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Section: S3
Group Number: 05
Group Members:
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Table of Contents
Company Overview ............................................................................................................................... 3
Trivial Strategy ...................................................................................................................................... 4
Low-Cost Price Strategy ..................................................................................................................... 4
Defense Strategy ................................................................................................................................ 4
Successful Brand Strategy .................................................................................................................. 4
SWOT Analysis ..................................................................................................................................... 5
GE/McKinsey Growth Matrix ................................................................................................................ 5
Porters Five Forces ............................................................................................................................... 6
PESTEL Analysis .................................................................................................................................. 6
Ansoff Matrix for Market Planning ........................................................................................................ 6
BCG Matrix ........................................................................................................................................... 7
Conclusion ............................................................................................................................................. 7
Strategic Recommendations ................................................................................................................... 7
Bibliography .......................................................................................................................................... 8
Company Overview
AMUL, which is abbreviated as Anand Milk Union Ltd. has a whole list of products that have been used in
millions of houses since 1946. Some of the products such Amul Milk Powder, Amul Ghee, Amul Butter,
Chocolates, Cheese, Ice Cream, Nutramul, Amulya and Amul Milk have made Amul a leading brand of the food
sector in India.
It is the sole and the most popular brand in the FMCG sector of India. It is a Milk Cooperative, which has been
ranked No. 1 dairy brand in India as well as the Asia Pacific (APEC). It competes significantly well with various
internal brands such as Dutch, Anchor and Amex. The performance reflects in the 4 th position that Amul hold in the
Indian brand scale for the years 2009 and 2010.
Some of the major milestones achieved by Amul were,
1946: The first milk union was established
1946: District Co-operative Milk Producers Union
1955: The brand name selected Amul
1973: Gujarat Co-operative Milk Marketing Federation established
2013: Kaira District Co-operative Milk Producers Union Limited known as Amul Dairy
Signed an agreement to establish a plant in Waterloo village in New York.
A Snapshot of Total Market Capitalization & Turnover,
GCMMF, which is the parent organization of Amul has the following statistics of the year 2011-12, Butter Market:
85%; Cheese Share Market: 75%; Infant Milk: 63%. The group had a turnover of Rs. 19,100 Cr. in the year 201213 and a turnover of Rs. 11,668 for the year 2011-12. The component level growth figures can be illustrated as UHT
Milk: 53%; Cream: 57%; Milk Beverages: 27%; Ghee (Amul & Sagar): 31%.
Amul is expected to grow at the three folds percentage to a value of Rs. 30,000 Cr. Component vise breakup of
growth parameters can be viewed as Butter Market: 83%; Dairy Whitener: 45%; Infant Milk: 63% and Milk Market:
26%. The Rs. 450 Cr. worth of export revenue is primarily earned through the skimmed milk powder component.
Some other components:
Management Team: Managing Director (Amul Dairy): R S Sodhi. First Chairman: Dr. Verghese Kurien
Mission:
We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the taste and nutritional
requirements of the customers of the world, through excellence in marketing by our committed team. Through
co-operative networking, we are committed to offering quality products that provide best value for money.
Vision: To provide at most satisfaction to the employees, farmers and distributers.
Values: Customer Orientation, Commitment to Producers, Integrity, Co-operation, Excellence, Belongingness,
Pride in the Organization, Quality, Innovation, Growth Orientation, Employee Satisfaction and Leadership
Trivial Strategy
When AMUL was formed, at that time consumers had modest purchasing power & limited consumption level of
milk and other dairy products. Thus AMUL adopted:-
Defense Strategy
Moving consumers from buying loose milk to going for packaged milk and gradually moving up the value chain
like tetra pack/beverages. Being used to a brand, it is natural for a customer to move to more products.
