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UNIVERSITY OF MUMBAI’S
ALKESH
DINESH MODY
INSTITUTE FOR
FINANCIAL
&
MANAGEMENT
STUDIES
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 SYBMS SEM II
NAME OF THE STUDENT ROLL SIGNATURES
NOS
AHSAN KHAN 45
AJAY DHUTAWALE 11
ARUN IYER 28
ANAS KHAN 48
VIKAS GUPTA 25
VIVEK KAMBLE 39
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Submitted to :- Prof. Anita Boabade Mam
Topic : -

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 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 5
 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 C’s…
 Amul – BCG Matrix
 Amul – Product Portfolio
 What more can Amul do?
 Benefits
 Limitations
 Conclusion
 Bibliography 7
What Is BCG Matrix?
 BOSTON CONSULTING GROUP (BCG)
MATRIX is developed by “BRUCE
HENDERSON “of the BOSTON
CONSULTING GROUP IN THE EARLY
1970’s.

 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 company’s 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.

 It is managed by Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF).

 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: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008- 8.4 million litres

09):
Milk Drying Capacity: 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
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream

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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 34

 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

- India’s 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
-Amul Launched “low fat, low cholesterol
bread spreads”

 Product for the price sensitive

India
- Low Priced Amul Ice Creams and
affordable ‘sagar’ whitener

 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 C’s…

•Defending against Mahananda, •Customers extremely satisfied

Vijay, Milma & other co-operative •Moved from loose milk to
milk brands •packaged milk
•Ready to try more products
•Aggressive moves against •Improved socio-economic
Britannia, Nestle, Mother Dairy conditions
and Kwality

•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 Market Share Market Position

Chocolate Drink 90% 1

Butter, Ghee 85% 1

Cheese 50% 1

Sweets 50% 1

Milk Powder 40% 1

Ice-cream 24.75% 2

Chocolate 10% 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 Amul’s 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.
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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 company’s future growth
and profitability. 55
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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