1. Amul-The Taste of India
Case Study Presented by
▪ Kavita Bavkar
▪ Rachana Adkar

2. History of Amul
Members I3 districts cooperative milk producer
union
No. of Producer Members 2.79 million
No. of Village Societies I3328
Total milk handling capacity I I . 2 2 million liters per day
Milk collection (Total 2008 - 09) 3.05 billion liters
Milk collection (Daily average 2008 - 09) 8.4 million liters
Milk drying capacity 626 Mts per day
Cattle feed manufacturing capacity 3500 Mts per day
▪ Amul (Anand Milk Union Limited), formed in 1946,is
a dairy cooperative movement in India
▪ It is managed by Gujarat Co-operative Milk Marketing Federation Ltd(GCMMF)
▪ AMUL is based in Anand, Gujarat and has been a sterling example of Co-operative
organization’s success in the long term. The Amul pattern has established itself as a
uniquely appropriate model for rural development.
▪ Amul has spurred the White Revolution of India, It is also the world’s biggest
vegetarian cheese brand.
Facts

3. Reason to Success
⚫ People power
⚫ Brand umbrella
⚫ Low-cost price strategy
⚫ Introducing higher value products
⚫ The distribution network
⚫ Managing supply chain
⚫ Business market
⚫ Co-ordination

4. Mix Product for Everyone
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 health conscious
Amul launched “low fat, low cholesterol bread spread’.
Product for the price sensitive India
Low PricedAmul Ice-cream & affordable sugar
whitener.
Product for urban class
Amul launched emmental gouda & pizza
mozzarelia cheese

5. Amul – Business Model
Raw
Milk
Condense
Ghee
Butter
Cream
Package Milk
Ice-cream
Beverages
d
Dried
ed Milk
Skimm
Powder
Amul never forgot its “Primary Customer”
Amul collects447,000 ltrs of milk from 2.12 million
farmers

6. Customer Based Market Segmentation
Kids
Women
Youth
Calories
Conscious
Health
conscious
Amul kool chocolate milk
Nutramul energy drink
Amul milk shake
Amul Calci +
Amul emmental cheese
Amul cheese spread
Amul Lite
Sagar skimmed powder
Amul Lite slim & trim milk
Nutramul
Amul shakti health drink

7. IndustryAnalysis: Porter’s 5 Forces
Competitive
Rivalry is
high due to
other brands
& Local
Players
Threat of
new
entrants is
high because
there is no
entry
barriers
Bargaining
power of
suppliers is
low because
the suppliers
are rural milk
producers
Threat of
substitutes is
high because
of
availability
of other
product
Bargaining
power of
customer is
high because
of various
competitors

8. SWOT Analysis of Company
Strengths
• Largest food brand in India
• High quality, low price
• World’s largest pouched
milk brand
• Annual turnover of $ I504
million
• High diverse product mix
Weaknesses
• Risk of highly complex
supply chain
• Strong dependency on
weak infrastructure
• Alliance with third parties
who do not belong to the
organized sector
Opportunities
• Penetrate international
market
• Diversify product portfolio
to enter new product
categories and expand
existing categories like
processed foods, chocolate
etc
Threats
• Competitors − Hindustan
Lever, Nestle, Britannia etc
• Still competition from
MNCs in butter
• Growing price of milk and
milk products
• Ban on export of milk
powder

9. Strengths
Parent support
Strong distribution network
High demand of Amul Milk
Chocolate
Can make good utilization of
established goodwill of better
channel
Good margin of profit
Weaknesses
No advertisements & promotions
are made for Amul chocolate.
Raw material supply − volatile prices.
Chocolate − comparatively small
business unit.
Opportunities
Low penetration consumption.
Scope of launching new variants &
extensions.
Growing Population
Threats
Foreign multinationals.
Change is needed according to trend
and customers preferences.
Amul has number of competitors
like Nestle, Cadbury etc.Amul
chocolate has not those much good
advertising strategies to win over its
competitors.
SWOT Analysis
of Amul
Chocolate

10. The 3 C’s…...
Customer
Company
Competition
•Largest milk brand in asia
•More than 30 dairy brands
•Market leaders in ghee & butter
•Very strong supply chain
•Enjoys fine reputation
•Quality with affordability
•Defending against Mahananda,
vijay & other co-operative milk
brands
•Aggressive moves against
Britannia, Nestle, Mother Dairy &
Kwality
•Customer extremely satisfied
•Moved from loose milk to
package milk
•Ready to new products
•Improve socio-economic
conditions

11. Amul chocolate Introduction
⚫ Introduced chocolate brand
in 1974
2003 year
⚫ To boost sale,Amul launched
three new chocolates in
under the brands Fundoo,
Bindas, and Almond bar.
⚫ As a result Amul introduced
festival season pack “Rejoice”
came with six chocolates

12. Amul Chocolate
A new tag line: Amul chocolate – For someone you love.
⚫ In the past year sugar free & choco zoo both have been appriciated
by consumers.
⚫ Competitors –Cadbury, Nestle
Reasons of failures
⚫ Lack of e-selling awareness-Amul Cyberstore
⚫ Poor advertising and less use of hoardings
Competition Scenario
⚫ The chocolate market in India has only 3 big players, Cadbury (79%),
Nestle (14%) &Amul (5%).
Suggestions-
⚫ Amul must come up with its own boutiques
⚫ Form its own shelves in retail shops & take ownership of maintaining
them.
⚫ Direct school programmes

13. Amul Chocolate
Decline Sales
Introduction Phase
Amul milk
Amul fruit & nut
Low Growth
Phase
New Brands
Kite Bite
Nutes about you
Sugar free
Choco Zoo
Decline Sales
Inadequate
success
Failed new brands
Tough Competition
by Market Leaders-
Cadbury(70%),
Nestle
1974 1985 1999 2002 2009
Years

14. What more can Amul do ?
I.
III.
▪ To improve further Amul can try following ideas
Amul can venture out on new products likeToned milk, condensed
milk that can be used for sweets, baby food products.
II. There are certain products like Amul basundi,gulab jamoon,
chocolates etc which are not as popular asAmul Ice-cream.Amul
must try to understand the cause of this through market research &
work on improving these products.
ThoughAmul’s hoardings are a huge success,It can penetrate even
better in the rural areas by advertising through the media via cable
channel s and newspapers sponsoring shows inTV, sports events can
be great help.

15. Conclusion
⚫ As Amul has large number of product variety,
they can focus on each criteria on each market
segment.The most effective dimension would be a
product differentiation among place wise.As of
now there is no such company which made
product variety in such segment.