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GLOBSYN BUSINESS SCHOOL
Batch - PGDM 07
Group - XIII
Date - 15/01/2009
1
Amul_the Taste of India
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Down The Memory Lane
Meeting at ‘Samarkha village’ near ‘Anand’ on 4th Jan, 1946
Dr. Rajendra Prasad laying foundation of Amul on 15th Nov, 1954
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65%
15%
10%10%
MARKET SHARE
AMUL
NUTRELITE
NESTLE
OTHER
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34%
33%
26%
7%
AmulBUTTER USERS
CHILDREN
TEEN AGERS
YOUNG
OLD
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Mascot
High quality-Low price
Value for money
Demand profile
Flexibility of promotion
Availability
Strengths :
7
o Perishability
o Poor Packaging
o Lack of control over yield
(milk) quality
o Inadequate transportation
facility
o Make milk procurement
problematic
Weaknesses :
8
Value addition
Export potential
International markets - like Japan
Rural India
Opportunities :
9
Threats:
Globalization- foreign players
may enter ‘Indian Market’
Threat of duplicity
More and more hybrid cows &
pilled milk
The quality of Amul butter is
falling 10
STP Analysis of Amul Butter
Children 7-12 yrs.
Segmentation :
Matured 30 yrs & above
Youngsters 20-29 yrs.
Teenagers 13-19 yrs.
Indian Market
Urban Segment
Rural Segment
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Target Market
Age Group
Urban( in Mllns).
Rural(in Mllns.)
2007 2010(estimtd)
2007 2010(estimtd)
Children 98 103 228 240
Teenage 75 72 175 168
Young 68 80 159 187
Matured 83 81 194 189
Total 324 336 756 784
Total Populatn. 1080 (2007) 1120 (2010)
Children & Teenagers of Urban & Sub-urban market
The entire Rural Segment
Young & Matured people of the Urban Segment
with customized products
Core Target Consumers :
International Market
12Source : www.nationmaster.com
Positioning : Young
Mature
Expensive Economic
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Amul Products
A. Amul Butter
B. Amul Lite
C. Table Margarine
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Amul Can Produce…..
Amul Flavour
ed Butter
It is not just abreak fast any
more !!
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AmulFlavoured Butter
Amul can launch new flavors for kids & teenagers .. . . .
Flavors – Vanilla , Strawberry ,
Mango , Chocolate , Coffee
Strawberry
Chocolate
Mango
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AmulLiquid Butter New product for
Indian market Liquid Butter can be
used for cooking purpose Essential for housing
and commercial purposes
“Purer than purest”
Liquid Butter
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AmulCan
Produce.. . .
Amul Creamery
Butter
Melting moments…….. Passionate
perfection
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AmulCreamery Butter
It can be used as
a dip for snacks
Delectable & easily available
“I love Butter”
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“ sugar
free , , ,
tension free ”
No fat.. No cholesterol
“No Fear At All”
Sugar Free
Butter
AmulCan Produce.. . .
Amul Sugar Free
Butter
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AmulBody Butter
Nourish and smooth your skin
with this luscious, thick body butter
Unique formula delivers
lasting non-greasy, high-intense moisture
“ Use body butter and your Skin
will be smooth as ever . . .”
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BotanicalGarden
Sangria
Honeysuckle
Fragrance
Free
Body Butter Fragrances
Helps in reducing pores caused by ACNES & PIMPLES – ‘Ayurveda’
Rich in vit- A, vit- B12 & vit- K
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Positioning :
Young
Mature
Expensive Economic
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FLAVOURED BUTTER
CREAMERY BUTTER
CREAMERY BUTTER
SUGAR FREE BUTTER
LIQUID BUTTER
BODY BUTTER
Amul Packaging
1. Storable
2. Durable3.
Portable
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FEATURES
1.10 pouch packets of liquid butter per Container
2.Plastic made
3.Can be used as a container for other purposes
Amul Packaging
“Compact kitchen”
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Amul Packaging
Amul Butter Stick
“ No pain, only
gain”
Handy
Trendy
Easy to use
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Primarily Launching in :
• BOMBAY : ADLABS
• KOLKATA : FORUM
• BANGALORE : INOX
• CHENNAI : ABIRAMI
Place Strategies
Amul Food Court:
Targeting Urban Population
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Hear & Near
Ration Shops : Intended to create the habit among
LIGs - Urban & Sub-Urbs
Typically a Low Priced – Medium Quality Product
With the help of Govt. Subsidies or Selling at BEP
Details :
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Rural Market
70% of the Indian Population still lives in Rural Areas A market consisting of 705 million people Opportunities for ‘Market-Development’ as well as ‘Diversification’
Huge Opportunity as :
70%
30%
Population in India (July, 2007)
RuralUrban
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Production of Dairy Products
Low - Medium
Moderate
High
Place - Planet Earth
Japan
India
EU
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Japan now consumes 90 million tons /year About 0.8 kg per person A third of what Americans eat A tenth of the French or Germans
A Japanese Dream
Consumption :
Current Market Conditions :
Severe Butter shortage in Japan – 2008
Butter prices are firmly upward
Empty dishes, awaiting non-replaceable butter
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Japanese Dream Contd.. .
