amul - distribution channel
TRANSCRIPT
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Compiled byAyushi Srivastava, Chandan Pandey, Gursimran Singh Sethi,
Jaya maurya, Raj Singh, Rohit kumar
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TABLE OF CONTENTS
Introduction.Distribution channel.Type of channel design.Problems faced by Amul/ recommendations.Visit to Amul outlet.Conclusion.
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Introd
uction
• Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
• 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 3.6 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.
• Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.
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AMUL DISTRIBUTION CHANNEL
Distributors Retailers Consumers
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AMUL DISTRIBUTION CHANNEL
• Village dairy cooperative society (DCS) is formed by milk producers.
• Each DCS has a milk collection centre, member's milk is tested for quality with payments based on the percentage of fat and SNF.
• At the end of each year, a portion of the DCS profits is used to pay each member a patronage bonus based on the quantity of milk poured.
• District Cooperative Milk Producers' Union is owned by dairy cooperative societies.
• Union buys all the societies' milk• Processes and markets fluid milk and products, and also
provides a variety of services to the VDCS.
• The cooperative milk producers' unions in a state form a State Federation which is an apex marketing body responsible for marketing of milk and milk products of member unions.
1st tier
2nd tier
3rd tier
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TYPE OF CHANNEL DESIGN
Analysing consumer
needs
Setting channel
objectives
Identifying major channel
objectives
Evaluation
• Segments to serve ?• Which channels to use.
• Types of intermediaries• Number of marketing
intermediaries• Responsibilities of
intermediaries.
• Economic criteria.• Control issues.
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SUCCESS OF AMUL
• Provides an assured market at
remunerative
prices for producers' milk besides
acting as
a channel to market the product.
• Enabled the consumer an access
to high quality milk and milk
products.
• Used the best of technology
to help the farmers.
• Its supply chain.
• Its wide product portfolio.
• Amul concentrates on breaking
the bulk.
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PROBLEMS FACED BY AMUL / RECOMMENDATION
• Distribution channel.• Competition from
established companies.• Expansion to chocolates.• Low profit margin to
retailer.
• Should use more Television advertisements
• Should provide offers during festive season
• Setup more production units.
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VISIT TO AMUL STORE
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LEARNINGS
First hand
knowledge.
Problem faced by
outlets.
Brand Loyalty.
Value Pricing.
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CONCLUSION
Amul meant different things to different people :To a Milk Producer … A life enriching experience
To a Consumer … Assurance of having wholesome milkTo a Mother … A reliable source of nourishment for her child
To the Country … Rural Development and Self Reliance
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Thank you