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Presented By:

ShavetaBanda(14810067)VikrantKanwar(14810082)PavanWadhonkar(14810086

)VinayK!ar(1481008")Vikky#nand(14810081)

#n$esh%hi!an(11214004)

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• Amul is an Indian dairy cooperative,based at Anand in the state of Guarat,India

•  !he co"operative was initially referred toas Anand #ilk $ederation %nion Limited

• $ormed in &'(), it is a brand managed bya cooperative body, the Guarat *o"operative #ilk #arketing $ederation Ltd+G*##$-, which today is ointly owned by

.+) million milk producers in Guarat

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•  !he brand name Amul means

/#+,-.#0

•  !his word has been derived from the

1anskrit word / AMULYA0 which

means /P3-3SS

• A 2uality control e3pert in Anand

had suggested the brand name

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• #!5 the co"operative registered on &4ecember &'() as a response to thee3ploitation of marginal milk producers bytraders or agents of the only e3isting dairy,the 6olson dairy

•  !he prices of milk were arbitrarily determined+#oreover, the government had given monopolyrights to 6olson

• Angered by the unfair trade practices, thefarmers approached Sardar  7allabhbhai 6atelwho advised them to form a cooperative

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• Amul spurred India8s White 9evolution,

which made the country the world8s

largest producer of milk and milkproducts+

• In the process Amul became the largestfood brand in India and has ventured into

markets overseas+

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•A#%LAnand #ilk %nion

Limited

•$#*G$ast #oving *onsumers Goods

•G*##$Guarat *o"operative #ilk #arketing$ederation Ltd

4r+ 7erghese :urien

$ounderG*##$

1hri ;ethabhai6atel,

*hairmanG*##$

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•  !he G*##$ is the largest food productsmarketing organisation of India+ It is the e3clusivemarketing organisation for products under thebrand name of Amul and 1agar+

• @ of the members are small ormarginal farmers and landless labourers includinga sieable population of tribes

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he threetier #!5 +ode59 or #nandPattern

•  !he structure consists of a dairy cooperativesociety at the village level aBliated to a milk

union at the district level which in turn isfederated into a milk federation at the statelevel+

• #ilk collection is done at the village dairy

society, milk processing at the 4istrict #ilk%nion and milk products marketing at thestate milk federation+

• !he structure was evolved at Amul in Guaratand thereafter re licated all over the countr

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• 4uring the last Cyears, turnover

of G*##$ grewfrom 9s+ 800 ;rores to 9s+

20

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/We are workin$ towards

>i5din$ or own !i5k

>rand si!i5ar to #!5<

whi;h ;an ;o!!and a

re!i! in the !arket 

%evendra

?adnavis(+aharashtra

hie@ +inister )

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• 4ELI7E9 69

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• Large emerging economies, e+g+, India and *hina, have comple3itiesthat range from development of markets where the largestsegment of population is the one which has low purchasing power-to integration of low cost suppliers who are predominantly verysmall+

• $or =rms that aspire to conduct substantial business in suchmarkets, such comple3ities have to be recognied and thenovercome+

• 4eveloping a network of =rms in order to overcome the

comple3ities of a large yet fragmented market like those inemerging economies by creating value for suppliers as well as thecustomers

• A#%L has led the milk dairy revolution in India that has nowemerged as one of the largest milk producers in the world+

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• 1tarting with a single shared plant at Anand and two villagecooperative societies for milk procurement, the dairy cooperativemovement in the 1tate of Guarat had evolved into a network of D+&Dmillion !i5k rod;ers  called farmers- who are organied in&,(&& milk collection indeendent ;ooeratives  called 7illage1ocieties-

•  !hese 7illage 1ocieties 71- supply milk to thirteen independentdairy ;ooeratives called %nions-+

• A#%L is one such %nion

• #ilk and milk products from these %nions are marketed by a;o!!on !arketin$ or$aniEation (;a55ed ?ederation)F

• 1tructure in Guarat after its huge success was replicated at thecentral level

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#+,-9S DC,3. CW#%S3G3--33

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• A#%L’s ourney towards e3cellence is marked by some criticalunderstanding of the business environment in large emergingeconomies like India where markets have to be developed bycombining eBciency related initiatives with increasing the base ofmarginal suppliers and consumers+

• It combined market and social development in an emergingeconomy+

• It recognied the inter"linkages between various environments thatgoverned the lives of marginal milk farmers and the unmet needs ofconsumers+

• It also changed the supply chain paradigm in order to reduce thecost to the consumer while increasing the return to the supplier+

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• It realied that in order to achieve their obectives, it had to bene=t alarge number of people J both suppliers and consumers+

• While large scale had the danger of failure due to poor control andre2uired more resources, it also had the advantage of creating amomentum that would be necessary to bring more people into the

fold and thereby help more suppliers and consumers+

• It also realied that its goal could only be achieved in the long runand this re2uired developing values in people and processes thatwere robust, replicable and transparent+

• It also realied that the cooperative would not be independent andviable in the face of competition if it were not =nancially sound+ !hisimplied that A#%L had to develop distinct capabilities that woulddeliver competitive advantage to its operations+

•  !his would include long ' term cost containment, world"class

deployment of technological resources and 9K4, and betterleveraging of scarce resources+

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-3#%3S&P

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• While :aira %nion or A#%L- had the support of national leaders who

were at the forefront of the Indian independence movement

• Its local leaders were trained in Gandhian simplicity&> and had theirfeet rooted =rmly amongst people whom they had mobilied J thepoor farmers of Anand

•  !ribhuvandas was the =rst *hairman of the cooperative+ is skills layin organiing the village producers

• Another important aspect of his remarkable management style washis $ent5eness and a>i5ity to reose trst in eo5e J he gavecomplete autonomy to managers of the union and earned completecommitment from them

• Ver$hese Krien was one such manager who would, =rst, shape thedestiny of the %nion and then the milk movement throughout thecountry+

• e managed to keep the government and bureaucrats away from the

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• e interfaced with global =nancing agencies to build new proects atA#%L

• e worked with the %nions to bring the best of technology to theplants

•e worked with marginal village farmers to create systems thatwould increase milk yields

• Krien shaped the destiny of the milk movement in India through44F as its *hairman- and particularly at G*##$ and cooperativesin Guarat

• e helped build a modern organiation with professionalmanagement systems that would support the aspirations of farmersand customers

•

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• e would travel through the villages along with !ribhuvandas andwork out the details of how the milk collection cooperative wouldwork, how trucks would pickup milk from village societies, how thecattle would have to be taken care of and how all of this would helpthe poor milk farmer come out of poverty and the clutches of themiddleman+

•

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B,S3SS S#3'. 

