AMUL SWOT ANALYSIS

AMUL

ü Type: Cooperative
ü Founded:1946
ü Headquarters: Anand, India
ü Federation: Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
ü Industry: Dairy
ü Revenue: $868 million USD (in 2005-06)
ü Employees: 2.41 million milk producers
ü Website: www.amul.com


Gujarat Cooperative Milk Marketing Federation (GCMMF)

It 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.

ü Members:12 district cooperative milk producers' Union
ü No. of Producer Members:2.41 million
ü No. of Village Societies:11,615
ü Total Milk handling capacity:7.4 million litres per day
ü Milk collection (Total - 2004-05):2.08 billion litres
ü Milk collection (Daily Average 2004-05):5.71 million litres
ü Milk Drying Capacity:511 metric Tons per day


Distribution Strategy:





















SWOT ANALYSIS

STRENGTH:

ü Manufacturer of milk not trader of milk
ü Largest food company in India
ü Most trusted brand in India
ü Market leader in Butter, milk, cheese, condensed milk,
ü Work on “VALUE FOR MONEY “concept
ü Cheap costing to compete against competitor
ü Working on focused business
ü Disciplined and excellent distribution network
ü Simple but to the heart promotional strategy (topical)
ü Supported by state & central govt.
ü Continues need of product since perishable
ü Free from TB pathogens
ü High Quality maintained (UV pasteurization)
ü Highly organized sector
ü Technical manpower: Professionally trained, technical human resource pool, built over last 30 years.
ü Dairy cooperatives generate employment opportunities for about 12 million farm families.

WEAKNESS:

ü Perishable nature of product
ü No diversification
ü Lack of aggressive marketing
ü Since it is cooperative society thus take time to implement new strategies
ü Accountability???? Cooperative society
ü Lack of infrastructure to suffice international norms
ü Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields.

OPPORTUNITY:

ü Huge opportunity in dry areas of India such as Hyderabad, Rajasthan etc.
ü Good margin can be obtained if started EXPORT in Asian and African countries
ü Tie-up with local small unorganized milk producer like Mahananda, Gokul, Aarey to fight against big MNC’s
ü Brand extension can be done like to introduce bread,mithai, cosmetics
ü Amul parlors should be opened like Aarey stalls
ü While currently COLA controversy going on , Amul should tap market aggressively

THREATS:

ü MNC competitor such as Nestle, Britania
ü Local competitor such as Aarey, Mahananda etc.
ü Bann on PLASTIC
ü Misuse of brand name (There is a brand named Amol which sells ice-creams)
ü Misinterpretation of Ads
ü The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs.