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Rahul avasthy

rahuldutt1@gmail.com

K j somaiya institute of
management studies and
researchm Mumbai
• AMUL means "priceless" in Sanskrit
• In millions of homes since 1946
• Turnover: Rs. 52.55 billion in 2007-08
Amul : A symbol of
 High-quality products sold at reasonable
prices
 Genesis of a vast co-operative network
 Triumph of indigenous technology
 Proven model for dairy development.
Gujarat Cooperative Milk Marketing Federation

India's largest food products marketing organization.


Intends to be largest food company in India.
State level apex body of milk cooperatives in Gujarat
Aims to provide remunerative returns to the farmers
Also serve the interest of consumers by providing quality
products which are good value for money.
Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.7 million

No. of Village Societies: 13,141


Total Milk handling 10.21 million litres per day
capacity:
Milk collection (Total - 2.69 billion litres
2007-08):
Milk collection (Daily 7.4 million litres
Average 2007-08):
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing 3090 Mts per day
BORN on 10th March, 1996 in
Gujarat
1997-Mumbai
1998- Chennai
2002-Kolkata and Delhi
Market share of 38% against
9%of HLL
January 2007, Amul
introduced SUGAR FREE & Pro
Life Probiotic Wellness Ice
Cream, which was a first in
Sales Forecasting
Methodology
Mostly based on the empirical
data

Trend Growth Analysis

Based on Industry Growth rate


Target Setting

• A relatively new • 200 million litres by


entrant industry, 2010 from 85 litres in
2007.
• Size of market: Rs.
2000 crores, • Parlours to increase
from 600 to 10,000 by
2010.
• Branded market : Rs
700 crore.
Territory Allocation

• Gut – feel, Cherry picking should be discouraged


– but is it?

• Recommended ways:
– Geographic distribution.
– Size of potential market.
Amul Distribution:
An extraordinary story
• Amul collects 447,000 litres of milk
from 2.12 million farmers (many
illiterate), converts the milk into
branded, packaged products, and
delivers goods worth Rs 6 crore (Rs 60
million) to over 500,000 retail outlets
across the country
Supply Chain at Amul

Out of the entire milk procured,


approximately 40 per cent is sold as
liquid milk and 60 per cent is
converted to value added products.

GCMMF = Gujarat Co-operative Milk Marketing Federation;


MUs = Member Unions; VCs = Village Co-operatives.
How Ice
Cream
Flows?
How Ice
Cream
Flows?
Manufacturing Units
Partners in Distribution

• 1200 distributors added in small


towns in India in 2007-08
• Number of Distributors in India -
6828
• Distribution through Cyber store
• Number of dealers in India - 3666
Assets in Distribution

• With 40 product categories


• 300 stock keeping units
• 47 depots
• 100,000 retailers with refrigerators
• a 18,000-strong cold chain
• 500,000 non-refrigerated retail outlets
• Decentralized facilities
Distribution Network

• Depots with dry and cold warehouses to buffer


inventory of the entire range of products
• Transacts on an advance demand draft basis
from its wholesale dealers instead of the
cheque system adopted by other major FMCG
companies
• Philosophy of maintaining cash transactions
throughout the supply chain
Distribution Network

• Wholesale dealers carry inventory that is


just adequate to take care of the transit
time from the branch warehouse to their
premises
• This just-in-time inventory strategy
improves dealers' return on investment
(ROI)
• All GCMMF branches engage in route
scheduling and have dedicated vehicle
operations
Policy regarding
unsold/spoilt goods

• If product crosses the shelf life, the


retailer bears the costs.
• If the product gets spoilt during the
transportation or if there is any
customer complaint, Amul bears costs.
• Unsold goods are not returned to the
manufacturer.
• No reverse logistics.
Marketing & Sales

Ice cream sales low in smaller towns.

• 3 pronged policy: – Price advantage


• Sourcing
– Expanding reach –
• Snowcap - ice cream mix-
• Promotion
• Amul Preferred Outlet -
Administered VMS.
– Innovations:
• Café Amul for urban centres
• Hybrid Model - • Pro-biotic ,
• Pro-biotic Sugar Free
Ice cream
Shortening the Channel

• Amul Parlours
– 2300 Amul Parlours in 2007-08
– Goal of setting up 10,000 outlets by
March 2010

• Web based ordering


Amul Parlours: A Glimpse

APO for Tier II cities

APO for Urban Centers APO for Rural Centers


Current Promotion
Strategies

• Promotion of healthy products


– Probiotic for diabetic
– Stamina Candy for young kids (with vitamin c)
• Cyber store- people can buy amul
products in over 100 cities.
• Amul stores- targeting campuses
Current Marketing
Strategies

• Bombard the consumers with variety


• Planning to open 10 outlets everyday.
• Planning to launch the biggest cone
available-180 ml
• Premium brick packs to target take home
segment
Rural Marketing
• Real Milk... Real Iceream..

Thank you!
Picture abhi baaki hai mere
dost!!
A glimpse into the longest running hoarding
campaign of all times...