30-05-2012, 01:11 PM
Marketing of Milk- Amul
Marketing of Milk- Amul.pptx (Size: 210.27 KB / Downloads: 89)
Introduction-Amul
World's Largest Pouched Milk Brand, World's Biggest Vegetarian Cheese Brand, Largest Food Brand And Business In India
Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country.
Started in December 1946 in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF(Gujarat Cooperatives Milk Marketing Federations).
Marketing of milk
Operation Flood was initiated in1970 to capture a commanding share of the liquid milk market in the metros.
There were 9 private units and around 20 brands in Ahmadabad market.
GCMMF setup Mother Dairy with capacity of 10 lakh LPD with investment of 100 crore.
Business offered low barriers at entry level, modest investment, and simple technology coupled with high and almost immediate returns.
Market Competitions
Highlighting brand strengths effectively was harder since a large segment of the customers was illiterate.
All 20 brands sold at exactly the same price. If the market Leader changed it, all other followed suit swiftly.
At the retailing end, Amul offered margins of only 15 paise per litre compared to 40 paise by private packer.
When Amul launches the pouch design with different early morning symbols, the rival brands took advantage of this and appeared with pouches in similar identical symbols.
Environment Scanning
GCMMF’s quality control department revels pouches of almost all other brands contained at most 490ml milk instead of 500ml
Far inferior quality to Amul.
In standard in private brands had just 4.2 percent fat instead of the requisite 4.5 percent.
The SNF (not fat or solids other than fat-content in toned milk) was only 8 percent instead of the standard percent. Thus saving the marketer an additional 50-60 paise per litre.