Final Project Presentation

(Managerial Economics)

On

“AMUL”
SUBMITTED BY: SUBMITTED TO:

GROUP ‘6’ Professor Paramita Mukherjee, PhD

Dean (Academics)
SECTION ‘A’ International Management Institute, Kolkata

PGDM BATCH 2018-20

 INTRODUCTION

Amul was set up in 1946 and its full form is Anand Milk- producers Union Ltd. The Brand Amul is a movement in dairy
cooperative in India. The management of the brand name is done by the Gujarat Co- operative Milk Marketing Federation Ltd
(GCMMF) which is a cooperative organization.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organization with
annual turnover (2017-18) US$ 4.5 billion. Its daily milk procurement is approx 18 million lit per day from 18,554 village
milk cooperative societies, 18 member unions covering 33 districts, and 3.6 million milk producer members.

Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggest food brand. Amul's range of
products includes milk, ghee, milk powders, curd, ice cream, paneer, cream, chocolate, cheese, butter, and shrikhand.

Amul exports its products to various countries such as USA, Australia, Mauritius, China, Hong Kong, Singapore, UAE, and
Bangladesh.
 POSITIONING OF AMUL

•Amul has top of the mind positioning because it is the first brand which comes in mind when talking of Ice cream, milk, cheese,

butter or any other milk based products.

•The Taste of India – these four words are more than what the common man may think of these – a mere slogan. Advertising

people call this corporate positioning. But jargon apart these four words lend meaning to Amul's never ending crusade; they

reinforce Amul's commitment of taking quality food products right down to the rural man, products, the common man otherwise

would have never afforded.

 MARKET SHARE
Aavin
%Market share in terms of revenue Amul
Ananda Dairy
8.75 5.86
Bisk Farm
Vadilal
5.73 Creambell
1.09 Dudhsagar Dairy
1.12 Hatsun Agro Product
0.15 Heritage Foods
7.5 Kerala Co-operative Milk Marketing Federation
2.63
35 Kwality Ltd.
2.66
Milk Mantra
0.73 0.570.88 2.25
0.56 Milky Mist Dairy
4.88 Nestle
Britania
FIGURE NO. 1 Mother Dairy

Source : https://www.businesstoday.in/magazine/cover-story/indian-dairy-market-is-on-a-tear-due-to-new-
players/story/232545.html
 PRODUCT
TABLE NO. 1
Products of Amul Market Share of Price of Amul Competitors Competitor’s Price Elasticity
the products Price
Cheese 70% Rs.110/200gm GO Cheese Rs.125/200gm Low Elasticity

Butter 90% Rs.94/200gm Nutrilite Rs.80/200gm High Inelasticity

Yogurt 60% Rs.22/200gm Mother Dairy Rs.20/200gm Low Elasticity

Milk Powder 40% Rs.230/1kg Nestle Rs.370/1kg Elastic

Ice Cream 40% Rs.20/cone Mother Dairy, Rs.20/cone Elastic

Vadilal, Dinshaw’s

Packaged Milk 65% Rs.20/per packet Nestle, Mother Rs.20/per packet Elastic
Dairy
Cream 90% Rs.54/250ml Mother Dairy Rs.60/250ml High Inelasticity

Dairy Whitener 41% Rs.328/kg Nestle Rs.413/kg Elastic

Milk Based 76% Rs.30/200ml PaperBoat Rs.21/200m Less Elastic

Beverage

Source: amazon.com, indiamart.com & bigbasket.com

 COMPETITORS
 Milk, Cheese & Butter

• Mother Diary – Subsidiary of National Diary Development Board(NDDB). 8.8% market share
• Aavin – 5.9% market share, prominent in Tamil Nadu
• Nestle India – 5.7% market share
• Dudhsagar Diary – 4.9% market share
• Kerala Co-operative Milk Marketing Federation – 2.6% market share
• Britannia - 1.08% market share
 Ice Cream & Frozen Desserts

• Kwality Walls (HUL) – 9.7% ice cream market share in India , major competition to Amul(17% market share)
• Mother Diary – 7.8% market share
• Vadilal – 5.3% market share
 Chocolates & Confectionaries

• Cadbury – 65% of chocolate market share, major player & giving a very tough competition to Amul (5% market share).
 STRATEGIC INTERACTIONS WITH RIVALS

1. Strategy To Deal With Rivals And Remain Market Leader

• Development of quality management system, regular up gradation of technology , innovation and eco friendly operations.

2. Pricing Strategy Of Amul

• Amul follows a unique model which aims at providing value for money products to its consumers, while protecting the
interests of the milk producing farmers who are its suppliers.

• Amul has a pricing strategy of low cost pricing.

3. Advertisement Strategy

• The advertisement strategies of Amul are very different from other FMCG companies

• Amul has a tagline “ The Taste Of INDIA” and the same icon (the famous hand drawn girl) since 1967.

• It takes trending topics and make an advertisement about it.

• Though their advertisement strategies often raise voice against social issues
 SEGMENTATION AND TARGET AUDIENCE OF AMUL

Segmentation

1.Demographic Segmentation:-

Amul segments the mass population I.E. People of all age groups. Since Amul is not only present in ice creams but also in
butter , cheese, milk and other such products.

2.Geographical Segmentation:-

Amul targets people from both urban and rural regions.

Target audience
• The regular middle class people for some of its products such as ice cream and for other products it targets the mass
population.
• So, Amul enjoys competitive advantage because of its gigantic supply chain and wide product portfolio
 ASSESMENT OF MARKET POWER
1. With more than 65% market share in table butter, cream, UHT milk, cheese, beverages, Amul enjoys a market leader

position.

2. As seen from the previous instances, whenever there is price rise or drop by Amul, other players follow the suite.

3. Amul holds significant share of 40% and more in the following products : Infant milk food, dairy whiteners, ice cream and

paneer.

4. Amul operate in oligopoly market since dairy industry requires huge cost for entering the market.
 TRENDS/ISSUES/CHALLENGES/REGULATIONS
1. CHALLENGES, ISSUES & REGULATIONS
The challenge is to get the next generation of dairy farmers interested in this occupation
Increasing competition in Ice cream segment – Many players, local and international, are entering the ice cream market
thereby taking away share of wallet from Amul
Chocolates – Amuls expansion to chocolate has failed and hardly any product of Amul chocolates is selling in the market
Amul faced a lot of challenges regarding food licensing to get export markets open up for milk products in about 20 countries,
including the US, Philippines, Thailand, Malaysia, Hong Kong, Australia, Japan, New Zealand, Bangladesh, Nepal, etc
Amul MD K. Rathnam’s resignation comes amidst allegations of a ₹450-crore corruption in allocation of tenders and
recruitment at the dairy
 Over 80 tonnes of Amul products in its depot near Aluva , Kerala were damaged due to flood.
 HUL takes Amul to the court in case of misleading customer between Ice-cream and frozen-dessert
2. TREND
Reported an 18% increase in turnover at Rs27,085 crore for fiscal 2016-17
 MARKET STRUCTURE
•The market structure that the dairy industry follows is Oligopoly.

•All the dairy industries are selling the same products, product differentiation is minimum.

•Prominent names are Amul, Nestle, Britannia

•There are local brands also that are not at par with the above mentioned brands.

•Characterized by few seller and interdependent price and output.

•High elasticity due to availability of close substitutes, except for butter and cream.

•High entry and exit.

•Large number of buyers.

THANK YOU