Amul’s Ready to Eat Pizza

Presented to:- Presented by:-

Prof. Shahir Bhatt Rajnish Singh(A-53)
Sanket Sharma(A-51)
 Introduction
 Amul is a brand name managed by an apex cooperative organisation,
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

 Revenue - $ 1.55 billion (USD).

 Ready to eat Pizza was launched in 25 cities in July 2001.

 The initial price of the pizza was Rs. 20, which made it an instant
success.

 “Innovation Marketing and focus on the masses are our core strength
against our rivals.” B.M. Vyas, Former MD, GCMMF.
 Strategy Used
 Used “Teach and treat” classes.

 Moitriyee Mukherjee, the food technologist, tasted pizza at all the major
Fast Food outlets in Gujarat and learned different types of recipes.

 Formed a team of 25 women and groomed them as Pizza trainers.

 Armed with Amul’s pizza chesse, they spread out to 200 different cities all
across the country.

 In over 15,000 classes, “Amul taught housewives how to make Pizzas.”

Cont..

 It was a project to test and create a market for the low priced pizza.

 In Delhi alone, its 96 franchisee used to sell 50 pizzas a day on week days
and 600 on weekend.

 Amul planned to spread 3,000 outlets across 100 cities to sell three lakhs
pizzas a day.

 Their Strategy- “ We first study the strategies of our competitors and then
devise our own strategy based on small innovations before launching a
product.”
 Objective
 Pizza was smaller category than even Namkeens.

 It was aimed at consolidation of its position in the chesse market further,

where it already enjoys 75%of its total sales.

 The dairy market was no longer protected. MNC were allowed to enter the
sector.

 High competition from Britannia, Le Bon, Nestle, Laughing Cow, Kraft.

 Initial success of Pizzas and good margins( Rs. 8 per pizza) means that
they may be able to recover the cost in about two months.
 Market thrust strategy
 Selling 6 inch pizza at Rs. 20 created immense opportunity for the
company.

 To introduce Swadeshi tang, the company provided recipe book to all the
franchisee holders prepared by Amul.

 The investment by retailer was Rs. 3,500.

 Mozzarella chesse introduced by Amul was the best suited for the pizza.

 The 70000 pizzas sold around 150 outlets across the country is expected to
increase dramatically.
 Downfall
 Introduction of new items like Parathas, matar paneer and paneer pakoras.

 Goof ups with the new brand Snowcap rather than Amul brand.

 Mostly, when the mother brand is very successful, then the company
should extend the brand name.

 Amul should have used its own brand name.

 Snowcap resembles to cool and calm but not hot, fresh and tasty.

 The staff serving pizza well not served properly.

Cont..
 Knock out punch by competitions

 Pizza hut has 137 franchisees all across the country.

 The other fast food chains made tie ups with other big brand. Eg. Pizza hut
with Pepsi.

 The concept of Tandoori Pizza or Pan India Pizza introduced by Pizza hut.

 Pizza hut provided great services and experiences to the customer with
wide range of offering and inviting ambience.
 Dominos has more than 200 stores in every major metros.

 It worked on 3-tier model serving to all the classes of the society.

 It established the reputation of home delivery specialist. Capable of

delivering pizza in 30 minutes.

 It started happiness hotline, was first one to start this facility for the
customer.
 Questions
 Is there a problem of absurd assumption of competencies that is being
faced by the company?

 Is the right kind of brand building emerging through these efforts? How
far can you stretch a brand across categories?

 In the case of ready to eat pizza in particular, is it the execution that failed
the company or the plan to enter value added services in a big way that
caused the downfall?
THANK YOU