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• 4riven by its twin obectives of i- long"term, sustainable growth toits member farmers, and ii- value proposition to a large customerbase by providing milk and other dairy products a low price+

1F S+,-#3C,S %3V3-CP+3 C? S,PP-3S #%

,SC+3S a-+ $rom the very early stages of the formation of A#%L, the

cooperative realied  that sustained growth for the long"term was contingent onmatching supply and

  demand+

  b-+ $urther, given the primitive state of the market and thesuppliers of milk, their  development in a synchronous manner was critical for thecontinued growth of 

  the industry

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c-+ At the time A#%L was formed, the vast maority of consumers hadlimited purchasing power and was value conscious with very lowlevels of consumption of milk and other dairy products+ !hus,A#%L adopted a low price strategy to make their productsaordable and guarantee value to the consumer

d-+ PC%, +G " Feginning with li2uid milk, the product mi3 wasenhanced slowly by progressive addition of higher value productswhile maintaining desired growth in e3isting products+

•

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S#3'. C CV3C+3 &S PCB-3+

• $irst, for the short term, the procurement prices were set so as toprovide fair and reasonable return+

• 1econd, aware of the li2uidity problems, cash payments for milksupply was made with minimum of delay

  ?C &3 -C'3+< &3 ,CS ?C--CW3% #+,-PC'3% S#3'. C?  3%,#C #% S,PPC

•

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•  !hese include provision of &D veterinary services, support for coldstorage facilities at the village societies etc+ In parallel, the %nionshave put in place a number of initiatives to help educate themembers+

•  !o summarie, the dual strategy of simultaneous development of themarket and member farmers has resulted in parallel growth ofdemand and supply at a steady pace and in turn assured the growthof the industry over an e3tended period of time+

  CS -3#%3S&P

• A#%L’s obective of providing a value proposition to a largecustomer base led naturally to a choice of cost leadershipposition

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• Given the low purchasing power of the Indian consumer and themarginal discretionary spending power, the only viable option forA#%L was to price its products as low as possible+ !his in turn led to afocus on costs and had signi=cant implications for managing itsoperations and supply chain practices+

?C,S C C3 #V3S

• In view of its small beginnings and limited resources, it became clearfairly early that A#%L would not be in a position to be an integratedplayer from milk production to delivery to the consumer+

• Accordingly, it chose a strategy to focus on core dairy activities andrely on third parties for other complementary needs+

•  !his philosophy is reMected in almost all phases of A#%L networkspanning 9K4, production, collection, processing, marketing,distribution, retailing etc

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• owever, it played a proactive role in making support servicesavailable to its members wherever it found that markets for suchservices were not developed

• $or e3ample, in the initial stages, its small and marginal memberfarmers did not have access to =nance, veterinary service, knowledge

of basic animal husbandry etc+ !hus to assure continued growth in milkproduction and supply, A#%L actively sought and worked with partnersto provide these re2uired services+

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+##'' &% P#. S3V3 PCV%3S

• Well before the ideas of core competence and the role of third partiesin managing the supply chain were recognied and becamefashionable, these concepts were practiced by G*##$ and A#%L

• It handled only the core aspect of the Fusiness

• #arketing eorts including brand development- were assumed byG*##$

• All other activities were entrusted to &. third party service providers

•  !hese include &- Logistics of milk collection  D- 4istribution of dairy products  .- 1ale of products through dealers and retail stores  (- 1ome veterinary services• #any of the third parties were not in the organied sector+

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?##- S#3'. 

• 4riven primarily by its desire to be se5@re5iant and thus depend oninternally generated resources for funding its growth and development

• A#%L’s =nancial strategy may thus be characteried by two elementsN

a- retention of surplus to fund growth and developmentb- limitedO no credit, i+e+, all transactions are essentially cash only+

• $or e3ample, payment for milk procured by village societies is in cashand within &D hours of procurement most, however, pay at the sametime as the receipt of milk-+

• o dispatches of =nished products are made without advance paymentfrom distributors etc+

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CV3V3W C? S,PP-.

• 1trongly driven by the obective of establishing and operating aneBcient supply chain from milk production and procurement toproduct delivery to customers

• #anagement of this network is built around two key elements Ja- coordination of the diverse elements of the network andb- use of appropriate technology that includes product, process and

information  technology and managerial practices and systems+

• 9obust coordination is one of the key reasons for the success ofoperations involving such an e3tensive network of producers anddistributors at G*##$+

•  !wo critical mechanisms of coordination that ensure that decisionmaking is coherent and that the farmers gain the most from this

eort+P Inter"locking *ontrol

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Industry Analysis

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*ategory Fusiness Environment *ompetition Growth

6ouched#ilk

uge Investment 9e2uired Q%norganied sector

#other 4airy )@

$lavored#ilk

7ery high growth #other 4airy, andini DC@

#ilkpowder

igh 6rice Q E3port

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Strengths

Largest food brand in India

High Quality, Low Price

World's Largest Pouched Milk Brand

nnual turno!er of "S #$%& (illionHighly )i!erse Product Mi*

+obust )istribution etwork

40

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Weaknesses

41

W k

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Weaknesses……..

Risks of highly complex supplychain system

Strong dependency on weakinfrastructure

Alliance with third parties who donot belong to the organized sector

42

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Opportunities..! 

43

- t iti 1

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-..ortunities//01

Penetrate international

(arkets

)i!ersify .roduct .ortfolio toenter new .roduct categories

and e*.and e*isting categorieslike .rocessed foods,

chocolates etc44

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   T  h  r  e

  a  t

  s …  !

