a study of strategic mgmt on amul

A STUDY OF SWOT ANALYSIS WITH REFERENCE TO AMUL

CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION TO SWOT ANALYSIS

“Swot analysis involves the collection and portrayal of information about internal and external

factors which have, or may have, an impact on business.”

SWOT analysis (alternatively SWOT matrix) is a structured planning method used to

evaluatethe strengths, weaknesses,opportunities, and threats involved in a project or in

a business venture. A SWOT analysis can be carried out for a product, place, industry or person.

It involves specifying the objective of the business venture or project and identifying the internal

and external factors that are favorable and unfavorable to achieve that objective. Some authors

credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute in

the 1960s and 1970s using data from Fortune 500 companies. However, Humphrey himself does

not claim the creation of SWOT, and the origins remain obscure. The degree to which the

internal environment of the firm matches with the external environment is expressed by the

concept of strategic fit.

Strengths: characteristics of the business or project that give it an advantage over

others.

Weaknesses: characteristics that place the business or project at a disadvantage

relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or

project.

DEFINITION OF 'SWOT ANALYSIS'

A tool that identifies the strengths, weaknesses, opportunities and threats of an organization.

Specifically, SWOT is a basic, straightforward model that assesses what an organization can and

cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to

take the information from an environmental analysis and separate it into internal (strengths and

weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT

1


analysis determines what may assist the firm in accomplishing its objectives, and what obstacles

must be overcome or minimized to achieve desired results.

1.2 SWOT ANALYSIS FRAMEWORK&MATRIX

SWOT analysis aims to identify the key internal and external factors seen as important to

achieving an objective. SWOT analysis groups key pieces of information into two main

categories:

INTERNAL AND EXTERNAL FACTOR

1. internal factors – the strengths and weaknesses internal to the organization

2. external factors – the opportunities and threats presented by the environment

external to the organization.

SWOT analysis can be used effectively to build organization or personal strategy.

Steps necessary to execute strategy-oriented analysis involve: identification of

internal and external factors (using popular 2x2 matrix), selection and evaluation

2


of the most important factors and identification of relations existing between

internal and external feature

Analysis may view the internal factors as strengths or as weaknesses depending upon their

effect on the organization's objectives. What may represent strengths with respect to one

objective may be weaknesses (distractions, competition) for another objective. The factors

may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so

on.

The external factors may include macroeconomic matters, technological change, legislation,

and sociocultural changes, as well as changes in the marketplace or in competitive position.

The results are often presented in the form of a matrix.

SWOT ANALYSIS FRAMEWORK& SWOT MATRIX lysis

It is important to base Strategic plans on robust intelligence. This could include using

information from performance measurement, research, learning and benchmarking. The SWOT

framework provides for an analysis of the internal and external environment and can be used in

conjunction with a scan of the external environment (such as PESTLE), in order to evaluate the

information gathered. SWOT refers to S - Strengths, W - Weaknesses, O - Opportunities and T -

Threats. The diagram below shows how SWOT fits in to the environmental scan.

Strengths

3


Strengths are the organisation's internal capabilities and resources which can be used as a basis

for competitive advantage. Strengths could include;

• Capital strength

• Reputation/image

• Brand awareness

• Knowledge

• Location

Weaknesses

Weaknesses are the absence of strengths which could be an advantage to the organisation.

Weaknesses could include;

• Poor or indifferent reputation/image

• Lack of brand awareness

• Lack of competencies/skills

• High costs

• Location

Opportunities

Opportunities are the external environmental scan issues (see PESTLE) which could be used to

the organisation's advantage (e.g. for growth/profit). Opportunities could include;

• Grants/funding

• New markets

4


• Unfulfilled customer needs

• New technology

• Economic upturn

Threats

Threats are the external environmental issues which could present a risk to the organisation.

Threats could include;

• Competitor activity

• Economic downturn

• Increasing regulation

• Declining markets

• Market saturation

The SWOT Matrix

5


Armed with this information, organisations can then use The SWOT Matrix (see below), to

identify which opportunities could be pursued.

Strategies

S-O strategies are the opportunities which the organisation can pursue, based on

existing strengths (best fit).

