Amul - Business Strategy

Company Introduction & Analysis, Products, Competitors, Mission, Financials, CSR, Strategies etc

1. AMUL The Taste of India

2. Company Profile 2

3. AMUL Type – co-operative Founded in – 1946 Headquarters – Gujarat ,India Industry – dairy Key people - Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) Products - milk and related product Revenue – Rs . 38,550 crores in 2019-2020 Employee – 3.6 million (milk producing members) Slogan – The Taste Of India.. 3

4. Mission, Vision and Objectives Objective To ensure that the maximum share of the consumer’s rupee goes back to milk producer “To provide more and more satisfaction to the farmers, employees and distributers” “ To satisfy the taste and nutritional requirements of the customers of the world and committed to offering quality products that provide best value for money” Vision Mission

5. AMUL Products Amul Puffles Bakery Products Ice Cream Amul cattle Feed Cheese & Ghee Milk Powders Bread Spreads Amul Milk Amul Receips Happy Treats Mithai Mate Chocolates

6. Major Competitors

7. Business Model Canvas Sellers Logistic partners Distributors Retailers Dairy Procurement. Product R&D Distributing Branding Positive Customer Service Marketing Quality Dairy and Dairy products. Low Cost Strategy. Amul Girl Middle Class Kids Female Gym and Sports enthusiast (All age group of customers use Amul products) Amul Retail Stores. Departmental Stores Maintenance Customer feedback Product Sales to individual's and Wholesale Retailers. Ingredients- dairy and its products. Production, Distribution Facility Packaging Inputs Key Partners Key Activities Value proposition Revenue Stream Customer Segment Customer Relationship Channels Key Resources Cost Structure

8. SWOT Analysis Strengths Weakness Threats Opportunities Portfolio of Product Strong Brand Image (Amul Girl) Quality Distribution Network Strong Supply Chain- White Revolution Vast scope/Large market potential Specific products for health conscious population Social media engagement Focusing on lagging product ranges Growing public sensitivity towards animal husbandry Increasing international competition Supply fluctuations due to seasonal Issues Dependence on the dairy unions and communities Perishable product Low investment in Marketing Less Impactful Brand Image out side India

9. Porters Five Forces

10. BCG Matrix CASH COWS: There are three products of Amul that fall under cash cow category, the first being  Amul Milk  and the second being  Amul Butter  and third is   Amul Cheese . The products hold high market share in these not so fast-growing industries. Owing to the limited chances of industry growth, Amul is introducing a number of new product variations for different customer segments so as to maintain its market leadership. For Example: Apart from its basic version of Butter and Milk,  Amul also launched, Amul Butter Lite, Amul Tazza Milk and Amul Gold Milk to target customers who are more health conscious. STARS: Amul Ice cream  and  Amul Ghee  are two products that can be considered as Stars of the company. These are the products which have a high market share and holds a good potential to grow in the future as well.

11. Cont. QUESTION MARK: Amul lassi  has been marketed with the aim to increase the market share and compete with the other beverages available to the market. Considering the increasing interest and demand for healthy products and beverages, the healthy milk from Amul poses a great potential to grow in the near future with a condition that it is marketed well. DOGS: Dogs are those products that have low growth or market share and have a very limited chance of growing into a profitable business unit for the company. Amul Chocolates, Amul Cookies, and Amul Pizza  are few products which can be considered as Dogs for Amul . Due to the heavy competition and limited innovation that these product categories face, it’s becoming difficult for Amul to gain market share for these products and make them a viable revenue generator.

12. Financials

13. Value Chain Analysis FIRM INFRASTRUCTURE: Head, Zonal and Overseas Offices Inbound Logistics Procurement Cold Storage Chiller Tanks Transportation Operations Milk Processing Product Development Packaging Labelling Storage Outbound Logistics Dealers Distributors Local Area Vendors Customers Sales and Marketing Branding Innovation Product Portfolio Pricing Advertising Service & Support Customer Service Forum Feedback and Complaints Redressal MARGINS Support Activities HUMAN RESOUCE MANAGEMENT: Structured, Technology Induced, Leadership TECHNOLOGY: Integrated IT Infrastructure, B2B, Visibility and Transparency PROCUREMENT: Systematic and Set Policies

14. Distribution Network FARMERS Milk Processing Union and Warehouses Warehouses Wholesalers Retailers Home Delivery Contractors Consumer Consumer Village Cooperative Societies (With Chilling Units) Chilling Plants

15. Growth Strategies Cost Leadership Strong Distribution Network Product Portfolio Diversity Technological Agility

16. CSR Initiative 16 Blood donation Tree plantation Amul Scholarships Dairy Demonstration Farm

17. Sustainable Mission 17