45

h t I

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hreatsHI

2o(.etitors 3 Hindustan Le!er, estleand Britannia

Still co(.etition fro( M2s in butter

4rowing .rice of (ilk and (ilk .roducts

Ban on e*.ort of (ilk .owder

46

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  Products

Bread Spreads

Milk Drinks

Powder Milk

Fresh Milk Cheese

For Cooking

Chocolae

4!

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Trivial Strategies

 " he i#e when "M$% was &or#ed ' cons(#ers

had li#ied p(rchasing power ) #odes cons(#pion

le*els o& #ilk ) oher dair+ prod(cs ,

Low-Cost Price strategy

%ow Cos Price Sraeg+ was adoped o #ake he

prod(c a&&orda-le ) all(ring o cons(#ers -+

g(araneeing he# *al(e &or #one+,

.he #ain ai# o& "#(l is o pro*ide /(ali+ prod(cs

o he cons(#ers a #ini#(# cos,

.he goal o& "#(l is o pro*ide #ai#(# pro&i in

er#s o& #one+ o he &ar#ers,

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Defense Strategy  Mo*ing cons(#ers &ro# loose #ilk o packaged

#ilk and grad(all+ #o*e he# (p he *al(e chainera pack o -e*erages

   " so(nd sraeg+ likel+ o work,

  Being eposed o a -rand' i is na(ral &or a

c(so#er o r+ #ore prod(cs

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Successful Brand Strategy

Prod(c Posiioning Sraeg+

Prod(c ePosiioning Sraeg+

Prod(c *erlap Sraeg+

Prod(c Design Sraeg+ Prod(c li#inaion

Di*ersi&icaion Sraeg+

7al(e Sraeg+

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Product Positioning

Placing a prod(c in ha par o& he #arke

where i will recei*e a &a*ora-le recepion

co#pared o co#peing prod(cs,

Posiioning o& "#(l is 8 .ase o& 9ndia :, 9 hascreaed *al(e &or e*er+one in *al(e chain' -e

i c(so#ers or &ar#ers,

$SP ;(ali+ wih a&&orda-ili+

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Positioning Continued..

 "#(l la(nched Chocolae #ilk (nder -rand na#e o&

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Product Repositioning

?ew Co#peiion

Change in cons(#er pre&erence

Arong original posiioning

 "#(l #arkeed -oled waer prod(c na#ed8"%D"": -( d(e o less poenial in he

#arke i (rned o( o -e -l(nder,

So "#(l la(nched new -oled waer8?"M"D" ?:,

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Product Overlap Si(aion where co#pan+ decides o co#pee agains is own

-rands,1Powdered Milk

ealh and price Conscio(s,

8 S"" 7s "#(l+a:,

$SPE Sagar is a&&orda-le whiener &or healh conscio(s one,

2Cheese Spreads

Speci&ic 7s eneral

8 "#(l Processed Cheese 7s Cheese Spread:

$SPE Cheese spread is highl+ acceped spread &or reg(lar (se,

3Milk Drinks

8 ?(ra#(l nerg+ Drink 7s "#(l =ool:

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Product Elimination

Prod(c reaches he sage where conin(ed

s(ppor is no longer (si&ied where

per&or#ance is &alling shor o& epecaions' i

is desira-le o p(ll he prod(c o( o& he#arke place,

9 eli#inaed 8 "%D"" : a decade ago as

Boled waer prod(c do no ha*e poenial

c(so#ers:,

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  AM! Product"s Diversification

Dair+ Prod(c

Fresh #ilk

Milk drinks and

dessers Bread spreads

Cheese prod(cs

?on Dair+ Prod(c

7eg, il

9nsan Food

Snack

56

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Diversification

Seeking (n&a#iliar prod(cs or #arkes or -oh in he p(rs(is

o& growh,

Secres o& "#(l>s Di*ersi&icaion Philosoph+ E Progressi*e

addiion o& higher *al(e prod(cs while #ainaining he desired

growh in eising prod(cs,

 "#(l inrod(ced prod(cs wih consisen *al(e addiion -(

ne*er le& he core philosoph+ o& 8pro*iding #ilk a a -asic and

a a&&orda-le price:,

Bene&is o& Di*ersi&icaionE igh rowh

pansion o& nework

 "d*anage o& each (nderline o-eci*es,

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Product Design Strategy

8 Aheher o o&&er sandard or c(so#iGedprod(cs,:

 "#(l has o&&ered a #i o& -oh sandard and

c(so#iGed prod(cs,

$se o& $erl+B(erl+ irlE $sing since 1H6!,

nered in he (inness Book & Aorld

ecords &or -eing he longes r(nning

ca#paign e*er, The Amul ads have witty one-liners which

capture relevant events that have caught the

fancy of the nation.

S C ti Ad f AMUL

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Some Creative Ads of AMUL

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61

Other Promotional Strategies

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Other Promotional Strategies   Amul STAR Voice of India

  Amul Master Chef India

  Amulya Surabhi 

  Amul Maharani Bano Contest 

  Amul Chote staad 

 Amul Music a Maha Mu"abla

 Amul #ood Maha Challen$e.

Cae Amul   is a Casual

Dining Restaurant in apleasant ambience which

offers scrumptious delicacies

in pizzas, burgers ,

sandwiches, sundaes etc.

