case amul pg group 21-30[1]

8/8/2019 Case Amul Pg Group 21-30[1]

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A CASE STUDY ONA CASE STUDY ON AMULAMUL


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` GCMMF: Indias largest food product market

organization, a state level apex body of milk

cooperative at Anand, Gujarat.

` It has 14 affiliated dairy plants.

` Total milk handling capacity of 6 mn/day.

` Total milk drying capacity of 450 Mt/day.


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` 12 processing units, each located at district. level.

` 2 million farmers belonging to 10000 villages are the members of dairy

cooperative societies.

` AMUL: Mother brand of GCMMF.

` AMUL started with introducing branded milk in 1983, and since then has

diversified into various milk products like ice cream, yogurt, paneer,

cheese, chocolates, parathas, cheeseburgers etc.


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` A change in lifestyle, food preferences and tastes of the people, with the

liberalization and entry of new players, led the Amul management come

up with various new products as per the consumer demands.

` The other reason was to make use of the extra milk produced and thats

how it came up with various processed-milk products.


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` January 2000:

` "Amul Taaza- a non-sweetened, plain, low fat milk launched .

` Amul re-entered the carton milk market with its the launch in Mumbai.

` Positioning:

` Positioned as a lifestyle as well as a functional product.

` Targeting:

` Targeted at the upper middle class housewife who could use it for

different occasions.` Amul was targeting sales of about 0.1 mn litres per day.

` Amul Taaza is expected to be a Rs.1 bn brand by 2001


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` TotalMarket: Rs.360 bn packaged milk market

` Competitors:Nestle and Vijaya.

` Nestle - looking at a Rs.1.50 bn business from milk alone by 2004., and

Vijaya - could achieve Rs.1.2 bn sales from packaged milk.

` Nestle - targeting the south as a potential big milk market. Nestle is setting uptwo more plants in the southern region and is aggressive on the price front,

pegging its Pure Milk brand at Rs 20 a litre against Amul Taaza's Rs.22

` Amul - investing Rs.300 mn in two new factories in Andhra Pradesh and

Maharashtra.

` Milk production having increased since the mid 1990s, GCMMF had to make

use of additional milk

` The pressure to make and market more and more processed-milk products.

` Amul expanded the consumption base of milk-based products in India.


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` Coffee

` In July 2001, Amul planned to enter the instant coffee market through a tie-up with Tata Coffee .

` GCMMF had a strong national distribution network .

`

Tata Coffee had expertise in manufacturing and marketing coffee.

` Chocolates

` Amul was planned to restructure its chocolates business.

` Seven of its brands that were withdrawn from the market were to berelaunched.

` Amul tied up with Campco and this tie-up was expected to help Amul in theexpansion of its chocolate business

` pressure to make market more and more processed-milk products.


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` Amul started (into pizzas) by opening 10 parlours in gujarat.

` It planned to expand it to 2000 parlour in 100 cities.

` Pricing was crucial.

` Parlours were small and based on franchisee model.


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` Pizzas sales contributed to 50% of the fast food business.

` Amul wanted to push sales of mozarella cheese by reducing price ofpizzas.

` Amul did not want profit from pizzas, and hence they could price it

incredibly low.


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Despite having a successful launch and pricing advantage amul failed as:-

` Winning the trust of the customers was difficult.

` Packaging of the Pizzas was also questionable.` The taste ofPizzas was not at all appreciable.

` Its Franchisee model was extremely faulty.


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` The growing demand for mozzarella cheese from pizza makingcompanies like Pizza Hut and Domino's Pizza.

` Promote mozzarella cheese at a cheaper rate.

` This would enable the retailers to price pizzas lower than that of the

competitors.

` Offer the cheese at a bulk rate of Rs.140 per kg, compared to the marketprice of Rs 146 per kg, thus saving the retailers Rs.6 per kg.


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` DivisionofMarketsinfollowingsegments-

` Youth- Amul Cool, Pizza, Cheese Spreads

` Kids- Nutramul energy drink, Amul kool Milk Shake

` Health Conscious- Skimmed Milk Powder, Probiotic Ice cream.

` Price Conscious Consumers- Provided ice creams at low rates


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'AMUL-The Taste Of India

` Amul has positioned itself as a Brand with which whole country can relate

` Further it has successfully communicated its message through campaignfeaturing Utterly Butterly Girl

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Amul markets attributes and features of the products in humorous way


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Created two new distribution set-ups

` A cold chain for ice-cream

` A cold chain for limited life fresh foods like curd

Weakness in distribution :-

` Down Manpower Cost

` Down Dealer Commissions


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case amul pg group 21-30[1]

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