By: Group - I

FACTS- AMUL
Type: Cooperative Founded in: 1946 Headquarters: Anand India Industry: Dairy Key People: Chairman, GCMMF Products: Milk and related products

Amul- The taste of India

Raw Milk
Condensed Ghee, Butter, Cream Packaged Milk

Ice cream
beverages

Dried skimmed powdered milk

Product portfolio

 Powdered Milk Health and price Conscious. SAGAR Vs Amulya. USP: Sagar is affordable whitener for health conscious one. Cheese Spreads Specific Vs General Amul Processed Cheese Vs Cheese Spread USP: Cheese spread is highly accepted spread for regular use. Milk Drinks Nutramul Energy Drink Vs Amul Kool

SWOT
STRENGTHS
Cooperative- that procured, processed and delivered high quality milk to distant markets cost effectively Wide range of products Open door policy Affordable prices Effective ad campaign Advertisements with emotional connect It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers.

SWOT
WEAKNESS
Difficult to attract fresh management graduates Many products under question mark and dogs i.e. they are not profit centers for Amul Supply of raw material from un organised sector

SWOT
OPPORTUNITIES
There is a lot opportunities of potential for growth and development as huge population stay in rural market where other companies are not targeting. Milk surplus in villages where only 10% was handled by the organized sector. Opportunities to export Utilizing the brand name to enter into new product segments like packaged sweet market.

SWOT
THREATS
Adulteration Increasing population Competition- Nestle, Britannia, HUL Less interest by fresh management graduates to work for cooperatives.

Porters Five Forces

Bargaining power of Bargaining power of Buyers is Suppliers is low because high because of various suppliers are rural milk competition producers Industry Competitors is high due to other brands Determination of Threat of new entrants is substitution threat is high high because there are no because of availability of entry barriers other products

Cost Leadership
Simultaneous Development of Suppliers and Customers

Focus on Core Activities

Managing Third Party Service Providers
retention of surplus to fund growth and development + all transactions are essentially cash only [FINANCIAL STRATEGY]

Diversification Strategy

Concentric Diversification Strategy introducing two pro-biotic Ice cream ranges, Amul Sugarfree and Amul Profile Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.

Value Chain and differentiation strategy

Human Resource Management:
Amul believed in keeping a top notch employee base and hence recruited them carefully, especially the top tire management They encouraged computer education for the employees They standardized the processes and imparted professional training to their employees

Technology for Effectiveness

Service to customers required the following: better and newer products, processes that would deliver the low cost advantage to the network and practices that would ensure high productivity and delivery of the right product at the right time. Thus technology or knowledge that was embodied in products, processes, and practices became an important factor in delivering effectiveness to the network of cooperatives. One distinguishing feature of AMUL (in comparison with other similar cooperatives globally) is the large variety in their product mix. Producing them not only requires diverse skills but also knowledge of different types of processes.

Procurement:
Amul vertically integrated with its suppliers(back ward integration) and procured milk directly from farmers

On the supply side, the member-suppliers were typically small and marginalfarmers had severe liquidity problems, were illiterate and had no prior training in dairy farming. AMUL and other cooperative Unions adopted a number of strategies to develop the supply of milk and assure steady growth. First, for the short term, the procurement prices were set so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash payments for milk supply was made with minimum of delay

Inbound Logistics and operations: Effective inbound logistics management requires designing the organization structure and practices in a manner that it delivers continued market share through cost leadership. AMUL is a good example of this strategy. Firms that are able to develop control processes through better use of operational practices and supply chain coordination are the ones that are able to serve large volumes and enjoy top line growth in revenues
Amul also used technology effectively to standardize and control its operations for obtaining a sustained advantage

Marketing and Sales:

Interestingly, advertisement & promotion was not considered to be enough of value addition and hence the budget was kept relatively small Instead, Amul preferred a lower price with emphasis on efficiency in advertising. In this context, Amul provides umbrella branding to all the products of the network. Interestingly, the advertising has centered on building a common identity e.g., a happy & healthy cartoon AMUL girl) and evoking national emotion (e.g., the key advertising slogan says AMUL - The Taste of India) Amul make sure their advertisements are connected with the current affairs

Overall Strategy:
Managerial Dimension Leadership Elements
Charisma, long term vision, commitment, trustworthy, selfless gain, strong managerial style GCMMF

Implementation
Constantly raising the bar, promoting a can-do attitude, communication of the vision to farmers, consumers and the government Product mix, pricing, dealer network, managing supply and demand growth, advertisement High utilization of plant capacity, technology & automation for enhancing quality, TQM, adoption of modern manufacturing practices, coordination between unions & marketing federation R&D focus, efficient supply chain, simultaneous development of suppliers & markets, financing projects from internal accruals

Marketing Operations & Supply Chain

Robust logistics, effective production, implementation of state-of-art technology

Overall Strategy

Farmer Orientation, technology, cost leadership, product variety in later year

THANK YOU!