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BRANDING

AD!"RTI#"$"NT #TRAT"G%&' A$()

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 Reasons for Success of Amul 

o-(s S(ppl+ Chain

%ow Cos Sraeg+

Di*erse Prod(c Mi

Srong Disri-(ion ?ework.echnolog+ and iniiai*es

.he Brand 7al(e o& "#(l ;(ali+

7al(e &or #one+

 "*aila-li+

Ser*ice

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BRAND ELEMENTS OF AMUL

ELEE!"#

!$E

%RL

&'!(LE# $#C)"

L)()

"$(L'!E

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#resh Mil% &'  CurdProducts E

 Amul Icecreams &' o+al .rea ange B(erscoch' a-hog'

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 "#(l .aaGa .onedMilk 3I &a

 "#(l old F(ll

Crea# Milk 6I &a

 "#(l ShakiSandardised Milk4,5I &a

 "#(l Sli# ) .ri#

Do(-le .oned Milk1,5I &a

 "#(l SaahiSki##ed Milk 0I &a

 "#(l Cow Milk

JogiSweeenedFla*o(red Dahi

Desser

 "#(l MasiDahi &reshc(rd

 "#(l %ie Dahi

 "#(l Proli&epro-ioic Dahi

 "#(l MasiSpiced B(er

Milk

 "#(l %assee

+ g gMalai =(l&i

?(oMania ange =a( Draksh' =esarPisa o+ale' Fr(i BonanGa' oased

 "l#ond

?a(reKs .rea "lphanso Mango' Fresh%ichi' Shahi "nir' Fresh Sraw-err+' BlackC(rran' Sanra Manra' Fresh Pineapple

S(ndae ange Mango' Black C(rran'S(ndae Magic' Do(-le S(ndae

 "ssored .rea Choco-ar' Dollies' Frosik'9ce Candies' .ricone' Chococr(nch'Mega-ie' Cassaa

$erl+ Delicio(s 7anila' Sraw-err+'Chocolae' Chocochips' Cake Magic

 "#(l S(gar Free 9ce crea#

AMUL PRODUCT PORTFOLIO AND

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 AMUL PRODUCT PORTFOLIO AND

MARKET SHARES

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&3 ,-+#3 S#3'.: #%V3S'&C,'& &3 #+,- +CPP3 '-

ABOUT ‘THE AMUL

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 ABOUT THE AMUL

GIRL’ 

"he moppet who put $mul on 'ndia*s brea+fast table

() years after it *as first launched+ Amul,s sale fi$ures ha-e umped from

/))) tonnes a year in /011 to o-er 2(+))) tonnes a year in /003. 4o

other brand comes e-en close to It. All because a thumb'si5ed $irl

climbed on to the hoardin$s and put a spell on the masses.

"he $mul girl was the brainchild of #ylesterdaCunha, the managing

director of the adertising agency $#. "he ads were designed as a

series of hoardings with designs relating to day-to-day issues. "he

brand recall for the $mul girl is phenomenal across 'ndia today. $nd

the biggest reason for this is the topical nature of the ads. "he $mul

ads hae witty one-liners which capture releant eents that hae

caught the fancy of the nation.

T$ A l

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.he $mul girl is a handdrawn caroon o& a +o(ng' ch(--+ 9ndian girldressed in a polka doed &rock wih -l(e hair and a hal& pon+ ied (p,

.he "#(l girl was creaed as a response o "#(lKs ri*al -rand

Polson's butter!"rl#

.he idea was concei*ed in 1H6! when "SP "d*erising' Sales and

Pro#oion ook o*er he -rand por&olio &ro# he pre*io(s agenc+

FCB $lka, 9 was eec(ed -+ S+l*eser Da C(nha' he owner o& he

agenc+,

Dr 7erghese =(rien' he hen chair#an o& he (ara Cooperai*e

Milk Markeing Federaion %d, CMMF s(ggesed a #ischie*o(s

lile girl as a #asco wih wo re/(ire#ens, 9 had o -e eas+ o draw

and #e#ora-le as #os o& he ad*erising wo(ld -e o(door #edia

which re/(ired hand paining in hose da+s and he hoardings had o

T$e A%ul

&"rl 

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Controversies

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Controversies

9n 2001' "#(l ran an ad ca#paign criiciGing he 9ndian "irlines srike'

where(pon Ind"n A"rl"nes hreaened o sop o&&ering A%ul Butter  on heir &lighs

(nless he ads were p(lled,

 "noher ad d(ring he anapai &esi*al which said' &n(t" B(( More

&$) anpai Bappa ake #ore, .he Shi* Sena par+ said ha i& he ad wasnK

re#o*ed' he+ wo(ld co#e and desro+ "#(lKs o&&ice,

9n (l+ 2011' an ad criiciGing S(resh =al#adi led o ro(-le in P(ne' while an ad

poking &(n a Ma#aa Baneree in Dece#-er 2011 led o pro-le#s in =olkaa,

S(-se/(enl+' anoher ad wih Baneree was released all o*er 9ndia ecep in =olkaa

in March 2012,

9n 2011' he+ ca#e (p wih

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&(TD&&R $"DIA

$sing Bill-oards and oardings

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)

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'

L

L

)

$

R

D

)

$

R

D'

!

(

#

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+RINT $"DIA

F(ll and consan co*erage in all leading

newspapers

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BR&AD,A#T $"DIA

$sing .ele*ision Co##ercials

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 A glimpse of Rural evelopment done !" Amul

)ld classic ad /0eaturing

stills from #mita Patil

starrer moie 1anthan23

!ew $d 4 Reamp of the

classic with modern

touch

hpsEOO+o((,-eOAHDS$-Q34 hpsEOO+o((,-eO4Si?4l

#ringing the nation together with Amul $ %he

https://youtu.be/RW9DSUbZX34https://youtu.be/4SiRZNx4jlEhttps://youtu.be/4SiRZNx4jlEhttps://youtu.be/RW9DSUbZX34

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 #ringing the nation together with Amul %he

taste of India

)ld classic !ew $d

hpsEOO+o((,-eOi*%#6ichpsEOO+o((,-eO71GkB1a(Sc

https://youtu.be/ivLmx6ixRRchttps://youtu.be/ZV1zkB1auSchttps://youtu.be/ZV1zkB1auSchttps://youtu.be/ivLmx6ixRRc

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F(nn+ ad &il# showcasing how "#(l pla+s a -ig par in e*er+

9ndian Fa#il+,

hpsEOO+o((,-eO3h0DsC6$*Ac

ar Ghar Amul Ghar /"very ome Amulome0

https://youtu.be/3h0DsC6UvWchttps://youtu.be/3h0DsC6UvWc

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$se o& Social Media

INT"RN"T

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(sing 'ace1oo* to interact with customers

hpsEOOwww,&ace-ook,co#Oa#(l,coop

https://www.facebook.com/amul.coophttps://www.facebook.com/amul.coop

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hpEOOwww,a#(l,co#O

2e1site 3 2here information a1out its 1rands G,$$' news

coverage B4B and various social campaigns can 1e *nown.

