amul - distribution channel

Compiled byAyushi Srivastava, Chandan Pandey, Gursimran Singh Sethi,

Jaya maurya, Raj Singh, Rohit kumar

TABLE OF CONTENTS

Introduction.Distribution channel.Type of channel design.Problems faced by Amul/ recommendations.Visit to Amul outlet.Conclusion.

Introd

uction

• Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.

• Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat.

• Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products.

• Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.

AMUL DISTRIBUTION CHANNEL

Distributors Retailers Consumers

AMUL DISTRIBUTION CHANNEL

• Village dairy cooperative society (DCS) is formed by milk producers.

• Each DCS has a milk collection centre, member's milk is tested for quality with payments based on the percentage of fat and SNF.

• At the end of each year, a portion of the DCS profits is used to pay each member a patronage bonus based on the quantity of milk poured.

• District Cooperative Milk Producers' Union is owned by dairy cooperative societies.

• Union buys all the societies' milk• Processes and markets fluid milk and products, and also

provides a variety of services to the VDCS.

• The cooperative milk producers' unions in a state form a State Federation which is an apex marketing body responsible for marketing of milk and milk products of member unions.

1st tier

2nd tier

3rd tier

TYPE OF CHANNEL DESIGN

Analysing consumer

needs

Setting channel

objectives

Identifying major channel

objectives

Evaluation

• Segments to serve ?• Which channels to use.

• Types of intermediaries• Number of marketing

intermediaries• Responsibilities of

intermediaries.

• Economic criteria.• Control issues.

SUCCESS OF AMUL

• Provides an assured market at

remunerative

prices for producers' milk besides

acting as

a channel to market the product.

• Enabled the consumer an access

to high quality milk and milk

products.

• Used the best of technology

to help the farmers.

• Its supply chain.

• Its wide product portfolio.

• Amul concentrates on breaking

the bulk.

PROBLEMS FACED BY AMUL / RECOMMENDATION

• Distribution channel.• Competition from

established companies.• Expansion to chocolates.• Low profit margin to

retailer.

• Should use more Television advertisements

• Should provide offers during festive season

• Setup more production units.

VISIT TO AMUL STORE

LEARNINGS

First hand

knowledge.

Problem faced by

outlets.

Brand Loyalty.

Value Pricing.

CONCLUSION

Amul meant different things to different people :To a Milk Producer … A life enriching experience

To a Consumer … Assurance of having wholesome milkTo a Mother … A reliable source of nourishment for her child

To the Country … Rural Development and Self Reliance

Thank you