the amul dairy union located at anand is the model of operation flood.docx

Submitted By:

Ravishekhar Kumar 20142144

Rachita Luthra

Pooja Sharma 20142052

Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana, MBA-2014-2016

Product Analysis

Contents

1

Introduction

Amul :The origin 1

Working Structure 2

Market functioning 3-5

2

Micro and Macro analysis

SWOT Analysis 6-7

PESTEL Analysis 7-8

Porter Five forces Analysis 8-9

3 Market segmentation 10-11

4 Marketing Mix :4P’s 12-14

5 Future Challenges 14-15

6 Recommendations 15

7 Website ,Bibliography and References 16


AMUL: The Origin

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of theHimalayas. Similar is

the story of Amul, which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It

began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to

the flood it has become today. Today Amul collects processes and distributes over a million liters of

milk and milk products per day, during the peak, on behalf of more than a thousand village

cooperatives owned by half a million-farmer members. Further, as Ganga-ma carries the aspirations of

generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers,

creating a pattern of liberation and self-reliance for every farmer to follow

Structure of AMUL Diary:

Amul is joint working unit of three bodies 1) NDDB: National dairy development board : Funding

Agency for production unit 2)GCMMF (Gujarat cooperative Milk marketing federation: milk collecting

units and marketing 3)AMUL ( Amul milk federation union limited) Brand in the market with

cooperative units.

The core of production system is its conversion subsystem where in workers; raw materials are used

to convert inputs into products and services. This production department is at heart of the firm, as it is

able to produce low cost products and superior quality in timely manners.

Thus, there arises enormous need of giving due importance to this department as a whole and a

strong concrete base being foundation pillars of a manufacturing organization, if the intention is to

succeed domestically and globally.2

Marketing Function

Gujarat Co-operative Milk Marketing Federation (GCMMF)

GCMMF was the first co-operative to be set up under operation flood. GCMMF’S dairy plant

commissioned in 1994 is one of the most modern and largest plants. It can handle up to 1million litres

of milk per day. The plant also has facilities for pasteurizing and packing. It was funded by NDDB.

GCMMF’s milk is sold under its flagship brand Amul.

GCMMF was formed in 1973. As an apex marketing federation of 12 district milk unions of Gujarat to

operate own marketing and distribution network in India and abroad.


GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including consignment sales of

Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16% respectively.

Dairy product turnover registered a 19% growth. Amul butter registered 18% growth. The sale of Amul

& Sagar Ghee increased by 47%. Amul Cheese registered 60% value growth.

GCMMF’s sales to the defense services were Rs.233 million during the year, were mainly to Burma,

Uganda and West Africa. The company plans to expand its export markets in Saudi Arabia and other

Middle East countries.

During 1999, launching it in 8 states and 2 union territories extended the Amul ice-cream brand

franchise. Amul ice creams have become India’s 2nd largest brand. Recently it has commissioned a

dairy at Kolkata.

New products launched during the early 2000 were Amul Pizza, Cheese and Amul slice cheese, Amul

paneer and Amul Mithaee range. Safal mango drink has been launched by Strategic alliance with

Safal (A union of NDDB). The product range to be launched under the Safal brand will include fruit

drinks, squashes, pickles, jams, and ketchup and mango pulp.

Amul ice-cream brand franchise was extended with launch in 8 states & 2 union territories. Amul ice

cream has become the 2nd largest brand in the country & has garnered major share in its existing

markets in a short time span of 3 years. Amul’s main ice-cream manufacturing facility is located at

Gandhinagar which is Asia’s largest and most modern integrated ice-cream manufacturing plant and

uses world renewed refrigeration units and an efficient cold chain. GCMMF has become very popular

because of its excellent marketing strategy. GCMMF marketing strategy is to understand the

consumer needs, develop products that provide superior value at fewer prices. GCMMF has shown a

tremendous commitment to the floodwater situations. GCMMF has never stopped the supply of milk

and other milk products. And unlike other competitors, it has never taken wrong benefits in these kinds

of situations. It has developed an excellent distribution channel to provide its products to the

consumers. It has made its products available in each part of Gujarat & India.