 Point of Sales& Amul Parlours'

http://www.amul.com/http://www.amul.com/

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f

Cafe

l h l l d

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 Amul has alwa"s lend its support to sports

 Amul seems to have got the taste of glo!al

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g f g

events(

 "#(l -eca#e he

o&&icial parner o&

SwiGerland

head/(arered S

a(-er F1 ea# ahe ina(g(ral

9ndian rand Pri

in he +ear 2011,

Sponsored social causes li)e *omen

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 +mpowerment through education, training

and health programmes(

 Amul has not left out entertainment 

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f

9 has -een he ke+ sponsor &or MaserChe& 9ndia &or all is

seasons,

 Anal"sis of Advertisments

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" f

Aiho( endorsing a p(-lic &ig(re &or #illions' "#(l ads are capi*aing in isel&, .he

appeal o& he ad lies in is si#plici+, .here is clari+ in he #essage,

ne o& he -es wa+s o& -randing o a local #arke is o creae a *ision ha people o&

ha place carr+ in heir #ind and his is eacl+ co##(nicaed in he ad,

.he+ are creaing a pic(re which shows heir percepion a-o( #odern r(ral 9ndia wih

is e#powered wo#en who ha*e i#pac on people across he co(nr+,

9 also shows di&&eren seg#ens o& c(so#ers he+ reach and how he+ o(ch heir

li*es,

 "lso he 9ndianness o& he ca#paign allows i o connec so well wih he people,

.he ingle or he song is ac(all+ in lines wih &olk songs &ro# saes o& 9ndia,

.he inheren &ea(re o& an ad is o #ake people noice he -rand in s(ch a wa+ ha

when he+ hink a-o( a paric(lar prod(c' one o& he co#panies ha co#es

i##ediael+ o heir #ind is +o(rs,

S f A l Ad

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Success of Amul Ads

 "#(l -+ now is alread+ an esa-lished -randso i is correcl+ &oc(sing on -rand awareness

along wih heir inheren #arkeing,

9n 2011' "#(l was na#ed he Mos .r(sed-rand in he Food and Be*erages secor

in .he Brand .r(s epor p(-lished -+ .r(s

esearch "d*isor+ on 1Rh an(ar+' 2011,

 "#ongs 9ndiaKs op 20 -randsE "#(l is ?o, 1,

Suggestions - Recommendations

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#ocus on retail e6pansion in Indian cities+ to*ns and -illa$es 7

increase branded Amul parlours to capture the consumer attention

and %eep the competition at bay8 

 Amul can -enture into offerin$ lo*'fat -ersions of its products as it

*ould help capture the hearts of second and third $eneration

Indians in S 9 :lobal Mar%et 

 Amul can -enture out on ne* products li%e dairy based s*eets+baby food product 

 Amul must try to understand the cause of certain products li%e

 Amul basundi+ $ulab amoon+ and chocolates etc not bein$ -ery

 popular. Amul need to ta%e up thorou$h mar%et research and *or%

on impro-in$ these products8  Thou$h Amul;s hoardin$s are a hu$e success+ it can penetrate

e-en better in the rural areas by ad-ertisin$ acti-ely throu$h the

media -i5 cable channels and ne*spapers. Sponsorin$ more

sho*s on TV+ sports e-ents can be of $reat help.

Conclusion

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Conclusion

CMMF ha owns "#(l ' "sia>s larges #ilk -rand realiGed ha wih he

changing li&es+le ) increased awareness a-o( healh iss(es ' here has -een

a discerna-le shi& owards healh -ased drinks &ro# car-onaed drinks, .o

(iliGe he poenial o& &la*o(red #ilk' -(er #ilk ) oher #ilk -ased -e*erages

ha ha*e an age old radiion in 9ndia, B+ ideni&+ing he argeed eenagers )

+o(h ' who were -igges cons(#ers o& colas ) aeraed drinks, .he ?ew

*arians o& he -rand were ad*erised hro(gh #aor naional channels wih

special &oc(s on +o(h oriened .7 channels like +V ) artoon

etwork , B+ ideni&+ing he rend ) inrod(cing *arians' "#(l has -een

e#erged as he &ases growing -rand in noncar-onaed so& drinks caegor+,

S$RA$(#0A" 2#""(RS*) A+!"

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1. !A"#$%

&. 'A"!( )*R

+*,(%

-. A'A#"##"#$%

/. S(R'#0(

*) A+!"

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Su..ly 2hain

Manage(entSCM is he #anage#en o& (psrea#and downsrea# relaionships in

order o deli*er s(perior c(so#er

*al(e a less cos o he s(ppl+ chainas a whole

$&5

eneric Supply 0hain

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104

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105

$il* #upply ,hain5 +rocessing Issues

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B(lk o& new capaci+ in he period in las decade' has-een esa-lished in he ?orhern saes' (ara'

Maharashra and .a#il ?ad(, e#aining saes are

lagging in dair+ growh,

Capaci+ (iliGaion o& dair+ plans is a-o( 60Iass(#ing 300 working da+s in a +ear, D(e o %ack o&

#ilk a*aila-ili+ in he lean season,

For e,g, aashan has RI share in #ilk prod(cion

and 11I share in cons(#pion o& #ilk prod(cs'howe*er he share in dair+ processing capaci+ is 4I,

Meaning #(ch o& he #ilk escapes &ro# he in dair+ s(ppl+ chain, " si#ilar si(aion

pre*ails in Bihar,

$&6

6 s ng supp y c a n o amu

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The distribution net*or%

 "#(l prod(cs are a*aila-le in o*er 500'000 reail o(les across 9ndia hro(gh

is nework o& 3'500 disri-(ors, .here are 4! depos wih dr+ and coldwareho(ses o -(&&er in*enor+ o& he enire range o& prod(cs,

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$&8

5'LL$(E

• 'n the gien illage, a dairy Cooperatie #ociety /DC#3 is formed.