W-O Strategies

W-O strategies are the opportunities which the organisation can pursue, by surmounting existing

weaknesses.

S-T Strategies

S-T strategies are those approaches which use the organisation's existing strengths to reduce the

likelihood of being vulnerable to potential threats.

W-T Strategies

W-T strategies are those which protect the organisation against emerging threats, by overcoming

existing weaknesses.

6


1.3BENEFITS AND IMPORTANCE OF SWOT ANALYSIS

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it

involves agreat subjective element. It is best when used as a guide, and not as a prescription.

Successful businesses build on their strengths, correct their weakness and protect against internal

weaknesses and external threats. They also keep a watch on their overall business environment

and recognize and exploit new opportunities faster than its competitors.

SWOT Analysis helps in strategic planning in following manner-

a. It is a source of information for strategic planning.

b. Builds organization’s strengths.

c. Reverse its weaknesses.

d. Maximize its response to opportunities.

e. Overcome organization’s threats.

f. It helps in identifying core competencies of the firm.

g. It helps in setting of objectives for strategic planning.

h. It helps in knowing past, present and futures that by using past and current data, future

plan.

i. It provides a clear view of your strengths, and allows you to build on them to meet your

business objectives.

j. It showcases your weaknesses and provides a chance to reverse them.

k. It gives you a sneak peek into the opportunities that lies ahead. Using this you can draft

your strategic growth plans based on your strengths and weaknesses

l. It helps you analyze possible threats to your business, and make necessary changes to the

business policies and growth plans. Additionally, it facilitates making supplementary or

alternative plans, contingency plans, and so on.

m. One of the major benefits of conducting SWOT analysis is that helps you create matching

and converting strategy

n. It helps you employ a strategy to match your strengths and opportunities; and employ

those strategies for converting your weaknesses and threats into your strengths and

opportunities

7


The entire SWOT analysis process brings to light your resources, and provides motivation and

the necessary momentum to get going with your business plans despite all odds.

1.4 LIMITATION OF SWOT ANALYSIS

SWOT Analysis is not free from its limitations. It may cause organizations to view

circumstances as very simple because of which the organizations might overlook certain key

strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses,

opportunities and threats might be very subjective as there is great degree of uncertainty in

market. SWOT Analysis does stress upon the significance of these four aspects, but it does not

tell how an organization can identify these aspects for itself.

There are certain limitations of SWOT Analysis which are not in control of management. These

include-

a. Price increase;

b. Inputs/raw materials;

c. Government legislation;

d. Economic environment;

e. Searching a new market for the product which is not having overseas market due to

import restrictions; etc.

Internal limitations may include-

a. Insufficient research and development facilities;

b. Faulty products due to poor quality control;

c. Poor industrial relations;

d. Lack of skilled and efficient labour; etc

When you are conducting a SWOT analysis, you should keep in mind that it is only one stage of

the business planning process. For complex issues, you will usually need to conduct more in-

depth research and analysis to make decisions.

8


Keep in mind that a SWOT analysis only covers issues that can definitely be considered a

strength, weakness, opportunity or threat. Because of this, it's difficult to address uncertain or

two-sided factors, such as factors that could either be a strength or a weakness or both, with a

SWOT analysis (e.g. you might have a prominent location, but the lease may be expensive).

A SWOT analysis may be limited because it:

doesn't prioritise issues

doesn't provide solutions or offer alternative decisions

can generate too many ideas but not help you choose which one is best

can produce a lot of information, but not all of it is useful.

1.5HOW DO YOU CREATE A SWOT ANALYSIS?

WHO DEVELOPS THE SWOT?

The most common users of a SWOT analysis are team members and project managers who are

responsible for decision-making and strategic planning.

But don't overlook anyone in the creation stage!

An individual or small group can develop a SWOT analysis, but it will be more effective if you

take advantage of many stakeholders. Each person or group offers a different perspective on the

strengths and weaknesses of your program and has different experiences of both.

Likewise, one staff member, or volunteer or stakeholder may have information about an

opportunity or threat that is essential to understanding your position and determining your future.

