A PROJECT REPORT ON

“B.C.G. MATRIX & S.W.O.T ANALYSIS OF AMUL COMPANY”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR

MASTER OF COMMERCE (M. COM)

MANAGEMENT GROUP

SEMESTER-II

IN

STRATEGIC MANAGEMENT

TO

UNIVERSITY OF MUMBAI

BY

ROLL NO.: 04

UNDER THE GUIDANCE OF

PROF. SWATI VORA

RIZVI EDUCATION SOCIETY’S

RIZVI COLLEGE OF ARTS, COMMERCE & SCIENCE

RIZVI COMPLEX, BANDRA (W), MUMBAI-50

1

DECLARATION

I, , student of Master of Commerce (M.Com) in Management Group

Semester-II, Rizvi College of Arts, Commerce and Science, hereby declare

that I have completed the project entitled “B.C.G. MATRIX OF AMUL

COMPANY” in the subject Strategic Management for the academic year

2012-2013.

_________________

(HANEEN SHEHBAZ KHAN)

Roll No.: 04

Date: 15th March, 2013.

2

CERTIFICATE

I, Prof. Swati Vora hereby certify that , Roll No. - 04 of M.Com. Semester-II

of Rizvi College of Arts, Commerce and Science , has successfully completed

project on “B.C.G. MATRIX OF AMUL COMPANY” in the subject

Strategic Management for the academic year 2012-2013.

_____________ _____________

Internal Guide External Guide

_____________

Co-ordinator

3

ACKNOWLEDGEMENT

I, HANEEN SHEHBAZ KHAN student of RIZVI COLLEGE OF ARTS, COMMERCE &

SCIENCE. RIZVI COMPLEX, BANDRA (W), MUMBAI-50 studying in Master of

Commerce (M.Com) in Management Group Semester-II, hereby declare that I have completed

the project on “B.C.G. MATRIX OF AMUL COMPANY”, Academic Year 2012 – 2013,

under the guidance of Prof. Swati Vora, as a partial fulfillment of the course curriculum in

Master Of Commerce (M. Com.)

The information submitted is true and original to the best of my knowledge.

DATE: 15 th March 2013 _______________________

SIGNATURE OF STUDENT

PLACE: MUMBAI (

4

RIZVI COLLEGE

OF ARTS, SCIENCE AND COMMERCE

M.COM PART- I. (SEM II)

2012-2013

EVALUATION SHEET

NAME OF THE

STUDENT :

ROLL NO : 04

SUBJECT : STRATEGIC MANAGEMENT

SR.NO. PARTICULARS MARKS SIGNATURE

1 EVALUATION BY INTERNAL

2 PRESENTATION

3 EVALUATION BY EXTERNAL

4 VIVA

TOTAL

5

CONTENTS

Topic Pg. No.

Chapter I

1. Introduction…………………………………………………………………………….......7

2. History Of AMUL COMPANY……………………………………….…………..……..10

3. Objectives & Rationale of the study……………………………………………..………13

4. Research Problems…………………………………………………………………..……14

5. Research Methodology………………………………………………………………..….14

Chapter II

1. Review of AMUL COMPANY………………………………….…………………..…..15

Chapter III

1. List of AMUL Products.…………………………………………………………….…….16

2. Success……………………………………………………………………………………..21

3. Product Strategy……………………………………………………………………………22

Chapter IV

1. B.C.G Matrix………………………………………………………………………………23

2. 4 Cell Of B.C.G……………………………………………………………………..…….24

3. 4 P’s of Marketing …………………………………………………………………….....27

4. S.W.O.T Analysis……………………………………………………………………...….31

Chapter V

1.Conclusions ………………………………………………………………………;.………33

2. Recommendations……………………………………………………………….;;.………34

BIBLIOGRAPHY 35

6

CHAPTER I

1. INTRODUCTION

GCMMF

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly

50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than

700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today in

over 40 countries of the world. AMUL is exporting a wide variety of products which include

Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee)

and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the

Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China,

and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to

enter the Japanese market in 1994 did not succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by

Synovate to find out Asia's top 1000 Brands.