• Eery dairy cooperatie society has 6778 farmers.

• Combined, all DC# together handle 79-7: million +g mil+ ; day.

•

they computer analyses fatcontent of mil+, automatic printing of receipts etc.

D'#"R'C"$R?E"'!(

C))P.%!')!

• he+ process #ilkT -(er' ghee' #ilk powder' cheese' ice crea# ec,

• ,g, Banaskanha Disric Cooperai*e Milk Prod(cers> $nion %i#ied known as Banas Dair+, .he+

#an(&ac(re a large n(#-er o& dair+ prod(cs (nder "M$%' S"" and B"?"S -rands, $s(all+

8Banas: prod(cs sold locall+' and "#(l prod(cs sen o oher saes,

• si#ilarl+ andhinagar Disric Cooperai*e Milk Prod(cers> $nion %d,Madh(r dair+,

• S(ra S(#(l Dair+

• S(rendranagar Disric Co S(rsagar Dair+,

• .he+ can sell heir prod(cs (nder he -rand na#e 8"#(l: as long as he+ #ee he re/(ire#ens

o& CMMF, e,g, #(s collec 30'000 lires #ilk dail+ &or a period o& hree +ears

#"$"E 'L? C))P.

0EDER$"')!

• .he #ain 8-oss: is (ara Cooperai*e Milk #arkeing &ederaion CMMF,

•  "ll o& a-o*e disric cooperai*e (nions Banas' Madh(r' S(#(l S(rsagar ec, &all (nder CMMF

(#-rella,

RE"$'L

•  "#(l has #ore han 15000 o(les o& own a high srees' residenial areas' ailwa+ Saions'

B(s Saions' d(caional 9nsi(ions' across 9ndia,

• 2012E "#(l opened 10000 reail o(les across 9ndia,

• her han ha' e*en pri*ae shops' hoels' resa(rans ec, oo sell "#(l prod(cs,

"ogistics 2rocess

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I0 Logistics in collection 9

6 (illion liters of (ilk .er day

:ro( about $6,6&& se.arate !illage coo.erati!e

societies0 ..ro*i(ately 508 (illion (ilk .roducing (e(ber0

II0 Logistics in coordination of 9

Storing the (ilk0

Processing the (ilk0

)istributing the (ilk0

$&;

0ont

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0ont…

III0Su..lier logistics 9

Weighing the (ilk0 )eter(ining of fat content0

2alculation of the .urchase .rice0

$$&

 E-#C

Aha is he &(ss a-o(

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SCM can -e de&ined as he

inegraed #anage#en

approach &or planning and

conrolling he &low o&

#aerials &ro# s(ppliers o he

end (sers (sing 9. and

inerne echnologies,

E-#upply Chain

anagement

Eg> Aal#ar' "#(l ec

'!D%#"R@ )5ER5'EA9nsighs ino he Dair+ 9nd(sr+

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9nsighs ino he Dair+ 9nd(sr+

 9ndia is he -igges prod(cer' cons(#er and eporer o& #ilk

  and #ilk prod(cs

  9n 201314' 9ndia epored B,:.7B etric tons of mil+

  products worth 797.8B crores

 rowh PeriodsE P(-lic co#panies 1H!1 onwards

  Pri*ae co#panies @ 1HH1 onwards

 peraions go*erned -+ .radiional #ehods, Plag(ed -+  pro-le#s s(ch as low per cale +ield' shorage o& &odder'

  inade/(ae ransporaion and Cold sorage &aciliies,

  ecenl+' rans&or#aions in he secor ha*e -een spearheaded

  -+ "#(l>s adopion o& 9. ser*ices,

  Maor Pla+ers E "#(l' Moher Dair+' ?esle and oher regional  pla+ers

C)P$!@ )5ER5'EA "#(l>s 9ncepion and B(siness Model

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$%Ls resc(e

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•9n order o address he scala-ili+ and inegraion iss(es' "#(l sared i#ple#ening a

collecion o& 

  .echnical and 9. iniiai*es,

• "s a par o& is SCM i#ple#enaion' he &ollowing s+se#s were inrod(cedE

  1, "MC$S

  2, D9S=

  3, 7S".

  4, 9S

  5, "#(l C+-er Sore

.h(s' o*er a period o& ! +ears' "#(l inrod(ced a

*arie+ o& endoend 9. sol(ions o ighl+ inegrae

he *ario(s co#ponens o& is S(ppl+ Chain,

S(ppl+ Side Proc(re#en

Milk Processing and Markeing

De#and Side Disri-(ion

0armers

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 'PLEE!"$"')! E")D)L)(@ow hings changed

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7. PR)&EC" PL$!!'!(

H

/d3 "R$'!'!( $!$(EE!"

• in (ara• 9n&rasr(c(re &or raining

/e3 G%$L'"@ $!$(EE!"• .;M 9nernal Cons(lan De*elop#en• De*eloping inernal co#peencies &or

echnolog+ (ser co##(ni+

/f3 C$!(E $!$(EE!"• Free s+se#s di&&(sed 9. in *illages• #powered *illage cooperai*e socieies

/g3 R'#? $!$(EE!"• Mini#(# dela+ in pa+#ens• Ahole #ilk acceped• S(rpl(s paid in he &or# o& di*idends

 'PLEE!"$"')! E")D)L)(@ow hings changed

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. 'PLEE!"$"')! #"R$"E(@

•  "ssigned he P so&ware de*elop#en proec on a(rnke+ -asis o .CS and 9BM• Phased ransiion• Firs i#ple#ened "MC$S in ?a*ali 7illage cooperai*e

socie+ on a pilo -asis in 1HH6

. "E$ #"R%C"%RE9etail FDF K FD*

6ortal

Who5esa5e deots and

etai5ers

*onnect with the 4irect

customer base

EIA1 K GI1 Internet (C0 head office

members and the

distributors

Interface between the

suppliers and the

retailers

E96 4I1:  ,nion !e!>ers< &ead

o@ the vi55a$e so;iety

and s5iers

*onnect with the

farmers and village

cooperative societies

 )R($!'#$"')! E"R'C#

ow e&&eci*e is "#(l and is s(ppl+ chain

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/a3 G%$L'"@ E$#%REE!" '##%E#

E")D %#ED> ?aizen "echni=ues of siI sigma• ?(#-er o& "MC$S insalled• Sais&acion le*el o& *illagers is #eas(red• 9#pro*e#en in /(ali+ o& #ilk red(cion in acidi+ and so(r

#ilk• Planned aci*iies &or #ainenance o& #achines

/b3 C)%!'C$"')! E00EC"'5E!E##E")D %#ED> '!0)R$"')! C)%!'C$"')!

