labor cost.Packaging cost.Processing cost.Advertisement cost.Transportation cost.Sales promotion cost.Taxes etc.

4 P’S OF MARKETING3. PRICING

Uses of variety of media to communicate. Most famous in bill board Amul Butter girl is one of the longest run ad Campaign using like Amul star voice of India.

4 P’S OF MARKETING4. PROMOTION

AMUL’S CREATIVE ADVERTISEMENTS

BASED ON MOVIES

MOVIES

BASED ON POLITICS

BASED ON CRICKET

GIVING SOCIAL MESSAGE

EXTRA PICTURES

Success factor of

Amul

Test & Trust

Easy Availability

Product diversification

Use updated Technology

Promotions

Pricing Strategy

Reason for success

Amul is going globally…..GCMMF has signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, shrikhand, Nutramul, Amul’s Mithaee Gulab Jamuns are few of the products marketed in US markets.

50% of Americans being medically obese & if Amul is really looking to capture the hearts of the 2nd and 3rd of Indians, offering low-fat versions of its brands, would make a lot of commercial sense. Hence targeting the large Indian community in the USmarkets with its niche products like Mithai, Packaged ready to eat foots market, it can definitely expand its market to a large extent.

Overseas markets- Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malaysia , Nepal, Pakistan, Hong Kong and a few South African countries.Fresh plans of flooding the markets of Japan & Srilanka.Tie up with Glaxo to sell baby food…

Conclusion 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, chocolates 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 via cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

THANK YOU…ANY QUESTION????