DESCRIPTION:-

 Formed in 1946, is a diary co- operative movement in India.

 A brand name managed by Gujarat Co-operative Milk
Marketing Federation Ltd (GCMMF).
 Jointly owned by 2.6 million milk producers in Gujarat.
 Spurred the White Revolution of India, which has made India
the largest producer of milk and milk products in the world.
 Overseas makers- Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South
African countries.
 Fresh plans of fooding the markets of Japan and Sri Lanka.
 Dr. Veghese Kurien, Former chairmans of the GEMMF the
man behind the success of Amul.
 On 10 Aug 2006, Parthi Bhatol was elected chairmen of
GCMMF.
 Amul is the biggest brand in the pouched milk sector in the
world and in India it is the biggest food brand.
 Range of products includes milk, ghee, milk powders, curd,
ice cream, paneer, cream, chocolate, cheese, butter, and
shrikhand.
 The various brands of Amul's bread spreads are Amul Lite,
Amul Butter, and Delicious Table Margarine.
 The Brand Amul's milk drinks are sold under various names
such as Amul Kool, Amul Kool Cafe, Kool Koko, Amul Kool
Chocolate Milk, and Amul Masti Spiced Buttermilk.
 Amul Ice Cream was launched on 10th March 1996 in
Gujarat.
 In 1997, Amul ice creams entered Mumbai followed by
Chennai in 1998 and Kolkata and Delhi in 2002.
 Nationally it was rolled out across the country in 1999.
 Combated competition like Walls, Mother Dairy and
achieved the No 1 position in the country.

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  This position was achieved in 2001 and it has continued to
remain at the top.
 Today the market share of Amul ice cream is 38% share
against the 9% market share of HLL, thus making it 4 times
larger than its closest competitor.
 In January 2007, Amul introduced SUGAR FREE &
ProLife Probiotic Wellness Ice Cream, which was a first
in India.
 This range of SUGAR FREE, LOW FAT Diabetic Delight &
ProLife Probiotic Wellness Ice Cream is created for the health
conscious.

DEFENSE STRATEGY: -

 Moving consumers from loose milk to packaged milk and

gradually move them up the value chain (tetra pack to
beverages, all available under the Amul brand)
 A sound strategy likely to work.
 Being exposed to a brand, it is natural for a customer to try
more products.
 Improving socio-economic condition of the customer
anchors the desire to enhance lifestyle.

PRODUCTS OF AMUL: -

Amul Cheese: -

Variants:

Amul Pasteurized Processed Cheddar Cheese.

Amul Processed Cheese Spread.
Amul Pizza (Mozzarellas) Cheese.

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  Amul as a brand investing a lot of resources in cheese
because it has to defend its position from the various attacks
of its close competitor Britannia and hence attacks itself by
introducing new variants in the cheese segment.
 Amul Pizzas:

 The brand with the hope to double its cheese sales through
its recent foray into the marketing of vegetable pizzas
introduced amul pizzas.
 Marketing analysts say that Amul's pizza marketing strategy
is unique because it aims at boosting sales of an `elite'
product (cheese) by pushing down prices of another `elite'
product (pizza).
 The maximum retail price for Amul's Mozzarella cheese is
now Rs 48 per 250 gm, while its processed cheese slices sell
at Rs 43 per 200 gm. ``the pizza route would promote sales
of an otherwise premium product as cheese,'' they pointed
out. Amul aimed to do to pizza what it has already done for
ice cream.
 They wanted pizzas to become a mass consumption item
like kulcha chola or chole bhature. And done in the case of
ice cream, they intended to force other pizza manufacturers
to also slash prices.
 Eventually, this would further expand the market for cheese.

Total Quality Management: -

Quality: -

“Quality is defined as the totality of characteristics & features

of a product or process which facilitates realization of given
requirements.”

MEANING OF TQM: -

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  TQM is an approach to improve the effectiveness &
flexibility of business as a whole.
 TQM is way of organizing by involving everyone.

Amul’s Total Quality Management: -

 For the last five years, we at GCMMF, our twelve

member dairies, their 10,000 village cooperative societies
and our 3,500 dealers have pursued excellence through
"Total Quality Management".

 This has radically improved our approach to change,

essential in our rapidly changing market environment.
 A unique feature of our TQM Approach is our process of
policy deployment known as Hoshin Kanri.
 This involves strategy formulation and implementation,
involving every member of the value chain.
 We are equally proud of the "Amul Quality Circle" involving
our dealers across the country that provide us a dynamic
forum for change management in markets.