"EC!'G%E#

• ed(ced i#e dela+ in geing #one+,• 9#pro*ed cash a*aila-ili+ and red(ced he need &or loan,• Possi-ili+ o& error was red(ced,

• ed(ced Aaiing i#e/c3 "R$'!'!( $!D #?'LL DE5EL)PE!"

• Proc(re#en s+se# inegraor and knowledge sharing pla&or#

• .rained 2 or 3 operaors -+ s+se# pro*ider 

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 C$LLE!(E#

9#ple#enaion o& 9. in s(ppl+ chain was no eas+

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7F

/a3 Challenges faced by anagement>

• Change Manage#en

• Scala-ili+

/b3 People; uman Resources Related Challenges

• .raining and Skill eorienaion

• Far#er %ierac+ and s(ppor

 $D5$!"$(E#

as SCM -een (se&(l o "#(l

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79

 "&er he i#ple#enaion o& "MC$S in 1HH5 and oher 9. iniiai*es' here ha*e -een a

sead+ and a healh+ increase in he proc(re#en o& #ilk

De#onsraed -ene&is o& he 9C.

pla&or#E

• ed(cion in lead i#e• ed(cion o& pil&erage• ed(cion in h(#an errors• n he spo pa+#en &or &ar#ers

&ro# a week o a co(ple o& #in(es• ed(cion in wasage• .ransparenc+ in operaion• 9negraion in operaion

 "&er calc(laing he econo#ic -ene&is i is

&o(nd ha he "MC$S -ene&is he &ar#er

co##(ni+ -+ sa*ing s, 115H,4 #illion per

+ear,

('*"!$#*, of 3#$4

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AM! is t#e first company in t#e co$operativeform to adopt t#e e$revolution.

T#e mil% collection center at village cooperative

societies& 'ere first automated.

Data analysis soft'are utili(ation for mil%

 production estimation and increasing productivity.

)SAT net'or% *et'een all t#e level of

distri*ution net'or% and +CMM,.$55

('*"!$#*, of 3#$4

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• After screening various solutions the managementidentified that the 1est possi1le process was defined

within the complete suite of #A+ solution. It gave

them a complete view of its supply chain and helped

to tightly integrate various functions and processesincluding sales and distri1ution.

• 7IB$ helped us implement #A+ "R+ system. This

system ena1led us to have a complete view of our

supply chain have tight integration 1etween G,$$'and our district unions. The system also gave us a

view of the sale of our products to our distri1utors

across the country7 says R # #odhi managing

director G,$$' Anand.

$5<

('*"!$#*, of 3#$4

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T#e company #as set up a state$of$t#e$art datacenter and -T infrastructure at +CMM, premises

in Anand to support t#e -T implementation. -t #as

gone live in p#ases in April /00 and Marc#

/0. T#e first p#ase covered +CMM, and t#e 1

large mil% unions& '#ile t#e second p#ase covered

t#e rest of t#e mil% unions.

T#e pro2ect 'as named as Enterprise 'iseintegrated application system 3E-AS4

$5

('*"!$#*, of 3#$4

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Automatic milk collection system units(AMCUS) atvillage society were installed in the first phase to

automate milk production logistics.

AMCUS facilities to capture member information milk

fat content volume collected and amount payable to

each member electronically.

$5%

('*"!$#*, of 3#$4

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$56

Cont!.

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Amul also connected its "onal offices regionaloffices and member#s dairies through $SA%s.

  %he customi"ed &' &*AS has been

implemented across the organi"ation integratingvarious operational departments.

Amul is also using +eographic *nformation

Systems (+*S) for business planning andoptimi"ation of collection processes.

Cont!

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  *ndian *nstitute of Management , Ahmedabad supplemented

Amul#s *% strategy by providing an application software , Dairy

Information System Kiosk(DISK)  to facilitate data analysis

and decision support in improving milk collection.

%he kiosk would also contain an e-tensive database on the

history of cattle owned by the farmers medical history of thecattle reproductive cycle and history of diseases.

  armers can have access to information related to milk

production including best practices in breeding and rearing

cattle.   As a large amount of detailed history on milk production is

available in the database the system can be used to forecast

milk collection and monitor the produce from individual sellers.

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Automatic milk collection unitsystem

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system

enefits of #$

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Processing of 15 +illion payments daily, a(ounting totransactions worth "S)

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Mo!e(ent of %&&& trucks to 5&& dairy .rocessing.lants twice a day in a (ost o.ti(u( (anner0

=rying to .ractise  6ust in time  su..ly chain(anage(ent with si* sig(a accuracy0

*nline order placements of (ul>s .roducts on theweb0

)istributors can place their orders on the website0

(ul exports  .roducts worth around !S7 &8million to countries in West sia, frica and "S0

$

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A three tier cooperative structure/

0airy cooperative society at village level

Milk union at district level

Milk federation at state level

 

!R"AI#ATI! STRUCTURE

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Sae

Federaion

Disric

7illage

DEC'#')!-$?'!(

• Me#-ership• Price paid o #ilk

s(ppliers

• Price paid o *illage

cooperai*e socieies

• Price paid o disric(nions &ied across

(nions

• Prod(c #i and

/(ani+

LE5EL EER#

$illa%e Dairy Coo&erati'e Society ($DCS)

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Collection of surplus milk 1 payment based on 2uality 12uantity.

roviding support services to the members.

Selling li2uid milk for local consumers of the village.

Supplying milk to the 0istrict Milk Union

District Coo&erati'e Milk Proucers Union

(Milk Union)

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(Milk Union)

rocurement of milk from the $illage 0airy Societies of

the 0istrict.

