Amul Evolution of marketing strategy

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            Evolution of marketing strategy

Presented by:-
    Anuj Sharma
   AMUL means "priceless" in Sanskrit
   Amul products have been in use in millions of
    homes since 1946.
   Amul a leading food brand in India with a
    Turnover: Rs. 52.55 billion in 2007-08.
Founder Of The Amul Company
   Dr Verghese Kurien, the Chairman of the
    GCMMF (Gujarat Co-operative Milk Marketing
    Federation Ltd), an apex cooperative
    organisation, based in the in Anand town of
    Gujarat, India
        White Revolution. (1966)
   Verghese Kurien’s Amul experiment in Gujarat
    soon blossomed into the much larger Operation
    Flood, spread over 23 states, 170 districts and
    90,000 village cooperatives. It changed India
    from an importer to the world's largest milk
    producer and exporter.
Gujarat Cooperative Milk Marketing
   Gujarat Cooperative Milk Marketing Federation
    (GCMMF) is India's largest food products
    marketing organisation. It is a state level apex
    body of milk cooperatives in Gujarat which aims
    to provide remunerative returns to the farmers
    and also serve the interest of consumers by
    providing quality products which are good value
    for money.
            GCMMF TURNOVER
Sales Turnover   Rs (million)   US $ (in million)

  1994-95          11140           355
  1995-96          13790           400
  1996-97          15540           450
  1997-98          18840           455
  1998-99          22192           493
  1999-00          22185           493
  2000-01          22588           500
  2001-02          23365           500
  2002-03          27457           575
  2003-04          28941           616
  2004-05         29225            672
  2005-06         37726            850
  2006-07         42778           1050

  2008-09         52554           1325
     The moppet who put Amul on
        India's breakfast table
 50 years after it was first launched, Amul's sale
  figures have jumped from 1000 tonnes a year in
 to over 25,000 tonnes a year in 1997

 No other brand comes even close to it. All
  because a thumb-sized girl climbed
  on to the hoardings and
  put a spell on the masses.
                AMUL DAIRY
    The product range includes milk, butter, cheese,
    chocolates, ice creams and pizzas
    Amul "Utterly Delicious" Parlours
   Amul has recently entered into direct retailing
    through "Amul Utterly Delicious" parlours
    created in major cities Ahmedabad, Bangalore,
    Baroda, Delhi, Mumbai, Hyderabad and Surat.
    Amul has plans to create a large chain of such
    outlets to be managed by franchisees throughout
    the country
Amul hits
     Amul hits Tension
      between the two Khans of
      Bollywood - March '09

     Terrorists attack the Sri-
      Lankan cricketers in
      Lahore - Feb'09
                Amul network
   On an average, around thousand farmers come
    to sell milk at their local co-operative milk
    collection centre.
   Each farmer has been given a plastic card for
   At the milk collection counter, the farmer drops
    the card into a box and the identification
    number is transmitted to a personal computer
    attached to the machine.
   The milk is then weighed and the fat content of
    the milk is measured by an electronic fat testing
    machine. Both these details are recorded in the
   The value of the milk is then printed out on a
    slip and handed over to farmer who collects the
    payment at adjacent window
   Amul products are available in over 500,000
    retail outlets across India through its network of
    over 3,500 distributors. There are 47 depots with
    dry and cold warehouses to buffer inventory of
    the entire range of products
              Amul technology
   Amul is also using Geographic Information
    Systems (GIS) for business planning and
    optimization of collection processes.
   Indian Institute of Management – Ahmedabad
    supplemented Amul’s IT strategy by providing
    an application software – Dairy Information
    System Kiosk(DISK) to facilitate data analysis
    and decision support in improving milk
        Radical changes in business
   Improved delivery mechanisms and
    transparency of business operations. Due to this
    process, AMUL is able to collect six million
    litres of milk per day.
   Amul has been accredited with ISO 9001 and
    HACCP Certification
               Amul goodwill
   Processing of 10 Million payments daily,
    amounting to transactions worth USD 3.78
    million in cash.
   Controlling the 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.
                     Amul online
   Distributors can place their orders on the website
   Company has started receiving queries from overseas
    agents for distribution of its products in countries like
    US, Britain, New Zealand, Singapore and Thailand.
   As a result of on-line initiatives, today, Amul exports
    products worth around US$ 25 million to countries in
    West Asia, Africa and USA .
                   Amul chain
   Every day Amul collects 447,000 litres of milk
    from 2.12 million farmers
   converts the milk into branded, packaged
    products, and delivers goods worth Rs 6 crore
    to over 500,000 retail outlets across the country.
   To implement their vision while retaining their
    focus on farmers, a hierarchical network of
    cooperatives was developed, which today forms
    the robust supply chain behind GCMMF's
    endeavors. The vast and complex supply chain
    stretches from small suppliers to large
    fragmented markets
             Developing demand
   At the time 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 products affordable and
    attractive to consumers by guaranteeing them
    value for money.
   Amul follows a unique business 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
    as well as its owners. Despite being a farmers'
    co-operative, Amul has given multinationals a
    run for their money
       Establishing best practices
   A key source of competitive advantage has been
    the enterprise's ability to continuously
    implement best practices across all elements of
    the network: the federation, the unions, the
    village societies and the distribution channel.
   For example, every Friday, without fail, between
    10.00 a.m. and 11.00 a.m., all employees of
    GCMMF meet at the closest office, be it a
    department or a branch or a depot to discuss
    their various quality concerns.
                      GCMMF Today
   Members :                                 13 district cooperative milk
                                                 producer’s union

   No. of producer members :                    2.7 million

   No. of Village Societies :                    13,141

   Total Milk handling capacity :                10.21 million lit /day

   Milk collection (Total - 2007-08) :            2.69 billion litres

   Milk collection (Daily Average 07-08) :       7.4 million litres

   Cattlefeed manufacturing Capacity :           3090 Mts per day

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