Amul

Evolution of marketing strategy

Presented by:-

Anuj Sharma

Amul

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 Kuriens 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 Federation

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
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rs (million)
11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37726 42778

US $ (in million)
355 400 450 455 493 493 500 500 575 616 672 850 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 1966 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 SriLankan 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 identification 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.

Con

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 PC. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window

Con

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 Amuls IT strategy by providing an application software Dairy Information System Kiosk(DISK) to facilitate data analysis and decision support in improving milk collection

Radical changes in business processes

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 www.amul2b.com. 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.

Con

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.

Con

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.

Con

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 : No. of producer members : No. of Village Societies :

13 district cooperative milk producers union 2.7 million 13,141

Total Milk handling capacity :

Milk collection (Total - 2007-08) : Milk collection (Daily Average 07-08) : Cattlefeed manufacturing Capacity :

10.21 million lit /day

2.69 billion litres 7.4 million litres 3090 Mts per day

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