case study work on amul india

8/13/2019 Case study work on Amul India

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CASE STUDY : AMUL INDIA

1MUL T STE OF INDI

SYED DANIAL HASHMI


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SYED DANIAL HASHMI1. Costumer Value Chain

Holistic marketing is integrating the value exploration, value creation, and value delivery activities with

the purpose of building long-term mutually satisfying relationships and co prosperity among key

stakeholders.

The different dimensions of the matrix for Amul are summarized below.

Cognitive Space:

It reflects the needs of the consumers. Customers need in this case is easily available and

hygienic dairy products. They wanted such kind of dairy products that are good for health, the milk that

should be healthful to drink, germless and should be pure. Due to the provision of impure milk by the

Doodhis (person who sell fresh milk) people were losing their trust on them as well as the fresh milk

thats why they wanted such a kind of milk-provider Company that should provide them good quality,

pasteurized, and dehydrated Milk.

Customer Benefits:

Costumers benefit is what costumers derive from the product. Mean the net benefit a costumer

derives from a product after deducting the cost. Amul is providing well-known dairy brands consistently

for the last 66 Years. It has developed a customer confidence in its products. The Indian costumer is

deriving both physical and psychological benefits from it, physical in the sense of good health and

psychological in the sense that costumer knows that they are having a product that is not harmful for

their health. Indeed, its good for health. So, costumers are deriving a bundle of benefits from Amul,s

products. It has fulfilled their need, provided them with hygienic and healthy dairy brands at a normal

price.

Customer-Relationship Management:

Amul is managing the customer relationships in an excellent way. It is demonstrated by the

profitability of the company. Amul consistently works on the quality and other than that it also

introduces new products on a regular base. GCMMF continuously increases the product of the product

line Amul. Managing costumer relationship is a complete art and science in itself. It is really very much

difficult to make and maintain good costumer relationship. First of all, they shall made good relationswith the costumers. It can do say in many ways like the company shall value its customers, it shall give

the costumer a feel of ease and of homely product. They once the good relations have been made with

the costumers the company shall maintain them. Making good relations is no doubt very tough but

managing them is much more tougher then making them. Amul has created and maintained that kind of

relationship very well. Indian costumer values the products of Amul a lot. For them now it means their

own taste, Amul-the taste of India.


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Competency Space:

Competency space is basically the broad and physical capabilities of the company that

gives companys product a distinctive edge, a competitive advantage. Competency space in case of Amul

is that it is producing dairy products and producing them excellently from the last 66 years. Amul has

managed its value chain in a good manner. As Amul is offering perishable goods, its return policy is also

good. The company has managed its infrastructure, HRM, technology and procurement. Future more, it

takes great care of its suppliers and costumer. They get milk from the farmers after inspection. There are

certain limits below which the company does not purchase the milk.

Business Domain:

Amul is producing a variety of products but all of the products are made from milk which

means that their Business domain is Dairy industries. The different Brands with product line are given

below:1

Amul Milk

Amul tazza

Amul Gold

Bread Spreads

Butter

Lite

Table margarine

Cooking butter

Cheese

Amul Pasteurized Processed Cheddar CheeseAmul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

UHT Milk

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

1The data has been taken from Tatas website
http://www.amul.com/products/milk.phphttp://www.amul.com/products/butter.phphttp://www.amul.com/products/cheese.phphttp://toi.amul.com/cheese-cheddar.htmlhttp://toi.amul.com/cheese-spreads.htmlhttp://toi.amul.com/cheese-mozzarella.htmlhttp://toi.amul.com/cheese-emmental.htmlhttp://toi.amul.com/cheese-gouda.htmlhttp://www.amul.com/products/uhtmilk.phphttp://toi.amul.com/fresh-tazza.htmlhttp://toi.amul.com/fresh-gold.htmlhttp://toi.amul.com/fresh-gold.htmlhttp://toi.amul.com/fresh-tazza.htmlhttp://www.amul.com/products/uhtmilk.phphttp://toi.amul.com/cheese-gouda.htmlhttp://toi.amul.com/cheese-emmental.htmlhttp://toi.amul.com/cheese-mozzarella.htmlhttp://toi.amul.com/cheese-spreads.htmlhttp://toi.amul.com/cheese-cheddar.htmlhttp://www.amul.com/products/cheese.phphttp://www.amul.com/products/butter.phphttp://www.amul.com/products/milk.php


