group7.pptx

8/19/2019 Group7.pptx

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Dairy & Milkproducts

Submitted by:

Group 7



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!"



Industry Analysis

The Global Dairy Industry

The graph above shows world’s cow milk production in three years 2!"2!2



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(




DairyIndustry

OrganizedSector (20%)

PrivateDairies Cooperatives Government

UnorganizedSector (0%)



Industry AnalysisIndian Dairy Industry - Classifcation



Ma#or players in Milk production

▷ Gu)rat *o+operative ,ilk

,arketing

-ederation

▷ .ational Dairy Development

/oard

▷ 0arnataka *o+operative ,ilk

'roducer -ederation



Market share o$ Ma#or players



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




'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




'1ST nalysis

Technological

▷ 'rocesses are automated

▷ There are better packaging technologies




'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




'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




'orter -ive -orces

Com$etiti'e (i'alry &igh"

▷ arge number o& players

▷ There is also competition &rom

unorganised

sector



%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



!"U#

"ot$er Dairy

Parag

ritannia

#emnos

Puc&

Diverse

' i g $

Product Portoio

*andini

P r i c e



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



'( 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



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



▷ ,$$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



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 !?



Thanks*Any questions?

group7.pptx

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