Report Assignment On Amul: Submitted To:-Dr. Vijay Ghalawat
Report Assignment On Amul: Submitted To:-Dr. Vijay Ghalawat
Report Assignment On Amul: Submitted To:-Dr. Vijay Ghalawat
COMPETITION AND EXPORT:In January 2006, Amul plans to launch India's first sports drink
Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's
Gatorade Amul is the largest food brand in India with an annual turnover of
US $868 million (2005-06). Currently Amul has 2.41 million producer
members with milk collection average of 5.08 million litres/day. Besides
India, Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African
countries. Its bid to enter Japanese market in 1994 had not succeeded, but now
it has fresh plans of flooding the Japanese markets. Other potential markets
being considered include Sri Lanka.
REVOLUTIONARY WORK:In 1996 Amul was one of the first major organizations in India
to have a website. This site has been used both to develop an intranet of Amul
distributors as well as a cyber-store for consumers, one of the first examples
of e-commerce activity in India. The CEO of Amul, Mr. B M Vyas, recently
said, "Amul is not a food company, it is an IT company in the food business".
He was recognizing that the most efficient way of building links between milk
producers and consumers so as to provide the best returns for both is through
IT innovation.
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SITUATION OF FARMERS:Over five decades ago, the life of an average farmer in Kheda
District was very much like that of his/her counterpart anywhere else in India.
His/her income was derived almost entirely from seasonal crops. The income
from milk buffaloes was undependable. Private traders and middlemen
controlled the marketing and distribution system for the milk. As milk is
perishable, farmers were compelled to sell it for whatever they were offered.
Often, they had to sell cream and ghee at throw-away prices. In this situation,
the private trader made a killing. Gradually, the realization dawned on the
farmers that the exploitation by the trader could be checked only if they
marketed their milk themselves. Amul was the result of the realization that
they could pool up their milk and work as a cooperative.
drying and processing buffalo milk, developed by Mr. H.M. Dalaya, was one
of the key factors that contributed to the Revolution.
make the farmer or the producer understand how to provide service to the
consumers with the only resource available with them i.e. milk a perishable
one. The prominent display of picture states the message NEVER FORGET
YOUR CUSTOMER. IF YOU DONT SUCCESS IS CERTAIN
At the time Amul was formed, consumers had limited
purchasing power, and modest consumption levels of milk and other dairy
products. Being a co-operative organization Amul adopted a low-cost price
strategy to make its products affordable and attractive to consumers by
guaranteeing them value for money. Amul also introduced higher value
products. Beginning with liquid milk, Amul enhanced the product mix through
the progressive addition of higher value products while maintaining the
desired growth in existing products.
Despite competition in the high value dairy product segments
from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures
that the product mix and the sequence in which Amul introduces its products
is consistent with the core philosophy of providing milk at a basic, affordable
price.
AMUL PRODUCTS
AMUL means "priceless" in Sanskrit. The brand name "Amul,"
from the Sanskrit "Amoolya," was suggested by a quality control expert in
Anand. Variants, all meaning "priceless", are found in several Indian
languages. Amul products have been in use in millions of homes since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese,
Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. (Turnover: Rs.
37.74 billion in 2005-06). Today Amul is a symbol of many things of highquality products sold at reasonable prices of the genesis of a vast co-operative
network of the triumph of indigenous technology of the marketing savvy of a
farmers' organization. Amul represents a proven model for dairy development.
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720
kcal./100g.
Unlike Butter & Margarine, Amul Lite is a low-fat, lowcalorie & low-cholesterol bread spread, hence a healthier substitute. It
contains 26% less fat and calorie content as compared to butter or margarine.
This product is specifically prepared for diet considering population. It is
considered as healthier substitutes as it contain 26% less fat and calorie. Helps
to maintain slim and trim without sacrificing. Amul lite is suitable for old age
people as the heart disease chances are been reduced. It contains Omega-6 and
Omega-3. It helps to maintain healthy and cholesterol levels are kept at
minimum. This product is certified by AGMARK for quality. Tastes best with
toast, sandwiches and bread. It can also be used for topping on paranthas, paav
bhaji, pulav, khichadi, and soups and also for household baking, preparation
of cake etc.
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9. Mithai Mate
Milk, Total Milk Solids, Fat, Added Cane Sugar, Partly Skimmed Sweetened
Condensed Milk, Total Milk Solids, Fat, and Added Cane Sugar. It is a free
flowing product and has a pleasant flavour. The product can be used to
manufacture Ice Creams, Confectioneries like Toffees, Biscuits and Sweets. It
Meets BIS standards: IS: 1166.
10.Amul Shrikhand
11.Masti Dahi
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acidity, protein etc. Calories present are per 100 ml -196.7 kcal Various
verities of Ice Cream can be made from the basic mix by addition of required
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amount of permissible colors and flavour. Dry fruits and nuts would be used
for making premium varieties of Ice Cream. Various flavors of Amul icecream are as follows:Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-DewMelon, Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch,
Chocochips, Rajbhog and Cashew Break.
13.Amul Mithaee
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15.Amul Chocolates
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Total Fat (Milk Fat + Cocoa Fat), Cocoa Solids, and Milk Solids and meets all
requirements under the PFA for boiled sugar confectionary.
16.Amul Basundi
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17.Nutramul
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Does he have the ability to pay back? Recently a news channel showed a
mutual fund agent giving discounts to a client from his brokerage. What does
that mean? It simply means that we are not practicing marketing. We are just
selling....
