Sem 1- Final Project

Manshi Srivastava, DM21D14

Amul,Butter
 CURRENT  SECTOR
WISE GDP

                     
           
 
     HISTORICAL GROTH IN GCMMF SECTOR   

 Founded in 1946, Amul is one of those famous brands known to

every household of the country. Recently, the company has
declared its financial results crossing 18,000 cr in 2013-14 with a
jump of 32% from the previous year. The company claims to have
clocked the fastest growth in the history of the four decade-old
dairy cooperative and has a vision to achieve 30,000 crores by
2018-19.
There have been some exhaustive back-end initiatives in the last 3-
4 years that contributed
. to Amul’s impressive growth results. Four
years back, the company started expanding its wholesale dealers
and retailers’ network following hub & spoke distribution model
with the aim to reach the maximum tier II & III cities, RS Sodhi,
MD, GCMMF (Gujarat Cooperative Milk Marketing Federation)
told ET retail.


In the past nine years, milk procurement by GCMMF

member milk cooperatives witnessed an increase of 153 per
cent, said its chairman Ramsingh Parmar. To achieve this
estimated growth in demand, the time is ripe for the Second
White Revolution in India, he said.

 Another major strategy that added to the growth was

expanding the ‘product mix’ with attractive packaging
materials. After conducting a detailed market research, the
products were launched mainly to attract the young
generation of the country such as Amul Kool beverages in
PET bottles, Flavoured
 ,yoghurt, Amul PRO, cheese spread in various new flavour,
etc. There were products launched for regional demands
which included Brown Ghee, Kadhi Dahi. Amul also took
the production at various destinations outside Gujarat to
meet the quick demand of Pouch Milk, Butter Milk and Curd..
DE-GROWTH IN GCMMF
SECTOR
 Amul chocolates are definitely of very good quality. But for reasons
unknown, the organization has never stressed on the marketing of its
chocolates. Which is surprising, considering the excellent marketing
of its butter and cheese products. Amul has successfully taken on
established MNC branded butter and cheese, and established its
supremacy in both these products. However, it has never taken the
marketing of its chocolates with equal importance.

 Why did Amul Chocolate fail?

 Weaknesses in the SWOT analysis of Amul Chocolates

 Some of the key weaknesses of Amul Chocolates are: Lack of

importance: Amul has never emphasized enough on its chocolates and
the vertical has always been regarded as 
 a low importance category with the company choosing to focus on
butter or cheese
 Amul cooperative was registered on 19 December 1946 as a response to
the exploitation of marginal milk producers by traders and agents in small
cities. The prices of milk were arbitrarily determined at the time. The
government had given Polson an effective monopoly in milk collection
from Kaira and its subsequent supply to Mumbai.

 Amul is an Indian dairy cooperative society, based at Anand in the Indian

 state of Gujarat. Formed in 1946, it is a cooperative brand managed by a

COMPANY
cooperative body, the Gujarat Co-operative Milk Marketing Federation
Ltd. (GCMMF), which today is jointly owned by 36 lakh (3.6 million) milk

SNAPSHO
producers in Gujarat, and the apex body of 13 District Milk Unions, spread
across 13,000 villages of Gujarat. Amul spurred India's White Revolution,

T
which made the country the world's largest producer of milk and milk
products.
 Kaira District Milk Union Limited (later renamed to Amul - Anand Milk
Union Limited) was founded in 1946 through the efforts of 
Tribhuvandas Patel. Amul's foundation was a significant contributor to the 
white revolution in India.
 Tribhuvandas Patel under the guidance of Sardar Vallabhbhai Patel became
the founding chairman of the organization and led it until his retirement in
the 70s. He hired Dr. Verghese Kurien in 1949. He convinced Dr. Kurien to
stay and help with the mission. 
 Kurien, founder-chairman of the GCMMF for more than 30 years (1973–
2006), is credited with the success of Amul's marketing. Amul has ventured
into markets overseas.
 Segmentation, Targeting

Customer Based Segmentation:

 Kids – Amul cool, Chocolate, Amul Milk, Nutramul, Energy Drink
 Women – Amul Calci+
 Youth – Amul pizza, Amul pizza cheese, Amul cheese spread
 Calorie Conscious – Amul lite butter, Sugar/Skimmed milk powder
 Health Conscious – Nutramul, Amul Shakti
Industry Based Segmentation
Milk – Ice-cream manufactures, Restaurant/Food chains, Coffee shop chains
Butter/Cheese/Ghee – Bakery and Confectioneries, Pizza and Snack retailers
Targeting
When Amul was formed, consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus, Amul adopted a
low-cost price strategy to make its product affordable and attractive to
consumers. This helped Amul butter create its brand image in the household
sector of the society.
Positioning

• Positioning Component
• Amul has carefully cultivated its family based image.
• Emotional Components: Campaigns like “Taste of India”.
• Functional Attributes: Unique functional attributes of Amul
are :-
• Value for money: The best quality butter (dairy product) at
the reasonable price.
• Product Availability: It has huge supply chain and
distribution networks across India and has strong link back
to the sourcing farmers.
Ansoff Matrix
Product