Market Segmentation

Market segment is a very important function for the market department of the GCMMF, because the

market consists of buyers different in many ways. They are different in their wants resources, locating

buying practices. Because buyers have unique needs and wants, each buyer is potentially separate

market.

Geographic segmentation

Under these variables, GCMMF has divided market into different geographic units such as region,

states, cities etc. GCMMF sells its products by geographic segment action like in the north where

production of milk is very high the sale of

Amul’s product is not much. But in the western region it is high. GCMMF identifies this kind of

variables and deals with it.

Demographic Segmentation

Under this variable GCMMF has divided market into several segments such as age, gender, family,

size, income, occupation etc. For each group GCMMF marketing strategy is different. In milk Amul

targets all the class where as in the other products like butter, ghee, ice-cream etc. it targets to the

middle and higher middle class.


Distribution Network

Most producers work with marketing intermediaries to bring their products to market. The marketing

intermediaries make up a marketing channel also called distribution cannel. Distribution channels are

sets of interdependent organizations involved in the process of making a product or service available

for use or consumption.

The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal

offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49

Depots located across the country and GCMMF caters to 13 Export markets.

A zero level of channel also called a direct marketing channel consists of a manufacturer selling

directly to the final customers. A one level channel; contains one selling intermediary such as retailer

to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A

three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular.

GCMMF’s products like milk and milk products are perishable. It becomes that much important for

them to have a good distribution.

Distribution Chart

Products

Agents

Wholesaler

Retailer

Consumer


We can see from above figure that GCMMF distribution channel is simple and clear. The products

change hands for three times before it reaches to the final consumer. First of all the products are

stored at the Agents end who are mere facilitators in the network. Then the products are sold to

wholesale dealers who then sell to retailers and then the product finally reaches the consumers.

Amul Parlors

Amul has come out with a unique concept of Amul Parlours. They have classified them under four

types namely:

Center for excellence

On the Move

Amul Parlours

Amul Preferred Outlets

Center for Excellence: These Amul Parlours are specifically at a place, which has a class of

excellence of its own. We can find such parlors at the Infosys, IIMA, NID Ahmedabad etc.

On the Move: These parlors are at the railway stations and at different state bus depots across different cities.

Amul Parlours: These parlors can be seen at different gardens across different cities. These are

fully owned by Amul.

Amul Preferred Outlets: These are the private shops that keep the entire of product range of Amul.

They also agree not to keep any competitor brands in the outlets. They can keep other brands that are

in the non-competitor category.

Amul has more than 200 such outlets right now. It wants to have 1,00,000 parlors by the end of the

year 2010.

Managing Competition

The Indian market is dominated by a large number of small local and regional players. There are an

estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and

about 1000 units in the unorganized segments of the market. In the organized segment the significant

brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is

facing very tough competition from both in and outside India.

Amul combats competition from its competitors by providing quality products at a price which its

customers value. Along with good quality products and reasonable price the packaging is also very

good. Most of its products are available in many flavors. Excellent advertising backs its products and

helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul

Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the

Domestic market. Many products are exported by GCMMF.

Exports

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.

GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product

Exports for the last 9 years.

The major export products are:

Consumer Packs

Amul Pure Ghee


Amul Butter

Amul Shrikhand

Amul Mithaee Gulabjamun

Nutramul Brown Beverage

Amulspray Infant Milk Food

Amul Cheese

Amul Malai Paneer

Amul UHT Milk (Long Life)

Amul Fresh Cream

Bulk Packs

Amul Skimmed Milk Powder

Amul Full Cream Milk Powder

The products are exported to 18 countries namely, USA, Kuwait, Qatar, UAE, Yemen, Bahrain,

Muscat, Saudi Arabia, Tanzania, Madagascar, Sri Lanka, Singapore, Nepal, Bangladesh, Nepal

Thailand and Australia.

Advertising by Amul

Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha.

FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand,

Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant

Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee,

Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream,

Sagar Skimmed Milk Powder and Amul Whole milk Powder.

Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter billboard

campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks

after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and

Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh

Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul.

Reasons for Success

Robust Supply Chain

The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets

Low Cost Strategy

Amul adopted a low-cost price strategy to make its products. Affordable and attractive to consumers by guaranteeing them value for

money

Diverse Product Mix

Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand,


Ice cream, Nutramul, Milk and Amulya

Strong Distribution Network

Amul products are available in over 500,000 retail outlets across.

India through its network of over 3,500 distributors.

47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

Technology and e-initiatives

New products Process technology Complementary assets to enhance milk production E-commerce.

SWOT Analysis of Amul dairy products

Strengths

Amul has the reputation of being the largest food brand in India Amul provides high quality product at low price It provides a varied range of dairy product Grading and packaging of all its products meets international standards Its signature product is the pasteurized milk pouches which ranks as the top

in its segment It had an annual turnover of US $2150 million Amul has a robust distribution network: Amul products are available in over

500,000 retail outlets across India through its network of over 3,500 distributors

Amul being an Indian company creates a feeling of oneness in the mind of the customers

It provides quality and imprints confidence and thus befits loyalty in the minds of the customers since it manufactures only milk and milk products which is purely vegetarian

It is aiming at to enter into the rural segment also, which covers a large area of its loyal and prospective customers, which other companies had failed to target and exploit this lucrative opportunity

Amul has a huge customer and market base in India with its butter and dairy products and so can easily promote selling of chocolates without fearing of losses and decreasing revenue

The prices of chocolates of Nestles are comparatively cheaper as compared to the prices of other companies

Weaknesses

It faces a potential high risk due to its highly complex supply chain system


It has a strong dependency on its weak infrastructure It has many alliances with the third parties who do not belong to the

organized sector which can make it pretty vulnerable There are various big players in the chocolate market, which acts as major

competitors restricting their growth and expansion opportunities Capital investment and market capitalization is relatively lower in absolute

terms as compared to the amount of capital invested by other companies It suffers with an improper distribution channel across its network in India It has recently reduced its expenditure on promoting and advertising its

products through T.V. and hoardings. This might reduce its brand visibility an reduce its sales.

Opportunities

Ability and capability to penetrate international markets and globalization of its products

Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting

The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future

It should promote Tie-ups with various Food chains.

Threats

It has threats from its Competitors like Hindustan Lever and Britannia. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle

It also faces competition from MNCs in butter Growing price of milk and milk products may reduce its volume of sales and

profit margin It may face serious issues on capitalizing on its foreign exchange reserve due

to the prohibition exerted on its exports of milkpowder There exists no particular brand loyalty in the chocolate market as consumers

frequently shift their brands due to changing tastes and preferences. New companies’ entering in the Indian domestic market like Fantasie fine

may pose issues and lot of problems for Amul It faces potential threats from the unorganized sector for milk vendors as of

such.


PESTEL ANALYSIS OF AMUL

P: Political Since the budget range is decontrolled, no political effects are envisaged.

E: Economic The Increasing per capita income of the whole population is resulting a higher

disposable income to the consumer as the purchasing power parity is also rising steadily.

The Growing middle class of cities and urbanization of the general population as a whole

Low cost of production and economies of large scale production and operating at optimal capacity.

S: Social Per capita consumption of the entire dairy product consumers is expected to

increase in the future Payout to the farmers has also been registered amounting to 23% CAGR in the

preceding last 4 years. Increasing gifts and incentives culture to the society The health-conscious appeal to the society by providing Lower cholesterol in

its products than Mithais (sweet meat) T: Technological

Will have to reinforce and raise the standard of technology employed to international levels once India is a free economy

New and varied diversified products Process innovation and technology Complementary assets to enhance milk production and capacity E-commerce to facilitate promotion and enhance consumer reach.

