Worlds Biggest Vegetarian Cheese Brand

Worlds Largest Pouched Milk Brand

CONTENT

AMUL, an Introduction & History

Reasons for Success and its Growth rate

AMUL- Business Model & Business Strategy

Industry Analysis
SWOT Analysis

Market Segmentation- Customer Based & IndustryBased

AMUL Product Portfolio & its Product Strategy

INTRODUCTION & HISTORY

Formed in 1946, is a dairy cooperative movement in India with 250liters of milk per day with name KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). The brand name Amul means AMULYA(suggested by a quality control expert in Anand). This word derived form the Sanskrit wordAMULYAwhich means PRICELESS. Amul has begain the white revolution of India, which has made India the largest producer of milk and milk products in the world and the White Revolution has finally created a billion-dollor brand. Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world, which is matter of proud for Gujarat and whole India Amul has more than 150 chilling centers in various villages.

Amul growth rate

Annual Turnover of 4300 Crore (2006-07). Rs 10000 Crore mark in 2011 Every day Amul Collects 7 million liters of milk from 2.6 million formers, converts the milk into branded, packed products and delivers goods to over 5,00,000 retail outlets across the country .

Amul Business Strategy

1.Developing demand

A low-cost price strategy products.

2. The distribution networkcold warehouses cash transactions throughout the supply chain JIT improves dealers' return on investment (ROI

3.Umbrella brand

common brand for most product categories Alum's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks Safal.

4.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.

Industry Analysis : Porters 5Forces

Threat of new entrants is high because there are no entry barriers

Bargaining power of suppliers is low because the suppliers are rural milk producers.

Competitive rivalry is high due to other brands and local players.

Bargaining power of customers is high because of various competitors,

Threat of substitutes is high because of availability of other products.

SWOT Analysis of Amul

Strengths
A . Largest food brand in India & Asia High Quality, B . Low Price. C . Introduced TQM World's Largest Pouched Milk Brand Annual turnover of 4300 Crore (2006-07) D. . Highly Diverse Product Mix Robust distribution network.

Weaknesses
1. Strong dependency on weak infrastructure and completely dependent on villages for raw material. 2. Risk of high complex supply chain system. 3 . Short self life of their products.

Opportunity
1 . Penetrate international markets. 2 . Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc. 3 . Use internet to sell its products

Threats
Competitors - Hindustan Lever, nestle, Britannia and local players. 2 . hard competition from MNCs in butter . 3 . Growing price of milk and milk products. 4 . Ban on export of milk powder

Customer Based Market Segmentation

Kids Women Youth Calorie Conscious Amul Lite, Health Conscious Nutri amul,

Amul Kool, Chocolate,

Amul Calci +

Utterly Delicious Pizza, Amul Pizza Cheese,

Milk Nutri amul Energy Drink.

Sagar SkimmedMilk Powder,

Amul ShaktiHealth Food Drink.

Amul Cheese Spread.

Amul Lite Slim and Trim Milk.

Industry based market segmentation

Restaurant/ Food Chains

Ice-cream Manufacture rs

Coffee Shop Chains

Milk

Industry Based Market Segmentation cont

Pizza Retailers

Bakery & Confectionarie

Snacks Retailers

Butter/ Cheese/ Ghee

Prdoucts/ Brands Butter Cheese

Competitors Britannia, Nestle Britannia

Baby Food
Ice creams Chocolates & Confectionaries Pizza Curd Ultra High Treated Milk Sweet Condensed Milk

Nestle, Heinz
HUL Cadbury, Nestle Pizza Hut, Dominos, Nirulas Frozen Pizza Nestle, Mother Dairy Britannia, Nestle Nestle

Paneer
Milk Additives Flavored Milk Dairy whitener segment

Britannia
Cadbury, Smithkline beecham Britannia, Nestle Britannia, nestle

Product Strategy Of Amul

Product Positioning Strategy Product Re-Positioning Strategy Product Design Strategy

Product Elimination

Product Positioning

Placing a product in that part of the market where it will receive a favorable response compared to competing products. Positioning of Amul is Taste of India. It has created value for everyone in value chain, be it customers or farmers. USP- Quality with low price Low Priced Amul Ice Creams made Kwality Walls life hell.

Positioning Continued

Amul launches Chocolate milk under brand name of Amul Kool Koko. This is targeted at teenagers and youths. Nov 11, 2007: Amul Snack Launch: Munch Time.Flavors: Masala ,Mint and Tomato . Nov 26, 2007 : Amul Launches Fresh Paneer (Free From Any Harmful Chemicals)

Product Repositioning

New Competition Change in consumer preference Wrong original positioning Amul marketed bottled water product named JALDHARA but due to less potential in the market it turned out to be blunder.

Now Amul is all set to launch bottled water NARMADA NEER

Product Design Strategy

Whether to offer standard or customized products. Amul has offered a mix of both standard and customized products. Use of Utterly-Butterly Girl: Using since 1967. Entered in the Guinness Book Of World Records for being the longest running campaign ever.

Product Elimination &Diversification

Product reaches the stage where continued support is no longer justified where performance is falling short of expectations, it is desirable to pull the product out of the market place. It eliminated JALDHARA a decade ago as Bottled water product do not have potential customers. Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced products with consistent value addition but never left the core philosophy of providing milk at a basic and at affordable price

Bibliography

Google search engine. www.amul.com www.indiadairy.com EBSCO online Library . http://marketingpractice.blogspot.com http://www.fmcgmarketers.blogspot.com http://www.indianfoodindustry.net