EXECUTIVE SUMMARY

In today’s competitive world while entering in the market it is

very necessary to have good knowledge of the potential of a
particular market. The growth of a company is invariably
determined not just by its strategy, but on how it responds to
the challenges it encounters. Over the decades AMUL has
successfully countered several challenges that have come its
way with innovative responses and continuous improvement,
which have enabled it to remain stable and even convert some
of these challenges into opportunities. It is the culture of
endurance that has accorded AMUL the insight and focus to
deal with the current economic environment. Drawing from its
inner strength and beliefs, AMUL responded by launching
several initiatives across all its operations in various
geographies that are helping the group achieve growth even in
current times. It is also this very strategic culture that will
propel AMUL to continue on its growth trajectory in years to
come.

The report provides a comprehensive insight into the company

and also about the company’s SWOT analysis. This report
mainly studies in detail the various product mix strategies of
the company and also focuses on the segmentation of both
company based and industry based and helps in analysing the
company’s competitive advantage and the reason behind its
success.
[Link]

1.1 About the company:

Amul (Anand Milk Union Limited), formed in 1946, is a dairy
cooperative movement in India. It is a brand name managed by an
apex cooperative organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned
by some 2.9 million milk producers in Gujarat, India. It is based in
Anand town of Gujarat and has been a sterling example of a co-
operative organization's success in the long term. Dr Verghese
Kurien is recognised as the man behind the success of Amul. The
Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest producer of
milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand.
AMUL means "priceless" in Sanskrit. The brand name "Amul,"
from the Sanskrit "Amoolya," was suggested by a quality control
expert in Anand. Variants, all meaning "priceless", are found in
several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder,
Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India.

Today Amul is a symbol of many things. They are:

• High-quality products sold at reasonable prices.

• The genesis of a vast co-operative network.

• The triumph of indigenous technology.

• The marketing savvy of a farmers' organisation.

• Proven model for dairy development.

Amul has justified its undisputed leadership in foods business by

creating 5000 Amul preferred outlets in a record time which
exclusively sell wide range of Amul products. This has been
possible due to strong brand equity and immense consumer
support. Amul Parlours are successfully operating in more than
1400 towns at high streets, residential areas, Railway Stations, Bus
Stations, Educational Institutions and a whole lot of Centres of
Excellence.

1.2 Gujarat Cooperative Milk Marketing

Federation:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organisation. 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.

GCMMF is India's largest exporter of Dairy Products. It has been

accorded a "Trading House" status. GCMMF has received the
APEDA Award from Government of India for Excellence in Dairy
Product Exports for the last 11 years.
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.

Facts:

Members: 13 district cooperative milk

producers' Union

No. of Producer Members: 2.9 million

No. of Village Societies: 15,322

Total Milk handling capacity: 13.07 million litres per day

Milk collection (Total - 2009- 3.32 billion litres

10):

Milk collection (Daily Average 9.10 million litres

2009-10):

Milk Drying Capacity: 647 Mts. per day

Cattlefeed manufacturing 3740 Mts per day

Capacity:

1.3 Awards:
• GCMMF bags APEDA AWARD for 11th year in a row

• Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy

Summit

• Ramkrishna Bajaj National Quality Award-2003

• Amul - The Taste Of India (Gcmmf)Receives International Cio

100 Award For Resourcefulness

• Rajiv Gandhi National Quality Award - 1999

1.4 Achievements:
Amul created history in following areas:
• First self motivated and autonomous farmers “organization comprising of more
than 5000000 marginal milk producers of Kaira District”.
• Created Dairy co-operatives at village level functioning with milk collection
centres owned by them.
• Computerized milk collection system with electronic scale and computerized
accounting system.
• The first and only organization in world to get ISO 9000 standard for its farmers
co-operatives.
• First to produce milk from powder from surplus milk.

Amul is the live example of how co-operation amongst the poor marginal farmers
can provide means for the socio-economic development of the under privileged
marginal farmers.

1. AMUL BUSINESS MODEL

2.1 Objective:
Deliver profitable and equitable returns to a large number of
farmers for a long period of time

2.2 Additional objective:

Develop the supplier over the long term through social change.

