Amul (Anand Milk Union Limited)

Presented By : Group 7

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

A brand name managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

Jointly owned by 2.6 million milk producers in Gujarat

Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries
Fresh plans of flooding the markets of Japan & Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.
On 10 Aug 2006 Parthi Bhatol was elected chairman of GCMMF

The white revolution has finally created a billion-dollar brand.

OPPORTUNITIES: Subscription Revenues to Annual Turnover Of Rs 4300 Crore (2006-07) Drive Industry Growth; Mobile TV Added Channel
Rs 10,000-crore mark over the next three years. Four decades to become Rs 2,000-crore entity But, the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007

Annual Turnover
10000 8000

10000

INR Crores

6000

4300
4000

2000
2000 0 1946 1999 2007 2008 2009 2010 Time Frame

Business Model
Every day Amul collects 7 million litres of milk from 2.6 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country. Its supply chain one of the most complicated in the world.

Raw Milk

Condensed Ghee Butter Cream

Packaged Milk

Dried Skimmed Milk Powder

Ice cream Beverages

Developing demand - limited purchasing power, modest consumption levels - a low-cost price strategy products The distribution network - dry and cold warehouses - cash transactions throughout the supply chain - JIT improves dealers' return on investment (ROI Umbrella brand - common brand for most product categories - Amul's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks - Safal Third party service providers - core is milk processing , production of dairy products - logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores

AMUL defending its turf

Largest milk brand in Asia marketing more than 30 different brands of dairy products like cheese, ice-cream, condensed milk, ready-to-eat pizza, beverages etc. Amul is the market leader in ghee and butter Amul Kool and Kool Caf doing well Defending against names like Mahananda, Vijay, Milma and other co-operative milk brands Aggressive moves against FMCG and F&B brands like Britannia, Nestle and Mother Dairy among others..

Defense Strategy
Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages, all available under the Amul brand) A sound strategy likely to work. Being exposed to a brand, it is natural for a customer to try more products Improving socio-economic condition of the customer anchors the desire to enhance lifestyle

Segmentation
Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Caf, as it has a cool imagery associated with it. Segmentation is not as easy in curd and low fat products, due to mixed audiences, various culinary applications , eg. ghee, butter and cheese. In India, the most used spread is ghee, then butter, cheese, low fat butter, margarine, cheese spread and mozzarella cheese.

Targetting
Changing retail environment Striking out on its own, with Amul Outlets or parlours to deliver consumers total brand experience Launched in 2002, there are now 400 Amul parlours across the country, which contributed 3% to the brands total turnover last year. High profile locations: Amul parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat.

Positioning
A mass market player, no premium offerings USP Quality with affordability Up against niche players value addition to customers Sheer size and scale of operation New offerings for health conscious and vibrant India

Health and energy drinks Stamina, a health drink made from milk with added vitamin C against Red Bull and Gatorade, milk better than cola. Aimed at youngsters, priced at Rs 12
Ice-cream Probiotic and sugar-free variants Chocolates sugar-free brand called Choco-Mini to target the diabetic

Promotion
Given this wide product portfolio, Amuls approach is to promote its brands in a rotational cycle of two to three years. After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable. The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko cold chocolate drink

Promotion
Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various issues increased brands fan following. Below-the-line activity has grown too such as the Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets. 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.

Intelligent Marketing
One of the most conservative FMCG entities GCMMF spends a mere 1% of its turnover on promotions. GCMMF has written and re-written rules of the game. Amul butter girl is one of the longest run ad campaigns in the country for 41 years. Intelligent marketing of milk, icecream and butter milk.

Amul milk
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is drawing up a fresh game plan for its flagship brand 'Amul Fresh Milk, its main rival is mother dairy India On Amuls future plans, Amul is expanding their processing and packaging capacity to meet growing demands eg delhi & Mumbai. In a bid to pump up volumes, Amul is also extending its distribution network to reach new markets. "Our core strategy is to further consolidate our operations in existing markets which includes Kolkatta along with beefing up advertizing &marketing actions. Incidentally, Amul is selling its packaged milk brands on the Net too. Mother dairy is working on similar grounds and increasing its reach and both the giants are trying to capture large packaged milk market.

Expansion to foreign shores

Gujarat Cooperative Milk Marketing Federation had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.

50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and thirdgeneration Indians, offering low-fat versions of its brands, would make a lot of commercial sense.
Hence targeting the large Indian community in the US markets with its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.