Many business gurus are saying that, customers are the god
or king of the market. It can be understood from the fact that the customer is
not the king as the companies want the consumer to be loyal. The real fact is
that no company regard customer as the king. Everyone in the market cares
about the money. Marketing is creating and exchanging goods of value
between company objectives are achieved in that process. So what is
happening now is this exchange process. Marketers tried to attract
customersby treating them well and thus came the cliche customer is the
King". It is only economics in play. It is now the choice of the customer that
whether he wants himself to be treated as a king (and pay for it).
After realizations of the big issue Amul stated to make the
marketing and sales promotion strategy to overcome the problem. Amul is the
largest co-operative movement in India with 2.2 million milk producers
organized in 10,552 co-operative societies in 2003-2004. The country's largest
food company, Amul, is the market leader in butter, whole milk, cheese, ice
cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul
follows a unique business model, which aims at providing 'value for money'
products to its consumers, while protecting the interests of the milk-producing
farmers who are its suppliers as well as its owners. Despite being a farmers'
co-operative, Amul has given multinationals a run for their money. In butter,
cheese and saturated fats, Amul has remained the undisputed market leader
since its inception in 1955, by offering quality products at competitive prices.
In other categories, Amul has nullified its late mover disadvantage through
aggressive pricing, better quality, innovative promotion, and superior
distribution.
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4PS OF AMUL COMPANY:a) PRODUCT:Tracks consumer needs & their changing lifestyles, &
accordingly develops products to suit their needs. Product quality
plays a paramount role & so does packaging.
b) PRICING:The main USP of Amul brand is its low pricing. It hits
at the transnationals by reducing its prices on its product portfolio. The
competitive advantage is its backward integration strategy, which
helps substantially in cost reduction.
c) PLACE:Any food company requires a dedicated cool chain
network. Amul boasts of the largest cold chain network (18000
refrigerators) in India, as compared to any other company. It is
surprising to note that it sells pizzas in rural markets too!
d) PROMOTION:Amul spends very less on its advertising budget, but
spends it very effectively. It has the power of an umbrella brand Amul,
which is highly respected brand name & enjoy the trust of 1000
million households. Thank to its brand mascot, the Amul girl, the cooperative has been able to get away with spending just one per cent of
its revenues on advertising. In contrast, its competitors spends
anywhere between 7 to 10 per cent on advertising. Amul positioning is
Value for Money. It uses the services of Da Cunha Associates &
FCB Ulka for its advertising efforts.
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Advertising:-
being the longest running ad campaign ever. Sylvester daCunha, was the
managing director of the advertising agency, ASP, that created the campaign
in 1967 whose charm has endured fickle public opinion, gimmickry and all
else.
Mascot
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Amul products, she has also been for other product like ghee and milk. She is
probably one of the most enduring mascots in the world.
closer to the customer, Amul have decided to create a model for retail outlets,
which would be known as "Amul Preferred Outlets"(APO).
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CADBURY
HINDUSTA
N LEVER
NESTLE
AMUL
PIZZA COS
BRITANNIA
HLL
Focusing on lower price
points
Building a national
chain of ice-cream
parlours
NIRULAS
Fortifying Delhi-centric
presence with ice-cream
only retail chain
2. CHOCOLATES / CONFECTIONERY:AMUL
HLL
Launching a
Extended Max
puffed-rice
brand to sugar
centered bar
confectionery
Launched milk
/ chocolate
confectionery
Planning to
enter valueadded
CADBURY
NESTLE
Re-launched 5
Soaring up
star and gems
market
Launched
share to
Temptations
Kitkat
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segments
3. PIZZA:AMUL
Entering the
ready- to-cook
consumer
segment through
Utterly Delicious
NIRULAS
Fortifying Delhicentric presence,
by launching
frozen ready-tocook pizza
PIZZA-HUT
Plans to
increase , to 100
outlets in the
next three years
DOMMINO
Closing down
unprofitable
outlets
NESTLE
Creating entry barriers for amul
through price and cross promotions
5. CURD:AMUL
Expanding reach by
aligning with other milk
co-operatives
NESTLE
Means to compete its
dairy range
MOTHER DAIRY
Leveraging its liquid
milk distribution
network in Delhi to sell
curd
NESTLE
Part of dairy strategy
BRITANNIA
Focusing on flavoured
high margin UHT
markets
Plans to capture key
markets
7. DAIRY WHITENERS:27
AMUL
Wants to dominate market through
Amulya
BRITANNIA
Focusing on the geographical market
with milkman
8. BUTTER:AMUL
Plans to protect near
dominance in low
margin market with
price
NESTLE
An outsourced product
to complete dairy range
BRITANNIA
Focusing on flavoured
high margin UHT
markets
Plans to capture key
markets
NESTLE
Holding prices of milkmaid and
heavily cross promoting the product
10. CHEESE:AMUL
Wants to create institutional market
for its mozzarella cheese
NESTLE
Focusing on top A and B class outlets
and seeking to maintain its leadership
in cheese slices
BRITANNIA
Moving from frozen to refrigerated
paneer
CADBURY
SMITH-KLINE
BEECHAM
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Re-launched Bournvita
recently
EXPORT
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 9 years.
The major export products are:
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Consumer Packs:
Amul Butter
Amul Shrikhand
Amul Cheese
Bulk Packs:
Many of our products are now available in the USA, Gulf Countries and
Singapore.
CONCLUSION
Amul plans to be a leader in food business. This 3458 crore cooperative is planning to foray in restaurants, ready-to-eat curries etc. it also
plans to launch ready to drink coffee and tea. The plan of this co-operative is
to make Amul, Indias best known food brand and also to garner a sizable
marketplace in 30 countries wherein its products are exported to. The brand
should not be known in milk, butter & cheese but as a food brand. Its
numerical target, a turnover in excess of Rs. 10000 crore by 2006.
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