WHEN AND WHERE DO YOU DEVELOP A SWOT

ANALYSIS?

A SWOT analysis is often created during a retreat or planning session that allows several hours

for both brainstorming and more structured analysis. The best results come when participants are

encouraged to have an open attitude about possibilities. While you might "SWOT" in

9


conjunction with an informational or business session, the tone when creating a SWOT analysis

is usually collaborative and inclusive.

When creating the analysis, all people involved are asked to pool their individual and shared

knowledge and experiences. The more relaxed, friendly and constructive the setting and

environment, the more truthful, comprehensive, insightful and useful your analysis will be.

HOW DO YOU DEVELOP A SWOT ANALYSIS?

Here are steps for conducting a gathering to produce your analysis.

Designate a leader or group facilitator who has good listening and group process skills,

and who can keep things moving and on track.

Designate a recorder to back up the leader if your group is large. Use newsprint on a flip

chart or a large board to record the analysis and discussion points. You can record later in

a more polished fashion to share with stakeholders and to update.

Introduce the SWOT method and its purpose in your organization. This can be as simple

as asking, "Where are we, where can we go?" If you have time, you could run through a

quick example based on a shared experience or well-known public issue (even the new

TV season).

Depending on the nature of your group and the time available, let all participants

introduce themselves. Then divide your stakeholders into smaller groups. If your retreat

or meeting draws several groups of stakeholders together, make sure you mix the small

groups to get a range of perspectives, and give them a chance to introduce themselves.

o The size of these depends on the size of your entire group – breakout groups can range

from three to ten. If the size gets much larger, some members may not participate.

o Have each group designate a recorder, and provide each with newsprint or dry -erase

board. Direct them to create a SWOT analysis in the format you choose-a chart,

columns, a matrix, or even a page for each quality.

o Give the groups 20-30 minutes to brainstorm and fill out their own strengths, weakness,

opportunities and threats chart for your program, initiative or effort. Encourage them not

to rule out any ideas at this stage, or the next.

10


o Remind groups that the way to have a good idea is to have lots of ideas. Refinement can

come later. In this way, the SWOT analysis also supports valuable discussion within

your group or organization as you honestly assess.

o It helps to generate lots of comments about your organization and your program, and

even to put them in multiple categories if that provokes thought.

o Once a list has been generated, it helps to refine it to the best 10 or fewer points so that

the analysis can be truly helpful.

Reconvene the group at the agreed-upon time to share results. Gather information from the

groups, recording on the flip-chart or board. Collect and organize the differing groups' ideas and

perceptions.

Proceed in S-W-O-T order, recording strengths first, weaknesses second, etc.

Or you can begin by calling for the top priorities in each category -the strongest strength,

most dangerous weakness, biggest opportunity, worst threat--and continue to work across

each category.

Ask one group at a time to report ("Group A, what do you see as strengths?") You can

vary which group begins the report so a certain group isn't always left "bringing up the

end" and repeating points made by others. ("Group B, let's start with you for

weaknesses.")

Or, you can open the floor to all groups ("What strengths have you noted?") for each

category until all have contributed what they think is needed.

Discuss and record the results. Depending on your time frame and purpose:

o Come to some consensus about the most important items in each category

o Relate the analysis to your vision, mission, and goals

o Translate the analysis to action plans and strategies

If appropriate, prepare a written summary of the SWOT analysis to give or e-mail to

participants for continued use in planning and implementing your effort.

HOW DO YOU USE YOUR SWOT ANALYSIS?

11


In some ways a SWOT analysis pushes you to think "inside the box" by asking you to categorize

your effort in such simple opposing terms. But the purpose of this information gathering is

definitely to help you move outside the box of any constraints or limitations that may have

hindered you before.

Knowledge is indeed power, and knowing what the positives and negatives of your program are

puts you in a more powerful position for action. While a SWOT analysis is not in itself action, it

can be a "support team" to help you:

Identify the issues or problems you intend to change

Set or reaffirm goals

Create an action plan

As you consider your analysis, be open to the possibilities that exist within a weakness or threat.

