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By Chayanka kRashmi A DeshpandeRamesh Babu
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”.
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-dollor brand. It is also the world's biggest vegetarian cheese brand.
Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world. Amul has more than 150 chilling centers in various villages. Dr. Verghese Kurien, former chairman of the GCMMF – the man behind
the success of Amul
Mission 2020 Dairy cooperatives of Gujrat turnover of Rs.27000
crores by the year 2020 The vision To liberate our farmers from economic oppression and lead
them to prosperity Objectives To ensure that the maximum share of consumer’s rupee
goes back to the milk producers.
State Federation
District
Village
DECISION-MAKING
•Membership•Price paid to milk suppliers
•Price paid to village co-operative societies
•Price paid to district unions (fixed across unions)•Product mix and quantity
LEVEL MEMBERS
RAW MILK
DriedSkimmed Milk
Powder
Packaged Milk
Ice creamBeverages
Condensed
GheeButterCream
pasteurization
Milk
Butter/Cheese/GheeButter/Cheese/Ghee
Ice-cream Manufacturers
Restaurant/Food Chains
Temples
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Coffee Shop Chains
KidsKids
WomenWomen
Calorie ConsciousCalorie Conscious
Health ConsciousHealth Conscious
YouthYouth
Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shaake
Amul Calci +
Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreadsv
Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk
NutramulAmul Shakti Health Food Drink
Amul never forgot its “primary customer”
- Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)
Product for youth - Amul launched Chocolate milk under
brand name of ‘Amul Kool Koko’ targeting
the youth
Product for diabetic people - India’s First Pro-Biotic Wellness Ice
cream & Sugar Free Delights For Diabetics
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
Bargaining Power of Customers is High because of
Various competitors
Threat of substitutes is high
because ofavailability of Other products
Threat of new entrantsIs high because
There are no entrybarriers
Competitive Rivalry
is High due to
Other brands and
Local players
Bargaining Power of Suppliers is low
because the suppliersAre rural milk
producers
Product s/Brands Competitors
Butter Britannia, Nestle
Cheese Britannia
Baby food Nestle, Heinz
Dairy Whitener Segment Britannia, Nestle
Ice creams HUL
Chocolates & Confectionaries Cadbury,Nestle
Pizza Pizza Hut, Dominos, Nirulas Frozen pizza
Curd Nestle, Mother Dairy
Ultra High Treated Milk Britannia, Nestle
Sweet Condensed Milk Nestle
Paneer Britannia
Milk Additives Cadbury, Smithkline Beecham
Flavored Milk Britannia, Nestle
What goes into the contract that is brand name 1)Quality-No brand survive long if it’s quality is not equal or
exceed customer expectations. Incase of food product hygienic, taste, bacteriological &
organoleptic standard ±main essence. 2)Value for money-customers get more than what they pay. Keep price fair & do best to ensure that retailers don’t gain at
the expense of customer. 3)Availabilty-Brand available when and where customers
want.Amul has nation’s finest distribution network. 4)Service-Committed to total quality
Product Positioning Strategy Product Re-Positioning Strategy Product Overlap Strategy Product Design Strategy Product Elimination Diversification Strategy Value Marketing Strategy Product Scope Strategy
15
Placing a product in that part of the market where it will receive a favorable reception compared to competing products.
16
India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics.
Low Priced Amul Ice Creams made Kwality Walls life hell.
17
Flank Attack..Age Wise.. Aug 25 2007
Amul launches Chocolate milk under brand name of ‘Amul Kool Koko’.
This is targeted at teenagers and youths.
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Nov 11, 2007: Amul in Multinational Arena With Snack Launch: “Munch Time”.
Flavors: Masala , Mint and Tomato .
New Product Activity.
Nov 26, 2007 : Amul Launches “Fresh Paneer” (Free From Any Harmful Chemicals)Flank Attack—Expanding its Cheese Segment.
Current market share 65%.19
New CompetitionChange in consumer preferenceWrong 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”.
20
Situation where company decides to compete against its own brands.
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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”22
Strengths•Modernization of traditional milk production•Robust distribution chain•Extensive cold storage system•Trust of producers & consumers both•Provision of services to cattle farmers•Presence in all milk product ranges•Value in quality & price•Trained graduates from reputed institutes
Weaknesses•Bound by dated legislation•Less control over milch yield•Cannot accommodate transport delays (perishables)•Dependence on poor infrastructure for supply (roads, electricity etc)
Opportunities•New product development•Increase in export of product range•Favourable changes in tastes and disposable income of consumers•Penetration into areas where SHGs etc have not entered•Capturing the segment which is tilting towards branded products
Threats•Unorganized players•Other dairy co-operative societies•Risk of contamination throughout channel•Competitors are companies, not bound by inherent obligations of co-operatives
“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.
24
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”.
25
Seeking unfamiliar products or markets or both in the pursuits of growth.
Secrets of Amul’s Diversification Philosophy:
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, affordable price”
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High Growth Expansion of networkAdvantage of each underline objectives.
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Providing a product that works as claimed, is accompanied by decent service, and is delivered on time.
Commitment to quality.Value for moneyThe generation for awareness.Fostering Of Loyalty
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“Perspective of the product mix of a company”
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Uses of variety of media to Uses of variety of media to communicatecommunicate
Most famous in bill boardMost famous in bill board The enduring polka dressed girl pun The enduring polka dressed
girl pun at various issues increase brands faat various issues increase brands fa
Every festival some thing they Every festival some thing they bringingbringing
The chief of India promo invites hote The chief of India promo invites hote chefs to come up with recipes using chefs to come up with recipes using many Amul products as possible, many Amul products as possible, and is conducted at city, state
STAR
Amul butter
Amul tazzaUTH
Amulya dairy whitner
??????????????
Amul chocolate
Amul masti dahi
Amul lassi
Mithaimate
CASH COW
Mozarella cheese
Amul pizza base
Amul tazza fresh milk
DOG
Infant milk range
Amul shakti
Nutramul
Physique : Personality : Taste, Quality Simple, Indian
Culture : Relationship :
Co-operative, Sharing Sociable
Reflection : Self-Image : Value Oriented Proud Indian,
Fun loving
AMUL