European Opportunity :
Supplying butter is thus easier
Operating through a complicated distribution system
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Govt. Interventions
Unable to meet the requirements
Processes Existing process:
C u s t o m e r s
R e t a i l e r s
HOC / Zonal Offices
Wholesalers
Manufacturer
ORDER
DELIVERY
O D
DO
O D
33
Processes
Perishability
Variability
Drawbacks :
Counter Strategy :
An advanced Info-sys aided, ‘Value Delivery Network’
34
Delivering Values
Member Dairies
SuppliersTransport
-ers
Head office
ZoneZone
DepotDepot
Depot
Retailers/ direct consumer base
E R P
EIAS
GIS
INTRANET
Retail B2B
B2C
portal
SCM
35
QUALITY & Price
QUALITY HIGH PRICE MEDIUM PRICE
LOW PRICE
HIGH PREMIUM HIGH VALUE SUPER VALUE
MEDIUM OVER CHARGING
MEDIUM VALUE
GOOD VALUE
LOW RIP OFF FALSE ECONOMY
ECONOMYExpect M
ore, Pay Less
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Suggested Price Chartfor Urban Areas:
PRODUCT 50 GM 100 GM 150 GM 500 GM
FLAVOURED BUTTER
RS.24-28
LIQUID BUTTER
RS.10-12 RS.15-20 RS.75-80
AMUL CREAMERY
RS.45-55
AMUL SUGAR FREE BUTTER
RS.19
AMUL MILK BUTTER
RS.6 RS.10
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25 gm = Rs 10
50 gm = Rs 17
500 gm = Rs 85 - 90
100 gm =
Rs 20
Suggested Pricing
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Rs. 17
Rs. 25
Competitive Pricing
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Rs. 180/-
?Rs 150 /- only
Competitive Pricing
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Particulars Flavored butter
Rs.
Body butterRs.
Creamery Butter
Rs
Per 100 gm Per 100 gm Per 100 gm
Materials 03 10 05
Labour 5 12 10
Variable Over Head 07 33 20
Fixed Overhead 05 05 05
Total Cost 20 60 40
Profit 05 15 05
Sale Price 25 75 4542
PRODUCT 50 GM 100 GM 150 GM 500 GM
NORMAL BUTTER
RS.15-16
LIQUID BUTTER
RS.7-9 RS.12-14 RS.55-65
Suggested Price Chartfor Rural Areas:
Rs.
18
Rs.
12
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INTERNATIONAL PRICING
NORMAL BUTTER 100 GM
Japan Market Price(excluding taxes)
Yen 175 = 93 INR.
Indian Cost Rs. 13
Export Cost Rs. 35
Distribution Channel Costs
Rs. 25
Total Cost Rs. 73
Profit Rs. 10
Selling Price Rs. 83
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PROMOTING Amul
Try it, U will like it…. . .
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Product Demonstratio
n
Village mela
Arranging
farmer meets
Rural Market
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Rural Market
Folk Theatre
Puppet show
“ Sentiments Signified”
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Rural Market
“ Amul ka khela dekho
”
“Amul ka Jadoo
”48
Amul ka heroes
Rural Market
Rural live role play by dummies on current events
Wall painting , sign board
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Rural Market
Rural market : Free gift
“ Jitna khaoge utna
paoge”
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67%
17%
8%
5% 3%
MEDIA PREFERENCE TO WATCHADVERTISEMENT
TELEVISION
HOARDINGS
NEWSPAPER
MAGAZINES
OTHERS
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II “Going Green” Easily Visible
Covering Larger Area
Fresh & Healthy
Lower Costs
Advertisements
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I TV Advertisements
Urban promotion
Tie ups with ‘SPAs’ - Body Butter
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“Amuleauty !!!”
Interactive T.V. Shows
In front of Retail outlets
Outside Restaurants
Outside Fast-food Shops
In front of Railway Canteens
VENDING MACHINE
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Tie ups with Mc Donald’s, CCD, KFC etc. – Edible Butter
Urban promotion
Amul “Sabse Healthy Kaun???”
The Amul Healthy - Man of India
Urban promotion
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FREE SAMPLES
SCRATCH & WIN
Urban promotion
In SCHOOLS
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Urban promotion
Patronage awards Amul Mobile Games
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Tie –up with ‘NOKIA’
Characters of Amul Butter Girl, Amul butter featured celebs
Global Expansion
INTERNATIONAL
MARKET
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International Market
FOODEX JAPAN
Introducing new products To create an impression
Increasing sales
Increasing share of customers
TASTE-FEST
EUROPE
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Participation in Trade shows
International Market
Scintillating Sculptures
Making your life easy
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International Market
SPONSORINGPopular Local Sports
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Acknowledgements
We wish to express our sincere thanks to
Prof. Prabir Guha , HOD Marketing of ‘Globsyn Business School’, for giving us the opportunity to work
as a team on our marketing project. Prof. Malay Bhattyacharya. Prof. Jayanta Mitra. Prof. Asish Lahiri.
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References :
Ayurveda
Retailers & Distributers of Amul Butter in Kolkata
Britannica Encyclopedia
www.amul.com www.google.com www.nationalmaster.com www.asahi.com
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Abhishek Basak Aindrila Buxy Ananya chakraborty Aniruddha saha Arindam gupta Arnab dutta
Presented By :
Thank You