E: Environmental Amul production is green production. Carbon emission is eliminated during

the processing of the products. Initiatives towards recycling of wastes including plastic packing covers are

taken. Legal

Being Cooperative organization, it is bound to follow the cooperative act 2012

Distribution of profit to the members to be done on average basis as per the cooperative law.

PORTER’s FIVE FORCES MODEL

The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value...) of an industry structure.

• It captures the key elements of industry competition.• Barriers to Entry


Michael Porter’s Five-Force Analysis

According to Porter (1980) a firm must be analyzed in relation to its industry. Factors outside the

industry tend to influence all the industry’s firms in the same way and are thus not as important

to study.

To a large extent, industry structure governs the strategies open to the firms. The profitability

and attractiveness of an industry is dependent of the level of competition. Competition in an

industry originates from industry structure and goes well beyond the behavior of individual

competitors.

According to Porter, each industry has a potential profitability and the profitability for the firms is

dependent on the competitive forces in the industry. Porter identifies five competitive forces that

derive from the ambition to obtain as large share of the profitability as possible. The five forces

are the foundation of the five-force model.

The success of the national and local competitor’s brands includes effective distribution system,

advertising, good pricing policy etc. The factors ascribed by porter are:

Threats of new entrants

Bargaining power of suppliers

Bargaining power of buyers

Rivalry among competitors

Threats from substitutes

These factors can be explained in context to GCMMF as below:

Threats of New Entrants

Economies of Scale: GCMMF enjoys economies of scale, which is difficult to match by any other

competitor. It is because of this reason that no regional competitor has grown to a national level.

Cost and Resource advantages: Amul dairy is co-operative society. That means “cooperation

among competitive” is the fundamental principle. Amul dairy is managed under the norms of GCMMF

and market the products under the brand name ‘Amul’, which has a very good reputation at domestic

and international level. Here, the raw material procurement is very difficult for the new entrants.

Consequently Capital requirement is also high. Still new entrants are emerging such as domestic and

international players. So the threats of new entrants are moderate.


BuyersSuppliers

Potentialentrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Bargaining powerof suppliers

Bargaining powerof buyers

Threat ofsubstitutes

PORTER’s FIVE FORCES MODEL

Brand Preferences and Consumer Loyalty: There is an immense level of Brand Preference of Amul

in the minds of the people. The level of preference specifically in the liquid milk sector is that they

would go to other retailer if the retailer does not have milk.

Access to Distribution Channels: The distribution channel of GCMMF is a very planned and perfect

one. For any new entrant to enter it would be a very difficult task. For GCMMF the result is years of

hard work and its investment in its employees as well as at different levels in the distribution network.

Inability to match the technology and specialized know-how of firms already in the industry:

The technology used by Amul is imported from Denmark. It is a state of art technology. To get this

technology in India, a firm would require a huge amount of resources.

Capital Requirements: The total investment required in the industry is huge and is a decision worth

considering even for MNC’s. The investment decisions cover the processing costs as well as the

marketing costs. To compete with the brand Amul in India is difficult as Amul is synonymous to

Quality.

Bargaining power of supplier

The objective of Amul dairy is not profiting. As it is a part of co-operative society, it runs for the benefit

of farmers those are the suppliers of milk and users of milk products. According the concept of the

cooperative society supplier has bargaining power to have a good return on his or her supply.

However, supplier has limited rights to bargain with the cooperative society because it is made and

run for the sake of mass and not for individual benefit. But it is made sure that the supplier gets his fair

share of return.

There is appropriate bargaining power of the supplier. In olden days there were not any kind of

cooperative societies as the farmer was exploited. But, nowadays the farmer’s rights are protected

under the cooperative rules and regulations, which ultimately results in moderate power of bargaining

from the supplier.

Bargaining power of buyers

Cost of switching to competitor brands: The switching of brands is seen very much in products

such as ice cream, curd, milk powders, milk additives etc. but it can be seen comparatively less in

liquid milk category. Even if the buyers shift to the other brands of milk, the value that they get is less

than they would get from consuming Amul.

Large no. of buyers: Milk is a necessity product and hence is a mass product. It has a considerable

share of the rupee spent by any Indian. Moreover the buyers are spread evenly over the country and

do not have any bargaining power.

Rivalry among competitors

Demand for the product: The demand of the products of GCMMF is increasing at a very healthy

rate. To stand against the rivalry GCMMF is coming with a wide range of products.

Nature of Competitors: In different business category GCMMF faces competition from different

players. In the Milk powder category it faces competition from Cadbury & Nestle, in the chocolate

category also I faces competition from Cadbury & Nestle. While in the ice cream market it faces

competition from Kwality Walls Max and Havmor. In butter and chesses it faces competition from

Britannia. Moreover in almost all categories there is presence of local retailers and processors and

milk vendors. Rivalry intensifies as each of the competitors has different lines and this would in turn

depend on the importance the line holds for the competitor.


Mergers and Acquisitions: As such in the industry there are no mergers or acquisitions. However if

any MNC wishes to enter through this route then the competition might be severe.

Threats Of Substitute

Availability of attractive priced substitutes: Different substitutes are available for different category

of products. There is ample availability of low priced substitutes from local vendors and retailers. This

is a front where GCMMF is still finding hard to combat.

Satisfaction level of substitutes: Customers do consider these products as equal on quality if not

better then the products of GCMMF. Hence the rate of customers switching to the substitutes is very

high. Moreover the buyers also can switch to the customers easily without any hurdles.

Not immediate substitutes: Distant substitutes are present in many of the categories of business of

GCMMF. For example in the Masti Buttermilk category it faces competition from cold drinks and ice

cream.

These 5 forces interact among themselves at different degrees over a period of time. Moreover it will get intense or loosen up depending upon the moves of its competitors, buyers, suppliers, etc. However GCMMF has been able to outperform on almost all fronts excluding a few lines of business.

Customer Based Market Segmentation

Kids

I. Amul Kool

Chocolate Milk

Nutramul Energy Drink

Amul Kool

Millk Shaake

Womens

Amul Calci

Youth

UtterlyDelicious Pizza

Amul Emmental Cheese

Amul Cheese Spreads

Health Conscious


Nutramul Amul Shakti Health Food Drink

Calorie Conscious

Amul Lite

Sagar Skimmed Milk Powder

Amul Lite Slim and Trim Milk

Marketing Mix – The 4 p’s of marketing

The Marketing mix is a set of four decisions which needs to be taken before launching any new product. These variables are also known as the 4 P’s of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization. These variables are1. Product2. Price3. Place4. Promotions

Product in the marketing mix of Amul –

Amul has a very very strong product portfolio. Amul product portfolio is comprised mainly of Dairy products. Amul butter, Amul cheese and Amul ice cream are cash cows for Amul as they have the major market share in their product category. Amul ice cream is amongst the top 10 ice cream brands of India.Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact Amul milk has 26% of market share in the packaged milk segment. The only disappointing performance is seen in Amul Chocolates which are a burden for Amul and lot of push is required for the sales of the same. This is because the chocolate market has established players like Parle, Dairy milk and others.


The Amul family tree has the following brands – Amul Milk, Amul bread spreads, Amul Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul ice cream, Amul Paneer, Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul mithai range, Amul mithai mate, Amul chocolates, Amul butter milk. Thus the product portfolio of Amul considering its dairy origins is astounding. Amul has various competitors based on different products. In ice cream it is Vadilal, Dinshaws and Havmor. In butter and milk there is mother dairy, Britannia and others. However, no competitor has such a vast dairy based product portfolio as Amul. This is the major reason that Amul has a sustainable competitive advantage over its competitors.