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The

Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands:

Amul is No. 1"

AMUL7

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in

India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative

Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million

milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling

example of a co-operative organization's success in the long term. The Amul Pattern has

established itself as a uniquely appropriate model for rural development. Amul has spurred the

White Revolution of India, which has made India the largest producer of milk and milk products

in the world. It is also the world's biggest vegetarian cheese brand.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative

organization's success in the long term. It is one of the best examples of co-operative

achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the

state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder

what combination of influences and incentives is needed to multiply such a model a thousand

times over in developing regions everywhere." The Amul Pattern has established itself as a

uniquely appropriate model for rural development. Amul has spurred the White Revolution of

India, which has made India the largest producer of milk and milk products in the world. It is

also the world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1050 million (2006-07).

Currently Amul has 2.6 million producer members with milk collection average of 10.16 million

liters per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid

to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the

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Japanese markets. Other potential markets being considered include Sri Lanka. Dr Verghese

Kurien, former chairman of the GCMMF, is recognized as the man behind the success of Amul.

On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of

GCMMF.

Vision of Amul India:

“Air to liberate farmers form economic oppression and lead them to prosperity and also serve

the interest of consumers by providing affordable quality products.”

Mission of Amul India:

“To have threefold increase to the current group turnover of diary cooperatives of Gujarat of Rs

9600 Crores by the Year 2020.”

2. HISTORY OF AMUL

9

In the year 1946 the first milk union was established. This union was started with 250 liters of

milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected

the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived from the Sanskrit word

“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested

the brand name “AMUL”. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,

Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a

leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of

many things like of the high-quality products sold at reasonable prices, of the genesis of a vast

cooperative network, of the triumph of indigenous technology, of the marketing savvy of a

farmers' organization. And have a proven model for dairy development (Generally known as

“ANAND PATTERN”).

GCMMF

10

The GCMMF is the largest food products marketing organisation of India. It is the apex

organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy

Cooperatives in Gujarat have created an economic network that links more than 3.1 million

village milk producers with millions of consumers in India. These cooperatives collect on an

average 9.4 million litres of milk per day from their producer members, more than 70% of whom

are small, marginal farmers and landless labourers and include a sizeable population of tribal

folk and people belonging to the scheduled castes. turnover of GCMMF (AMUL) during 2010–

11 was 97.74 billion (US$1.78 billion). It markets the products, produced by the district milk

unions in 30 dairy plants. The farmers of Gujarat own the largest state of the art dairy plant in

Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 3.0 million litres of milk per day

and process 160 MTs of milk powder daily. Amul Dairy established at Anand is the crown glory

of the district. By launching the milk business in a scientific way, the dairy heralded White

Revolution in Gujarat which is well established now. The dairy has provided the farmers an

important source of supplementary income through animal husbandry. Today it has become a

world renowned organisation.

On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman

of GCMMF, following a court's intervention.

Achievements of GCMMF

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3.1 million milk producer member families

15,760 village societies

15 District Unions

9.4 million liters of milk procured per day

150 million (US$2.73 million) disbursed in cash daily

GCMMF is the largest cooperative business of small producers with an annual turnover

of 53 billion (US$964.6 million)

The Govt. of India has honoured Amul with the "Best of all categories Rajiv Gandhi

National Quality Award".

Largest milk handling capacity in Asia

Largest cold chain network

48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets

Export to 37 countries worth 150 crore (US$27.3 million)

Winner of APEDA award for eleven consecutive years

3. OBJECTIVE AND RATIONALE BEHIND THE STUDY

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To get detailed knowledge of AMUL’S product

To increase span of amul products through Pushcarts.

To know the factors which affects consumer’s buying behavior to purchase amul’s

product?

Create awareness about amul product against its competitors.

To collect detail data with respect to amuls popular products.

Increase focus on strategy and results.

Improve organizational performance by measuring what is the BCG MATRIX.

Improve communication of the organization’s Vision and Strategy.

Basic concepts of the BCG MATRIX and how it can be used to improve organization

performance.

4. RESEARCH PROBLEMS.

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There were many problems faced during the research process, some are as follows:

Limited time and cost for research.