2. SWOT ANALYSIS

3.1 Strengths:
• Demand profile: Absolutely optimistic. Milk being a necessity
product, the demand will stay and the sales at GCMMF are
bound to increase over a period of time.
• Margins: Quite reasonable, even on packed liquid milk. The
margins are enough to limit the entry of potential entrants.
• Flexibility of product mix: Tremendous. With balancing
equipment, GCMMF has kept adding a wide array of products to
its product line.
• Availability of raw material: Abundant. Presently, more than
80 per cent of milk produced is flowing into the unorganized
sector, which requires proper channelization. Amul & GCMMF
have leveraged this and has got itself a strong base of suppliers
who provide them milk throughout the year. Large number of
dairy plants in public and cooperative sectors besides several
others coming up in the private sector would result in
competition. Because of this the end consumer would benefit
and a good product mix would emerge.
• Technical manpower: Professionally trained, technical human
resource pool, built over last 30 years is the strength that
GCMMF has. The employees of GCCMF are highly recognized in
the industry and have earned name for themselves as well as
the federation.
• Enhanced Milk Production: Increase in the milk production
with consequently increased availability of milk processing has
led to increase in consumption and faster access to the
consumers through effective distribution. The technology is
brought from Denmark and the production of milk has benefited
from that.
• Transportation: The transportation facilities and the easy
availability of the special trucks have provided a boost. Cold
refrigerated trucks are there in place and the warehouses also
have the cold storage facilities that facilitate the transportation.
• Vast resources: Country has vast natural resources which
offer immense potential growth and development for dairying.
Moreover the financial resources available with the federation
are immense and the reputation is such that in case of any
further requirements, it can approach any institution and raise
any form of capital.
• Increasing purchase power and changing tastes of the
consumers: The purchasing power of the residents is
increasing. As a result a lot of products are being consumed.
Moreover, the consuming habits are changing. As a result, the
demand for products such as butter and cheese is increasing at
a very rapid rate.

3.2 Weaknesses:

• Perishability: Pasteurization has overcome this weakness

partially. UHT gives milk long life. Still perishability is there at
the milk vendors end. This does result in loss of some
production. But Amul Dairy is taking steps to store milk at the
vendors end. Surely, many new processes will follow to improve
milk quality and extend its shelf life.
• Lack of control over yield: Theoretically, there is little control
over milk yield. A lot depends upon the monsoon in the country.
This is because of the quality of cattle feed that would be
available will not have the required nutritional content. Steps
are taken to provide awareness regarding these and the
penetration of quality feed is being increased. Moreover,
increased awareness of developments like embryo transplant,
artificial insemination and properly managed animal husbandry
practices, coupled with higher income to rural milk producers
should automatically lead to improvement in milk yields.
• Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. All
these factors lead to perishability of the procured milk. But with
the overall economic improvement in India, these problems
would also get solved.
• Erratic power supply: The erratic power supply would cause
harm in the processing of milk.
• Underdeveloped systems: There still exist underdeveloped
raw milk collection systems in some parts of the country.
However steps are being taken such as setting up of cold
storage points at key collection centers to combat the situation.
• Lack of proper implementation: Dairy development
programmes have not been fully implemented as per the needs
of the region in different agro-climatic zones.
• Infrastructure: The infrastructure that is available is not up to
the current world standards. Also lack of infrastructure for
offering dairy business management programmes to the trained
personnel is creating a hindrance.

3.3 Opportunities:
"Failure is never final, and success never ending”. Dr Kurien bears
out this statement perfectly. He entered the industry when there
were only threats. He met failure head-on, and now he clearly is an
example of ‘never ending success’! If dairy entrepreneurs are
looking for opportunities in India, the following areas must be
tapped:

• Competition: With so many newcomers entering this industry,

competition is becoming tougher day by day. But then
competition has to be faced as a ground reality. The market is
large enough for many to carve out their niche. Moreover due to
competition, there is a chance to better serve the market with
innovative products.
• Value addition: There is a phenomenal scope for innovations
in product development, packaging and presentation. Given
below are potential areas of value addition:

○ Steps should be taken to introduce value-added products

like khoa, flavored milk, dairy sweets, etc. This will lead to a
 greater presence and flexibility in the market place along
with opportunities in the field of brand building.

