group i amul

8/2/2019 Group I Amul

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By:

Group - I


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FACTS- AMUL

Type: Cooperative

Founded in: 1946

Headquarters: Anand India Industry: Dairy

Key People: Chairman, GCMMF

Products: Milk and related products


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Amul- The taste of India

Raw Milk

Condensed

Ghee, Butter,

Cream

Packaged Milk

Ice cream

beverages

Dried skimmed

powdered milk


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Product portfolio


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Powdered Milk

Health and price Conscious.

SAGAR Vs Amulya.

USP: Sagar is affordable whitener for health conscious one.

Cheese Spreads

Specific Vs General

Amul Processed Cheese Vs Cheese Spread

USP:

Cheese spread is highly accepted spread for regular use.Milk Drinks

Nutramul Energy Drink Vs Amul Kool


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SWOT

STRENGTHS Cooperative- that procured, processed and

delivered high quality milk to distant markets costeffectively

Wide range of products Open door policy

Affordable prices

Effective ad campaign

Advertisements with emotional connect It manufactures only milk and milk products,

which is purely vegetarian thus providing qualityconfidence in the minds of the customers.


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SWOT

WEAKNESS Difficult to attract fresh management graduates

Many products under question mark and dogs i.e.

they are not profit centers for Amul Supply of raw material from un organised sector


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SWOT

OPPORTUNITIES There is a lot opportunities of potential for

growth and development as huge population stayin rural market where other companies are not

targeting. Milk surplus in villages where only 10% was

handled by the organized sector.

Opportunities to export

Utilizing the brand name to enter into newproduct segments like packaged sweet market.


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SWOT

THREATS Adulteration

Increasing population

Competition- Nestle, Britannia, HUL

Less interest by fresh management graduates to

work for cooperatives.


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Porters Five Forces

Bargaining power of

Suppliers is low because

suppliers are rural milk

producers

Bargaining power of Buyers is

high because of various

competition

Determination ofsubstitution threat is high

because of availability of

other products

Threat of new entrants is

high because there are no

entry barriers

Industry

Competitors is

high due to other

brands


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Cost Leadership

Simultaneous Development ofSuppliers and Customers

Focus on Core Activities

Managing Third Party

Service Providers

retention of surplus to fund growth and

development + all transactions are

essentially cash only [FINANCIALSTRATEGY]


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vers ca on ra egy

introducing two pro-biotic

Ice cream ranges, Amul Sugarfree

and Amul Profile

Identified the working class women

as a new segment and has

introduced frozen easy to cook

stuffed parathas, matar paneer and

paneer pakoras which makes themeasy to cook quality tasty food in

less time.

Concentric Diversification Strategy


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Value Chain and differentiation

strategyHuman Resource Management:

Amul believed in keeping a top notch employee base and hence recruited themcarefully, especially the top tire management

They encouraged computer education for the employees

They standardized the processes and imparted professional training to theiremployees

Technology for Effectiveness

Service to customers required the following: better and newer products,processes that would deliver the low cost advantage to the network andpractices that would ensure high productivity and delivery of the right product atthe right time.

Thus technology or knowledge that was embodied in products, processes, andpractices became an important factor in delivering effectiveness to the network ofcooperatives.

One distinguishing feature of AMUL (in comparison with other similar cooperativesglobally) is the large variety in their product mix. Producing them not only requiresdiverse skills but also knowledge of different types of processes.


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Procurement:

Amul vertically integrated with its suppliers(back ward integration) and procuredmilk directly from farmers

On the supply side, the member-suppliers were typically small and marginal-

farmers had severe liquidity problems, were illiterate and had no prior trainingin dairy farming.

AMUL and other cooperative Unions adopted a number of strategies todevelop the supply of milk and assure steady growth.

First, for the short term, the procurement prices were set so as to provide fairand reasonable return. Second, aware of the liquidity problems, cash

payments for milk supply was made with minimum of delay

Inbound Logistics and operations:

Effective inbound logistics management requires designing the organizationstructure and practices in a manner that it delivers continued market sharethrough cost leadership.

AMUL is a good example of this strategy. Firms that are able to develop controlprocesses through better use of operational practices and supply chaincoordination are the ones that are able to serve large volumes and enjoy topline growth in revenues

Amul also used technology effectively to standardize and control its operations forobtaining a sustained advantage


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Marketing and Sales:

Interestingly, advertisement & promotion was not considered to be

enough of value addition and hence the budget was kept relatively small

Instead, Amul preferred a lower price with emphasis on efficiency in

advertising.

In this context, Amul provides umbrella branding to all the products of the

network. Interestingly, the advertising has centered on building a common

identity

e.g., a happy & healthy cartoon AMUL girl) and evoking national emotion

(e.g., the key advertising slogan says AMUL - The Taste of India)

Amul make sure their advertisements are connected with the current

affairs


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Managerial Dimension Elements Implementation

Leadership Charisma, long term vision,commitment,

trustworthy, selfless gain, strong

managerial style

Constantly raising the bar,

promoting a can-do attitude,

communication of the vision to

farmers, consumers and the

government

Marketing GCMMF Product mix, pricing, dealernetwork, managing supply and

demand growth, advertisement

Operations &

Supply Chain

Robust logistics, effective

production,

implementation of state-of-art

technology

High utilization of plant

capacity, technology &

automation for enhancing

quality, TQM, adoption of

modern manufacturing

practices, coordinationbetween unions & marketing

federation

Overall Strategy Farmer Orientation, technology,cost leadership,

product variety in later year

R&D focus, efficient supply

chain, simultaneous

development of suppliers &

markets, financing projects

from internal accruals

Overall Strategy:


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THANK YOU!

group i amul

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