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UNIVERSITY OF MUMBAIS ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES
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SYBMS SEM II

NAME OF THE STUDENT ROLL NOS AHSAN KHAN AJAY DHUTAWALE 45 11

SIGNATURES

ARUN IYER
ANAS KHAN VIKAS GUPTA

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VIVEK KAMBLE

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Submitted to :- Prof. Anita Boabade Mam

Topic : -

ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my Prof. Anita Bobade Mam as well as our Director who gave us golden opportunity to do this wonderful project on the topic BCG Matrix of AMUL. While studying this project I gained lot of knowledge and information. Secondly I would also like to thank my Parents and Friends who helped me a lot in finishing this project within the limited time. I have made this project not only for marks but to also increase my knowledge.
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Contents
What is BCG Matrix? The BCG growth- share matrix STARS CASH COWS DOGS QUESTION MARKS History of Amul Reasons for Success GCMMF Over View Facts Amul - Business Model SWOT Analysis Customer Based Market Segmentation Industry Based Market Segmentation
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Contd.
Advertisements Mix Product for every one

Product Mix of Amul

Amul - Product Diversification The 3 Cs

Amul BCG Matrix

Amul Product Portfolio What more can Amul do? Benefits Limitations Conclusion Bibliography
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What Is BCG Matrix?

BOSTON CONSULTING GROUP (BCG)

MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s.
According to this technique, businesses or

products are classified as low or high performers depending upon their market growth rate and relative market share.
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THE BCG GROWTH-SHARE MATRIX

It is a portfolio planning model which is based on

the observation that a companys business units can be classified in to four categories: Stars Question marks Cash cows Dogs

It is based on the combination of market growth and

market share relative to the next best competitor.

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STARS
High growth, High market share
Stars are leaders in business.
They also require heavy investment, to

maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.
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CASH COWS
Low growth , High market share
They are foundation of the company and often

the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.

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DOGS
Low growth, Low market share
Dogs are the cash traps. Dogs do not have potential to bring in much

cash.
Number of dogs in the company should be

minimized.
Business is situated at a declining stage.
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QUESTION MARKS
High growth , Low market share
Most businesses start of as question marks.
They will absorb great amounts of cash if the

market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.
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History of Amul
Amul (Anand Milk Union Limited), formed in 1946,

is a dairy cooperative movement in India.

Marketing Federation Ltd. (GCMMF).

It is managed by Gujarat Co-operative Milk

AMUL is based in Anand, Gujarat and has been a

sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India.

It is also the world's biggest vegetarian cheese brand.

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Success!!
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Robust Supply Chain

The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large

fragmented markets

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Low Cost Strategy

Amul adopted a low-cost price strategy to

make its products.

Affordable and attractive to consumers by

guaranteeing them value for money.

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Diverse Product Mix

Amul Butter,

Milk Powder,
Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya
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Strong Distribution Network

Amul products are available in over 500,000

retail outlets across.

India through its network of over 3,500

distributors.
47 depots with dry and cold warehouses to

buffer inventory of the entire range of products.

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Technology and e-initiatives

New products Process technology Complementary assets to enhance milk

production
E-commerce.
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GCMMF Over View

GCMMF: Gujarat Cooperative Milk Marketing

Federation

GCMMF is India's largest food products marketing

organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk

and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

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Facts
Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 200809): Milk collection (Daily Average 2008-09): Milk Drying Capacity: 13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million litres per day 3.05 billion litres 8.4 million litres 626 Mts. per day

Cattle feed manufacturing Capacity:

3500 Mts. per day

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Amul - Business Model

RAW MILK

pasteurization

Condensed

Packaged Milk Ice cream Beverages

Ghee Butter Cream

Dried Skimmed Milk Powder

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SWOT Analysis

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Strengths
Largest food brand in India

High Quality, Low Price

World's Largest Pouched Milk Brand Annual turnover of US $1504 million Highly Diverse Product Mix Robust Distribution Network

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 Risks of highly complex supply

chain system

Strong dependency on weak

infrastructure

Alliance with third parties who do

not belong to the organized sector

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Opportunities.!

Penetrate international

markets

Diversify product portfolio to

enter new product categories

and expand existing categories

like processed foods, chocolates etc

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Threats!
Competitors - Hindustan Lever, Nestle

and Britannia

Still competition from MNCs in butter Growing price of milk and milk products Ban on export of milk powder
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Kids

Women

Youth

Calorie Conscious

Health Conscious

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Kids

I. Amul Kool II. Chocolate Milk III.Nutramul Energy Drink

IV.Amul Kool
V. Millk Shaake
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Womens

Amul Calci

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Youth
I. UtterlyDelicious Pizza II. Amul Emmental Cheese III.Amul Cheese Spreads

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Health Conscious

I.Nutramul II.Amul Shakti Health Food Drink

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Calorie Conscious

I.Amul Lite
II.Sagar Skimmed Milk Powder III.Amul Lite Slim and Trim Milk

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Ice-cream Manufacturers

Restaurant/Food Chains

Milk

Coffee Shop Chains

Temples

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Butter/Cheese/Ghee
Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

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Advertisements
AMUL is well known for its innovative hoardings. Find below a

few:

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Advertisements

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Product Mix of Amul

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Mix Product for every one

Amul never forgot its primary customer - Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth - Amul launched Chocolate milk under brand name of Amul Kool Koko targeting the youth

Product for diabetic people - Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
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Mix Product for every one

Product for the health

conscious
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Amul Launched low fat, low cholesterol bread spreads

Product for the price

affordable sagar whitener

sensitive India - Low Priced Amul Ice Creams and

Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese
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Amul - Product Diversification

Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products Secret Philosophy Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced products with consistent value addition but never left the core philosophy of providing milk at a basic, affordable price

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BCG MATRIX

High
BUSINESS GROWTH RATE

Low

HIGH

LOW

MARKET SHARE

The 3 Cs
Defending against Mahananda, Vijay, Milma & other co-operative milk brands Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality
Competitor

Customers extremely satisfied Moved from loose milk to packaged milk Ready to try more products Improved socio-economic conditions Customer

Company

Largest milk brand in Asia More than 30 dairy brands Market leader in ghee & butter Very strong supply chain Enjoys Fine reputation Quality with Affordability

Amul Product Portfolio

Category Chocolate Drink Butter, Ghee Cheese Sweets Milk Powder Ice-cream Chocolate Market Share 90% 85% 50% 50% 40% 24.75% 10% Market Position 1 1 1 1 1 2 3
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Amul Product Portfolio in Graph

Market share

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What more can Amul do?

To improve further Amul can try out the following ideas: I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products, II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products III) Though Amuls hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. 53

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BENEFITS
BCG MATRIX is simple and easy to understand. It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. It is used to identify how corporate cash resources can best be used to maximize a companys future growth and profitability.
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What to do ?

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BCG MATRIX uses only two dimensions, Relative Market share and Market Growth rate. Problems of getting data on market share and market growth. High market share does not mean profits all the time. Business with low market share can be profitable too.
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CONCLUSION
Amul one of the fastest growing industries of

India. This industry has revolutionized the Indian dairy sector and also brought it back from the brink of extinction . Also it was one of the first successful cooperative associations in India and also now the market leader in the dairy sector .

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 www.amul.com www.wikipedia.com www.scribd.com www.google.com

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