Group Discussion on

Marketing Management.

Group Members:

Momin Tahzeeb 19

Ansari Maheshri 12

Ansari Aqsa 04

Momin Wajiha 05

WHAT IS FMCG?

FMCG INDUSTRY (Fast Moving Consumer Goods)

0r CPG (Consumer Packaged goods)

“ARE THOSE CONSUMABLES WHICH ARE NORMALLY CONSUMED BY THE COSUMERS AT A REGULAR INTERVAL”

FMCG SECTOR 4th Largest sector in the economy.

Total market share of Rs 450 bn.

Growth of 50% by 2010.

Main players. HUL,ITC, COLGATE-PALMOLIVE,NIRMA .

PRIMARILY DEALS WITH• PRODUCTION • DISTRIBUTION AND • MARKETING OF CONSUMER PACKAGED GOODS.

FMCG products are generally replaced or fully used up over a short period, usually a few days or weeks, or months, but within one year.

The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing .

Basically the Amul business comes under FMCG sector.

Amul Ranking Globally?Amul ranks among top 21 Global Dairy

according to the finding published by IFCN at the 10th IFCN Dairy Conference 2009, held at Stockholm during June 14-17.

Amul, with 0.4 per cent market share, stood 21st in the list, thus entering the top league for the first time.

Introduction: AMUL: (ANAND MILK UNION LIMITED), a name which

suggest THE TASTE OF INDIA.   Amul means “Priceless” it was derived from the

Sanskrit word “amulya”which means “Precious”. Amul products have been in use in millions of homes

since 1946. Amul is the symbol of many things.

The Kaira District Co-operative Milk Producers’ Union Ltd. had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL).

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997.

Historical Background of Amul: Largest food brand in India .The first Amul cooperative was the result of farmers. Dr. Verghese Kurien, who founded Amul.Competed with Polson’s to supply milk to Bombay. 1952 - Bombay Government terminated Polson’s

contract and signed with AMUL.

1955 - Dairy and milk powder plant was established with aid from the United Nations Children's Fund (UNICEF).

1960 - AMUL pioneered production of milk powder and baby food from buffalo milk.

Today AMUL members supply more than 1 million litres of milk per day.

AMUL sells 400 tonnes of cattle feed every day.

Amul Brand Building: GCMMF (AMUL) has the largest distribution network

for any FMCG company. It has nearly 50 sales offices spread all over the

country, more than 3,000 wholesale dealers and more than 5,00,000 retailers.

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

AMUL is available today in over 40 countries of the world.

Mascot:Since 1967 Amul products' mascot has been the very

recognizable "Amul baby” (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognizable tagline Utterly Butterly Delicious Amul.

The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for

Amul products, she has also been used for other product like ghee and milk.

Products offered by Amul:

Product Development: Amul's product development was driven both by the

spirit of the cooperative system and profitability. Butter: Launched in 1955, butter was one of the first milk

products offered by Amul. It was also the first time Amul successfully challenged the hegemony of an established brand.

Cheese: GCMMF launched processed cheese in 1959 followed

by cheese powder in the early 1970s. In the 1980s the popularity of cheese increased.

Ghee, Skimmed milk powder and Baby food: Amul launched ghee (clarified butter) and skimmed

milk powder in 1955. Amul Ghee was an instant success.

Milk and UHT Milk: Amul was the market leader in the Gujarat whole milk

market with a 90% market share in 2002. Apart from supplying milk to parts of Maharashtra and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy in Delhi.

Pricing: Amul's philosophy had all along been to deliver value

for money to its customers. Despite being priced economically, Amul maintained

its product quality.

Distribution: GCMMF's formidable distribution network comprised

300 stock keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, An 18,000-strong cold chain, And 500,000 non-refrigerated retail outlets.

Advertising and Sales Promotion:

Over the years, Amul's advertising philosophy had been "to be simple, fresh and innovative".

The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern economy.

Taking Sponsorship.

Plants:First plant is at ANAND, which engaged in the

manufacturing of milk, butter, ghee, milk powder, flavoured milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattlefeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul.

Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

SWOT ANALYSIS:•Technical Demand •manpower •Margins  

•Problem in distribution•Perishability•Competition

•Flexibility in market •Export potential

Milk vendors Competition

Competitors:

AMUL - THE TASTE OF INDIA (GCMMF)receives

INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS

Mission 2020: Vision : Liberate our farmers from economic oppression and

lead them to prosperity. Mission 2020: Dairy cooperatives of Gujarat turnover of Rs. 27000

crores by the year 2020. Objective: To ensure that the maximum share of the consumer’s

rupees goes back to the milk producers.

Future Plans: Expansion of distribution network, creative marketing,

consumer education and product innovation. Tapping the rising demand for new value- added

products. Milk shed area will increase to 231 lakh kg per day

(23.1 million kg per day), at an annual growth rate of 4%.

Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all village cooperative societies.

Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be established in major metro market.

To double the processing capacity of Amul dairy plants to 20.7 million kg per day, by 2020.

Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000 MT’s per day, by 2020.

Total investments envisaged for creating all the required infrastructure would be Rs. 2,600 crores (Rs. 26 billion) till the year 2020.

Amul Ice-cream.

Amul Ice-cream History:Amul Ice Cream was launched on 10th March, 1996 at

Ahmedabad 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.

It has combated competition like KWALITY Walls, Mother Dairy and achieved the No 1 position in the country.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India.

Currently it offers a selection of 220 products. Amul has always brought newness in its products and

the same applies for ice creams.

Present Status of Amul Ice Cream:

In a short span of 6 years Amul Ice Cream has become the No.1 ice cream brand in the country.

It is now the only national brand and all other ice cream brands are regional.

Amul Ice Cream has achieved 39% share against 9% market share of HLL making it 4 times larger than its closest competitor.

Amul Products: Range of Amul Ice Creams: Ice cream made of the freshest milk and the

freshest cream blended with the yummiest flavours, fruits and nuts to make you keep on asking for more.

Manufacturing Units.

Awards and Certification: 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. Amul is ranked No.1 ice cream in quality by “INSIGHT” (May-June, 2002), a bimonthly consumer magazine published by CERS based at Ahmedabad.

Latest Happening: Introducing three new exciting flavours.LichiAnjeerAlmond Cheese

Introducing Royale Butter Scotch & Royale Choco Crunch Cone.

Introducing Chocobar Cracklers.

39%

9%

7%7%

4%

4%

19%

Sales of Ice Cream.

AmulKwality WallsVadilalMother DairyDinshawArunOthers

Amul v/s Kwality Walls:Amul Ice Cream faces stiff competition from Kwality Walls and other regional brands with increasing competition.To take on Amul, HLL is sharpening its focus on new launches and is launching high-voltage

television campaigns to woo consumers.CERS ranks Amul as No 1, followed by Kwality Walls Amul took the life out of Kwality by positioning itself

as "The Real Ice cream" since Kwality is mainly made of vegetable oils.

Future Plan: Amul plan to promote their brands through preferred

outlets ‘Amul Parlours’ and 'Amul Scooping Parlours' across the country by adding 2,000 Amul Parlours and 500 Scooping Parlours.

Amul has 5000 Amul Parlours and 400 Scooping Parlours in India.

Amul planned to increase the capacity in existing plants to meet the growing demands of consumer.

Amul have a plan of creating 10,000 Amul Parlours by 2012.

Thank You.