Likewise, recognize that an opportunity can become a threat if everyone else sees the

opportunity and plans to take advantage of it as well, thereby increasing your competition.

Finally, during your assessment and planning, you might keep an image in mind to help you

make the most of a SWOT analysis: Look for a "stretch," not just a "fit." As Radha

Balamuralikrishna and John C. Dugger of Iowa State University point out, SWOT usually

reflects your current position or situation. Therefore one drawback is that it might not encourage

openness to new possibilities. You can use SWOT to justify a course that has already been

decided upon, but if your goal is to grow or improve, you will want to use it differently.

Applications of SWOT analysis

A SWOT analysis can be used for:

Workshop sessions

Brainstorm meetings

Problem solving

Planning

Product evaluation

Competitor evaluation

12


Personal Development Planning

Decision Making (with force field analysis)

CHAPTER-2

SWOT ANALYSIS WITH REFERENCE TO AMUL

2.1 HISTORY

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The

word Amul is derived from the Sanskrit word Amulya, meaning invaluable.The co-operative is

also sometimes referred to by the unofficial backronym: Anand Milk Union Limited.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk

producers in Gujarat.

Amul spurred India's White Revolution, which made the country the world's largest producer of

milk and milk products. In the process Amul became the largest food brand in India and has also

ventured into markets overseas.

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 700

000 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 SAARCneighbours, 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 plansto 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.

13


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

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

Amul is No. 1"

2.2 BACKGROUND

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 organisation, Gujarat Co-operative Milk

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

producer of Gujarat.

Amul's genesis was linked to the freedom movement in India. Sardar Vallabhbhai Patel, an

eminent Indian freedom fighter encouraged the dairy farmers from the Kaira district in Gujarat to

form a cooperative to counter the 'exploitatively' low prices offered for their milk by the

monopoly milk supplier of the area, Polson's Dairy. The dairy farmers met in Samarkha (Kaira

district, Gujarat) on the 4th of January 1946, and decided to set up a milk producers' cooperative

that would deal directly with the Bombay government, the final buyer of their milk. This was the

origin of the Anand model.

Initially, when the Bombay government refused to deal with the cooperative, the farmers called a

strike. The government finally relented when Bombay went without milk for a fortnight. The

successful union registered itself as the Kaira District Cooperative Milk Producers' Union Ltd.

(KCMPUL), Anand, in Gujarat in December 1946.

2.3 OBJECTIVE

The objective of Amul, the dairy cooperative in India, is to spur the White Revolution in the

country and make India the largest producer of milk and milk products in the world.

The cooperative is shared between over 2.8 million dairy producers and the three-tier Amul

Model has increased India's milk production on an incredible scale.

The White Revolution. The Amul Model was the main contributor to the beginning of the White

Revolution. The revolution led to India becoming the country with the most milk production

in the world. It also helped reduce malpractices carried out by merchants and milk traders. The

14

http://coop.wikia.com/wiki/Brand?action=edit&redlink=1

http://coop.wikia.com/wiki/India?action=edit&redlink=1

http://coop.wikia.com/wiki/Cooperative

http://coop.wikia.com/wiki/Dairy?action=edit&redlink=1


White Revolution was a huge contribution to the alleviation of poverty and famine levels from

levels that were dangerously low.

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) [4]. Currently Amul has 2.6 million producer members

with milk collection average of 10.16 million litres 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 enterJapanese market in 1994 had not

succeeded, but now it has fresh plans of flooding the Japanese markets [5]. Other potential

markets being considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the

success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was

elected chairman of GCMMF.

'Amul', derived from the Sanskrit word 'Amulya', meaning priceless, also stood for 'Anand Milk

Union Limited'

2.4 VARIOUS PRODUCTS OF AMUL

Amul product range include

MILK POWDERS.

MILK.

BUTTER,BUTTER MILK.

GHEE,CHEESE, PANEER,SHRIKHAND.

CHOCOLATE ,AMUL MASTI, DAHI.

SHRIKHAND.

GULAB JAMUNS.

FLAVOURED MILK.