Existing New

Marketing Penetration Product Development

Existing
Milk, Butter, Cheese, Ice Fat free desert, Chocolate
Creame, Paneer, Dahi, Syrups, Flavoured lassi,
Chocolates, Mithai More variety of cheese
Marketing

Market Development Diversification

Amul outlets in South East Amul Lounge
New

Asia Amul Sweet Shops, Amul

and Middle East cheese Testing
Marketing Mix
• Milk of many types • A wide presence a cross
• Dahi India with1400 retail
• Chach outlets
• Lassi • 1000 exclusive stores
• Flavored Milk Bottles
• Butter

Product Place

Price Promotion

• Adopted Penetration Pricing Strategy • Focused more on its

• Vary with package and variants of milk communication strategies
• Safal green and
environment
• Piyo Pure is the tag line
TOP FIVE  CONTRIBUTING BRANDS 

• AMUL MILK
• CHEESE
• BUTTER
• ICE CREAM
• GHEE
 Competitors of Amul company and
their market share as per 2020-2021

 Amul has many competitors, who has entered the market in last decade
and are growing their market share steadily. In Ice cream category, Amul
owns a major share but even though individually these competitor brands
might not be a worthy adversary combined and due to synergy, all of them
together are giving very tough competition to Amul. 
 List of its top competitors:

 Kwalty  walls
 Vadilal
 Havmore
 Dinshaws
 Baskin Robbins
 London Dairy
 Arun Ice cream
NEWS RELATED
TO AMUL
 Amul announces pan-India hike in prices of milk by Rs
2 per litre with effect from July 1

 Corona paranoia: Zomato & Amul bring COVID-19 twist

to tweets, spread awareness
 Tripura CM Biplab Kumar seeks Amul India help to
develop dairy industry
 Amul goes on offensive against other brands using its
name Amul goes on offensive against other brands
using its name
PRODUCTS
OF AMUL
OFFERED IN
THE
MARKET
PRODUCT WEIGHT  INGREDIEN NUTRITIONAL PRODUCT
 NAME TS INFORMATION FEATURE
S
CHEESE 200G SALT ,CITRI FAT-26% WHOLESO
500G C ACID PROTEIN-20% ME
ETC  CHEESE
AMUL GOLD MILK 500 ML FAT ,SODIU KCL-750 CUT OPEN
1000ML M,PROTEIN SUGAR-0 AND
  DRINK
AMUL BUTTER 100G ,500 MILK FAT  ENERGY-700 AMUL IS
G SALT  TOTAL FAT SYNONYM
80% S WITH
BUTTER
IN INDIA
SALES AND
COMPETIORS
CHART 
In the financial year 2020, Amul reported a sales
turnover of above 385 billion Indian rupees compared
to about 329 billion Indian rupees in the previous year
in India. Amul India is one of the largest dairy
companies in the world with an increasing growth rate
since 2011.
Ratios

Performance Ratio          
ROA(%) 0.79 0.83 -0.95 -0.40 0.60
ROE(%) 3.88 4.04 -4.91 -2.14 3.27
ROCE(%) 14.90 7.57 4.71 5.71 7.13
Asset Turnover(x) 1.18 1.06 1.00 1.04 1.17
Growth Ratio          
Net Sales Growth(%) 16.64 6.40 4.50 -11.28 -13.81
Core EBITDA 55.92 20.62 -18.82 2.61 64.49
Growth(%)
EBIT Growth(%) 87.03 56.07 -18.35 -18.16 272.80
PAT Growth(%) -0.19% 187.48 -136.70 -165.65 -24.82
Adj PAT Growth(%) -0.19% 187.48 -136.70 -165.65 -24.82
Financial Stability          
Ratios
Total Debt/Equity(%) 1.73 2.07 2.28 2.68 2.55
Current Ratio(x) 1.06 0.93 0.84 0.77 0.81
Quick Ratio(x) 0.48 0.49 0.42 0.41 0.48
Interest Cover(x) 1.21 1.35 0.69 0.87 1.30
Margin Ratios          
Core EBITDA 8.96 5.14 5.05 6.62 6.47
Margin(%)
EBIT Margin(%) 7.44 4.64 3.16 3.69 3.98
Pre Tax Margin(%) 0,67 0.78 -0.95 -0.38 0.51
Organisation Structure
 Organisation Culture
A fun loving work culture where one can apply his/her skills and
learn productive things. Company enables you to apply your
skills to full extend with senior executive backing.
Pros
 
Fun workplace Cons
Extensive travelling
 
Good work place to learn deciplin ,how to execute work
timely
 
 
It has been great experience to work with my technical
team ,some cooperative structure helping each other's joint
effort works better for growth.&also nice experience to handle
large production target with minimum or Xero mistakes .