Amul ± The Taste of India Group ± MKT(MAJOR)- 4 Group Members MANNI KUMAR SINGH PRATIK PRASAD VIJAY KUMAR MD. MASOOD TULIKA NANDY HARSHITA TIWARI SOURAV HAZRA DEBASISH SAHA GCMMF ± Over View GCMMF: Gujarat Cooperative Milk Marketing Federation GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF. It is also the world's biggest vegetarian cheese brand. formed in 1946. The Amul Pattern has established itself as a uniquely appropriate model for rural development.History of Amul Amul (Anand Milk Union Limited). is a dairy cooperative movement in India. Amul has spurred the White Revolution of India. AMUL is based in Anand. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. . Gujarat and has been a sterling example of a co-operative organization's success in the long term. (GCMMF). 22 million litres per day 3.328 11.05 billion litres 8.2008-09): Milk collection (Daily Average 2008-09): Milk Drying Capacity: Cattle feed manufacturing Capacity: 13 district cooperative milk producers' Union 2. per day .79 million 13.4 million litres 626 Mts. of Producer Members: No.Facts Members: No. per day 3500 Mts. of Village Societies: Total Milk handling capacity: Milk collection (Total . Business Model RAW MILK pasteurization Condensed Ghee Butter Cream Packaged Milk Ice cream Beverages Dried Skimmed Milk Powder .Amul . The 3 C¶s« Defending againsts HUL(KWALITY WALLS) HAVMOR. BASKIN ROBBINS brands Aggressive moves against LOCAL BRANDS Competitor Customer Customers extremely satisfied Ready to try more products with new flavours Improved socio-economic conditions Product for different segments Company Largest Dairy brand in Asia More than 30 dairy brands Market leader in ghee.ice-cream & butter Very strong supply chain Enjoys Fine reputation Quality with Affordability . Industry Analysis : Porter¶s 5 Forces Threat of new entrants Is high because There are no entry barriers Bargaining Power of Customers is High because of Various competitors Competitive Rivalry yis High due to Other brands and Local players Bargaining Power of Suppliers is low because the suppliers Are rural milk producers Threat of substitutes is high because of availability of Other products . FROSTIK. SUNDAE.Customer Based Market Segmentation Amul FUNDOO. TRICONE.FREE Health Conscious Amul PROBIOTIC . DOLLIES Kids Women Youth Calorie Conscious Amul PRO-LIFE Amul SWIRL. MALAI KULFI Amul SUGAR. ICE-CREAM PARLOURS .Industry Based Market Segmentation RETAIL OUTLETS HOTELS AND RESTAURANTS CATERERS FLIGHT KITCHENS APO¶S. MANUFACTURING UNITS . Caterers.DISTRIBUTION CHANNEL Retailers. Pawai Vasundhara Dairy. Flight Kitchens End-Users or Consumers Distribitor point CNF. Hotels and Restaurants. Boisar . 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. . Ice cream. Shrikhand. Milk Powder. Amulspray. Ghee. Nutramul.Reasons for Success Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money Diverse Product Mix Success!! Amul Butter.000 retail outlets across I India through its network of over 3. Chocolates.500 distributors. Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce. Milk and Amulya Strong Distribution Network Amul products are available in over 500. Cheese. (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 .Sales Turnovers YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 TURNOVER Rs. SYMPTOMS Fall in sales figure Complaint from customers Entry into catering into market Entry of competitors Consumers are buying different brands . PROBLEM FORMULATION Sales promotion activities Local brands of Ice-cream have a large market share Consumers are not brand loyal Consumers have tendency to buy different brand for different form of Ice-creams . PROBLEM IDENTIFICATION Increase in number of competitors Falling market share . As it¶s an Indian brand its popular as a family brand. There are many premium varieties. They are available in reasonable prices.SWOT STRENGTH:The Amul ice-creams brand is one of the top 3 brands. 