Price in the marketing mix of Amul –

Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But penetrative pricing strategy is used when the market has a high level of competition and a player wants to establish itself in the market by giving low prices. However, in the case of Amul, when Amul started, there were no national players and the dairy market was unorganized. During the introduction stage itself, Amul had a vision to provide their products to end customers at the best affordable rates. And the same vision is in place even today.Today also, you will find that Amul butter, milk and cheese are available at affordable prices keeping in mind the end customers. You may call these products costly, but the cost has nothing to do with Amul’s strategy. Remember that transportation costs as well as storage and distribution costs are very high in FMCG. Thus, as the cost of transportation, storage and distribution has increased over the years, so has the cost of Amul products gone up. But considering their value for the average India consumer, these products are still priced at an affordable rate.

Place in the marketing mix of Amul – Amul has a massive distribution network because its ice creams, milk, butter and cheese is found practically everywhere. As it is a FMCG product, Amul follows the methodology of breaking the bulk. The initial factory output is in bulk. Later on this bulk becomes smaller and smaller and finally one individual slab of butter or scoop of ice cream is sold at the retail place.There are two different channels through which Distribution happens in Amul. One is the procurement channel which is responsible for collection of Milk through dairy co operatives. The other is the distribution channel which is responsible for distributing the finalized product to the end customers.In the procurement channel, the milk is individually delivered from farmers to the co operatives. The co operatives then collect all this milk and send the bulk to the manufacturing facility. At the manufacturing facility, the milk is used to manufacture the finalized products.In the distribution channel, there are carrying and forwarding agents, distributors, dealers and retailers involved. There are also Amul Shoppe’s which sell all products in the Amul product portfolio. The distribution is as follows.Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer / Amul Shoppe >> CustomerAmul >> Modern retailThus there is a lot of transportation involved for all of Amul’s products. However, the distribution channel of Amul ensures that the products reach every nook and corner of India.


Promotions in the marketing mix of Amul –

Amul is responsible for one of the most unique and longest running outdoor campaign as well as one of the most known outdoor advertising characters – The Amul girl. We would like to take this opportunity to specially thank Mr Eustace fernandes, the creative brain behind the sweet girl. But we should know by now that the Amul girl is hardly sweet or cute. She is known to be the most naughty advertising girl ever. Amul hoardings mainly feature the current news and are used to take a tongue in cheek viewpoint at current happenings. However, each advertisement hits the nail on the head.The promotions of Amul are mainly for butter but for all the other products there is hardly any promotions. During the launch of products, Amul is known to go ATL and advertise milk, butter etc. The Smita Patil ad wherein Smita patil is shown as a village milk collector is one of the most famous ads for Amul. But overall, the main advertisement is BTL through outdoor, trade promotions, discount schemes and sales promotions.The major reason for Amul’s absence in hardcore advertising is that Amul does not want to give away margins in advertising its products. As per Amul, their maximum budget for advertising is 1% of the turnover. Above and beyond that will directly affect the cost of the product. And the major reason for Amuls strong presence in the market is its excellent quality combined with the affordable price. Thus, overall promotions will always be low for Amul except for the outdoor advertising of Amul butter.

Future Challenges

The organization may face the following challenges in the future:

Global demands and changes.

Foreign affiliations. Competition.

Liberalization.

Changing values.

Urban shifting.

Changing interests.

Adoption of latest technology.

Production according to international standards with foremost quality.

Increase need for R&D.

To keep the prices steady and reduce production and maintenance expenses.

To enhance milk production by adopting better animal husbandry practices and improving calf

rearing practices in order to assure a stand in international market in the foreseeable future.

Expansion and upgrading of plant and equipment to meet increasing demanded for quality and

quantity with the help of better-qualified personnel.

Rapid increase in productivity while respecting the basic man and animal dynamic i.e., to control

dairy and agriculture development in India.

Development of new markets and expansion of old ones replacing additional system with quality

packaged milk products and vegetable.

Creating a national information network to ensure that accurate timely information is available to

all who need it.

These are some of the challenges, which the organisation foresees and requires coping up with.

Amul means different things to different people.

Recommendation:


This concludes the marketing mix of Amul. The bottom line is that we love that

an Indian brand like Amul has reached such staggering heights and that we are

a part of the time when such a white revolution took place.

To achieve and maintain competitive advantage, innovation in product design and delivery are

increasingly essential.

