group7.pptx
TRANSCRIPT
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Dairy & Milkproducts
Submitted by:
Group 7
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Industry Analysis
The Global Dairy Industry
▷ Global milk production is 735 billion litres annually
▷ The global dairy industry revenues are
estimated to be USD 375 million in 2!"
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Industry Analysis
The Global Dairy Industry
The graph above shows world’s cow milk production in three years 2!"2!2
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Industry AnalysisIndian Dairy Industry
▷ #ndia is the $orld largest milk producing nation% contributing
about !5 percent o& the total $orld milk production
▷ 'roduction o& per litre milk in #ndia costs the least compared to
any other nation in the $orld(
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Industry AnalysisIndian Dairy Industry
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Industry AnalysisIndian Dairy Industry
DairyIndustry
OrganizedSector (20%)
PrivateDairies Cooperatives Government
UnorganizedSector (0%)
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Industry AnalysisIndian Dairy Industry - Classifcation
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Ma#or players in Milk production
▷ Gu)rat *o+operative ,ilk
,arketing
-ederation
▷ .ational Dairy Development
/oard
▷ 0arnataka *o+operative ,ilk
'roducer -ederation
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Market share o$ Ma#or players
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Macro"economic trends driving theindustry
'1ST nalysis
Political:
▷ There are restrictions on the eport o&,ilk
'o$der
▷ The village level dairy cooperatives are
eempted &rom #ncome ta
▷ Government has reduced import duties
on
milk products
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Macro"economic trends driving theindustry
'1ST nalysis
Economical
▷ 'urchasing po$er o& people is increasing
in
#ndia
Socio-Cultural
▷ The young population o& the country is
more health conscious
▷ #t is in the #ndian culture to have milk or
tea
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Macro"economic trends driving theindustry
'1ST nalysis
Technological
▷ 'rocesses are automated
▷ There are better packaging technologies
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Macro"economic trends driving theindustry
'orter -ive -orces
Threat o new entrants !oderate"
▷ 'ro4ts are high so it is tempting &or ne$ entrants
▷ nly established companies can have
economies o& scale
#argaining $ower o su$$liers %ow"
▷ Suppliers are mainly the &armers $hich
provide lo$ 6uantities o& milk
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Macro"economic trends driving theindustry
'orter -ive -orces
#argaining $ower o #uyers &igh"
▷There are many local competitors
▷/rand loyalty is not there
Threat o Substitutes !edium"
▷ 'eople can substitute milk &or &ruit )uice
and protein shakes
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Macro"economic trends driving theindustry
'orter -ive -orces
Com$etiti'e (i'alry &igh"
▷ arge number o& players
▷ There is also competition &rom
unorganised
sector
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%trategic roups
▷ peration 8ood $as launched in #ndia in
!97 to replicate the success o& ,U
business model throughout the country
▷ll the cooperatives have more or less the
same business model
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!"U#
"ot$er Dairy
Parag
ritannia
#emnos
Puc&
Diverse
' i g $
Product Portoio
*andini
P r i c e
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Amul’s Road to Success
▷ mul combined the business $ith the social
development( They realised the needs o& the milkproducers and o& the consumers
▷ They provided the ma)or share o& the pro4t to the
milk suppliers
▷ They dont re&use to buy milk &rom the &armersirrespective o& the market demand
▷ #n $inters they used to have surplus milk so they
innovated to make milk po$der &rom bu&&alo milk
▷ They $ere also the 4rst to make cheese &rom bu&&alo
milk
▷ They restructured the supply chain to make it more
e&4cient
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'( Matri)
Stars:
#ce *reams
*heese spread
Dairy <hiteners
)uestion !ar*s:
mul 0ool
mul assi
mul mithai range
Cash Cows:
-resh milk
/utter
Dogs:
*hocolates
mul stamina
mul 'ro drink
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SWOT Analysis of Amul
▷ Strengths: =igh brand presence across #ndia *reative dvertising using mul girl as the mascot >obust distribution net$ork
=igh product 6uality at lo$ prices Diverse product port&olio
▷ +ea*nesses:
Shel& li&e o& the products is short o$ margins on 8uid milk o$ animal productivity ack o& in&rastructure
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▷ ,$$ortunities *an eport milk products *an sell value added milk products in smaller to$ns and
villages
▷ Threats =uge competition &rom regional players and ,.*s like
.estle% =industan lever and /ritannia
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Strategies Adopted byAmul
▷ 1very year mul do a market research in $hich they
ask $hich ne$ products customer epect &rom mul
▷ mul &ollo$s a lo$ cost strategy
▷ mul has &ocussed a lot on back$ard integration o&the supply chain( They have good relations $ith the
&armers( This has helped mul reduce its costs
▷ mul has the largest cold chain net$ork in #ndia
▷ mul &ollo$ umbrella branding thereby reducing the
advertising costs to less than !?
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Thanks*Any questions?