Confidential details could not be collected due to privacy policies of the company such as

sales and revenue, current turnover details etc.

5. RESEARCH METHODOLOGY.

The data was collected through secondary sources only.

The primary sources of data could not be collected due to some limitations.

The sources of secondary data are the search engines, various websites and company websites

Method of Data Collection & Sources of Data:

Primary Data: Not Available.

Secondary Data: Secondary data was collected through online search engines, news

articles, web sites etc.

CHAPTER II

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1. REVIEW OF AMUL.

Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk producer

self-reliant and conduct milk- business with pride. Amul has always been the trend setter in

bringing and adapting the most modern technology to door steps to rural farmers. Amul created

history in following areas:

a) First self motivated and autonomous farmers‟ organization comprising of more than 5000000

marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection centers owned by

them.

c) Computerized milk collection system with electronic scale and computerized accounting

system.

d) The first and only organization in world to get ISO 9000 standard for its farmer’s co-

operatives.

e) First to produce milk from powder from surplus milk. Amul is the live example of how co-

operation amongst the poor marginal farmers can provide means for the socio-economic

development of the under privileged marginal farmers.

CHAPTER III

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1. LIST OF AMUL’S PRODUCTS

Amul ButterUtterly Butterly Delicious

Amul LiteLow fat, low Cholesterol Bread Spread

Delicious Table MargarineThe Delicious way to eat healthy

Milk DrinksAmul Kool Milk Shake Amul Kool

Amul Kool Cafe Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

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Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

Amul Lassee

Amul Kool Thandai  

Powder MilkAmul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk PowderA dairy in your home

Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

   

Fresh MilkAmul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

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Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream Amul Shakti Toned Milk

Amul Calci+ Amul Buttermilk

CheeseAmul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

Gouda Cheese    

For Cooking

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Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter

Amul Malai PaneerReady to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy colour with a pleasant taste.

Masti Dahl

Pro-biotic Dahi    

DessertsAmul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

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Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

Amul ChocolatesThe perfect gift for someone you love.

Amul Basundi Amul Flaavyo Yoghurt

Health DrinkNutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

MOST POPULAR PRODUCTS.

Amul Butter

Amul Lite Bread Spreads

Amul Milk

Amul Butter Milk

Amul Shrikhand

Amul Cheese

Amul Ghee

Amul Milk Powders

Amul Masti Dahi

Amul Ice-cream

Amul Milk Chocolate

Nutramul Malted Milk Food

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2. SUCCESS

Robust Supply Chain:Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets.

Low Cost Strategy:Low Cost Strategy Amul adopted a low-cost price strategy to make its products. Affordable and attractive to consumers by guaranteeing they value for money.

Diverse Product Mix:Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya.

Strong Distribution Network:Strong Distribution Network Amul products are available in over 500,000 retail outlets across. India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

Technology and e-initiatives:Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.

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3.PRODUCT STRATEGIES

Product Positioning Strategy:

Low price Amul Ice - Creams made Kwality walls difficult to survive.

Chocolate milk was launched ‗Amul Kool which no other Indian company had launches.

Product Overlap Strategy

Amul Processed Cheese Vs Cheese Spread Nutramul

Energy Drink Vs Amul Kool4.

Product Design Strategy

Use of Utterly Butterly Girl since 19675

Product Elimination

Eliminated Amul Chocolates

Diversification Strategy

Dairy Products E.g.: Fresh Milk- low fat milk and full fat etc.,

Milk Drinks & Desserts, Bread Spreads, Cheese Products etc

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CHAPTER IV

1.B.C.G. MATRIX

Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by

BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic

representation for an organization to examine different businesses in it’s portfolio on the basis of

their related market share and industry growth rates. It is a two dimensional analysis on management

of SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business

potential and the evaluation of environment.

According to this matrix, business could be classified as high or low according to their industry

growth rate and relative market share.

Relative Market Share = SBU Sales this year leading competitors sales this year.

Market Growth Rate = Industry sales this year - Industry Sales last year.

The analysis requires that both measures be calculated for each SBU. The dimension of

business strength, relative market share, will measure comparative advantage indicated by

market dominance. The key theory underlying this is existence of an experience curve and

that market share is achieved due to overall cost leadership.