KAIZEN: -

Kaizen at union have helped improve the quality of milk in terms

of acidity and sour milk. (Undertaken by multi-discipline teams,
kaizens are highly focused Projects, Reliant, on a structured
approach based on data gathering and analysis.)

For Example: -
Saber unions records show a reduction from 2.0% to 0.5 in the
amount of sour milk/ curd received at the Union.

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 SALES: -

 During the year, your Federation's sales remained steady at

Rs.2218.52 crore including consignment sales of Rs. 315.83
crore.
 In addition, your Federation co-ordinates Rs. 28.8 crore in
product sales to the Defense services.
 Dairy Products turnover registered a growth of 5.1 per cent
over the previous year.
 This year, Amul Butter registered record sales, with Rupee
turnover growing by 12.3 percent.
 The sales value of Amulya has registered impressive growth
with an increase of 14.5 percent.
 Sale of Amul Milk in Gujarat has increased by a spectacular
20.8 percent in value terms.
 Over the past year, Amul Cheese sales value has increased by
10.5 percent.
 We substantially increased sales value of Amul Mithai Mate
by 33.6 percent, testimony to our commitment to quality.

TURNOVER: -

 Amul Turnover of Rs.4, 300 crore (2006-2007) Rs. 10,000

crore mark over the next three years.
 Four decades to become Rs.2, 000crore entity But, the
turnover doubled to over Rs.4, 300crore within 9 years from
1999 to 2007.
 It is shown by following dia-gram: -(Fig.1)

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 Annual Turnover

10000
9000
8000
7000
6000
Entity 5000
4000
3000
2000
1000
0
1946 1999 2007 2008 2009 2010
Time Frame
Fig.1
Annual Turnover Diagram Of Amul

DEVELOPING DEMAND: -

 Limited purchasing power, modest consumption levels.

 Low cost price strategy products.

DISTRIBUTION NETWORK: -

 Dry and cold warehouse.

 Cash transaction throughout the supply chain.
 JIT (Just In Time) improves dealers ROI (Return On
Investment).

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 THIRD PARTY SERVICE PROVIDERS: -

 Core is milk-processing, production of dairy products.

 Logistics of milk collection distribution of dairy
products, sale pf products through dealers and retail
stores.

AWARDS: -

The Food Brand Amul has received various awards such as: -

 In 2003,The Ramakrishna Bajaj National Quality Award.

 Award International Cio 1000 for Resourcefulness.
 In 1993, The Rajeev Gandhi National Quality Award.
 ISO 9000-HACCP certified plants: All Amul Ice Cream
plants are ISO 9000-HACCP certified.
 Amul is in the process of getting ISO 22000 (Improved
version) certification for all its plants.
 No. 1 in Quality: Amul is ranked No.1 ice cream in
quality by “INSIGHT” (May-June, 2002), a bimonthly
consumer magazine published by Consumer Research and
Education Society (CERS) based at Ahmedabad.
 Best Value for Money brand: Voluntary Organization in
Interest of Consumer Education (VOICE), a consumer
organization based in Delhi said in an article published in
Deccan Herald, Bangalore edition dated 16.03.04 that
Amul provides the best Value For Money as far as price is
concerned.
 They also mentioned the difference between Ice Cream
and Frozen Dessert in their article as Amul is using milk
fat in ice cream.

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COMPETITORS: -

There are some competitors to Amul such as: -

(1) BUTTER: -
 Britannia.
 Nestle.
(2) CHEESE: -

Baby Food
 Nestle.
 Heinz.
(3) DAIRY WHITENER SEGMENT: -

 Nestle.
 Britannia.
(4) ICE-CREAM: -

 HLL.
(5) CHOCOLATES AND CONTECTIONARIES:
 Cadbury.
 Nestle.

COMPARISION:

There is comparison between Amul and Britannia.

(1) Britannia: -

 BNZFL is a joint venture between Britannia Industries Ltd.

and the Fonterra Cooperative Group, New Zealand, a dairy
cooperative group.

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  The company focuses entirely on the dairy business, with
cheese being its flagship product.
 The other products it sells are dairy whiteners, butter, ghee
(Indian clarified butter) and a malt drink- Anlene. All
products are marketed under the 'Britannia MilkMan' brand.

TURNOVER: -

 Its turnover in 2005-06 is US$ 24 million with about 50%

coming from processed cheese, 30% from the dairy whitener
& the remaining 20% from butter ghee sales.

