Amul (Anand Milk Union Limited)

Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world

1. PRESENTATION ON PRESENTED TO:- PROF .ROSE JOHN PRESENTED BY:- SUNEET HEREKAR ANIKET SALVI MANISHA MORE SANDESH BHIRADE RACHIT JAJOO PRAGATI KEDAR

2. ROLL NO. NAME OF MEMBERS TOPIC NAME 134 SUNEET HEREKAR Introduction, History 121 ANIKET SALVI Growth Rate & Business Model, Diverse Product Mix 128 SANDESH BHIRADE The 3 C’S Model Mix… Product for every one 98 MANISHA MORE Amul Competitors AMUL – PRODUCT PORTFOLIO SWOT Analysis 124 RACHIT JAJOO BCG Matrix & The BCG Growth- Share Matrix 101 PRAGATI KEDAR 4 P’s of marketing,Advertisement,Reasons For Success, Amul is going globally,Conclusion

3. Amul (Anand Milk Union Limited )

4. WORLD’S BIGGEST VEGETARIAN CHEESE BRAND WORLD’S LARGEST POUCHED MILK BRAND

5. WE WILL MISS YOU MILK MAN OF INDIA THANK YOU FOR GIVING US HAUSLA, PRAGATI AND ANAND REST IN PEACE TO HONORABLE DR. VERGHESE KURIEN BY OUR GROUP MEMBERS

6. Introduction History Growth Rate & Business Model Diverse Product Mix The 3 C’S Model Mix … Product for every one Amul Competitors Amul – product portfolio SWOT Analysis BCG Matrix & The BCG Growth- Share Matrix 4 P’s of marketing Advertisement Reasons For Success Amul is going globally Conclusion FLOW OF PRESENTATION

7. Introduction Formed in 1946, is a dairy cooperative movement in India with 250 liters 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 word “AMULYA” which means “PRICELESS”.

8. HISTORY Amul has spurred 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-dollar 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. Dr. Varghese Kurien, former chairman of the GCMMF – the man behind the success of Amul.

9. CAGR: 32% Annual Turnover Of Rs 4300 Crore (2006-07) 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 Growth rate

10. Business model Every day Amul collects 7 million liters 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 . Pasteurization

11. Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya 11 Diverse Product Mix

12. The 3 C’s… Customers extremely satisfied Moved from loose milk to packaged milk Ready to try more products Improved socio-economic conditions Largest milk brand in Asia More than 30 dairy brands Market leader in ghee & butter Very strong supply chain Enjoys Fine reputation Quality with Affordability Defending against Mahananda, Vijay, Milma & other co-operative milk brands Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality

13. Mix… Product for every one Amul never forget its “primary customer” - Amul collects 7 million liters of milk from 2.6 million formers(many ittiterate) Product for youth - Amul launches Chocolate milk under brand name “AMUL KOOL KOKO” targeting the youth Product for diabetic people -India’s First pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

14. Mix… Product for every one Product for the health conscious - Amul Launched “low fat, low cholesterol bread spreads” Product for the price sensitive India - Low Priced Amul Ice Creams and affordable ‘sagar’ whitener Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese

15. AMUL COMPETITORS

16. 85% AMUL – PRODUCT PORTFOLIO Category Market Share Market Position Milk Powder Chocolate Drink Cheese Butter Sweets Ice- Cream Chocolate 24.75% (HUL-28.22%, Mother Diary- 8.66%) 1 1 1 2 1 1 3 50% 50% 90% 10% (Cadbury- 70%) 40%

17. SWOT Analysis strength weakness

18. Threats Opportunities

19. BOSTON CONSULTING GROUP (BCG) MATRIX is developed by “ BRUCE HENDERSON ” OF THE BOSTON CONSULTING GROUP IN THE EARLY 1970’s. According to this technique, businesses or product are classified as low or high performers depending upon their market growth rate and relative market share . WHAT IS BCG MATRIX?

20. THE BCG GROWTH-SHARE MATRIX It is a portfolio planning model which is based on the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs It is based on the combination of market growth and market share relative to the next best competitor. 20

21. Star are leaders in business. They also require heavy investment, to maintain its market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW. STAR High growth, High market share

22. Most businesses start of as question marks. They will absorb great amounts of cash if the market share remain unchanged, (low). Question marks have potential to become ater and eventually cash cow but can also become a dog. Investment should be high for question marks QUESTION MARKS High growth, LOW market share

23. They are foundation of the company and often the star of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible. They are located in an industry that is mature, not growing or declining. CASH COWS LOW GROWTH, HIGH MARKET SHARE

24. Dogs are the cash traps. Dogs do not potential to bring in much cash. Number of dogs in the company should minimized. Business is situated at a declining stage . DOGS LOW growth, LOW market share

25. AMUL - BCG MATRIX Amul Ice- Cream Amul chocolate Amul butter Amul chocolate drink Low Amul cheese High Business growth rate Low High Relative Market Share

26. 4 P’S OF MARKETING 1. PRODUCT

27. 4 P’S OF MARKETING 2 . PLACE

28. Cost of milk. Labor cost. Packaging cost. Processing cost. Advertisement cost. Transportation cost. Sales promotion cost. Taxes etc. 4 P’S OF MARKETING 3 . PRICING

29. Uses of variety of media to communicate. Most famous in bill board Amul Butter girl is one of the longest run ad Campaign using like Amul star voice of India. 4 P’S OF MARKETING 4 . PROMOTION

30. AMUL’S CREATIVE ADVERTISEMENTS

31. BASED ON MOVIES MOVIES

32. BASED ON POLITICS BASED ON CRICKET

33. GIVING SOCIAL MESSAGE

34. EXTRA PICTURES

35. Reason for success

36. Amul is going globally….. GCMMF has 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 US markets. 50% of Americans being medically obese & if Amul is really looking to capture the hearts of the 2nd and 3rd of 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 foots market, it can definitely expand its market to a large extent. Overseas markets- Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malaysia , Nepal, Pakistan, Hong Kong and a few South African countries. Fresh plans of flooding the markets of Japan & Srilanka. Tie up with Glaxo to sell baby food…

37. Conclusion Amul can try out the following ideas: I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products, II) There are certain product like Amul basundi, gulab jamoon, chocolates 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 III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media via cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

38. THANK YOU… ANY QUESTION????