○ Addition of cultured products like yoghurt and cheese lend

further strength - both in terms of utilization of resources
and presence in the market place.

○ Yet another aspect can be the addition of infant foods,

geriatric foods and nutritional.

• Export potential: Efforts to exploit export potential are

already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria,
and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-
products in general and dairy products in particular. There is a
strong basis of cost efficiency, which GCMMF can leverage in
the world market.
• Markets: The market for the traditional as wells as processed
dairy products is expanding both at the domestic and
international front.
• IT support: Software is now available for project formulation
for dairy enterprise. It has also computerized its production
processes. Mother Dairy was the first fully computerized dairy in
India. In its Anand plant all products are processed
computerized, which does not have any hand touch during any
stage of process.

3.4 Threats:
• Milk vendors, the un-organized sector: Today milk vendors
are occupying the pride of place in the industry. Organized
dissemination of information about the harm that they are doing
to producers and consumers should see a steady decline in their
importance.
• Infestation: There are increasing incidents of chemical
contaminants as well as residual antibiotics in milk.
• Quality: The quality of the milk is found to be poor as
compared to the international standards. One of the reasons for
these according to the EU and America is the method of
milching the milk. In these nations the milk is hands by the
farmers owning the cattle do milched with the help of machines,
while in India.
• Exploitation: The liberalization of the Dairy Industry is likely to
be exploited by the multinationals. They will be interested
manufacturing the milk products, which yield high profits. It will
create milk shortage in the country adversely affecting the
consumers.
• Subsidy by Western Nations: There have been incidences
wherein the Western nations subsidizing the dairy products by a
few means like transportation. Because of such reasons the
final price of the product goes below the prices prevailing in the
Indian Market. Hence it proves a threat to GCMMF’s and other
Indian dairy products.
• Creation of Non Tariff Barriers by Developed Nations: The
Developed Nations have created Non Tariff Barriers related to
Quality of the milk specifically. They want that the milk be
processed with potable Air and Water. They also want that the
milching of cattle be done with the help of machines. However
this type if system is yet to evolve in India. Because of these
reasons they are reducing the market potential of Indian made
products, where GCMMF holds a lions share.

The study of this SWOT analysis shows that the ‘strengths’ and
‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths
and opportunities are fundamental and weaknesses and threats
are transitory. Any investment idea can do well only when you
have three essential ingredients: entrepreneurship (the ability to
take risks), innovative approach (in product lines and marketing)
and values (of quality/ethics).

1. COMPETITION

Amul has a competitive sustainable advantage. This lies in the

procurement part. Its
ability to collect 7 million liters of milk from 2.6 million farmers and
convert it into
Rs. 6 crore worth products and distribute them to 5 lakhs retailers
is a tough job.

The competitors:
The various competitors of Amul product –wise is given as under:
[Link] SALES TURNOVER

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355
1995-96 13790 400
 1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700

[Link] MIX

6.1 PRODUCT:
➢ Breadspreads:
• Amul Butter
• Amul Lite Low Fat Breadspread

• Amul Cooking Butter

➢ Cheese Range:
• Amul Pasteurized Processed Cheddar Cheese

• Amul Processed Cheese Spread

• Amul Pizza (Mozarella) Cheese

• Amul Shredded Pizza Cheese

• Amul Emmental Cheese

• Amul Gouda Cheese

• Amul Malai Paneer (cottage cheese)

• Utterly Delicious Pizza

➢ Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

• Amul Amrakhand

• Amul Mithaee Gulabjamuns

• Amul Mithaee Gulabjamun Mix

• Amul Mithaee Kulfi Mix

• Avsar Ladoos

➢ UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk

• Amul Gold 4.5% fat Milk

• Amul Lite Slim-n-Trim Milk 0% fat milk

• Amul Shakti Toned Milk

• Amul Fresh Cream

• Amul Snowcap Softy Mix

➢ Pure Ghee:
• Amul Pure Ghee

• Sagar Pure Ghee

• Amul Cow Ghee

➢ Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)

• Amul Infant Milk Formula 2 ( 6 months above)

