Amul is India's largest dairy cooperative that aims to provide maximum customer satisfaction through quality products at low prices. It has a large market share in butter but low share in chocolate. Amul analyzes its strengths in brand, quality, and distribution against weaknesses in product life and opportunities in rural markets to diversify through acquisitions, international expansion, and digital payments. Its cooperative structure and focus on farmers give it strategic resources to maintain low costs through scale as it faces competition and substitute threats.

2. AMUL
-THE TASTE OF INDIA

3. ABBREVIATION
Anand
Milk
Union
Limited

4. Provide more satisfaction to farmers, employees,
customers and distributors.
“Satisfy the taste and nutritional requirements of
the customers of the world, through excellence in
marketing by our team. Through co-operative
networking, we are committed to offering quality
products that provide best value for money.”

5. OBJECTIVES
• To capture the large share of the market.
• To provide max. customer satisfaction.
• Continue product modification and
improvement effort to increase customer
benefit and reduce cost.
• To meet the highest international standards of
quality.
• To expand production capacity

6. Strategic decision making process
1. Establishing the strategic Intent
2. Formulation of strategy
i. Environmental scanning
ii. Organization appraisal
iii. Corporate level strategy
iv. Business level strategy
v. Functional level strategy
3. Implementation of strategy
4. Strategic evaluation and control

7. Environmental Scanning
• Lifestyle
• Culture
• demographic
• Cold chain technology
• National dairy research
institutes
• Purchasing power of
economy as a whole
• Delicensing in dairy
sector(1991)
• Govt. policy regarding
agriculture sector
• Export of milk powder
banned in 2012
POLITICAL ECONOMIC
SOCIALTECHNOLOGY

8. STRENGTH
* Largest food brand in India
* High quality, low price
* Market leader in butter segment
* Robust distribution network
WEAKNESSES
* low market share in chocolate
segment
* Short self life of its product
THREATS
* Competitors – nestle, mother
dairy , Cadbury etc
* Ban of export of milk powder
* Inflation
OPPORTUNITIES
* Use internet to sell its product
* To tap the untapped market,
increase in its reach in rural market
* Diversify product to enter new
product category
SWOT
Analysis

9. VRIO Framework
RESOURCES V R I O
Brand Name
Customer base
Relationship with suppliers
Propensity for innovation
Relationship with farmers
Corporate leadership & vision

10. DIVERSIFICATION STRATEGY

11. COOPERATIVE STRATEGY
• Amul buys Kapila Dairy in Rs 1.25-cr.
• Dairy belonging to the Hindustan Lever's Nagpur-based
Kwality Walls franchisee where it now as full-fledged
operations manufacturing ice-cream, dahi, liquid and flavoured
milk.

12. EXPANSION THROUGH
INTERNATIONALISATION

13. DIGITALISATION STRATEGY
Amul, MobiKwik tie up to offer digital payment
at Amul outlets

14. FINANCIAL ANALYSIS
• TREND ANALYSIS

16. HR POLICY
• Recruitment Policy
• Training And Development Programmes
 VMS Workshops
 Milk Day Celebration
 Village Group Discussion
 Amul Patrika

17. • Performance Appraisal
Evaluation is done by Check list Method of
Performance Appraisal. These are a various
method used to appraise the performance of
an employee.
Outstanding.
Good.
 Satisfactory.
Poor.

18. BUSINESS LEVEL
STRATEGY
• Low cost price strategy
• Common brand for most product category
• Third party service providers
• Focus on core activities

19. PORTER’S 5 FORCES
• Mainly the supplier are
rural milk producer and thus
their bargaining power is low
• Many substitutes in drinking
area as compared with milk
are available
• Dairy industry enjoy high
profitability
• Presence of competitors as
well local doodhwaalas
• Home delivery of dairy
product from local
doodhwaalas is more
….complex
• Require high capital
investment
• Customer loyalty
Threat of new
entrants(low)
Bargaining
power of
buyer(high)
Bargaining
power of
supplier (low)
Threat of
substitutes
(high)