15

http://coop.wikia.com/wiki/Parthi_Bhatol?action=edit&redlink=1

http://coop.wikia.com/wiki/Dr_Verghese_Kurien?veaction=edit&redlink=1

http://coop.wikia.com/wiki/Sri_Lanka?action=edit&redlink=1

http://coop.wikia.com/wiki/Amul#cite_note-4

http://coop.wikia.com/wiki/Japanese_people?action=edit&redlink=1

http://coop.wikia.com/wiki/Africa?action=edit&redlink=1

http://coop.wikia.com/wiki/Hong_Kong?action=edit&redlink=1

http://coop.wikia.com/wiki/Hong_Kong?action=edit&redlink=1

http://coop.wikia.com/wiki/Singapore?veaction=edit&redlink=1

http://coop.wikia.com/wiki/China?veaction=edit&redlink=1

http://coop.wikia.com/wiki/Australia?action=edit&redlink=1

http://coop.wikia.com/wiki/Bangladesh?action=edit&redlink=1

http://coop.wikia.com/wiki/USA?action=edit&redlink=1

http://coop.wikia.com/wiki/UAE?action=edit&redlink=1

http://coop.wikia.com/wiki/Mauritius?action=edit&redlink=1

http://coop.wikia.com/wiki/Amul#cite_note-3


Amul Pro brand and others. Amul PRO is a recently launched brown beverage just like

bournevita and horlicks offering whey protein, DHA and essential nutrients. In January 2006,

Amul launched India's first sports drink, Stamina, which competes with Coca

Cola's Powerade and PepsiCo's Gatorade.

Amul offers mithaimate which competes with Milkmaid by Nestle by offering more fat at lower

price.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product

offering in the milk products segment. Other Amul brands are Amul Kool, a low-calorie thirst

quenching drink; Masti Butter Milk; and Kool Cafe, ready to drink coffee.

Amul's icecreams are made from milk fat and thus are icecreams in real sense of the word, while

many brands in India sell frozen desserts made from vegetable fat.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing

Award for 2007.

2.5AMUL BUSINESS MODEL &ORGANIZATIONAL

STRUCTURE

Amul followed a unique business model, which aimed at providing 'value for money' products to

its consumers, while protecting the interests of the milk-producing farmers who were its

suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was

not sold before the end of the day.

Amul bought all the milk offered by the milk producer, made timely payment, and shared with

the producers the profit generated from marketing the milk and milk products under the Amul

brand name...

The cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came

to be known as the "Anand pattern" cooperative system. It was a three-tier structure that

comprised village societies, district level dairy unions and a state level federation.

16

http://en.wikipedia.org/wiki/Gatorade

http://en.wikipedia.org/wiki/PepsiCo

http://en.wikipedia.org/wiki/Powerade

http://en.wikipedia.org/wiki/Coca_Cola

http://en.wikipedia.org/wiki/Coca_Cola

http://en.wikipedia.org/wiki/Sports_drink


Each tier was economically independent of the others and comprised representatives elected

from the tier below it. The organizations at each level were governed by their own bylaws, and

were managed by democratically elected boards...

THREE-TIER AMUL MODEL

The Three-Tier Amul Model. The cooperative structure of the Amul Model is three-tier. The

Village Dairy Cooperative Society is affiliated with the District Cooperative Milk Producers'

Union that, in turn, is linked with the State Cooperative Milk Federation. This structure allows

various functions to be delegated across the three tiers. For example, milk collection is carried

out at the Village Dairy Society level, milk procurement and processing takes place at the

District Milk Producers' Union level and milk and milkproducts marketing occurs at the State

Milk Federation tier. Designating the functions in such a way avoids the problems

of internal competition and ensures that the economies of scale are achieved.

Impacts of the Amul Model. This three-tier model has led to India increasing its production of

milk by 40 million metric tonnes. The model has been instrumental in improving the economy of

India. However, it has also introduced on a much bigger scale, an ingredient that has helped

improvethe health and nutrition of many within the country.

The Amul model has been very successful in meeting its aim to increase India's production of

milk and milk products. The cooperative has had a huge impact on the country's economy and

spurred the White Revolution.