• Amulspray Infant Milk Food

➢ Milk Powders:
• Amul Full Cream Milk Powder

• Amulya Dairy Whitener

• Sagar Skimmed Milk Powder

• Sagar Tea and Coffee Whitener

➢ Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

➢ Fresh Milk:
• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat

• Amul Shakti Standardised Milk 4.5% fat

• Amul Slim & Trim Double Toned Milk 1.5% fat

• Amul Saathi Skimmed Milk 0% fat

• Amul Cow Milk

➢ Curd Products:
• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul Masti Dahi (fresh curd)

• Amul Masti Spiced Butter Milk

• Amul Lassee

➢ Amul Icecreams:
• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit

Bonanza, Roasted Almond)

• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

• Sundae Range (Mango, Black Currant, Sundae Magic, Double

Sundae)

• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,

Chococrunch, Megabite, Cassatta)

• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips,

Cake Magic)

➢ Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

➢ Brown Beverage:
• Nutramul Malted Milk Food

➢ Milk Drink:
• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron,
Cardamom, Rose, Chocolate)

• Amul Kool Cafe

• Amul Kool Koko

• Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

➢ Health Beverage:
• Amul Shakti White Milk Food
6.1.1 The different product for different
people:

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
6.1.2 Amul product mix:

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable
goods category but also produces durable goods

Examples
Durable Goods:-Milk Powders, Ready to Serve Soups
Non Durable Goods: - Fresh Milk, Cheese Range & Ice creams

Non
Dairy
-diary

Fresh Milk

Veg. Oils
Milk Drinks &
Desserts

Bread Spreads Snacks

Cheese products Instant Food

 Product Mix- Width

Bread Spreads Cheese Desserts

Butter Shredded Pizza C heese. AMUL Shrikhand

Mango, Saffron,
Almond Pistachio,
Product Mix Length

Cardam om )

Low Fat Bread Em m ental Cheese. AMUL Amrakhand.

Spread.

Cooking Butter. G ou da Ch eese. AMUL Mithaee

Gulabjamuns.

Malai Paneer (cottage AMUL Mithaee

Cooking cheese) Frozen and Gulabjamuns Mix.

Health
Drink Tinned.

Amul/SagarPure Utterly Delicious Pizza. AMUL Mithaee Kulfi

Nutramul
Ghee Mix.

AmulMalaiPaneer AmulShaktiHealthFoodDrink

MithaiMate

Pro‐bioticDahi

MastiDahi

UtterlyDelicious
Pizza
 Product Mix- Width

Milk Drinks Powder Milk Fresh Milk

Amul Kool Milk Amul Spray Infant Milk Amul Fresh

Shake food Milk

Amul Kool Amul Instant Full Amul Gold Milk

Cream milk

Amul Kool Sagar Skimmed Milk Amul Taaza

Cafe Powder Double Toned
Milk

Kool Koko Sagar Tea Coffee Amul Lite Slim

Whitener and Trim Milk

Nutramul Energy AmulyaDairyWhitener AmulFresh

Drink Cream

Amul Kool AmulShakti

Flavoured Bottled TonedMilk
Milk

Amul Kool AmulCalci+

Flavoured Tetra
Pack

Amul Masti Spiced Amul

Buttermilk Buttermilk

AmulLassee

AmulKoolThandai
Product Mix Length

Product-Width
The width of a product mix refers to the total number of items in the mix.

Example: The total number of items is 8. (Bread spreads, cheese, desert,

cooking, health drink, milk drinks, powder milk & fresh milk
Product-length
The length of a product mix refers to the total number of items in the mix.

Example:

The total Length of Amul’s Product mix is 42

The Total width of Amul’s Product mix is 8 ( No of lines)

H ence th ea vera g e p rod u ct len g th
is ( Total Leng th / N u m beisr of
le s s th a n
lines) = 44 /8 6

Product Depth

The depth of a product mix refers to how many variants are offered of each
product in the line

Amul’s Product Depth

Name of product Variants Price

Amul Butter 100g Pack Rs. 25

Amul Butter 500g Pack R s. 122

Delicious Table 100g Pack Rs. 13

Margarine

Delicious Table 500g Pack Rs. 60

Margarine

Amul Lite lowfat 200g Tub Rs. 32

Breadspread
Name of Variants Price
Product

Amul Cheese 400g Tin Rs. 117

(EOE)