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SYED DANIAL HASHMIAmul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Beverage Range

Nutramul Malted Milk FoodAmul PRO

Ice Cream

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra

Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Dahi

Amul Flaavyo Yoghurt

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Ghee

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Milk Powders

Amul Full Cream Milk Powder

Amulya Dairy WhitenerSagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Mithai Range

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

Mithai MateChocolates

This is the whole product line (Amul) by offering which company is having good profit.
http://toi.amul.com/fresh-slim.htmlhttp://toi.amul.com/fresh-cream.htmlhttp://www.amul.com/products/beverage-range.phphttp://toi.amul.com/healthy-nutramul.htmlhttp://www.amul.com/products/amul-pro.phphttp://www.amul.com/products/amul-pro.phphttp://www.amul.com/products/icecream.phphttp://www.amul.com/icecream/royal.htmlhttp://www.amul.com/icecream/nutomania.htmlhttp://www.amul.com/icecream/nature.htmlhttp://www.amul.com/products/dahi.phphttp://toi.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/products/ghee.phphttp://toi.amul.com/cooking-sagar.htmlhttp://toi.amul.com/cooking-sagar.htmlhttp://www.amul.com/products/milk-powder.phphttp://toi.amul.com/powder-milkpowder.htmlhttp://toi.amul.com/powder-dairy.htmlhttp://toi.amul.com/powder-skimmilk.htmlhttp://toi.amul.com/powder-coffee.htmlhttp://www.amul.com/products/mithai-range.phphttp://toi.amul.com/desserts-shrikhand-.htmlhttp://toi.amul.com/desserts-gulabjamun.htmlhttp://toi.amul.com/desserts-jamunmix.htmlhttp://toi.amul.com/desserts-kulfi.htmlhttp://www.amul.com/products/mithai-mate.phphttp://www.amul.com/products/mithai-mate.phphttp://www.amul.com/products/chocolate.phphttp://www.amul.com/products/chocolate.phphttp://www.amul.com/products/mithai-mate.phphttp://toi.amul.com/desserts-kulfi.htmlhttp://toi.amul.com/desserts-jamunmix.htmlhttp://toi.amul.com/desserts-gulabjamun.htmlhttp://toi.amul.com/desserts-shrikhand-.htmlhttp://www.amul.com/products/mithai-range.phphttp://toi.amul.com/powder-coffee.htmlhttp://toi.amul.com/powder-skimmilk.htmlhttp://toi.amul.com/powder-dairy.htmlhttp://toi.amul.com/powder-milkpowder.htmlhttp://www.amul.com/products/milk-powder.phphttp://toi.amul.com/cooking-sagar.htmlhttp://toi.amul.com/cooking-sagar.htmlhttp://www.amul.com/products/ghee.phphttp://toi.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/products/dahi.phphttp://www.amul.com/icecream/nature.htmlhttp://www.amul.com/icecream/nutomania.htmlhttp://www.amul.com/icecream/royal.htmlhttp://www.amul.com/products/icecream.phphttp://www.amul.com/products/amul-pro.phphttp://toi.amul.com/healthy-nutramul.htmlhttp://www.amul.com/products/beverage-range.phphttp://toi.amul.com/fresh-cream.htmlhttp://toi.amul.com/fresh-slim.html


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5

Internal Resource Management:

IRM helps to integrate major business processes i.e. primary and supporting marketing

activities. Amul has not compromised profitability over distribution. They have maintained their

profitability. They distribute all the money among their partners. They ask their partners ( i.e. farmers)

to invest money and then earn profit which would be distributed among all the partners. One very

interesting thing about amul is that the whole governing personnel (the executive body) is farmers. This

helps Amul a lot in different matters.

Resource Space:

Resource Space includes horizontal partnerships, with partners chosen for their ability to

exploit related market opportunities. In case of Amul its products are all dairy products and its partners

are the farmers of India. So, Amul wants that its farmers should have a complete knowledge of animal

husbandry. One of the main objectives of the co-operative is the economic development of the

producer-members (farmers) by efficient organization of the marketing of milk and dairy produce,

providing them with veterinary medicines, cattle fields, vaccines, and other animal products.

