amul’s distribution channel (1)
TRANSCRIPT
SHAILENDER SANI
HITESH SHARMA
TANVI SHUKLA
MD. ARSHAD KHAN
GURLEEN KAUR
ASHISH DUTT
AMUL’s Distribution Channel
Agenda
AMUL’s Profile Distribution Network Market Logistics and Transportation Profit Structure for channel members Credit policy and pricing strategy Facts we gathered Channel integration Suggestions and recommendations
About AMUL
• AMUL was formed in 1946• AMUL is managed by an apex cooperative
organization• Today it’s jointly owned by some 2.6 million milk
producers in Gujarat, India.• Amul is the largest food brand in India and world's
Largest Pouched Milk Brand with an annual turnover of 8,005 cr (09-10)
Distribution Network
Channel members
Selection of channel members
Flow chart which shows upstream and downstream
flow
Channel analysis
Channel members
Type : Intensive, Multilevel, Hybrid ChannelChannel Members:-
Agents, Distributors/Wholesaler and retailers Amul Parlours Exclusive Amul Outlets Internet ( Amul Cyber stores)
Selection Of Channel Members
Authentication by way of identityProof of solvency-details of the bankersSafety of inventory by getting the company stock
insuredProper storage space in forms of refrigeratorsThe company requires the dealers to furnish any
Advertising & Sales initiative undertaken by them on behalf of the company
Channel Analysis
Positives:- Lot Size Waiting and Delivery time. Spatial Convenience Product Variety
Negatives:- Less Margin No Credit
Profit Structure for channel members
Distributor
Wholesaler
Retailer
Credit policy and pricing strategy
Market Logistics and Transportation
Transportation Of Milk
Amul factory Anand--Palwal Godown--GGN distributors/Delhi distributors--retailers
Transportation vehicles are either distributor owned or outsourced.
Company Pays Rs 4.50/- to Rs4.80/-/crate i.e 12liters,to distributors with 350-800 crates per truck.
Distributor collects from company godown /godown till retailer.
Delay in transportation or any damages all beard by distributor
Transportation Of Ice Cream
Two territory(for GGN.)
1. NH8 right
2. NH8 leftThrough R.P Traders and Haryana TradersAll the transportation expenses are beared by the
company Either the refrigerator trucks are comp. owned or
distributor owned on behalf of comp..As No risk of delay and damage is assured as Mother
Dairy and HUL Kwality walls are tough competitorsNewly opened ice cream plant at Manesar reduced the
transportation cost as well as risk associated.
Facts we gathered
Channel Integration
Suggestions and recommendations
• Amul should go in for exclusive outlets in at least all the shopping malls coming up these.
Pushcarts should be increased in number in order to increase the market reach.
In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items