SIP Amul
- 2. Largest Food Brand And Business In India
- 3. INTRODUCTION OF THE COMPANY • Established: 1946 • Headquarters: Anand, Gujarat, India • Type: Cooperative • Industry: Dairy/FMCG • Founder: Dr. Verghese Kurien • Parent Co: Gujarat Co-operative Milk Marketing Federation (GCMMF) • Employees: 750 employees of Marketing Arm. However, real pool consist of 3.6 million milk producer members. • Official Website: www.amul.com
- 4. PRODUCT LINE • Amul Butter • Amul Cheese • Amul Ghee • Amul Ice creams • Amul Yoghurt • Amul Kool, Lassi • Amul Milk (Taaza, Gold, Moti) • Amul Cream etc.
- 5. COMPETITORS • Nestle ● Cadbury • Mother Dairy ● Cream Bell • Regional Competitors like Verka in Punjab, Saras in Rajasthan etc.
- 6. About the Project • Two new products launched: Amul Milk Creamer Amul Lactose Free Milk • Create awareness about the products and take order.
- 7. Amul Liquid Creamer • Amul Liquid Creamer is creamy milk with 25% total solids (9% fat and 16% SNF). • UHT treated Amul Liquid Dairy Creamer has a shelf life of 180 days. • Alternative to milk powder • Only competitor is D’electa by Nestle
- 8. Target Consumers • Airlines • Star Hotels like Taj, Radisson • Other Hotels: Which provide in-room facility to prepare tea and coffee. Premium Trains: Rajdhani & Shatabdi Offices: Any office that has a source of hot water such as an electric kettle for preparing tea/coffee can be a target for Amul Liquid Dairy Creamer
- 9. Marketing Mix Product: •Goodness of real milk •Thick and Creamy Texture •180 days shelf life •Attractive/Affordable Price Price: •Decent M.R.P of Rs 2.25 Place: •Direct Distribution through WDs to airlines, railways, hotels, offices. •MFS (Modern Format Stores): Visibility to generate trials Promotion: •Promotion on Online Groceries •Display at MFS’s •Sampling at Hotels, offices
- 10. Amul Lactose Free Milk
- 11. Amul Lactose Free Milk • A new kind of product in its category. • Particularly launched for Lactose Intolerant people. • Natural sugar Lactose present in milk is already broken into galactose and glucose. • No competitor in India. First of its kind in the country.
- 12. Target Consumers • People who have been suffering from indigestion after consuming milk are the prime target consumer.
- 13. Marketing Mix Product: •Lactose Intolerant person can get milk nourishment •Storage in ambient condition – no refrigeration required •No need to boil •120 days shelf life Price: • Value for money • A decent price of Rs 25 for 250 ml pack Place: •Modern Format Stores •Chemist Shops Promotion: •Promotion on Online Groceries •Display at MFS’s •Sampling at local shops, wholesalers
- 14. RESEARCH METHOLOGY • Store to Store promotion • Visits to various targeted places • Sampling was done to get feedback • Feedback was taken from the dealers and hotel manager and order was taken if they were interested.
- 15. Critical Analysis 1. Threat of New Entrants: •Amul faces less threat to these products Competitive Rivalry: •Amul Milk Creamer has only single rival which is D’lecta by Nestle. •Lactose Free Milk has no rival because it is first of its kind product in India. Bargaining Power of Suppliers: •Low as suppliers have not put faith in these two products •awareness in the customer and supplier about the products is negligible. Bargaining Power of Customers: •High as rivals are present and people have a lot of choices Threat of Substitutes: •High as substitutes are available •Threat of cannibalization Michael Porter Five Forces Model
- 16. SWOT ANALYSIS Strength: • Amul Lactose free milk enjoys first mover advantage. • Creamer is a better replacement to milk powder. • Strong shelf life Weakness: • Strong hold of milk powder. • Target consumers reluctant to put faith in a new product. • Lack of awareness about Lactose Free Milk Opportunities: • Less competition. • Opportunity to seize maximum market share due to the first mover advantage they hold. Threats: • Low Price of milk powders. • Consumer preferences towards juices. • Presence of beverages like Amul Lassi, Amul Kool itself pose threat to Lactose Free Milk.
- 17. FINDINGS • Most of the complaints that they are not satisfied with the company’s margin as the margin is very low compared with the competitor’s product. • Amul Lactose Free milk is not able to prove a successful product because of the lack of knowledge of its health benefits among the dealers as well as customers. • There is delay in lead time. • The retailers are not happy with the damage product treatment given by then company. The retailers wish for the replacement of the damaged products which the company refuses to give.
- 18. SUGGESTIONS AND RECOMMENDATIONS: • Amul Lactose Free milk should be placed in the category of regular milk carton of 1 liter rather than 250 ml packs. • Provide reasonable Margin to retailers as compared to competitors. • Company should improve the supply chain management. • Amul should pay an equal attention to the hotel sectors as well since the hoteliers have complaint of demand supply gap. • Amul should pay an equal attention to the hotel sectors as well since the hoteliers have complaint of demand supply gap. • Amul Milk Creamer needs to keep its pricing at par with milk powder initially to establish a customer base.