Submitted by - Madhav Khaneja (9130) Section-C Subject - Strategy Submitted To-Mrs. Garima Wadhwa
Submitted by - Madhav Khaneja (9130) Section-C Subject - Strategy Submitted To-Mrs. Garima Wadhwa
Submitted by - Madhav Khaneja (9130) Section-C Subject - Strategy Submitted To-Mrs. Garima Wadhwa
SECTION-C
SUBJECT - STRATEGY
SUBMITTED TO- MRS. GARIMA WADHWA
PSDA 2
BRIEF HISTORY OF THE ORGANISATION ALONG WITH
BASIC PESTLE AND INTERNAL ANALYSIS
ACKNOWLEDGEMENT
Working on the dissertation has been an
experience forms . for this , we would like to thank a lot of
people without whose cooperation and support this research
would not have been possible . We would like to thank
our mentor , mrs. Garima Wadhwa ma’am for her continuous
support an guidance . she has been of remarkable helps us to
us in assisting throughout our dissertation and would like to
appreciate her continuous support . her valuable feedback and
continuous comments have greatly helped greatly helped
us structure , our dissertation and also to compete our
dissertation on time. Also, we would like to sincere thank all
the respondents for their precious time and useful insights on
the research time , topic and who have patiently expressed
their views to help us carry on without dissertation . in
the end , we are thankful our friends directly and indirectly for
their constant source of encouragement and being there with
us always .
INDEX
INTRODUCTION
SWOT ANALYSIS
-WHAT IS SWOT ANALYSIS ?
-WHEN AND WHY YOU SHOULD DO SWOT ANALYSIS ?
-ELEMENTS OF SWOT ANALYSIS
-EXAMPLES OF SWOT ANALYSIS
-USING A SWOT ANALYSIS
-SWOT ANALYSIS PROS AND CONS
BIBLIOGRAPHY
INTRODUCTION
The Taste of India, a brand so distinctively Indian has been a
part of our lives for nearly five decades now and still is able to
touch a chord in our hearts. As a brand AMUL has grown from
being merely a differentiating factor to protect the interests of
producers and consumers. AMUL inspired ‘Operation Flood’
and heralded the ‘White Revolution’ in India. It began with two
village cooperatives and 250 litres of milk per day, nothing but
ooze compared to the flood it has become today. AMUL
distributes over a million litres of milk per day, it also collects
and processes various milk products, during the peak, on
behalf of more than a thousand village individually owned
by half a million farmer members. AMUL too has become a
symbol of the aspirations of millions of farmers.
AMUL sprung from the seeds sown in the black soil of
CHAROTAR, an area in the KAIRA district of Gujarat, as a
cooperative movement to empower the milk producers. At
that time POLSON Dairy was the biggest buyer of the milk
being produced in KAIRA. Polson was built on the basis of
providing superior quality products to up-market consumers.
However Polson’s products were not the reason that led to the
rise of AMUL, it was its exploitative practices that started the
cooperative revolution. For several years the KAIRA
cooperative supplied milk and allied products without a formal
distribution network leave alone a brand name. The name
Amul was most probably suggested by a quality control expert
in Anand. It was derived from ”Amulya”, which in Sanskrit,
Gujarati and many other Indian languages, means priceless,
and implies matchless excellence. The name was short,
memorable and easily pronounced. It could also serve as an
acronym for the organization – the unusable KDCMPUL (Kaira
District Cooperative Milk Producer’s Union Limited) taken from
Kaira Cooperative’s full name, could be substituted by AMUL,
standing for Anand Milk Union Limited. Even though AMUL
products have been in use in millions of homes since 1946, the
brand AMUL was registered only in 1957.
SUCCESS
As AMUL is recognised as the country’s largest milk producing
cooperative it has tied up with global supermarket chain
WALMART to sell its range of dairy products and have also
tied up with Glaxo over the production of baby food in India.