Amul Cheese 200g Pack Rs. 77

Slices

Amul Cheese 200g Pack Rs. 66

Chiplets

Amul Cheese 1kg Block Rs. 233

Amul Cheese 200g Tub Rs. 50

Spread

Amul Pizza 200g Pack Rs. 55

Cheese

Amul Emmental 400g Pack Rs. 160

Cheese

Amul Gouda 250 g Rs. 115

Cheese

Amul Gouda 1 kg Rs. 440

Cheese

Amul Malai 200g Dice Rs. 36

Paneer Pack

Amul/Sagar Pure 1 Litre Tin Rs. 265

Ghee
Amul/Sagar Pure 500ml Rs. 125
Ghee Pouch

Amul/Sagar Pure 2 Litre Tin Rs. 495

Ghee

Amul/Sagar Pure 5 Litre Tin R s . 1 ,2 2 5

Ghee

Amul Pure Ghee 1 Ltr Refill Rs. 260

Amul/Sagar Pure 1 Ltr Pouch Rs. 242

Ghee

Amul Shrikhand 500g cup Rs. 53

Elaichi

Amul Shrikhand 500g cup Rs. 55

Mango

Amul Shrikhand 500g cup Rs. 66

Kesar
Name of Product Variants Price

Amul Shrikhand 500 g Badam Rs. 61

Pista

Amul Mithaee Gulabjamun 1kg Tin R s. 1 15

Amul Mithaee Gulabjamun 500g Tin Rs. 64

Nutramul 500g Refill R s. 1 10

Amul Chocolates 35g Milk Rs. 15

Amul Chocolates 35g Fruit & Rs. 16

Nut

Amul Almondbar 35g Rs. 15

Amul Chocozoo 232g Tin R s. 1 25

Amul Chocozoo Tub 500 g R s. 1 80

Amul Taaza Double Ton ed 1 Litre Tetra Rs. 35

M ilk

Amul Taaza Double Ton ed 200 ml Tetra Rs. 9

M ilk

Am ul Tazza Toned M ilk - 1 Litre Tetra Rs. 38

N o th e rn E a s te rn S ta te s

Amul Gold Milk 1 Litre Tetra Rs. 39

Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40

Amul CALCI + high calcium 1 Litre Brik Rs. 42

milk

M it h a im a t e s w e e t e n e d 400g Can Rs. 58

Condensed Milk
Amul Fresh
Name of Product
Cream 1 Lit Tetra Brik
Variants PriceR s . 1 1 3

Amulspray
Amul Masti IMF
SpicedButter 500 g Pouch
200ml Tetra Brik RRs.
s . 110
10
milk
Amulspray IMF 500g Refill R s. 111
Amul Masti IMF
Amulspray SpicedButter 1 LitreTin
500g Tetra Brick RRs.
s . 135
15
milk
Amulspray IMF 1 kg Pouch R s. 202

Amulspray IMF 1 kg Tin R s. 222

Amul Lassee(Rose) 200 ml Tetra Rs. 12
Brick
Sagar Skim m ed Milk Pow der 500g
Am ul Basundi Pouch
l Ltr Tetra Brick RR ss .. 11 10 03

Amul Mithai mate 400 g EOE can Rs. 58

Amulya Dairy Whitener 500g Pouch R s. 113

Amulya Dairy Whitener 500g Refill R s. 114

Amulya Dairy Whitener 1 kg Pouch R s. 227

Amul Shakti Health Food 500g Refill R s. 115

Drink (Kesa
r Alm ond)

Amul Kool (Kesar, Elaichi, 200ml Bottle Rs. 12

Rose)

Amul Kool (Kesar, Elaichi, 200ml Tetra Rs. 12

chocolate
)

Amul Kool Kesar 250 ml can Rs. 25

Amul Kool Cafe 200 ml Glass Rs. 15

Bottle

Amul Kool Cafe 250 ml Can Rs. 22

Amul Kool Cafe 200 ml Tetra Brik Rs. 15

Amul Kool Koko 250 ml Can Rs. 22

Amul Kool Millk S h ake 220 ml Can Rs. 22

(Mango, Strawberry &
Badam)
Line stretching

Every company’s product line covers a certain part

of the total possible range. Line stretching occurs
when a company lengthens its product line beyond
its current range. The company can stretch its line
down market, up-market or both ways.