Business Partners:

Amul selects only those farmers and make them partners who are delivering high quality milk

consistently. The company has set a standard for milk and if any farmer doesnot fulfill that standard the

company does not get milk from them. By standard here I mean the amount of fat, protein, water and

other different things present in milk. In the rural areas most of the farmers are women. So, Amul works

on women empowerment and this empowerment section is described in BPM.

Business Partner Management:

The suppliers of Amul are the farmers who have those buffaloes and cows that yield milk. Amul

make its suppliers its partners in order to create value. In Indian subcontinent mostly rural men are

farmers which are called as Doodhior Doodh ka Beopariin India. In the rural areas, mostly women have

the responsibility to look after her home and do all the work. She also has the responsibility to feed the

animals and get milk from them. Amul knows this thing and thus is working on women empowerment.

Amul model of dairy development is a three tired dairy structure with the dairy co-operative society at

village level, district and state federation. This is given with the help of picture below:


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SYED DANIAL HASHMI

Rajesh deo florin, Thomas mantoo, Kumar sarooj thakur and Nishat Swaroop Model for Amul.

VILLAGE LEVEL

200 members

8-9 members committee

District level

Board of Directors-12

900 members(approx)

State Federation

Members are chairpersons of

district level co-operative & ex-

official members.

State Federation

Members are chairpersons of

district level co-operative & ex-

official members.


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2. Value creation and Delivery response of Emmental cheese

Value creation by any company consists of 3 broad categories that are choosing the value, providing and

communicating it. The different steps of this sequence for Emmental cheese by Amul are described

below:

Choose the Value

Costumer Segmentation:

Segmentation is the most important step in the value delivery process. Segmentation helps

the marketer to understand and went in to the selected segment that is its target market. For Emmental

cheese, Amul would have segmented the market very carefully. It is really important to segment the

market for such a kind of product that is a premium product in a country like India where the majority ofpopulation belongs to low socio-economic class. For Emmental cheese what I think Amul should go for

Psychographic Segmentationand should segment the market on the basis of Social class ( lower lower,

upper lower, working class, middle class, upper middles, lower uppers, upper uppers), Lifestyle

(Achievers, Strivers, Survivors)and Personality (Compulsive, gregarious, authoritarian, ambitious)

Market Focus:

As stated earlier, Emmental cheese is premium brand of Amul. So, the targeted market for this

cheese would beurban upper middle, lower uppers and upper uppers class of Indiathat is rich enough

and is versatile enough to buy and to taste different product. Those people who can afford it and those

who can accept changes in life and tastes.

Value Positioning:

Value positioning consists of the 4 ps of Marketing. Value is basically the net benefit that a

costumer derives from a product. So, value position stands for how the company is creating value for its

costumer.

Product:

Emmental is a Swiss cheese with dry flavor and hazelnut aroma. This cheese is normally available in

the form of a wheel that has convex edges and is covered by a dry-hard rind which is golden-yellow incolor. This skin is to be removed before consumption. Emmental is a ready to eat salver cheese and goes

best with wines & cocktails. As opposed to the commonly available processed cheddar cheese,

Emmental is actually a `live' cheese. It is a 100% vegetarian coagulating enzyme.


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SYED DANIAL HASHMIPrice:

Emmental cheese is a premium brand of Amul so it is prices at a bit more price than the normal cheese

and its price of 400g pack is 160 indian rupee. The price is high but the company justifies it with

providing the quality in the product that is Emmental cheese.

Place:

As it is a preminum brand of Amul so it must be placed in all top Gourmet Stores/APOs/MFS in MajorMetros and Mini Metros

Promotion:

Promotional campaign by Amul for Emmental cheese was very interesting and attention-seeking. It

focused on the promotion of the Swiss taste. Once if a person eats it he would get addicted to it.

Now, here they are promoting the Emmental cheese in an excellent way. Royal way of its serving with

grapes wine and can also be used for different things.


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9Provide the Value

Product-development:

In this phase, the actual product is developed to be sold later on. In this case it involves the full process

in which the cheese is made by milk.

Shelf life is another important thing in this respect. Emmental cheese has a shelf life of 45 days.

Service-development:

Service- development is also a major step in providing the value. After the product has been made, its

design and packaging has been finalized it is important to set some kind of services associated with that

product. A strong return policy for the Emmental cheese was must and the Amul provided it.

