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Presentation to:

Amul India Ltd.


Gap Analysis and
Retail Penetration of
Amul
Project Mentor: Mr. Sumeet Saini
Presented by: Ridhi Dandona
Nitu Rakholya
Abhishek Swarnkar
Bikram Singh
Summer Interns, SIMS, Pune
June 28th, 2006

Overview

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Objectives of the Study
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Company Analysis
Gap Analysis and Retail Penetration of
Amul
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Feasibility
for
Launch
of Liquid
Milk
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Findings
Recommendations
2

Objectives of the Study

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Determining Retail Penetration of Amul

Estimating various Gaps and their


Intensity and Formulating Strategies
to Cover the Same

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style of Launch of
Analyzing Feasibility
Liquid Milk

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Company Analysis
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Company Analysis
Strengths
- Brand Name

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Weaknesses

- Brand Performance

- Regional Disparities

- Slipstreaming

- Perishability of main ingredient

- Distribution Network

- Product Mix

- Lack of Control over Yield

- Pricing

- Information Network

-Logistics of Procurement

- Co-operative Society

- Straying from Core Competence

- Quality

- Foreign Presence
- TQM

- Personnel

Opportunities
- Export Potential
- Locational Advantage
- International Market

Threats

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- Untapped Western Mkts.

- Low yield

- Fast-Growing TP Mkt.

- Increasing Competition

- Value Addition

- Various Players to enter the Retail Sector in Dairy


Products.

- Plunge in Retail Industry (APO)


- Increasing Rural Awareness

- Milk from Unorganised Sector covering 83% market


throughout India.

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Retail Penetration
and
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Gap Analysis of Amul in


Ludhiana
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Retail Penetration in Dairy


Sector
Sub Region R1

Sub Region R2

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Retail Penetration in Dairy Sector

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%age Retail Penetration in Dairy Sector in the Two Sub-Regions

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Retail Penetration in
Dairy Sector

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Competitor Analysis of Amul in Dairy Sector, Ludhiana

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Gap Analysis
Gap Composition of Amul in Dairy Sector,
Ludhiana

Product Potential

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Composition

Med. Stores and Hosps.


Restaurants

Numb
er

Potential
Products

52

Spray, Stamina

23

Butter, Cheese, Ghee,


Chocolate, Stamina, Kool,
Kafe, Spiced Milk, IceCreams.

Maximum Potential
Stamina
Very Good Potential
Summers
Products
(Kool, Kafe Kool,
Spiced Milk).
Good
Potential

Lower Priced Products


(Ghee,
Chocolates,
Processed
Cheese,
Spray
(in
Certain
Ares)).
Good
Potential

Amulya,
for
Sweet
Shops.

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Sweet Shops

18

Butter, Amulya, Ghee

Schools and Cafes

21

Kool, Kafe, Stamina,


Chocolates, Ice-Creams.

General Stores

137

Butter, Cheese, Ghee,


Chocolates, Spray (in certain
areas), Stamina, Fresh Cream,
Kool and Caf (in certain
areas) and Delicious (in
certain areas).

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Gap Analysis

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Productwise %age Potential of Amul in Dairy Sector in Ludhiana

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Penetration of Amul Ice-Creams


in Ludhiana
Ice-Cream Demand in R1 & R2

Number of Outlets with Deep-Freezers and


Amul Ice-Creams

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Bakeries

Gen.
Stores

Others

Amul

Others

24

10

No. (with
DF)

30

10

10

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64

Existing Outlets with Ice-Creams

Ice-Cream
61
105 Outlets
Total No.Potential

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Feasibility
Study
for
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Launch of Liquid Milk in


Ludhiana
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Feasibility Study of Liquid


Milk in Ludhiana

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Daily Supply of Milk in Ludhiana

Sub Region

Total Demand of Milk in Ludhiana

Total Milk
Supply (in Kgs.)

Morning
Evening

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1228
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R1

2148

R2

3986

2996

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Feasibility Study of Liquid


Milk in Ludhiana

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Threat of Substitutes

Local Milkmen who sell open milk which is


psychologically seen as fresher and healthier
by people.

Bargaining Power
of Suppliers

Verka, being the only major


player as of now, can exercise its
own terms and conditions in the
market.

Rivalry Between
Existing Players
Verka being the only major player,
theres no ongoing rivalry in the
sector.

Bargaining Power of
Buyers

Non-existent; as there is only one


major supplier in the region.

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Barriers to Entry
Regular and Timely supply at least twice a
day, which requires a plant to be set-up in
the vicinity of the region.

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Findings
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Findings
Retail Penetration and Gap Analysis of Amul in Ludhiana

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Less Aware Market in R2 Sub-Region.


Distributor Problems, especially in SubRegion R1 (PV Garg & Sons).
Lack of Visibility.
Low Margin.
Shortage/Unavailability of Certain
Products.

Quality Problems.

Back-Date Products.

Cannibalization among Distributors.


Cannibalization by other Products.

Regional Taste Difference forming Niches.


Need to focus on products with good potential (Amul
Soups).

Liquid Milk in Ludhiana


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Power and Infrastructure Problems.
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Amul-Ice Creams in Ludhiana

Very attractive Market for Potential Entrants.

Seasonal Product.

High Supplier Bargaining Power.

Lower Penetration in R1 SubRegion.

Threat of Substitutes.

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Recommendations
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Recommendations
Dairy Sector in Ludhiana

Ice-Creams & Liquid Milk in


Ludhiana

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Promotion through wall-paintings, posters, road


shows, Celebration Days and other such events.
Timely and periodic reporting by the distributor
to FFRs and at least quarterly to Depot in the
form of reports.
Direct
communication
of
contests
and
sweepstakes to Retailers.
Cater to Bottom of the Pyramid Segment to
increase sales volume and deal with low margin
problem.
Regularize availability of products according to
demand.
To deal with back products, they can be given
at a concessional rate to school and college
canteens by making them direct party to Amul.
Also, a 70:30 ratio of old and new products
respectively can be maintained while supplying
products so as to eventually eliminate back
date problem.
Factual Advertising can also help promote
certain niche products.
Good potential of Soups in Ludhiana.

To deal with Power and infrastructure


problem, HADF Scheme that has been
started requires rigorous follow up and
word-of-mouth promotion.
To deal with seasonal demand of
products, festivals and functions during
winters must be targeted.
R2 sub-region requires increase in
awareness which can be achieved
through events such as Celebration Day,
Road Shows etc.
For Liquid Milk, a plant in the vicinity is
unavoidable.
Also, to deal with Threat of Substitutes,
there will have to be Narrowcast
Advertising on Local Channels and Dailies
presenting it as Fresher and Healthier
than open milk.

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