MARKETING REPORT AMUL FRESH MILK

SUBMITTED TO :

SUBMITTED BY :

Dr. H. Gayathri

Ankita Singh (10067) Harikrishna (10079) Nishant (10090) Sourav Dutta (10107) Vaishnavi (10115)

MILK INDUSTRY IN INDIA

Annual milk production 108.5 million tonnes Rapid growth owing to Operation Flood Branded milk market Rs. 40,000 crores Growth rate 10 12% per annum

PORTERS 5-FORCES
Entry barriers are nil. There are many brands and local players. Because of large number of competitors the bargaining power of customers is high. Bargaining power of the suppliers is low. Suppliers are the rural milk producers. The threat of substitutes for milk products is high.

MAJOR PLAYERS

AMUL PROFILE
Stands for Anand Milk producer s Union Ltd. Managed by Gujrat Co-Operative Milk Marketing Federation Ltd. Network of 2.8 million village level producers. 13,328 Village Dairy Co-op Societies(VDCS). Average collection of 8.4 million liters per day. Affiliated to 13 District Co-op Milk producers union. All dairies are ISO 9001-2000,ISO 22000, HACCP certified. 2008-09 turnover of Rs.67.11 bn.

AMUL MODEL
A three-tier cooperative structure Dairy Cooperative Society at the village level(collection) Milk Union at the district level(processing) Federated into a Milk Federation at the state level(marketing)

DISTRIBUTION MODEL
Large distribution network 50 sales offices spread all over India 3000 wholesale dealers More than 5,00,000 retailers Largest exporter of dairy products Available in over 40 countries

AMUL BRANDS

AMUL MILK POWDER AMUL BREAD SPREAD

AMUL CHEESE

AMUL DESSERTS AMUL MILK DRINKS AMUL FRESH MILK

SEGMENTATION
Demographic Age and life cycle stage: The AMUL Gold milk is mainly directed towards children and adolescents. AMUL Shakti milk is also targeted at the children Gender: AMUL Calci+ is mainly directed towards women who are at a higher risk of suffering from osteoporosis

SEGMENTATION(CONTINUED)
Psychographic segmentation (Life style) AMUL Lite milk is directed towards people who are very health conscious. AMUL Taaza milk targets people who are worried about the amount of fat intake AMUL buttermilk is also directed at the same health conscious people

SEGMENTATION(CONTINUED)
Benefit segmentation AMUL Calci+ is targeted at people who seek the benefit of fortified calcium in their milk AMUL Gold milk is directed people who seek the benefits of whole milk AMUL lite milk and AMUL buttermilk are directed towards people seeking health benefits

TARGETING
AMUL mainly targets people in the semi urban and urban areas It targets all age groups of people Specially targeting youth by their value proposition of zero fat and cholesterol in the slim and trim variety A segment in india which is growing health conscious It has also placed its milk parlours in strategic locations like IIMA, Infosys technologies

POSITIONING
AMUL has positioned itself as a pan India brand. The AMUL pouch packs is being positioned as the most hygienic milk in the market. AMUL Gold milk is being positioned as milk from which no qualities are removed AMUL Lite milk is being positioned as offering all the goodness of milk sans the fat and cholesterol. AMUL Shakti toned milk is being positioned as multipurpose milk. AMUL Calci+ milk is being positioned as milk that provides benefits for all age groups and especially for women.

PRODUCTS
AMUL fresh milk AMUL Gold milk AMUL Taaza Double Toned milk AMUL Lite Slim and Trim milk AMUL Shakti Toned milk AMUL Calci+ AMUL fresh cream AMUL buttermilk

PRICE
AMUL fresh milk (pouched packs)

AMUL Gold milk Rs. 30 per litre AMUL Shakti milk Rs. 28 per litre AMUL Taaza milk Rs. 24 per litre AMUL Slim N Trim milk Rs. 22 per litre

AMUL gold milk

1 litre tetra pack Rs. 41

AMUL Taaza Double toned milk

1 litre tetra pack Rs. 37 200ml tetra pack Rs. 10

PRICE(CONTINUED)
AMUL Lite Slim and Trim milk
1 litre tetra pack Rs. 42

AMUL Shakti toned milk

1 litre tetra pack Rs. 40

AMUL Calci+
1 litre tetra pack Rs. 42

AMUL fresh cream

1 litre tetra brik pack Rs. 120 200ml tetra brik pack Rs. 32

AMUL buttermilk
500ml pouch Rs. 12

PROMOTION
AMUL has been promoting itself thoroughly through its topicals Major boost in promotions with the movie Manthan by Shyam Benegal. Sponsors shows like AMUL Star Voice of India Conducts contests like AMUL Chef of the year contest, AMUL maharani contest, AMUL food festival contest, Slogan likho Disney land dekho contest and AMUL fly to Bangkok Gives out awards like AMUL Shakti Vidyashree awards Allows users to send its topicals as greeting cards.