Pricing:

Pricing is one of the most important decisions that have to be taken by the firm. Pricing is very sensitive

decision especially Indian consumers are very much price conscious and sensitive. Furthermore it is a

general perception among the masses that a product with higher price will be better than the other with

the product with low price. However, the price should be set keeping in view all the aspects, the cost of

producing that product and all other marketing activities plus the costumers perceived value. As the

targeted market of Amul for Emmental cheese is the upper class of the society who can afford such a

kind of premium brand and are ready to accept different taste so the price should not have been low

and thats why the company set the price of Emmental cheese 160 for 400g pack of cheese but Amul

also justifies this price by giving quality and the original Swiss taste in its cheese.

Sourcing Making:

It is the step in which the company chooses the persons from which it will get the raw material for its

products which will further be refined to made final product. Amul as it does get milk from farmers and

the milk is also world class. It chooses the farmers who provide high quality milk. It is choosing that

source which is extremely good. The rural farmers who have their own buffaloes which produce fresh

milk are the source of Emmental cheese.

Distributing Servicing:

Distribution deals with how the product is distributed among the targeted costumers? How does our

product will reach the final consumer? Now, Emmental cheese is a kind of product of product for which

Amul should use a following kind of distribution channel.


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SYED DANIAL HASHMI

Because, Emmental cheese has a target market of upper class which usually visits the big malls, metros

and retail giants, chains for shopping. So, the company shall make these big metros of urban areas there

distributors which would cheese to the final consumer. There is no need to place the product on small

retail stores.

Communicate the Value

Sales force:

Sales force basically refers to the persons involved in the sale of a product. Here the sales force

means the persons in fact the whole management system that is involved in selling Emmental cheese.

Sales Promotion:

Emmental cheese is a new product for Indian costumer and market. To promote Emmental

cheese among people, Amul needs to tell people more about this product. For this purpose what they

can do is to set an introductory price for the cheese and place it on the same huge retail outlets where

they are going to place their product in future but the product should be well appeared to the people. It

is a premium brand of Amul as stated earlier so one thing that cant happen for sure is that they offer

Tasting of Emmental cheese.

Advertising:

Advertising means to tell the masses about the product. Now the advertisement of Emmental

cheese shall be in such a way that it should be very catchy and shall also represent the royal taste and

royal values. Some of the ads in the print media of Emmental cheese are below:

Producer

Wholesaler

Consumer


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Now, if look deeply at this promo it is very clear that Amul is promoting the royal taste of Swiss cheese

and Royal values associated with Emmental cheese. There is a clock placed on the table with an

expensive pen and paper. What all that basically represents is the lifestyle of the rich peoplewho have

to deal with pens and papers and have to write letters and are time conscious.


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SYED DANIAL HASHMI3. Best of Class practice

Company selected: Nestle(Pakistan)

Reason of selecting Nestle(Pakistan):

Nestle is a well known company in the whole world for its products. It produces dairy products along

with other product lines like juices etc. In Pakistan it is in operations from many years. In the dairy

industry Nestle is producing a wide range of products targeting from small children to the old fellows of

society. From Cerelac to MilkPak to Nes vita to Nes Caf, Nestle is producing products for each kind of

costumer. More than 900,000 farmers and their dependants have been directly affected by the milk

purchases of Nestle. It has now become the biggest company in the respective industry.

Best of class practices by Nestle

Human Resource Management:

Nestle has paid special attention to its HR department. Nestle has dedicated its Human

Resource department to its employees, and ensures that the company have all the right people with the

right skills, in the right places at the right time. Nestle understands very well that the people are the core

of business strategies for any business; they enhance the skills of employees with revolutionary training

and provide them with all the facilities they require. The company pays a lot of attention to R&D and

Innovation and thus selects only those employees who are flexible, innovative and are always ready to

face any kind of challenge. Nestle runs a Management Trainee Programme that aims to develop talented

young men and women and help them achieve their potential in a dynamic environment. Each yearmore than hundred people go abroad to attend the international training and development events.

In-Bound Logistics:

In-bound logistics of Nestle are very interesting indeed. To some extent it is similar to that of Amul but

there are certain things from which AMUL can definitely get something to deal with. Nestle at first

launched Milk Pak and its factories are at Sheikupura and Kabirwala.

The milk collection process of Nestle is firstly explained with the help of this picture:


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case study work on amul india

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