Example: Amul is now aggressively adopting the

down market stretch by introducing
(CHHOTA AMUL Priced at Rs. 5 to take advantage of
the Bottom of the Pyramid i.e. to individual of low
income group.)

Amul has been introducing products with consistent

value addition but never left the core philosophy of
“Providing milk at a basic, affordable price”

6.2 PRICE

• Survival.
• Capture market share.
• To provide service to all income group

Amul butter:
100gm– Rs.18
Competitor: Mother Diary 100gm- Rs.19

Amul cheese:
200gm– Rs.55
Competitor: Britannia cheese–200gm– Rs.70

Amul Ghee:
1Lit.– Rs.190
Competitor: Gits. 1Lit.-Rs.210

Amul Kool Milkshake

200ml– Rs.15
Competitor Nestle Milk Shake –200ml–Rs.20

6.3 PROMOTION
• Advertising philosophy "to be simple, fresh and
innovative".
• The clean, emotion-based ads.
• Amul ads-creative, apt forth current situation.
• The Amul ads are one of the longest running ads
based on a theme, now vying for the Guinness
records
• 1% of its turnover on promotions.
• Not spending more than Rs 2crore on Amul
butter.

Billboard campaign
• First billboard came up in 1967
• For the first one year the ads made statements of
some kind
• Later many topical adds came into existence
• When Mumbai first saw the beginning of the Hare
Rama Hare Krishna movement
• Amul came up with a clincher—‘Hurry Amul,
Hurry Hurry India’

Promotion by events
• Amul Chef of the Year, 2009 contest: in this, the
participants are required to use as many Amul
products as possible.
• Amul Maharani Contest, 2008-09: in this, the
participants are required to fill up questionnaires
and then there is a lucky draw.
• Amul Food Festival Contest
• Winners of Slogan likho Disney land dekho
contest
• Winners of" Amulya Fly to Bangkok Contest
• Sponsoring amul star voice of india
• Amul publishes some books periodically. Basically
they are related to Amul or dairy industry
• Amul also gives away academic excellence
awards for school children every year. They are
called Vidya Shree – for 10th std and Vidya
Bhushan – for 12th std students.

6.4 PLACE
• Amul-Place
• Channels
• Coverage
• Assortments
• Locations
• Inventory
• Transport
• Its supply chain one of the most complicated in
the world.
• Amul has plans to create a large chain of such
outlets to be managed by franchisees
throughout the country

Channel
Online (Internet):
– Amul cyber store
– Ice-cream cyber store

Direct retailing through "Amul Utterly Delicious"

parlours
– Major cities Ahmadabad, Bangalore, Baroda,
Delhi, Mumbai, Hyderabad and Surat.
– Presently 1,500 parlours and plan to open 10,000
of them by 2012

Retailers
– Currently online are Chennai and Calcutta
– Chennai, Kolkata, Nasik, Jalgaon, Aurangabad,
Delhi, Raipur, Jodhpur, Udaipur, Pune,
Siliguri/Durg, Kota.

Wholesalers
– Producer Cooperatives: This type of distribution
organization is formed by agricultural producers
for selling their produce in the local market.
– Network of over 3,500 distributors

Coverage
India:
– Covering 13,000 villages benefiting 2.7 million
farmers
– Collection 447,000 liters of milk/day from 2.12
million farmers.
– Delivery of goods to over 500,000 retail outlets
across the country
– Members: 13 district cooperative milk producers
'Union
– No. of Producer Members: 2.7 million
– No. of Village Societies: 13,141
International Markets: Available in over 40 countries.