Amul added sweet buttermilk powder, a second brand of baby
food and a high protein weaning food. It also sells its products
to Nepal. Now India is looking to capture neighbourhood
markets like Pakistan, Bangladesh etc. These countries
import over 50,000 tonnes of milk each annually & Sri Lanka is
flooded with an Indonesian brand, which is said to be of an
inferior quality and also costs less. These countries import
tonnes of milk every year. AMUL’S Indian desserts are very
well liked in countries like Singapore and Malaysia. Amul has
list of products marketed to various countries few of its
products are Amul butter, Amul cooking butter, Amul cheese
spread, Amul pizza cheese, Amul shrikhand, Amul fresh cream,
Amul fat milk, Amul pure ghee, Amulya dairy whitener, Sagar
Tea and Coffee whitener, Amul butter milk, Amul ice creams
like cassata , cool candy and frostik, Amul milk chocolate and
Amul Eclairs. Amul has started preparing and selling pizza
slices that prominently feature generous portions of Amul
cheese. Amul’s pizza slices are being sold through super
markets and large departmental stores that have snack
counters
AMUL is considered as India’s best known local Brand across
all categories. Indians prefer Dairy Ice cream rather than
frozen desserts and Amul has a wide range in the dairy ice
cream segment, 35% market share in the national Ice Cream
market. Amul is biggest sourcing base for milk products in
India, people are more comfortable buying products in the
Value for Money segment and Amul is well present in this
division. Amul has built up a terrifying image as a brand in
which generations of customers have placed their trust,
coming to pricing strategy Amul is the price warrior and
currently has a very wide range of products to offer for all
price points. Amul is recognised for well established
distribution and delivery network for dairy products. AMUL’S
success led to the creation of similar structures of milk
producers in other districts of Gujarat. They drew on AMUL’S
experience in project planning and finishing. This patter was
not only followed in KAIRA district but also in Baroda and
Surat district.
In these districts, they experienced and found easy and
effortless ways to adapt Amul’s game plan to their respective
areas. This led to the Creation of the National Dairy
Development Board with the clear mandate of replicating the
‘Anand pattern’ in other parts of the country. Initially the
pattern was followed for the dairy sector but at a later stage
oilseeds, fruit and vegetables, salt, and tree sectors also
benefited from its success. Gujarat Cooperative Milk
Marketing Federation (GCMMF) is India’s largest food products
marketing organisation. Amul is state level apex body of milk
cooperatives in
Gujarat which aims to provide remunerative returns to the
farmers and serves the interest of consumers by providing
quality products. It has been awarded a “Trading House”
status & has received the APEDA Award from Government of
India for Excellence in Dairy Product Exports for the last 8
years. Amul is in a position to manage these assets to
effectively command the market leader’s position in the
emerging fresh dairy products market because of its milk
processing capacity. Amul has always been a model to which
other cooperatives have looked up as an example and
inspiration as well as one from which many have benefited.
Success in Distribution: The major development on the
distribution front was the development and alignment of four
distribution highways-those of Fresh Products, Chilled
Products, Frozen Products and Ambient Products. This is a
significant achievement because it allows them to develop
synergies among all product lines and to leverage these
highways to introduce and distribute new products as per
market demand. No other organisation in India has been able
to develop this kind of channel synergy so far
FAILURE
Advertising is an important role for the product to be sold in
the market, as Amul advertising has low profile so by this
other competitors were benefited. The competitor products
have been very well received by consumers due to their
advertising pitch Example: Kwality, Vijaya, Nestle. Retailers
list a credible Replacement policy as a factor very high on
their wish list. They would be willing to make further
investments only for that brand which offers replacement
facilities. Amul has no replacement policy. Quality control was
the major problem that confronted the cooperatives. Farmers
were paid every 10 days due to this though he delivered milk
the farmer was not sure about the quality of milk. The milk
which has to be tested was stored in plastic bottles and was
tested after milk collection process was completely done this
leaded to contamination and handling of corrosive chemicals
and also by using various types of glassware added to the
cost and time taken to test the quality of milk.
AMUL has risen from Indian soil and it remains Indian in every
sense. With roots well established in the domestic market
Amul is all set to fight in the global arena. With the
commitment it has shown in the past it will not be too long
when Amul emerges a winner on all fronts.There is ample
scope in the low priced segment as also in other categories
where consumers presently are dissatisfied with the quantity
being provided vis a vis the price being charged. Delhi market
is not restricted to monopoly outlets. There are a significant
number of retailers who are currently stocking more than two
brands. So Amul can overcome it as earlier it had to overcome
this problem in the Mumbai market. Kwality Walls is right now
in an investment mode and is concentrating on expanding the
market as also its reach. Amul should direct its resources
towards cashing in on Walls market development.
Amul has the opportunity to capture the more evolved young
adults and children who are open to new products provided
they meet their expectations.
