Presented by: Abhilasha Gupta (33) Aniket Sengar (47) Ekta Nandrayog (32) Niharika Singh (57) Saurabh

Sheth (53) Shelani Agarwal (03)

Amul
Sales & Distribution Study

Overview
The Brand Amul is owned by The Gujarat Cooperative Milk Marketing Federation. GCMMF is Largest Food Products Marketing organization of India, with a revenue of $1.5 Billion. It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India. White revolution of India was an initiative under the Umbrella of Amul. Amul sells its products around the world in 40 countries.

Key Elements of Business Model

Operations that are low cost, high quality and high efficiency (Competitive Edge).

Strict margins at retail and distribution ends, utilizing economies of scale to remain competitive.
High Sharing of profits with Farmers, to develop long-term relationships with them.

Product Classification DIL

D
Dairy Products Butter Cheese VHT Kool

I
Ice Cream

L
Liquid Milk

Frozen Paneer

Amul has a wide range of products:

Cheese Amul Pasteurised Processed Cheese Amul Cheese Spreads Amul Emmental Cheese Amul Pizza Mozzarella Cheese Gouda Cheese Powder Milk Amul Spray Infant Milk Food Amul Instant Full Cream Milk Powder Sagar Skimmed Milk Powder Sagar Tea Coffee Whitener Amulya Dairy Whitener Health Drinks Nutramul Amul Shakti Health Food Drink For Cooking Amul/Sagar Pure Ghee Cooking Butter Amul Malai Paneer Utterly Delicious Pizza Mithai Mate Masti Dahi Pro-Biotic Dahi

AMUL

Product Portfolio

Bread Spreads Amul Butter Amul Lite Delicious Table Margarine

Milk Drinks Amul Kool Milk Shaake Amul Kool Amul Kool Cafe Kool Koko

Fresh Milk Amul Fresh Milk Amul Gold Milk Amul Taaza Double Toned Milk Amul Lite Slim & Trim Milk Amul Fresh Cream Amul Shakti Toned Milk Amul Calci+ Amul Buttermilk

Desserts Amul Ice Creams Amul Shrikhand Amul Mithaee Gulab Jamuns Amul Chocolates Amul Basundi Amul Yogi Yoghurt

Nutramul Energy Drink Amul Kool Chocolate Milk Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack Amul Kool Masti Spiced Buttermilk Amul Lassee Amul Kool Thandai

The Supply Chain

Dairy cooperative society at village level

Milk union at district level

Milk federation at state level

Village Dairy Cooperative Society (VDCS)

Collection of surplus milk & payment based on quality & quantity.
Providing support services to the members. Selling liquid milk for local consumers of the village. Supplying District Milk Union milk to the

Member Unions or Depots

Procurement of milk from the VDCS Providing input services to the producers. Conducting training on Cooperative development Providing management support & regular supervision to the VDCS. Establish Chilling Centers & Dairy Plants for processing the milk. Selling liquid milk & milk products within the District. Process milk into various milk & milk products. Decide on the prices of milk to be paid milk producers.

to

Corporate Office Functions

Marketing of milk & milk products Establish distribution network Arranging transportation from the Milk Unions to the market. Creating & maintaining a brand Providing Technical Inputs, management support & advisory services. Decide on the products to be manufactured at various Milk Unions (productmix) Conduct long-term Milk Production, Procurement, Processing & Marketing Planning Conflict Resolution & keeping the entire structure intact

Procurement Network
An average of 1,000 Farmers sell milk at a Local Cooperative society. Each Farmer has plastic cards for identification. The Identification Number is fed into a computer. The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. The Computer then calculates the amount due to a farmer on the basis of the fat content in the milk. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.

Policies
Regarding Rural market: No different policy for Rural Market. Differential Prices: Most of the Amul product has lower prices in state of Gujarat due to less transportation cost. Unused Milk: Milk, once, supplied to retailer is not taken back. Retailer uses the unused milk after Best before date for making other dairy products such as Paneer, etc.

Margins

Sales Forecasting
Retailer Forecasting. Backend Data. Festivals and Special Occasions. Seasonal demand.

Distribution and Dealers

Distribution Channel From the manufacturing units to the retailers. Amul products are available in over 800,000 retail outlets across India through its network of over 5,000 distributors. First Leg From manufacturing units to Depots: Amul has 65 depots across major cities of India. Second Leg From Depot to Wholesale Dealers: Amul has a network of over 5000 distributors . The margins offered to the distributors range between 3-5%.On every crate there is a margin of Rs 5.5 .No volume discounts to distributors, prices are fixed. Wholesaler incentives yearly set group targets, on achieving which they get some amount on every additional kg sold. Third Leg - This is the flow of good from WDs to retailers, a beat plan is prepared and transportation is done on auto-rickshaws, rickshaws and bicycles.

Distributors : Rohit and Co. (Ghatkopar , Tilak Nagar, Vidyavihar)

Day Schedule

Different schedules for both Tetra pack and pouch milk

Profit Margins and Expenses

Sales (in value and volume), Gross Profit, Net Profit Expenses Staff , Rent (warehouse + delivery vans) , Electricity Bills

Man Power and storage facility

Staff and Roles Cold Storage and warehouses : FIFO

Training and Motivation

1 day long Product Launch Conference Motivation : Amul-The Brand

Communication & Advertising

Corporate campaign: The Taste of India Amul butter girl is one of the longest run ad campaigns in the country (44 years!!!) Umbrella Branding Institutional Advertising Promotion budget
Mere 1% of its turnover

Communication & Advertisements

Controversial issues and Social Messages Amul Greetings Newsletter and publication Competitions , Recipes, Cricket Rankings

Outdoor
Broadcast Non-broadcast Print

Hoardings/billboard

Television

Cinema Newspaper General interest magazine Independent website Social Networking Sites

Internet Media

BILLBOARD ADS

Special Thanks To
Mr. Arindam Chatterjee, Depot Manager, GCMMF, Mumbai. Mr. Girish Bhatol, Executive (Sales), GCMMF, Mumbai M/s. Rohit and Co., Distributor (Amul Products), Vidyavihar and Ghatkopar Region.

Thank you for your Patience