Under the chairmanship of Tribhuvandas Patel (Patel), the Kaira Union, headquartered in Anand,

began with two milk societies, and a daily milk collection of 250 litres. When it started

operations, the cooperative included two tiers. At the base was the primary village dairy

cooperative society (DCS) of milk producers. Several such village cooperatives together formed

the district milk producers' union at the second level, which was entrusted with procurement and

processing of milk. By appointing qualified technologists and professional managers, the

cooperatives helped the farmers to leverage modern management practices and technology.

Varghese Kurien's (Kurien) association with KCMPUL began soon after the inception of the

cooperative.

17


He had obtained a master's degree in Mechanical Engineering from Michigan State University in

1948 and subsequently completed an assignment at the Government's Research Creamery in

Anand when Patel met him. Patel named Kurien, KCMPUL's General Manager in 1950. In 1954,

when the Bombay Milk Scheme refused to take all the milk that KCMPUL had produced, the

cooperative found itself saddled with surplus milk.

Apart from marketing milk in and around Anand, KCMPUL embarked on a wide range of dairy

processing activities. To differentiate its high quality products, KCMPUL decided to brand its

produce. In 1955, KCMPUL adopted the brand name 'Amul' for its products. 'Amul', derived

from the Sanskrit word 'Amulya', meaning priceless, also stood for 'Anand Milk Union Limited.

2.6ENVIRONMENTAL SCANING OF AMUL

EXTERNAL FACTOR RELATES TO THREATS

&OPPORTUNITIES

Pest analysis:-

Pest analysis is an analysis of external macro-environment that affects all the firms. Such

external factors usually uncontrollable by the firm and sometimes present themselves as threats.

Political environment

Unemployment rate is increased due to recession in India.

Economic factors

Tax rates has been increasing which will affect the company as well as the customers as the cost

of the food may increase.

Sociocultural factors

Amul has introduce pro-biotic ice-cream and it gets number one award at world dairy summit.

They have also introduce sugar-free brand called Choc-mini to target the diabetics people.

18


Technological factors

Amul should train the farmers in such a way that they can make maximum use of

technology .Most of the lower level workers at amul are from rural India and so the face

difficulty in using the computer system. Internet has made amul more successful as it is user

friendly and any details are available on the website. Amul introduces some recepies on their

websites to target the audience especially women's.

INTERNAL FACTOR RELATES TO STRENGTH &WEAKNESS

INTERNAL FACTORS INCLUDE:

MARKETING

FINANCE

HUMAN RESOURCE

MANPOWER

ORGANISATION STRUCTURE

PRODUCTION

19


MARKETING MIX OF AMUL

Product

Amul is using umbrella branding strategy. They have common name for most of the product

categories. They have attractive packaging with catchy taglines. Customer requirements change

over time. What is fashionable and attractive today may be discarded tomorrow. Marketing

continuously monitors customer preferences.

Price

Amul deliver 's value for money to its customers. Customer trust the brand because of its

quality .Customers in India are highly satisfied with Amul products. Despite being priced

economically, amul has maintained its product quality.

Promotion

Amul uses variety of media to communicate .Most famous is billboard campaign. The endearing

polka dressed girl and pun at various issues increased brand's fan following. They gives awards

such as vidya award for students. They have recently entered into direct retailing through "Amul

utterly delicious" parlours created in major cities such as Ahmadabad, Bangalore,

baroda,delhi,Mumbai.It has been sponsoring shows such as amul star voice of India which is a

singing competition. The amul websites have got the recepies which is convenient for the one

who don't know to cook. They have a charitable organisation and it is named amul relief trust.

Place

Amul has been marketing its products all over India. The constrains of geographic location no

longer exist on the internet .Amul is using internet for their promotions and can reach the globe

through internet.(Ranchhod,2004)

20


2.7COMPETITORS OF AMUL

21


2.8 AMUL MASCOT: THE MOST POPULAR BRAND OF AMUL

The girl child in the Amul butter brand was the brain child of the co-creator of the mascot, Mr.

Sylvester DaCunha's, who had a vision of a child very lovable to everyone. The girl was first

presented to the Indian audience, with the message -"Give us this day our daily bread with Amul

Butter" with the Moppet shown praying to god for Amul butter as shown in the image below.