WHAT IS SWOT ANALYSIS
• P – Political
• E – Economic
• S – Social
• T – Technological
• E – Environmental
• L – Legal
• E - Ethical (NEW)
Economic Factors:
Below are the economic factors in the PESTLE Analysis of
Amul:
In many countries Amul has received significant benefits in
terms of lower milk procurement rates by almost 30 to 60 %.
This further benefits the company in terms of reduction in the
price of its products such as milk powder and butter by 30%.
The price of the milk powder in India improved substantially
from Rs.130 to Rs.150 which affected the milk procurement
prices by Rs.4 to Rs.5 per litre. The national as well as the
international markets are facing recessionary conditions.
Increase in transportation costs can significantly affect the
ability of the company to deliver its products to the end
consumer. In the year 2019 an increase of 11.24%, in milk
procurement costs and an increase of 14% in Diesel costs
lead to an increase in milk transportation costs for Amul.
During the same year there was an increase in Interest and
Bank Commission by approximately 10%.
Social Factors:
Following are the social factors impacting Amul PESTLE
Analysis:
The individual buying decision is mainly the output of social
factors like culture and society. Friends, peer groups, families,
reference groups can have a major influence on the
consumption pattern and buying behaviour of the consumer.
Amul has taken advantage of these factors and has
successfully targeted women and children. It has created a
strong and vital presence in the dairy segment. Vegan lifestyle
is being increasingly adopted by a large number of consumers.
Increase in the number of vegans would negatively influence
the dairy industry as the lifestyle itself doesn’t permit
consumption of dairy products obtained from animals. The
overall picture for the company looks in a beneficial position
as the Indian households are more accustomed to morning tea
and the people are in general more accustomed to milk and
milk products. The culture of fast food also promotes a certain
type of lifestyle that increases the consumption of ice creams.
Technological Factors:
The technological factors in the PESTLE Analysis of Amul are
mentioned below:
Amul as global brand, understands the need to invest in
different technologies and updating the current technology as
well in order to capture as well as retain the current
customers. The brand has invested 600-800 crore, in the
current fiscal year for setting up new milk processing plants.
The company has also invested in order to expand the
capacity of the existing units as well. The entire industry in
general in adapting to a variety of latest technology that helps
in supervising the productivity of milking animals and dairy
farmers. The idea is to identify any faulty practices and take
corrective steps in order to meet the market demand. The
latest technologies are equipped with smart chips of unique
identities that are tagged, which help such companies in
registering the productivity and health records of individual
animals.
Legal Factors:
Following are the legal factors in the Amul PESTLE Analysis:
The company has faced a lot of problems with regard to
infringement malpractices adopted by the local players in the
market. In 1998, Amul noticed that Naroda based Shri Shakti
Dairy, was involved in manufacturing milk pouches under the
name of “Anul Shakti” and “Anul Taaza”. This was a
distressing situation for the company as the names were quite
similar with its own brand names “Amul Shakti” and “Amul
Taaza”. The illegal brands were being advertised by a firm
which was known as Kuldeep Enterprises. The private dairy
was making use of similar packaging as well as brand name of
Amul and selling them to the rural markets thus creating a
confusion in the minds of the customers. The company fought
a 20-year, long battle against the defaulters, finally winning
the case from the Ahmedabad based private dairy. Such
factors can disrupt the market of the products of the company
by capturing the untapped potential and selling fraudulent
products to such customers.
Environmental Factors:
In the Amul PESTLE Analysis, the environmental elements
affecting its business are as below:
Due to the effects of global warming that have been
experienced by everyone, the company understands that it is
their moral responsibility to protect the environment. The
adoption of atomisation and the increasing use of modern
technologies in its everyday processing activities like water,
fuel, gas and electricity has resulted in substantial reduction
in conservation of national resources. This has further led to
savings in electricity and fuel. On 14th December, 2018 the
company, by the government of India was awarded National
Energy Saving Award for coveting the first position in Food
Processing Sector for energy conservation. The award has
received 300 entries across India out of which Amul Dairy was
declared as the winner of the award. Amul took an oath in
2007 to plant a sampling and ensure that the sampling grew
into a tree. It encouraged farmers to create nurseries where
samplings would be grown and the company has been able to
create 45 such nurseries as of now.
To conclude, the above Amul PESTLE Analysis highlights the
various elements which impact its business performance. This
understanding helps to evaluate the criticality of external
business factors for any brand.
BIBLIOGRAPHY:-
1. bstrategyhub.com
2. ukessays.com
3. searchcio.techtarget.com
4. professionalacademy.com
5. www.mbaskool.com