Prepared By:

Partha Pratim Deka(15-50-119)Dibakar Dutta(15-50-107)

Bidyut Bikash Das(15-50-118)Biman Boruah(15-50-106)

Dairy Industry

Dairy industry in IndiaIndia 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

                                      

Founder & Chairman- Dr Verghese Kurien

GCMMF : Gujarat Co-operative Milk Marketing Federation LimitedGCMMF : formed in 1st Dec 1946 in Kaira Dist, GujaratAmul : Anand Milk union limited

An overview ….Members 17 District Cooperative Milk Producers'

Unions

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)

Amul Product Mix Dairy Non dairy

Fresh Milk Veg Oil

Milk Drinks & Desserts Snacks

Bread Spreads Instant Food

Cheese Products

Swot Analysis Of Amul Strengths

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-

15) Highly Diverse Product Mix Robust Distribution Network

Weaknesses Strong Dependency on weak infrastructure

& completely dependent on villages for its raw mateials

Risks of highly complex chain system Short life of its product Alliance with third parties who do not

belong to the organized sector

Opportunities

Penetrate international markets Diversify product portfolio to enter new

product categories & expand existing categories like processed foods , choclates etc.

Use internet for selling products

Threats

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

Although many substitute inDrinking arena when compared with milk are available, the dairy industry enjoys highProfitability in case of other dairy products

Requires high capital Investment & difficult to achieve economies of Scale Access to very complex & well

established distribution channel Customer Loyality

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

Rivalry Among Competitors (High)

Large no of competitors

Local Dudhwallas

Threats Of NewEntrants (Low)

BargainingPower Of Buyers (High)

Threat OfSubstitutes(Medium)

Bargaining Power of Supplier(Low)

Mainly the Suppliers are rural milk producers & thus there the bargaining power is very low

4 P’s of amul Tracks consumer needs & their changing lifestyles & according develops products to suitTheir needs. 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.

Product

Pricing

Place

Promotion

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) control procurement, processing and marketing

• Professional management

Customer based market Segmentation Amul Kool , Chocolate , Milk nutritional Energy Drink

Women Amul Calci+

Youth Utterly delicious Pizza , Amul Emmental Cheese Amul Cheese

Spreads

Health conscious

Amul Shakti Health food drink, Nutramu

KIDS

Calorie conscious Amul lite, Amul lite and trim

milk

Market Share & Competitors Category Market share Market Position Competitors

Butter 87% 1 Britannia , Nestle

Milk Powder 40% 1 Britannia ,

Cheese 50% 1 Britannia

Ice-Cream 38% 1 Kwality Walls, Mother Dairy

Sweets/condensed Milk

50% 1 Nestle

Chocolate Drink 90% 1 Nestle

Chocolate 10% 3 Cadbury , Nestle

Curd 61% 1 Mother Dairy

GCMMF Turnover (In Crores)

Industry Based Market Segmentation

Milk

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Temples

Amul Milk

Butter/Cheese/GheeBakery & Confectionaries

Pizza Retailers

Snacks Retailers

CSR of AmulTree PlantationSponsorshipsAmul Ads

Reason For Success

SUCCESS !!

Robust Supply ChainLow Cost Stratgey

Strong Distribution Network

Technology & E-Initiatives

Diverse Product Mix

The Brand Value AMUL

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.