Situational Analysis

Market Summary

The world dairy industry is undergoing drastic changes in recent times and it is an all time important component of world food system. Currently the market is facing several forces like regulatory environment for production and trade, technology etc. The consumption trends of the consumers are also changing. The global dairy industry will take a new form within 10 years and we may hardly find traces of traditional procedures.

With 103 crores of population India is one of the largest consumer markets for Amul. In India Milk products are the basic source of nutrition. And it has become World’s No.1 Milk producing country by March 2000 with forecasted sales of 78 million tonnes. So Amul has a lot of scope in Indian market for production and sales. The future growth of Indian market size is estimated as follows

SWOT Analysis

Competitors:

Amul has a wide range of products in its basket like butter, cheese, baby food, ice creams, pizza, curd, paneer etc., It also has competitors like Britannia, Nestle, Heinz, HUL, Dominos, Mother dairy, Cadbury etc. It is leading in milk products but is performing badly in fields like pizza, chocolates etc.

And the trends in competition are as follows

a) Mother dairy is strong in NCR region with co-operative roots.

b) Parag dairy is a fast growing competitor with a growth rate of 10%

c) Nestle is an old player and has future plans in dairy segment.

d) HUL is a big player and is financially very strong.

e) Britannia is strong in cheese market.

Product offering:

As mentioned above Amul offers a wide range of products like milk, butter, ice cream, pizzas etc. The market share of different products is of Amul is given as follows

The products portfolio of Amul is shown in the below figure.

Keys to success: The main reasons for Amul’s success are its quality of products and marketing strategy. The key features of its marketing strategy are

i. Simplicity: Amul always markets its products with simple and clear ideas and events.ii. Consistent: Its baseline, ‘Utterly Butterly delecious’ which is unchanged for more

than 40 years is a success feature.iii. Humor: It always adds humor in its advertising.iv. Evergreen: The advertising of Amul is always evergreen by incorporating current

socio-economic, cultural, sports, political and almost every realm of life in India.