SWOT Analysis
POSITIVE
NEGATIVE
Strengths:
Brand Equity ; Product Image
Trust Factor ; High Quality
Affordable Pricing ; Large employment
Weaknesses:
Lower market share in chocolate segment
Lesser advertisement
Product failure
SWOT
Opportunities:
Value Addition ; Product Development
Targeting new segments
More Export; Diversification
ANALYSIS
Threats:
Aggressive Competition
Product Imitation ; Localized Suppliers
New Entrance in the market
High
Market
Attractiveness
Medium
Low
High
Invest for Growth
Cheese, Ghee
Dahi, Paneer
Fresh Creams
Low
Protect. Develop
selectively building
upon strengths
Amul Spray
Harvest
Bread Spread, Mithai
Range
Harvest or Divest
Divest
Ice Creams
Beverage Ranges
PESTEL Analysis
Political (P):
Economical (E):
Sociological (S):
Technological (T):
Environmental (E):
Legal (L):
Existing
Markets
New
Products/Services
Existing
New
Market Penetration
Product Development
Fresh Milk, Ghee, Milk Powders,
Fat Free Dessert, Cooking Chocolates, Soups,
Ice-creams
Lassi, Diabetic and Healthy Products
Market Development
Diversification
South East Asia, Middle East With
South East Asia, Middle East with Products
Products like Paneer & Butter
like Paneer, Cow Ghee, Confectioneries
BCG Matrix
Market Share
High
Market
Growth
Low
High
Stars
UHT Milk, Cheese, Milk Powders,
Flavored Milk
Cash Cows
Pouch Milk, Ghee, Butter
Low
Question Marks
Chocolates
Dogs
Nutrella
Conclusion
GCMMF which owns Amul, Asia's largest brand of milk realized that with the fast lifestyle change and increased
awareness of people regarding the health issues, there has been an observable shift tending towards health based
drinks from the usual carbonated drinks. It plans to utilize potential market in India of flavored milk, butter milk
and various other milk based beverages that have a tradition extending long back, by recognizing the targeted teens
& youth consumers, who were the biggest consumers of aerated drinks and colas. The New variety of the brand
were advertised via major national channels with special focus being laid on youth oriented TV channels like MTV
and Cartoon Network . By recognizing the trend and introducing variants, Amul has emerged as one of the fastest
growing brand in the category of non-carbonated soft drinks.
Strategic Recommendations
Amul should focus on the expansion in retail sector in Indian cities, towns and villages it should increase
branded Amul parlors to capture the consumers attention and keep the competitors at bay
Amul should venture into offering low-fat versions of its various products as it would help them capture
the hearts of 2nd and 3rd generation Indians in US as well as Global Market
Amul can venture in new products like baby-food products, dairy based sweets.
Amul must to understand the cause of certain products like gulab jamoon, Amul basundi, and chocolates
etc. not very popular. Amul need to do thorough market research and work to improve these products.
On the best feature are Amuls hoardings, which are a huge success, it can penetrate even better in the rural
areas with its advertising actively through the media options like cable channels and newspapers.
Sponsoring of more TV shows, also sports events can be of great help.
Amul expanded its distribution reach to acquire 1,200 new geographical markets in addition to 306 new
distributors, 65 new super stockiest also 900 new sub-stockiest.
Amul further positioned its brand as the largest single-brand retail in the country by including 3 Amul
Parlors almost every day during the year 2012-13.
The goal is to establish total 7000 number of exclusive stores.
Another goal for future is to reach sale of 200 lakh liters per day over the next two years from the current
capacity is 160 lakh liters per day. It is set to manage to achieve 20 % growth procurement of milk during
2012-13.
Amul plans to even launch "gajar ka halwa". It want to transform every Indian kitchen to Amul kitchen.
7
From the daily glass of milk / butter milk to butter and cheese in breakfast and to paneer and curd in meals,
this is Amuls plan.
Amul is keen in penetrating markets with products such as cheese, butter and ice-cream and urban market
with daily-consumption of eatable items such as lassi, paneer and curd.
Bibliography
1.
2.
3.
4.
5.
6.
7.
Pankaj Chandra, Devanath Tirupati (2003), Business Strategies for Managing Complex Supply
Chains in Large Emerging Economies: The Story of AMUL, Indian Institute of Management,
Ahmedabad
Dr. N.Shankar, P. V. Muthu Perumal, June (2014), A Comprehensive Strategic Evaluation of Success
of Amul Model, Excel International Journal Of Multidisciplinary Management Studies, ISSN 22498834
Annual Report (2013-14), Department of Animal Husbandry, Dairying and Fisheries, Ministry of
Agriculture, Government of India, New Delhi
Marketing mix of Amul, from http://www.marketing91.com/marketing-mix-of-amul/
The extraordinary story of Amul (2005 September 23), from
http://www.rediff.com/money/2005/sep/23spec.htm?print=true
Marketing strategy of Amul, from http://www.marketing91.com/marketing-strategy-amul/
Anto T Joseph, (2015 February 04) ,We are focusing on branded products to maximise Amul's profits:
RS Sodhi, from http://www.dnaindia.com/money/interview-we-are-focusing-on-branded-products-tomaximise-amul-s-profits-rs-sodhi-2057932