BCG matrix has four cells, with the horizontal axis representing relative market share and

the vertical axis denoting market growth rate. The mid-point of relative market share is set at

1.0. If all the SBU’s are in same industry, the average growth rate of the industry is used.

While, if all the SBU’s are located in different industries, then the mid-point is set at the

growth rate for the economy.

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Resources are allocated to the business units according to their situation on the grid. The

four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each

of these cells represents a particular type of business.

2. FOUR CELLS OF B.C.G. MATRIX

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1. Stars:  

Stars represent business units having large market share in a fast growing industry. They

generate high cash inflow but because of fast growing market, stars require huge

investments to maintain their lead. Net cash flow is usually modest. If successful, a star will

become a cash cow when the industry matures.

2. Cash Cows: 

Cash Cows represent business units having a large market share in a mature, slow growing

industry. Cash cows require little investment and generate cash that can be utilized for

investment in other business units. These SBU’s are the corporation’s key source of cash, and

are specifically the core business. They are the base of an organization. These businesses

usually follow stability strategies.

3. Question Marks: 

Question marks represent business units having low relative market share and located in a

high growth industry. They require huge amount of cash to maintain or gain market share.

They require attention to determine if the venture can be viable. Question marks are

generally new goods and services which have a good commercial prospective. There is no

specific strategy which can be adopted. If the firm thinks it has dominant market share,

then it can adopt expansion strategy, else retrenchment strategy can be adopted.

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4. Dogs:

Dogs represent businesses having weak market shares in low-growth markets. They

neither generate cash nor require huge amount of cash. Due to low market share, these

business units face cost disadvantages. Generally retrenchment strategies are adopted

because these firms can gain market share only at the expense of competitor’s/rival firms.

These business firms have weak market share because of high costs, poor quality, ineffective

marketing, etc. Number of dogs should be avoided and minimized in an organization.

Amul Products in the BGC Matrix:

STARS

Amul Pure Ghee range

Amul Cheese Spread

Amul Kool

Amul Ice-cream

Question Marks

- Amul Masti Dahi

Amul Lassi

Amul Mithai mate

Cash Cows

- Amul fresh Milk range

Amul Butter range

Mozzarella Cheese

Dogs

- Amul Chocolates

Nultramul Energy Drink

Amul Shakti Infant Milk Range

Amul Pizza

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3. 4 P’S OF MARKETING

Product

Satisfaction suffices. But delight dazzles the average company will compete for customer by

conforming to her expectation consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional benefits which she would never

have imagined possible. Cadbury’s offer such product. The wide variety products offered by the

company include:

List of AMUL Products

Bread spreads

Amul Butter

Amul Lite Low Fat Bread Spread

Amul Cooking Butter

Cheese Range

Amul pasteurized processed Chedder Cheese

Amul Processed cheese Spread

Amul Pizza (mozzarella) cheese

Amul Shredded pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (Cottage Cheese)

Mithaee Range

Amul shrikhand (Mango,Saffron,Almond Pistachio,Cardamom)

Amul Amrakhand

Amul Mithaee Gulab Jamub Mix

Amul mithaee Kulfi Mix

27

Amul Avsar Ladoos

Milk Range

Amul Shakti 3% Fat Milk

Amul Taaza 1.5% Fat Milk

Amul Gold 4.5% Fat Milk

Amul Lite Slim-n-Trim Milk 0% Fat Milk

Amul Shakti Toned Milk

Amul Fresh Cream

Infant Milk Rang

Amul Infant Milk Formula 1(0-6 months)

Amul Infant Milk Formula 2(6 months)

Amulspray Infant Milk Food

Milk Powders

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea & Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk

Amul Taaza Toned Milk 3% Fat

Amul Gold Full Cream Milk 6% Fat

Amul Shakti Standardized Milk 4.5% Fat

Amul Slim &Trim Double Toned Milk 1.5% Fat

Amul Saathi Skimmed Milk 0% Fat

Amul Cow Milk

Pure Ghee

Amul Pure Ghee

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Sagar Pure Ghee

Amul Pure Ghee

Brown Beverage

Nutramul Malted Milk Food

Curd Products

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (Fresh Curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Milk Drink