The linkage has been explained beautifully by Alpana Parida, President DY Works, a brands

solutions firm that has designed a coffee table book to mark the 50 years celebrations for the

Amul butter hoardings that we come across in our daily lifes focussing on the burning issues of

the society. She explained beautifully, that butter is a product that is related with the Lord

Krishna's love for butter in Indian mythology and the child like naughtiness that Lord Krishna

displayed in his love for butter, which has been accepted by the Indian society readily.

Source - Business Standard

The brand mascot Amul moppet has been able to develop such a great connect with the Indian

audience because of the fact that Da Cunha Communications the creative partner of the firm

responsible behind the creation of this child has been able to keep the brand alive by associating

the brand with the messages related to the burning issues being faced by the Indian society. The

agencies personnel get together every monday in their office and start making a list of burning

issues and then reduce it down to 10 most hot topics that can be taken forward and from among

those 10 finally 5 are selected for finally putting on billboards.

22


This campaign by the creative agency which has spanned out to about 6000 plus hoardings being

put through-out India using the Amul Moppet as a conveying medium has been a great way for

building the brand's awareness levels, brand's association levels, enhancing the perceived quality

of the brand as a responsible brand and finally leading to brand loyalty, which when put together

increases the overall brand equity of the brand.

So let's celebrate the 50 years of a young girl that has become a essential part of our lives and

let's pray that the girl keeps on engaging us with the issues around us and the brand on the whole

keeps on delivering the quality product which it has been delivering to us till now.........

2.9 SWOT ANALYSIS OF AMUL

SWOT ANALYSIS RELATES TO INTERNAL FACTOR AND

EXTERNAL FACTOR

INTERNAL FACTOR

Internal factor relates to strength &weakness

STRENGTH:

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

customers

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

quality confidence in the minds of the customers.

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

companies had failed to do.

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

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

fearing of loses.

The prices of chocolates of Nestles are comparatively cheap as compared to other

companies.

23


Manufacturer of milk not trader of milk.

Largest food company in India.

Most trusted brand in India.

Market leader in Butter, milk, cheese, condensed milk.

Work on “VALUE FOR MONEY “concept.

Cheap costing to compete against competitor.

Working on focused business.

Disciplined and excellent distribution network.

Simple but to the heart promotional strategy (topical)

Supported by state & central govt.

Continues need of product since perishable High brand equity and top of the mind brand.

Strong network of over 3 million milk producers.

World’s largest manufacturer of pouched milk.

India’s largest food brand, trusted for its quality.

.Number of popular milk products like ice cream, ghee, butter, paneer, dahi, milk, etc.

Products available at affordable price.

Market leader in butter segment.

Responsible for white revolution in India.

Successful advertising and marketing campaigns.

Strong network of Amul retail outlets, stalls and parlours.

A popular mascot in the Amul girl.

Free from TB pathogens.

High Quality maintained (UV pasteurization)

Highly organized sector.

Technical manpower: Professionally trained, technical human resource pool, built over

last 30 years.

Dairy cooperatives generate employment opportunities for about 12 million farm

families.

WEAKNESS

24


There are various big players in the chocolate market, which acts as

major competitors restricting their growth.

Lack of capital invested as compared to other companies.

Improper distribution channel in India.

Perishable nature of product.

No diversification.

Lack of aggressive marketing.

Since it is cooperative society thus take time to implement new strategies,

Accountability???? Cooperative society.

Lack of infrastructure to suffice international norms.

Lack of control over yield: Theoretically, there is little control over milk yield. However,

increased awareness of developments like embryo transplant, artificial insemination and

properly managed animal husbandry practices, coupled with higher income to rural milk

producers should automatically lead to improvement in milk yields.

.Low market share in chocolates segment,

Strong competition from international & domestic players in the ice cream segment

means limited market share.

EXTERNAL FACTOR

External factor relates to Opportunities and Threats

OPPORTUNITIES:

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

market where other companies are not targeting.

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.

Huge opportunity in dry areas of India such as Hyderabad, Rajasthan etc.

