Amul means “Priceless”
World’s Largest Pouched milk brand
Managed by GCMMF
Exists since 1946
India’s largest Food brand
Introduction to AMUL
PRODUCTION PROCESS of MILK
1. Collection of RAW Milk
12,22,000 ltrs of Milk collected Everyday Then sent to lab, separated from raw milk
& Sent it to various cold storages @
Ahmedabad
2. Electronic Milk Test
With the help of EMT content of FAT and SNF (solid No Fat) is checked
Then send it to Pasteurization
Electronic Weighing Scale
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Pasteurizing & Standardizing
Methylene Blue Reduction Test
Quality Checking
Packing Process
Business Model of AMUL
2.8 mn member in Gujarat
10,675 Co-op Societies
6 mn Ltrs milk collected
Procurement of milk from the Village Dairy
Arranging transportation of raw milk from the VCS to Milk Union
Marketing of milk & milk products
Establish distribution network
Maintaining brand Value
Village Co-Operative Societies
District Level Co-operative Societies
State LevelCo-operative Societies
BUSINESS MODEL of AMUL
Supply Chain Management
GCMMF TODAY
Sales Turnover Rs.9700 crore (2010-11)
5000+ Wholesale Dealers
5.5+ Lac Retailers
Modern Format Stores
Overseas Operations in 41 countries
Major COMPETITORS of
PhysiqueTaste,
Quality
Reflection
Value-Oriented
CultureCo-
operative, Sociable
Self-Image
Proud Indian, Fun
Loving
WHY AMUL?
Personality
Simple Indian
Consumer Based PRODUCTS
SEGMENTATION
PRODUCTS For KIDS & TEENS
Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Milk ShakeAmul Chocolates
PRODUCTS For YOUNGSTERS
Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreads
PRODUCTS For CALORIE CONSCIOUS
Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk
PRODUCTS For HEALTH CONSCIOUS
NutramulAmul Shakti Health Food Drink
PRODUCTS For EVERYONE
AMUL TAZAA(1.5 % FAT)AMUL SHAKTI(3.2% FAT)AMUL GOLD (4.5% FAT) & AMUL BUTTER & CHEEZE, GHEE & FLAVOURED MILK
PRODUCTS For EVERYONE
PRODUCTS For DIABITIC
India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
4 Ps of AMUL
Product Price Promotion Place
Promotion
Jingle: Utterly, Butterly… DeliciousMascot: Amul Baby girlMedia: Newspaper, TVC, Hoardings…
Entering into New market, Fast food retail chain, started in Ahmedabad provides Varieties of Pizza, Planning to open outlets in TIER – I cities like Mumbai, Delhi etc.
Pizza @ Rs. 39
1. QUALITY
2. VALUE FOR MONEY
3. AVAILIBILITY
4. SERVICE
STRATEGICAL PILLERS OF AMUL
Industry Based Segmentation
AMUL MILK
Ice-cream Manufacturers
Restaurant/Food Chains
Coffee Shop Chains
Industry Based Segmentation
CHEESE/BUTTER/GHEE
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Logistics @ AMUL
•6 million liters of milk per day•From about 10,675 separate village cooperative societies•Approximately 2.8 million milk producing member.
Logistics in collection
•Storing the milk.•Processing the milk.•Distributing the milk.
Logistics in Supplying
Reverse logistics
MILK CHURN from dairy to VCS
POUCH MILK TRAY from retailer to dairy
BOTTLEfrom retailer to dairy
DAMAGED PRODUCTS from customer to retailer then to dairy
The milk collection center at village cooperative societies, were first automated.
The company zeroed in on ERP as means to keep pace with dynamically changing business environment
The project was named as Enterprise wise integrated application system [EIAS]
Data analysis software utilization for milk production estimation and increasing productivity
TCS was hired to guide them in its implementation
VATS network between all distribution network and GCMMF
IT EVOLUTION
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Amul has start implementation of ERP in phases.
Automatic milk collection system units(AMCUS) at village society were installed in the first phase to automate milk production logistics
AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronically
Your own footer Your Logo
IT EVOLUTION
There is improvement in quality of milk in term of acidity and sour milk
Milk union records show 2% reduction in the amount of the sour milk received from the union
Improved microbiological quality of upcoming raw milk in the form of methylene blue reduction
This gives better shelf life to the product
TOTAL QUALITY MANAGEMENT
IT BENEFITS
Radical changes in business processes -
eliminating middlemen
Improved delivery mechanisms and transparency of
business operations
Due to this process, AMUL is able to collect six million liters of milk
per day
IT BENEFITSHuge reduction in processing time payments to the farmers from a
week to couple of minute
Movement of 5000 trucks to 200 dairy
processing plants twice a day in a most
optimum manner
Practicing just in time supply chain management with six sigma accuracy
IT BENEFITS
Online order placements
of Amul’s products on
the web
Amul exports products worth around US$ 25
million to countries in West Asia, Africa
and USA
S W TO
SWOT ANALYSIS
S
Largest food brand in India
High Quality, Low Price
World's Largest Pouched Milk Brand
Annual turnover of Rs. 9700 crore
Highly Diverse Product Mix
Robust Distribution Network
Enhanced Milk Production capacity
Vast resources
Advanced Technical Equipment manpower capacity
Increasing purchase power
StrengthsSWOT ANALYSIS
Weaknesses
W
Risks of highly complex supply chain system
Strong dependency on weak infrastructure
Alliance with 3rd parties who do not belong to the organized sector
Indian Roads specially for logistics facility
Perishability of products
Erratic power supply
Lack of proper Infrastructure; warehousing, Trained manpower
SWOT ANALYSIS
Opportunities
O
Increase the Penetration in international markets
Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
innovations in product development, packaging and presentation
IT support
Presence only in Vegetation Food Market, can launch range of non-veg items
SWOT ANALYSIS
Threats
T
Milk vendors, the un-organized sector
Threat of Competitors
Still competition from MNCs in butter
Growing price of milk and milk products
Ban on export of milk powder
Milk adulteration
Low profit margin to Retailer, risk of switching brand
SWOT ANALYSIS
SEVERAL FINDINGS
Low profit margin, almost all retailers are
not interested in selling Amul milk
All retailers get Amul milk from
company selected
distributors
More of the activities were
not communicated by distributors
Amul dont print packaging date
on pouch
• Company should start printing packaging date on milk pouch.
• Consider on the supply of product in the peak season.
• 250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.
• Incentives & schemes should be given to the retailers.
• Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote company’s milk and milk products
Suggestions and Recommendations
Expansion plan
Tie up with the Wal-Mart and, It has promised to keep Amul brand on their shelves in US
Export is in 41 countries, now planning to export to Japan
Plan to open 10000 Amul parlor by the end of the 2014
Amul (Recently in news)
• Milk via milk train
• Tie up with Adani Logistics
• 50 wagon each capacity 24k liter
• Initial transport cost was 45 crores ,reduce it to almost 36 crores by use of efficient logistics techniques
Maintain Quality & Low pricing strategy
Robust & Vast Distribution Channel
Investment in IT infra, Mkt strategies
First Mover Advantage, So Everybody knows that AMUL is taste of INDIA
WHY is AMUL SUCCESSFUL TODAY?
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THANK YOU
Prepared By:
Yuvraj ZalaKishore Dhenge
Raj ManhasPratik TiwariAshish Jain
Natasha Singh