PROMOTION (CONTINUED)
AMUL also provides for online ordering of their products in an effort to promote their brand. AMUL has launched a website www.amul.tv for streaming their feature films, television shows, advertisements et al to the internet community.

PLACE
Available in over 5,00,000 retail outlets across India, 3,500 distributors, 47 depots which have dry and cold warehouses. Covers more than 13,000 villages and more than 2.7 million farmers. Major international markets :USA, West Indies, Africa, the Gulf region, and SAARC neighbours, Singapore, Philippines, Thailand, Japan and China. Dairy parlours in IIMs, New Delhi Railway station, National Institute of Design, Infosys technologies , Wipro (Bangalore), Ahmedabad airport, Koyambedu Bus station (TN), IIT (Guwahati) etc. Presence on the internet

STRENGTHS
World s largest pouched milk brand Good quality and affordable pricing Good product mix Diverse range of products Good distribution network AMUL s brand image They have taken the step towards making their processes sustainable

WEAKNESS
Highly complex supply chain Dependence on suppliers (farmers) who are not a part of the organized sector

OPPORTUNITIES
Penetrate international market The branded milk sector in India has huge potential for expansion New product launches

THREATS
Intense competition Rising prices of milk Youth do not relate to milk as a hep drink Rising prices of production of milk like unavailability of cattle feed

COMPETITORS
Britannia: Britannia milk, Britannia slimz milk Nestle: Nestle milk, Nestle slim milk, Nesvita pro heart Mother Dairy: Token milk, Pouch milk, UHT milk Other cooperatives: There are many milk cooperatives. But, they are not major players in the branded milk market.

MARKET PENETRATION
AMUL Lite Milk as a unique with virtually zero fat content to convert non users into users. New application of its products like
Replace your soup with AMUL Buttermilk Just give Tadka to AMUL Buttermilk and use it as your Dal . Add some coriander, cumin and salt to AMUL Buttermilk and your guest offering is ready. Make Besan Kadhi from AMUL buttermilk.

Amul now also provide online ordering for better market penetration

MARKET DEVELOPMENT
AMUL has a huge presence all over the country and also extended their product overseas International Markets Products to target new segments like AMUL calci+ for pregnant women, people at high risk of suffering from osteoporosis.

PRODUCT DEVELOPMENT
Enhance the quality of its products across several processes like sourcing, tasting and packaging It uses the UHT treatment for its products Preserving the maximum flavour, taste, and nutritional value. The aseptic packaging guarantees a long shelf life of 180 days without refrigeration.

DIVERSIFICATION
Diverse products like bread spread, cheese, butter, milk powder, mithai mate, ghee, dahi, health drinks etc. Entered fast food segment by launching AMUL pizza in the 20-25 price range. AMUL has also launched their own brand of ice creams.

BCG MATRIX
Cash cows
AMUL gold milk AMUL taaza double toned milk

Question marks
AMUL lite slim and trim milk AMUL shakti toned milk AMUL calci+

RECOMMENDATIONS
AMUL could expand to rural markets. As the disposable income in rural India is increasing there is increasing demand for value-added food products. Promotions through TV and radio channels which reach the rural areas. AMUL could expand to emerging markets of small towns. AMUL could introduce new products like whey

REFERENCES
Kotler, Phillip, et al. Marketing Management: A South Asian Perspective. 13. s.l. : Pearson Education. http://www.amul.com. http://www.motherdairy.com/. http://www.nestle.in. http://www.britannia.co.in. http://www.financialexpress.com. http://www.tetrapak.com. http://business.mapsofindia.com/sectors/manufacturing/amul.html. http://en.wikipedia.org/wiki/Amul. http://www.experiencefestival.com/a/Amul/id/1911316. http://nddb.org/partners.html. http://goliath.ecnext.com. http://www.indiadairy.com. http://www.foodindustryindia.com. http://www.scribd.com. http://timesofindia.indiatimes.com. http://mofpi.nic.in. http://www.businesswireindia.com. http://www.docstoc.com.