Company Analysis: Introduction: Gujarat Cooperative Milk Marketing Federation Ltd.

(GCMMF) is India's largest food product marketing organization. It has an annual turnover of US $2.2 billion (2010-11). It was founded in 1946 as a cooperative as a response to the exploitative trade practices followed by local trade cartels. Its formation was inspired by great India patriot Sardar Vallabhbhai Patel. It was the pioneer of white revolution in India which in turn made India the largest producer of Milk in the world. Amul has one of the largest networks in India with 47 sales offices, 5000 dealers and 10 lakh retailers. It is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of its products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA. For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organization to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. To sum it all Amul brand does not represent just an array of product, in fact it represents the movement of farmers that led to their liberation and in the process sowing the seeds of white revolution in the country. Today Amul is a symbol of many things. It is the symbol of high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization and of a proven model for dairy development.

GCMMF - An Overview Year of Establishment Members No. of Producer Members No. of Village Societies Total Milk handling capacity per day Milk Collection (Total - 2010-11) Milk collection (Daily Average 2010-11) Milk Drying Capacity 1973 17 District Cooperative Milk Producers' Unions (15 Members & 2 Nominal Members) 3.03 Million 15,712 13.67 Million litres per day 3.45 billion litres 9.2 million litres (peak 12 million) 647 Mts. per day

Cattlefeed manufacturing Capacity 3690 Mts. per day Sales Turnover -(2010-11) Rs. 9774 Crores (US $2.2 Billion)

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. Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2010-11): Milk collection (Daily Average 2010-11): Milk Drying Capacity: Cattlefeed manufacturing Capacity: Sales Turnover (2010-11) 13 District Cooperative Milk Producers' Unions 3.03 million 15,712 13.67 million litres per day 3.45 billion litres 9.2 million litres 647 Mts. per day 3690 Mts per day Rs. 9774 Crores (US $ 2.2 billion)

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742

US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172

Products:
Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul Cow Milk Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener Amul Kool Flavoured Milk, Amul Kool Caf, Amul Kool Koko,Amul Kool Millk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink Stamina Instant Energy Drink Nutramul Malted Milk Food Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul Lassee, Amul Flaavyo Yoghurt Amul Pure Ghee, Sagar Pure Ghee Amul Mithaimate Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar Ladoos Sundae Range, probiotic,,sugarfree and probiotic Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo, Amul Bindass, Amul Fundoo

Cheese Range

Fresh Milk UHT Milk Range Milk Powders Milk Drink Health Drink Brown Beverage Curd Products Pure Ghee Sweetened Condensed Milk Mithaee Range (Ethnic Sweets) Ice-cream Chocolate & Confectionery

Competitor analysis: To plan an effective marketing strategy it is very important to collect as much information as possible about the competitor and then analyze it. During analysis product, price, channels etc of the competitors are compared with the company. Competitor analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. Identifying competitors: Identifying competitors depends upon the point of view of the company. According to market point of view which involves finding out the competitors as who try to satisfy the same customer need or build relationships with the same customer, Amuls competitors will be those who make products that quench thirst: a. All companies producing ready to drink dairy beverages b. All companies producing soft drinks, bottled water, energy drink, fruit juice, ice tea etc c. A competitor need not be a company if we view from market point of view, even a hawker who sells any products mentioned in point a or b will be Amuls competitor. According to industry point of view, Amul will see itself belonging to dairy industry, so all other companies in the same industry are its potential customers. In that reference Amul not only have national and international competitors but it also has strong local competitors. For this specific project

the competitors are those companies that produce Buttermilk, Lassi, Milk shakes or Flavored milk. And this leads to the following competitors of Amul: Heritage, Vijaya, Jersey, Britannia, Danone and others like Apsara, madhu, masquiti, magic. Assessing competitors: Identifying competitors strategies: To identify the competitors strategies 4Ps of competitors are studies and then these are compared with those of company. More are the strategies similar more the two firms will compete. Product and price: Place: Amul: Retail stores (General stores, eateries, Bakery), Modern format stores, Amul preferred outlets, Amul scooping parlours, online sale through company website. Heritage: Retail stores (General stores, eateries, Bakery), Modern format stores, Heritage parlours, Heritage Fresh stores Jersey: Retail stores (General stores, eateries, Bakery), Modern format stores, Jersey parlours Vijaya: Retail stores (General stores, eateries, Bakery), Modern format stores, Vijaya parlours Britannia: Retail stores (eateries, Bakery), Modern format stores Danone: Retail stores (General stores, eateries, Bakery), Modern format stores Promotion: Amul: TV (commercials and sponsoring TV programs), print ads, Bill boards, company sponsored events. It uses an advertising mascot named AMUL GIRL which advertises Amul products using day to day happenings in the country Heritage: Print media, Bill board Jersey: Print media, Bill board Vijaya: Print media, Bill board Britannia: TV commercials, bill boards, print media, company sponsored events Assessing competitors strength and weakness (Beverage segment): Competitors:

Heritage:

Heritage Foods (India) Ltd (commonly known as Heritage) is one of the largest private sector dairy enterprises in Southern India. The company has recently expanded into food and grocery retailing under the brand "Heritage Fresh". It has four-business divisions viz., Dairy, Retail, Agri, and Bakery. The annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-11. Presently Heritages milk products have market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Maharashtra and Orissa and its retail stores across Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are backbone to retail operations and the state of art Bakery division at Uppal, Hyderabad, Andhra Pradesh. Vijaya dairy: could not find anything

Jersey:

It is the brand of Creamline Dairy products Ltd which is an ISO 22000 accredited dairy. It is a leading manufacturer & supplier of milk and milk products in Southern India spanning across Andhra Pradesh, Tamil Nadu, Karnataka and with a foothold at Nagpur in Central India. The company has a turnover of 4450 million for the financial year 2009-2010 and has set an ambitious target of Rs.10500 million by end of 2013. The Company has excellent infrastructure with 30 own and 9 associate milk chilling centers, 40 BMCUs, 7 packing stations, 6 sales offices and 1 state of the art powder plant/SBU at Ongole. It has a combined milk processing capacity of 6.85 lakh liters per day.

Britannia:

It is a Kolkata based India company with huge brand name. It has pan India presence and also has international subsidiaries. Its main competitors in dairy segment are Amul and Nestle (both have pan India presence too). Britannias dairy division accounts for around 5 percent of its total sales (as on 19 Dec 2011). In 2011 it merged its dairy and biscuits business in terms of sales to increase the profitability, it lead to mixed response from the retailers.

Danone: It is a French food products multinational corporation based in Paris. It is the world leader in fresh dairy products. Earlier it had a tie up with Britannia industries. Its sales of Fresh Dairy Products grew 6.5% in 2010