2. Dairy industry in India
India has the highest livestock population in the world with 50% of the
buffaloes and 20% of the world’s cattle population.
List of top dairy companies in India
3. Founder & Chairman- Dr Verghese Kurien
GCMMF : Gujarat Co-operative Milk Marketing Federation Limited
GCMMF : formed in 1st Dec 1946 in Kaira Dist, Gujarat
Amul : Anand Milk union limited
5. An overview ….
17 District Cooperative Milk Producers'
No. of Producer Members 3.37 Million
No. of Village Societies 18,536
Total Milk handling capacity per day 24 Million litres per day
Milk Collection (Total - 2014-15) 5.42 billion litres
Milk collection (Daily Average 2014-15) 14.85 million litres
Cattlefeed manufacturing Capacity 6340 Mts. per day
Sales Turnover -(2014-15) Rs. 20733 Crores (US $ 3.4 Billion)
7. Swot Analysis Of Amul
Largest food brand in India & Asia
High quality , Low Price
Introduced TQM .
World’s Largest pounched Milk Brand
Annual turn-over of 20733 crores (2014-
Highly Diverse Product Mix
Robust Distribution Network
Strong Dependency on weak infrastructure
& completely dependent on villages for its
Risks of highly complex chain system
Short life of its product
Alliance with third parties who do not
belong to the organized sector
Penetrate international markets
Diversify product portfolio to enter new
product categories & expand existing
categories like processed foods ,
Use internet for selling products
Competitors – Hindustan Lever,
Nestle,Britania & local players
Stiff competition from MNC’s in butter
The yield of India cattle still much lower
than other dairy countries
8. Although many substitute in
Drinking arena when compared
with milk are available, the dairy
industry enjoys high
Profitability in case of other dairy
Requires high capital
Investment & difficult to achieve
economies of Scale
Access to very complex & well
established distribution channel
Presence of multiple competitors
as well as local Dudhwallas
Home Delivery & freshness of
local dairy products from local
Dudhwallas make the more complex
Porter’s 5 forces model
Large no of
Mainly the Suppliers are rural milk
producers & thus there the
bargaining power is very low
9. 4 P’s of amul
Tracks consumer needs & their changing lifestyles & according develops products to suit
Product quality plays a paramount role & so does packaging
The main USP of Amul brand is its low pricing.
The competitive advantage is its “backward intergration ” strategy , which helps
substantially in cost reduction
Amul boasts of the largest cold chain network (18000 refrigerators) in India as
compared to any other company.
It sells pizzas in rural markets too.
Amul spends very less on its advertising budget,but spends it very effectively.
It has the power of an umbrella brand Amul , which is highly respected brand name &
enjoys public trust.
10. The Amul Model
The Amul Model of dairy development is a three-tiered
structure with the dairy cooperative societies at the village level
federated under a milk union at the district level and a federation of
member unions at the state level.
• Establishment of a direct
linkage between milk
producers and consumers
by eliminating middlemen
• Milk Producers (farmers)
processing and marketing
• Professional management
12. Customer basedmarketSegmentation
Amul Kool , Chocolate , Milk nutritional Energy
Women Amul Calci+
Youth Utterly delicious Pizza , Amul Emmental Cheese
Amul Cheese Spreads
Health conscious Amul Shakti Health food drink, Nutramu
Amul lite, Amul lite and trim milk
21. What more can Amul do?
To improve further Amul can try out the following ideas:
I) Amul has implemented TQM very successfully, but this concept has grown old. In order to succeed
in this competitive environment Amul must use the concept of Six Sigma: which generally focuses on three key
areas: Improving customer satisfaction, reducing cycle time, reducing defects.
II) There are certain product like AMUL basundi, gulab jamoon, 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.
III) Although Amul believes in innovation, but still in many segments requires upgradation in some of
the aspects. Amul chocolates and Nutramul hardly has 10% market share which is far behind their competitors.
IV) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by
advertising through the media viz cable channels and newspapers.