To innovate at each stage in value chain – production, procurement, processing, marketing and

branding.

To devise more effective ways of attracting and retaining skilled human resources.

To provide them an adequately self-motivating work environment that draws the best out of them

on a sustained basis.

The ‘Dairy Demonstration Project’ is a collective effort of the Union and Bank. The project

envisages encouraging the farmers to use high yielding animals and modern aids to increase

production. The union will provide necessary guidance to the milk producers on various

techniques and required financial support will be forthcoming with the co-participation of Bank.

To illustrate and bring about better understanding of the project, a “model farm” is being set up

at Mogar and Khatraj to impart training to the participants.

“Suvarna Jayanti Gram Swarojgar Yojana” helps its beneficiaries to avail loan from the bank with

the Government approval. Under this scheme a marginal producer intending to avail the

benefits, is allocated an amount adequate for purchase of 2 milch animals along with required

other implements on a soft loan basis. This scheme not only help enhance the productivity and

living standards of subscribing producers, the union in turn will also be benefited by the way of

enlarged membership and increased milk procurement.

BIBLIOGRAPHY

Dr. Kurien., “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50 Years of

Milk & Health.”

Carter, Thomas R., “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50

Years of Milk & Health.”

Patel, T. K., “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50 Years

of Milk & Health.”

Gowda, Shri Deve, “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50


Halse, Michael, “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50



Baxi, J. J. “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50 Years of

Milk & Health.”

Singh, Katar, Mittal, S. P., Singh Virendra, “Amul, The Kaira District Cooperative Milk Producers’

Union Ltd. Anand, 50 Years of Milk & Health.”

Dr. Oza, D. R., “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50


Thodarson, Bruce, “Amul, The Kaira District Cooperative Milk Producers’ Union Ltd. Anand, 50


GCMMF, 30th Annual Report 2003 –2004.

Journals

Journal articles/conference papers from the library databases:

Operation Flood and Social Science Research

B. S. Baviskar, Economic and Political Weekly, Vol. 19, No. 2 (Jan. 14, 1984), pp. 94-96

Need for a 'Cooperative' Culture

Economic and Political Weekly, Vol. 38, No. 37 (Sep. 13-19, 2003), p. 3857

'Success of Amul'

Raghu, Govindappa. SSRN Working Paper Series, Sep 2013.

Amul and Self-Reliance

P. S. K. Raman, Economic and Political Weekly, Vol. 16, No. 3 (Jan. 17, 1981), p. 47

Review: Spread Effects of Amul

Spread Effects of Dairy Enterprise: A Case Study of Anand by Small Industry Extension Training

Institute, Review by: N. S. Jodha, Economic and Political Weekly, Vol. 7, No. 15 (Apr. 8, 1972),

p. 756

Co-operative Success Story

Economic and Political Weekly, Vol. 6, No. 46 (Nov. 13, 1971), p. 2297

Website Visited http://www.amul.com/m/chairman-s-speech:-35th-annual-general-body-meeting-

held-on-5th-june,-2009 http://www.amul.com/ http://business.mapsofindia.com/food-industry/dairy/amul-gujarat-cooperative-

milk-marketing-federation.html http://business.mapsofindia.com/food-industry/dairy/the-national-dairy-

development-board.html


http://business.mapsofindia.com/food-industry/dairy/the-national-dairy-development-board.html

http://business.mapsofindia.com/food-industry/dairy/the-national-dairy-development-board.html

http://business.mapsofindia.com/food-industry/dairy/amul-gujarat-cooperative-milk-marketing-federation.html

http://business.mapsofindia.com/food-industry/dairy/amul-gujarat-cooperative-milk-marketing-federation.html

http://www.amul.com/

http://www.amul.com/m/chairman-s-speech:-35th-annual-general-body-meeting-held-on-5th-june,-2009

http://www.amul.com/m/chairman-s-speech:-35th-annual-general-body-meeting-held-on-5th-june,-2009

the amul dairy union located at anand is the model of operation flood.docx

Documents