Britannia Cheese: -

 A BNZF only sell in the processed cheese segment and has

five variations of processed cheese in the market, besides a
cheese dip product.
 Over half of the company's revenues come form the
processed cheese segment. BNZF cheese is priced at a
premium in the market, one reason being that the cheese is
sourced from cow's milk (unlike Amul, that sources its
cheese from buffalo milk).
 Cheese products: Cheese cubes, Cheese singles (regular and
Slim variants), Britannia Milkman Malai Chaska- a soft,
fresh and creamy ‘dairy spread,’ which has a mild, tangy
taste, Britannia cheese spread in different flavors like Masala
Herbs, Spicy Cilantro, Peppy Pepper etc., and Pizza cheese

Other Products: -

 Britannia Flavored Milk in tetrapaks are popular. Other

products in the milk range include products like Sweet Lassie
(buttermilk) and Cold Coffee in 200 ml tetrapaks.

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  The Lassie is priced at Rs. 10 while the Cold Coffee is
priced at Rs. 12.
 The firm has also entered the fresh pasteurized milk
market, dominated by Government-owned milk marketers.
 The firm has started supplying dresh paneer (cottage
cheese) in and around Delhi, the national capital.
 The firm also has in its portfolio Daily Fresh Dahi (curd)
and has just launched Low fat Dahi in 2008.

 STRATEGY: -

In 2001

 Besides focusing on competitive pricing, BNZF has

adopted a three-pronged strategy of freshness (lower
pipeline stock), availability (improve distribution
network) and visibility (more shelf space at modern
trade).
 It recently entered some fresh milk markets, such
as Delhi and Kolkata, where GCMMF does not
have a presence.
 It is concentrating on just 30 cities, and that too
through select class A & B outlets, for butter and
cheese. It is not playing the national game with
GCMMF.
 Being No. 2 in the butter and cheese market
afterAmul which holds more than 86% (combined
butter & cheese market) it should be following Offense
strategy by attacking the strengths of Amul cheese
market.

(2) NESTLE: -

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 Nestlé India is a subsidiary of Nestle S.A., world's
biggest food company and a leading Swiss giant.
 Nestle India's business can be broadly classified into
four categories ---milk products and nutrition (infant
mixes, yoghurt, milk), prepared dishes and cooking
aids, beverages (coffee and malted drinks) and
chocolate and confectionary.
 Company has a wide presence across India with its
portfolio of strong brands Nescafe, Maggi,
Milkybar,Milo,KitKat,Bar-
one,Polo,Munch,Milkmade,Nestea,Nestle Milk, Nestle
Fresh 'n' Natural Dahi.
 The company is focused on growing its market share
through renovation and innovation of its existing brands
in India.

Nestle Dairy whitener:

 The loose milk market is estimated to be around Rs470

billion, the processed milk market is only Rs 10000
crores.

 Milk powder market is only 7% of the whole milk

market.

 There are two types of milk powdersa:-

(1) Whole milk powderb.

(2) Skimmed milk powder.

Everyday is a major player in the Dairy whitener category

that is a part of the skimmed milk category. The dairy
whiteners are used for tea making.

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Nestle Everyday:

 Nestle Everyday was launched in 1986 now have a

market share of around 22%.
 The category is facing the major obstacle of consumer
perception towards this category.
 The consumers perceive that loose milk is fresh. And
with abundant milk supply, milk powders were able to
penetrate only 4.7% of the entire market.
 While Everyday faces stiff competition from Amul's
Amulya and Britannia's Milkman, the major
competition is from the ordinary milk.

STRATEGY: -

 It wants to give GCMMF competition across the entire

dairy line will be busy protecting the dominance of its
Cerelac and Milkmaid brands, against the impending
price-led onslaught from GCMMF's Amul Infant Milk
Substitute and Mithai Mate, which will now be
produced from a spanking new 8,000 tonne a year
facility at Mehsana.
 Nestle India has access to its Switzerland-based parent,
Nestle SA's investments (global expenditure was Rs
6,500 crore in 2007) in research and development and
advanced technology for foods and beverages.
 Likewise, Nestle Fresh ‘N' Natural Slim Dahi (fat
free), Nestle Milkmaid Fruit Yoghurt (fat free with real
fruits), Nestle Nesvita (fat free with probiotics, for
healthy digestion), Nestlé Cerelac Stage 4 and Nestlé
Nan with DHA (both infant foods) were also launched.

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CONCLUSION: -

 For the Consumer, Amul simply means 'Value For Money'

and Quality as it should be.
 Amul symbolizes our farmers' determination to manage their
own resources.
 Amul is India's first food brand to have a dedicated website:
www.amul.com.
 Finally, I have to say thanks to Prof. Aarti Sharma to give this
Opportunity.

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