67113 million in the yr. They are available in various sizes. AMUL ice-creams are not deserts containing 13% pure milk. thus are good for health. It is available in all metropolitan cities and is in the reach of middleclass & above middleclass.STUDY BACKGROUND. It is available in many flavors and most of these are Indian flavors is liked by Indians. Annual turn-over of rs. 2008-09 . WEAKNESS:The durability of Amul ice-creams is not really good. unable to supply the demand. Vendors not very happy with the profit margin (both retailers and distributors). It does not have many outlet centers. Not a famous brand among youngsters who are the main customers of ice-cream. No adequate advertisement and sales promotion activities done to enhance the sales of AMUL ICE CREAMS as compared to competitors Alliances with Third Parties. centralized management following traditional principles and procedures of marketing. Company¶s policy of ³No Credit´.CONTD.. the Deep-freezer providers . it melts very soon. CONTD« OPPURTUNITY:Niche market for probiotic products Increase in Catering business. Air-kitchens. the latest addition to the retailing revolution . Malls etc.000 Amul parlours. International markets Growth of Ice-cream market @ 26% Pre-existence in Dairy Industry Marketing federation has a network of 4.000 were added in 2008-09 "Ice-cream µScooping¶ parlours. Hotels. of which 2. Retailers are being easily manipulated by competitors by additional bonus. Windy¶s etc is penetrating into the market eating up the market share of Amul at a gradual speed. THREATS:The biggest threat for Amul ice-cream industry would be its competitors i. A slight change in the price of the ice-cream would shift its customers to another brand. competition from the unorganized sector as well as MNC¶s.Robbins entering Indian market with new premium brands at feasible prices.e. incentives which Amul doesn¶t provides. esp. Dinshaw¶s. Local brands like Havmour.CONTD«. milk. Foreign players like Baskin. Fluctuations in the price of raw materials. . REPLACEMENT RATE @ 0.WHAT WENT WRONG DISRIBUTOR POINT MARGIN @ 4%-5% AVG.05% ADVANCE PAYMENT PROMOTIONAL SCHEMES COMPENSATION RETAILERS MARGIN @ 17%-21% AVG. 100% REPLACEMENT CREDIT FACILITY AVAILABLE PROMOTIONAL SCHEMES SUPPORT IN SALES LACKED . WHO WAS WRONG ?? COMPANY (AMUL INDIA LTD.) SUPPLYING IRREGULAR AND IMPROPER SUPPLY OF ICE-CREAM REPLACEMENT OF WORN-OUT DEEP FREEZERS DISTRIBUTOR SALESMAN SKIPPING TAKING ORDERS IMPROPER HANDLING OF PRODUCT DURING TRANSIT SALESMAN HAD FIXED SALARY AS COMPENSATION RETAILERS NO EXTRA EFFORT TO ENHANCE SALES KEPT OTHER BRANDS IN FREEZERS OF AMUL . .FLOW OF FEED BACK. RETAILERS COMPLAINTS FEED BACK FROM CUSTOMERS SUGGESTIONS DISTRIBUTORS FEEDBACK FROM RETAILERS COMPLAINTS SUGGESTIONS AMUL . 00. of ice-creams in Mumbai Metro.000 lts.OBJECTIVES Sell 12. Achieve growth @ 20% compared to 15% Enter into new untapped markets in Mumbai Metro Increase the sales volume of products like probiotic and sugar free . Traditional policies n practices Maintain ³Leader Position´ in ice-cream market Intense competition from local. both retailers n distributors Policies like ³NO CREDIT´ n ³ADVANCE PAYMENT´ Myopic approach.CONSTRAINTS Unhappy sales force. regional. national as well as international brands . There are certain product like Amul basundi. etc Offers should run all throughout the year. not only in winters. CATERERS. Sponsoring shows in TV. choclates etc 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 Though Amul¶s hoardings are a huge success. sports events can be of great help. gulab jamoon. it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. . They should come up with offers for purchase of ice-cream in wholesale market esp. There should emphasis for special occasions. They should use a strategy similar to what they used in case of butter (Utly butterly girl ). They should not restrict themselves to departmental stores in fact come with new luxury brands which can be available in hotels and they should come up with more of their own ice-cream parlours.What more can Amul do? They can come up with new flavours which would be able to attract the youth. THANK YOU !!!! .