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þ 
 
r The Taste of India
r Down the memory lane
r A milky aim of success
r A milky business
r Amul milky facts
r Milk modeling
r Growth trend
r Amul competitors
r Introspection
r A milky Business Strategies
r Expansion Strategies
r A milk Retrenchment
r A distinction in a milk
r 4 P·S (Positioning, Place, Pricing, Promotion) Strategies
r Amul BCG Matrix
r Suggestion
=  
 

r Amul has spurred the D



of India, which has made India the largest
producer of milk and milk products in the
world.
r It is the world's biggest vegetarian cheese
brand .
r Amul is the largest food brand in India and
world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million
(2006²07)

  

!!

r Amul (Anand Milk Union Limited),

formed in 1946, is a dairy cooperative
movement in India.

r It is managed by Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF).

r AMUL is based in Anand, Gujarat and has been a sterling

example of a co-operative organization's success in the
long term. The Amul Pattern has established itself as a
uniquely appropriate model for rural development.

r Amul has spurred the White Revolution of India. It is

also the world's biggest vegetarian cheese brand.
þ 
   ""
r 2ision: ´Aim to liberate farmers from
economic oppression and lead them to
prosperity and also serve the interest of
consumers by providing affordable quality
products··

r Mission ² ´To have threefold increase to the

current group turnover of dairy co-
operatives of Gujarat of Rs 9600 Crores by
the year 2020µ.
þ 



To ensure that the maximum share of the consumer

rupee goes back to the milk producers.

Tapping the rising demand for new value added

products.

Expansion of distribution network

Installing bulk milk chillers and automatic milk collection

systems in all village co-operative societies
 þ 
|
# "
Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.79 million

No. of 2illage Societies: 13,328

Total Milk handling capacity: 11.22 million liters per day

Milk collection (Total - 2008-09): 3.05 billion liters

Milk collection (Daily Average 2008- 8.4 million liters

09):
Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day

|
 

$

r The Amul Model is a three-tier

cooperative structure.

This structure consists of a Dairy

Cooperative Society at the village
level affiliated to a Milk Union at
the District level which in
%

  " $ 
turn is further federated
into a Milk Federation at
the State level.
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r Britannia
r Nestle
r Nestle
%  $%)
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r Britannia
r Britannia
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r Cadbury
r Nestle
r Smithkline Beecham
r Heinz
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r Britannia
r Nestle
r Nestle
r Britannia
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r HUL

 
"

Strengths
‡Largest food brand in India
‡High Quality, Low Price
‡World's Largest Pouched Milk Brand
‡Annual turnover of US $1504 million
‡Highly Diverse Product Mix
‡Robust Distribution Network
Opportunities
‡Penetrate international markets
‡Diversify product portfolio to
enter new product categories and
expand existing categories like
processed foods, chocolates etc
Weaknesses
‡Risks of highly complex supply
chain system
‡Strong dependency on weak
infrastructure
‡Alliance with third parties who do
not belong to the organized sector
Threats
‡Competitors - Hindustan Lever,
Nestle and Britannia
‡Competition from MNCs in butter
‡Growing price of milk and milk
products
‡Ban on export of milk powder
|

1 $
‡ Amul adopted a low-cost price strategy to make its
2 %  products affordable and attractive to consumers by
guaranteeing them value for money

‡ Amul Butter, Milk Powder, Ghee,Amulspray, Cheese,

 "|/ Chocolates, Shrikhand, Ice cream, Nutramul, Milk
and Amulya

‡ Amul products are available in over 500,000 retail outlets

1
$0
 across India through its of over 3,500 distributors.
  ‡ 47 depots with dry and cold warehouses to buffer inventory of
the entire range of products

The vast and complex supply chain Hierarchical network of

 01


% 
 cooperatives Stretches from small suppliers to large
fragmented markets

="

$
Process technology & E -Commerce
 ã/


1 $

ã

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 | 
 
 " 


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$ "

%
" Amul with 4,500 APOs
‡ Expansion of competency at present is planning
 
 
 
based distribution.

 ", Edible oil ²
Adding manufacturing to create 10,000 APOs
‡ Educating Distributors on
Dhara, Mineral water- Jal unit at Puducherry by 2012.
marketing concepts through
Dhara and fruit drink- apart from
workshops on Sales & Increase the strength
marketing. Safal. Gandhinagar, Palanpur,
Anand and 2adodara in of their retail outlets
‡ Relaunching the brand in
Japan & Entering Gujarat, Nagpur and by adding another
Srilanka Market metros like Bengaluru, 15,000 outlets to their
Chennai, Kolkata and present network of
Delhi. 70,000 outlets by the
end of this year.
þ 

" 

r Amul parlors enabled direct interface with
customers and helped to eliminate middle men from
the supply chain.

r Scientific animal husbandry & efficiency of

operations, resulted in low cost of production &
processing of milk.

r Fertility improvement Programmes to improve

productivity
 þ
"

 

Globaly established-Mauritius,UAE, USA
Bangladesh, Australia, China, Singapore,
Hong kong & Few South African countries.

Strong Distribution Network

Successful Branding

Creative promotion
Pricing Strategies Differentiation

 

Customer based ²product mix

Modern Process Technology and
E-Commerce
þ / 
 "

$  

Dairy Products

Non Dairy Products

 

$þ 

Positioning of Amul is ´ Taste of Indiaµ
has created value for everyone in value
chain, be it customers or farmers.
r USP- Quality with affordability
r India·s first Pro ² Biotic Wellness Ice cream &
Sugar Free Delights for Diabetics
1$ 
 
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Women þ 
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Youth þ 
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Calorie Conscious 1 $  1 |
 
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Health Conscious þ 
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"
!
r Amul aims at quality products at low cost.

r Its entry into ice cream was successful due to the

large market share it was able to capture within a
short period of time - primarily due to the price
difference to the competitors

r Amul Pizza was launched at Rs 30/- compared to Rs

100/- to that of the competitors
 

Uses a variety of media to communicate

r Most famous is billboard campaign. Amul butter girl

is one of the longest run ad campaigns in the country
for 41 years.
r Amul food festival, are held for the last four year
between October and December in about 50,000
retail outlets.
r The Chef Of India promo invites hotel chefs to come
up with recipes using as many Amul products as
possible, and is conducted at city, state and national
level.
r Sponsoring popular TC shows«.
$

  
%K
!

Busines
s
growth
Rate

"#

! "#


 
|

1$$

What more can Amul do?
r There are certain product like Amul basundi, gulab
jamoon, chocolates, 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.

r A thought should be given to discontinue Amul Pizza.

r A T2 & Internet promotion can be thought off

considering youth as major target audience.
 
6
The White Revolution of India inspired the
notable Indian film-maker Shyam Benegal
to base his film Manthan (1976) on it. The
film starred Smita Patil , Girish Karnad,
Naseeruddin Shah & Amrish Puri.

The film itself was financed by over five

lakh rural farmers in Gujrat who
contributed Rs 2 each to the film'š budget.
Upon its release, these same farmers went
in truckloads to watch 'their' film, making
it a commercial success.

The film was chosen for the 1977 National

Film Award for Best Feature Film in Hindi.
Utterly«Butterly
delicious!!

Dhanyawaad!!