Arranging transportation of raw milk from the $0CS tothe Milk Union.

roviding input services to the producers.

Conducting training on Cooperative development

 

Cont..

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roviding management support 1 regular supervision to the$0CS.

&stablish Chilling Centers 1 0airy lants for processing the milk.

Selling li2uid milk 1 milk products within the 0istrict.

rocess milk into various milk 1 milk products.

0ecide on the prices of milk to be paid to milk producers.

State Coo&erati'e Milk *eeration(*eeration)

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Marketing of milk 1 milk products &stablish distribution network

Arranging transportation from the Milk Unions to the market.

Creating 1 maintaining a brand roviding %echnical *nputs management support 1 advisory

services.

0ecide on the products to be manufactured at various Milk

Unions (productmi-) Conduct longterm Milk roduction rocurement rocessing

1 Marketing lanning

Conflict 'esolution 1 keeping the entire structure intact

Distri1ution +rocess

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Company 

3holesaler 0ealer ranchisee

'etailer

Consumers13H

$9( 09A,,(" ,($W*R:

A (ero level of c#annel also called a direct

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A (ero level of c#annel also called a direct

mar%eting c#annel consists of a manufacturerselling directly to t#e final customers.

 " one le*el channelU conains one selling

iner#ediar+ s(ch as reailer o he &inal

c(so#ers,

 " wo le*el channel wo iner#ediaries are

+picall+ wholesaler and reailer,

 " hree le*el channel are +picall+

wholesaler' reailer and o--er in -eween, $&

$9( 09A,,(" ,($W*R:

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Procure(ent channel3 u.strea( flow

)istribution channel3 downstrea(flow

$$

2rocurement

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cti!ities at the !illage le!el co(.risedde!elo.ing and ser!icing the ?2Ss0

Increasing (ilk collection, .rocuring (ilk,and trans.orting it to the chilling and.rocessing units twice a day0

=he ?2Ss .ro!ided the far(ers with good@uality ani(al feed, fodder, and otherser!ices like !eterinary first aid0

$5

2R*0!R(+(,$ 09A,,(";!2S$R(A+

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; <

-n an a!erage around thousand far(ers co(e to sell(ilk at their local co3o.erati!e (ilk collection center0

Aach far(er has been gi!en a .lastic card foridentification0

t the (ilk collection counter, the far(er dro.s thecard into a bo* and the identification nu(ber istrans(itted to a .ersonal co(.uter attached to the

(achine0

=he (ilk is then weighed and the fat content of the(ilk is (easured by an electronic fat testing (achine0

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145

0old Storage ,etwork

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2hillers in .ro*i(ity of !illages

Pro(.t trans.ort to district facilities for furtherdis.atch to consu(ersC .rocessing units0

2hilled trucks to trans.ort .rocessed .roducts

)eli!ery to local chillers by insulated rail tankers

and chilled trucks0

+efrigerators and freeDers with retailers andde.art(ental stores to retain freshness0

$6

=istribution

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42MM: coordinated with !arious unions to get aregular su..ly of (ilk and dairy .roducts0

=he .rocessed (ilk and dairy .roducts were

.rocured fro( district dairy unions and distributedthrough third .arty distributors0

=o ensure @uality and ti(ely deli!eries, 42MM: and

the district unions had se!eral (echanis(s in .lace0

=he unions (onitored the su..lies of (ilk and thedistribution of finished .roducts0

$7

=*W,S$R(A+ )"*W :irst leg

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g Manufacturing units to co(.any de.ots using ;

and $8 M= trucks :roDen food below 3$8E2 )airy wet &3E2

Second leg

)e.ots to W)s =rans.ort through insulated < and % M= ==

&7>s

=hird leg W)s to retailers =rans.ort through rickshaws

$8

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14H

Re>erse logistics

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MILF 2H"+ fro( dairy to ?2S

B-==LA

fro( retailer to dairy

)M4A) P+-)"2=Sfro( custo(er to retailer then to dairy

$%&

P-"2H MILF =+G

fro( retailer to dairy

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E+&ansion &lan

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%ie up with the 3al Mart

&-port is in 45 countries.

6pened 477778 Amul parlor by the end of the 9747.

Crossed 49777 recently.

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Amul (Recently in ne.s)

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Milk via milk train.

%ie up with Adani =ogistics.

57 wagon each capacity 9>k liter.

*nitial transport cost was >7 crores reduce it to half.

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Role of ,ooperative in India

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• 9 is an organiGaion &or he poor who wish o sol*eheir pro-le#s colleci*el+U

• 9 is an insi(ion o& #((al help and sharingU

• 9 so&ens he class con&lics and red(ces he social

clea*agesU• 9 red(ces he -(rea(craic e*ils and &ollies o& poliical

&acionsU

• 9 o*erco#es he consrains o& agric(l(ral

de*elop#enU• 9 creaes cond(ci*e en*iron#en &or s#all and

coage ind(sries,

,ooperatives 2or*ing in India

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Credit Production

Processing

Mar%eting -nput distri*ution

5ousing

Dairying

Te6tiles

B( onl+ in &ew secors i achie*es so#e s(ccess'

Dair+ing

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Dair+ing

$r-an -anking and ho(sing S(gar and handloo#s,

Reasons 'or #uccess of Amul

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o-(s S(ppl+ Chain %ow Cos Sraeg+

Di*erse Prod(c Mi

Srong Disri-(ion ?ework .echnolog+ and einiiai*es,

Reasons for 'ailure of a cooperatives

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Dor#an #e#-ership and lack o& aci*eparicipaion o& #e#-ers,

%ack o& #o-iliGaion o& inernal reso(rces,

*er dependence on go*ern#en assisance,

%ack o& pro&essional #anage#en,

B(rea(craic conrol and iner&erence in he

#anage#en,

Poliical iner&erence Mone+

,ooperatives #hare in #ector in India

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FeriliGer prod(cion and disri-(ion o*er35I o& he #arke,

Prod(cion o& s(gar o*er 5RI

Coon @ o*er 60I

andloo#s o*er 55I,