Amul Kool Flavoured

Amul Kool Cafe

Health Beverage

Amul Shakti White Milk Food

Chocolate & Confectionery

Amul Milk Chocolate

Amul Fruit & Nut Chocolat

Amul Ice-Cream

Royal Treat Range(Butter Scotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)

Nature’s Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious(Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic)

Pro-Biotic

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Pricing

Second P of marketing is not another name for blindly lowering prices and relying on this

strategy alone to increase sales dramatically. The strategy used by Cadbury’s is for matching the

value that customer pays to buy the product with the expectation they have about what the

production is worth to them.

AMUL has launched various products which cater to all customer segments.

So every customer segment has different price expectation from the product.

Therefore maximizing the returns involves identifying right price level for

each segment, and then progressively moving through them.

Physical Distribution Place

In a product and price parity situation, the brand that sells more is the one that reaches the

highest number of customers. India ± 1 billion people, 155 million household has over 4 million

retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq.

Promotion

If an advertisement is to communicate effectively, the receiver must at least half want it to, and

be prepared to take step toward the sender. Effective advertising is rarely hectoring or loudly

explicit«. It often both attracts and generates arm feelings. More often than not, a successful

campaign has a stronger element of the unexpected a quality that good advertising shares with

much worthwhile literature. To penetrate into the inner recesses of her memory, communication

must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and

then extract retention competing with thousands of other units of communication trying to do the

same.

30

4. S.W.O.T ANALYSIS

Strengths

1. The company is having Indian origin thus creating feeling of oneness in the mind of the

customers.

2. It manufactures only milk and milk products, which is purely vegetarian thus providing

quality confidence in the minds of the customers.

3. It is aiming at rural segment, which covers a large area of loyal customers, which other

companies had failed to do.

4. People are quite confident for the quality products provided by Amul.

5. Amul has its base in India with its butter and so can easily promote chocolates without

fearing of loses.

6. The prices of chocolates of Nestles are comparatively cheap as compared to

other companies.

Weaknesses

1. There are various big players in the chocolate market, which acts as major competitors

restricting their growth. 

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

31

Opportunities

1. There is a lot of potential for growth and development as huge population stay in rural

market where other companies are not targeting.

2. The chocolate market is at growth stage with very less competition so by introducing new

brand and intensive advertising there can be a very good scope in future.

Threats

1. The major threat is from other companies who hold the majority share of consumers in

Indian market i.e. Cadburys and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently shift their

brands.

3. New companies’ entering in Indian market like fine poses lot problems for Amul.

32

CHAPTER V

1. CONCULSIONS

When we study the BCG Matrix of Amul India. We found that Amul one of the fastest growing

company of India. This company has revolutionized the Indian dairy sector and also brought it

back from the brink of extinction. Also it was one of the first successful cooperative associations

in India and also now the market leader in the dairy sector. So when you study the BCG Matrix

of Amul India you found that the growth of the company is very good.

As we know thalamus is very big organization and market leader in dairy products. It has

maximum market share in Milk, Butter and Cheese, which are its main/core products. As we

knowAmul is a co-operative organization but chocolate industry is a profitable industry we can’t

ignore it. With the help of research, company can find out its week points in chocolate product

and can increase its market share through rectify mistakes.

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2. RECOMMENDATIONS

To earn more or more profit and make the customer loyal toward the amul product the company

should focus of his existing customer and also provide the better services. We know that the food

product is necessary for the public today. Every person wants to eat the fresh milk product.

Amul should take proper action in order to improve service, because although being on a

top slot in Butter and milk supplies it does not get the sales in chocolate, which it should

get.

Reduce the cost of production on products which come under Dogs.

Focus on the products that come under Stars.

Should utilize the excess income generated by the Cash Cows in research and

development of products that were at loss.

Provide better service in term of lowest cost.

Provide proper knowledge to customer.

Add some new product of his basket.

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BIBLIOGRAPHY

www.amul.com

www.google.com

www.wikipedia.com

www.marketresearch.com

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