Presented

by :

DIVYA BODDU
09020242007
SIIB MBA - AB
 BIRTH OF
• 1929
AMUL
ü Peston EdulPolson established Polson Model
Dairy at Anand to manufacture butter,
ghee and casein.
• 1944
ü Inauguration of Bombay Municipal
Corporation Milk Supply. Monopoly rights
were awarded to Polson for Procuring
milk from Kaira.
• 1946
ü KDCMPUL formed to counter exploitation by
Polson’s Dairy (Anand)
And so did GCMMF and brand Amul

correspondingly
andit Jawaharlal Nehru , Indira Gandhi , Morarji Desai and others at th

Amul Dairy , Anand

[ today ]
 AMUL
FACTFILE
• 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
AMUL -
LOGO
PORTE
R’S 5
FORCE
S
 3 C’S MODEL
anda, Vijaya, Milma, and other cooperative milk brands
üAre extremely satisfied
t Britannia, Nestle, Mother Dairy, Kwality üMoved from loose milk to package
üReady to try more products
üImproved socio-eco conditions

Cu
it

r
st
et

om
mp

e
Co
r

Company

üLargest milk brand in Asia

üMore than 30 dairy brands
üMarket leader in ghee and butter
üVery strong supply chain
üEnjoys fine reputation
üQuality with affordability
AMUL’S SUCCESS
Sales Turnover Rs ( million ) US $ ( in million )
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
AMUL’S SUCCESS
q GCMMF bags APEDA AWARD for
11th year in a row [‘06-’07]


q Amul Pro-Biotic Ice-cream Gets

The International Dairy
Federation Marketing Award At
World Dairy Summit [2007]


q Ramkrishna Bajaj National Quality

Award [2003]


q Amul - The Taste Of India (GCMMF)

Receives International Cio 100
Award For Resourcefulness
[2003]

AMUL’S REASON
FOR SUCCESS ROBUST SUPPLY CHAIN

LOW COST STRATEGY

DIVERSE PRODUCT MIX

STRONG DISTRIBUTION NETWORK

TECHNOLOGY AND e - INITIATIVES

BRAND VALUE OF AMUL

 

State Marketing Federation



A
 All dairies in a State (GCMMF in Gujarat)
 22 State Federations in India P

A
N 


District Milk Processing Unions T

A 
 Every district in the state
12 district unions in Gujarat
170 unions all over India
T
N E


D 


Village Co-operative Societies R




All villages in a district
72,774 villages in India N


 Milk Producers
SBU S OF AMUL
BCG MATRIX OF
AMUL
 PRODUCT
PORTFOLIO
 SERVICES
RENDERED
ØVeterinary Services


ØPelleted Cattle Feed



ØEducation on Animal Husbandry



ØFacilities for Artificial Insemination



ØGenetic improvement of indigenous

cattle

 AMUL’S STP
• Segmentation
ü Consumer based
ü Industry based
ü Not so easy
• Targeting
ü Amul parlours
• Positioning
ü A mass market player, no premium
offerings
ü USP – Quality with affordability
ü “Amul” as “Taste of India” - creating
value
ü New offerings for health conscious and
 INTEL
MARKETING-
TOPICALS
• 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!!!
 ROTATIONAL
PROMOTION
STRATEGY
Ø Amul Ice-cream 1996
Ø Category re-visited in 1999
Ø Amul Cheese in 2001
Ø Amul Masti Chaas in 2004-05
Ø Nutramul and Kool Kafe in 2006
Ø AmulKoko — cold chocolate drink in
2009
•
 OTHER
PROMOTIONAL
STRATEGIES
AMUL’S SUPPLY
CHAIN
AMUL PARLOURS
• "Amul Utterly
Delicious"
parlours.
• Ahmedabad,
Bangalore,
Baroda, Delhi,
Mumbai,
Hyderabad and
Surat.
• Prominent
 SUPPLY CHAIN
ADD-ONS
• ERP initiatives ‘94
• Tata Consultancy Services
• Implementation project - Enterprise- wise Integrated
 Application System (EIAS).
• AMCUS – automate milk producers logistics.
• Zonal offices, regional offices and member’s dairies -VSATs
• Geographic Information Systems (GIS)
• IIM A supplemented Amul’s IT - Dairy Information System
Kiosk(DISK).
• www.amul2b.com
• Plans to introduce Internet banking services and ATMs
 PRICING -AMUL
• Decided by the GCMMF by conducting
market


• Price is inclusive of several elements like,

ü Cost of milk.
ü Labour cost.
ü Processing cost.
ü Packaging cost.
ü Advertising cost.
ü Transportation cost.
ü Sales promotion costs.
ü Taxes etc.
 TASTE OF
COMPETITION
T.O.C
 T.O.C –
STRATEGIES
• Ice cream: Amul parlours; launched
“Fundoo” to combat HUL’s Max
• Pizza: Launched ready to cook pizza
“Utterly delicious”
• Butter: Protect market share with
price
• Curd: Alignment with other milk
coops
AMUL - NDDB
•
TWIST
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]
 FINANCE
MATTERS !
• Capital structure
• Working capital
• Sources of capital
ü Federation
ü Fix deposit of society
ü Interest from bank like SBI, BOB,
ü Share Capital of AMUL
•
 WEAKNESSES &
THREATS
• 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
 AMUL GOES
GLOBAL
• 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
• Amul’sgrowth 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
THANK YOU