Locations

The major markets are the US, WestIndies, countries

in Africa, the Gulfregion, Singapore, the Philippines,
Thailand, Japan and China. Some Amul Parlours in
the country run by the company or its wholesale
dealers:
– Delhi Metro Rail Corporation
– The Somnath Temple
– National Institute of Design
– Infosys Technologies in Bangalore, Mysore &
Pune
– Wipro campus in Bangalore
– L.J. College, Ahmedabad
– Ahmedabad Airport
– Surat Municipal Corporation
– Gujarat State Raod Transport Corporation
– Jubilee Mission Medical College, Trichur,Kerala
– Sanjay Gandhi Hospital Parlour, Amethi
– Indian Institute of Management, Kolkata
– Café Amul, MDG, Gandhinagar

Inventory

– 47 depots with dry and cold ware houses of

entire range of products.
– Total Milk handling capacity: 10.21 million liters
per day
– Milk collection (Total-2007-08): 2.69 billion liters
– Milk collection (DailyAverage2007-08): 7.4 million
liters
– Milk Drying Capacity: 626Mts. Per day
– Cattle feed manufacturing Capacity: 3090 Mts
per day

Transport

– Transport cans
– Engages in route scheduling
– Has dedicated vehicle operations.

Assortment
Amul’s dominance: Products like cheese, butter,
liquid milk and yogurt sectors
Amul’s success today is partly because of its strong
supply chain design.
Below is the schematic diagram of Amul’s supply
chain.

With products being highly perishable, the supply

chain ought to have to maintain correct
temperature, humidity etc and the chain should
move fast. To reach out its consumers more directly
and let them the total brand experience, Amul has
come up with Amul parlours. These are called
“Utterly delicious parlours”. They have come up in
major cities like Ahmadabad, Bangalore, Baroda,
Delhi, Mumbai, Hyderabad and Surat already, and
many more starting up real soon. Till date there are
about 400 Amul parlours across the country. These
parlours are set at prominent locations such as
campuses of Infosys, Wipro, IIM-A, IIT-B, temples,
Metros etc.
[Link]

1. Amul has a relatively good distribution network,

but still company is not able to fulfill the demand
of outlet in the peak season when demand is very
high. Here company should consider on the
supply of product in the peak season.

2. Supply should be regular to all the outlets

including those that lie in the pocket roads and
not just in the outlets which lie on the easily
accessible routes.
3. Since the penetration of Amul products in
eateries is the worst among all the channels, the
company ought to adopt strategy like supplying
free menu cards, which has the company logo
printed on them, this will not only increase the
penetration of the product in the outlets, but also
improve the market sales.

4. The company should also ask its distributors to

supply its products on a bill to bill based credit
system with at least all the reliable retailers, so
that the product penetration in the outlets
increases in terms of percentage of units stocked
at a time in the outlet, this would also look
appealing to the customer who would instead like
to pick up the product at first glance.

5. Credit is the 2nd biggest factor that influences

the penetration of the product into the retail
outlet. So company should give the credit to all
outlets.

6. Given the fact that margin offered to the retailer

is not similar in the case of the competitor‟s
product. For this fact, the company should give
good margin to the retailers than the
competitors.

7. Due to the lack of awareness of milk product in

cochin, the company should be advertised of the
product by print and electronic media specially in
local channel and newspapers.
8. Discount is also an important factor of stocking
decision for retailers. So, company should give
discount to all retailers for influencing the
stocking.

9. Company should also give the replacement offer

to those outlet which is running with small
business.

[Link] fresh product should be supply in the outlet.

[Link] should take proper steps to improve service

because although being in the top slot in butter
and cheese supplies it does not get the sales in
chocolates.

[Link] company should use brand ambassadors to

attract all age groups.

[Link] should give local advertisements apart

from the advertisements given at the national
level. Local advertisements must mention the
exclusive Amul shops of the city.
8. CONCLUSION

Amul is a well known brand and a market leader in

dairy products. It has maximum market share in
milk, butter and cheese which are its core products.
Amul is a cooperative organisation but chocolate
making is a profitable industry. So Amul must
concentrate on profit making through the chocolate
industry. With the help of research the company can
find out its weak points in chocolate product and can
increase its market share by rectifying its mistakes.

• Amul must come up with new promotional

activities so that people become aware of Amul
chocolates.

• Quality is the dominating factor which influences

consumers to buy Amul products but prompt
availability of other chocolate brands and
aggressive promotional activities attracts
customers towards them and also increases their
sales.

• People are mostly satisfied with the overall

quality of Amul chocolates, but for the existence
in the local market it must use aggressive selling
techniques.