Good margin can be obtained if started EXPORT in Asian and African countries.

25


Tie-up with local small unorganized milk producer like Mahananda, Gokul, Aarey to

fight against big MNC’s.

Brand extension can be done like to introduce bread,mithai, cosmetics,

Amul parlors should be opened like Aarey stalls.

While currently COLA controversy going on , Amul should tap market aggressively.

To introduce new products in the chocolate segment.

To tap the untapped market, increase its reach in rural markets.

Rise in purchasing power of Indian people.

THREATS:

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

Indian market i.e. Cadburys and Nestle.

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

brands.

New companies’ entering in Indian market like Fantasie fine poses lot problems for

Amul.

MNC competitor such as Nestle, Britania.

Local competitor such as Aarey, Mahananda etc.

Bann on PLASTIC.

Misuse of brand name (There is a brand named Amol which sells ice-creams).

Misinterpretation of Ads.

The Indian dairy industry, following its delicensing, has been attracting a large number of

entrepreneurs,

.Strong competition from international players.

Economic slowdown and inflation.

26


CHAPTER-3

SUGGESTIONS &RECOMMENDATIONS

First and foremost 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.

Company should use brand ambassador which attracts each age segment i.e. Saniya Mirza,

Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc. Amul should give local

advertisements apart from the advertisements given at the national level. Local advertisement

must mention the exclusive Amul shops of the city.

27


Try and change the perception of the people through word of mouth about Amul in

advertisements, because they are the best source to reach Children and families.

Though Amul chocolate advertisements are rarely shown on television yet many people could

recall it as per the data of research. It shows that there is only need to give advertisement only to

rememorize customers. Because Amul is very strong brand name.

Company should launch chocolate in new attractive packing to change image of Amul chocolate

in consumers mind.

Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest,

free gifts etc.

Advertisement can be done with the help of animations that attracts children and teenagers

because chocolates are consumed largely in this segment.

CHAPTER-4

CONCLUSION

It is not simply enough to identify the strengths, weaknesses, opportunities, and threats of a

company. In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses

and threats. Weaknesses should be looked at in order to convert them into strengths. Likewise,

threats should be converted into opportunities. Lastly, strengths and opportunities should be

matched to optimize the potential of a firm. Applying SWOT in this fashion can obtain leverage

for a company.

As can be seen, SWOT analysis can be extremely beneficial to those who objectively analyze

their company. The marketing manager should have rough outline of potential marketing

28


activities that can be used to take advantage of capabilities and convert weaknesses and threats.

However, at this stage, there will likely be many potential directions for the managers to pursue.

Due to the limited resources that most firms have, it is difficult to accomplish everything at once.

The manager must prioritize all marketing activities and develop specific goals and objectives

for the marketing plan .

As we know that Amul 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

know Amul is a co-operative organisaion 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. People have believed in Amul’s

product and they will accept its chocolates also if effective actions were taken.

The SWOT Analysid resulted into following conclusions :

Amul must come up with new promotional activities such that people become aware about

Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.

Quality is the dominating aspect which influences consumer to purchase Amul product,

but prompt availability of other chocolate brands and aggressive promotional activities by others

influences the consumer towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such as Cadbury, Nestle,

and Perfetti provide a better availability and give competition to the hilt.

v People are mostly satisfied with the overall quality of Amul Chocolate, but for the existence in

the local market Amul must use aggressive selling techniques.

29


CHAPTER-5

BIBLIOGRAPHY CHA

Articles :

1. AMUL AIMS TO DOUBLE EXPORTS TURNOVER THIS FISCAL

Friday, August 30, 2013 | 04:32 PM IST

2. Amul’s world’s biggest vegetarian cheese brand

November 9, 2005 | TNN

3. Amul to begin international auction of its dairy products soon

May 1, 2013 | PTI

Website:

30


www.Economictimes.com

www.amultv.com

www.amul.com

www.indianfoodindustry.netCHAC

31

a study of strategic mgmt on amul

Documents

external factors

study of swot analysis

method of swot analysis

creation of swot

internal environment

internal strengths

external environment

environment external