Professional Documents
Culture Documents
Sonali
Stewart
Manjiri
Mahesh
Chaitali
Demand analysis
Market structure
6000
4000 2000 0 1946 1999 2007 2008 2009 2010
Members : Number of producer members: Number of village societies: Total milk handling capacity: Daily average milk collection
11,962 villages
9.91million litres per day
6.31million litres
US$1068million in 2011 supply chain management
Sales turnover:
Biggest strength :
The demand for Amul can never fall because of the types of products produced by them. They produce quality products and have won the hearts of Indian people and is become the taste of India for more than 60 years. Due to the customer and industry based approach of the company
Women
Amul Calci +
Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreads
Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk
Youth
Calorie Conscious
Health Conscious
Restaurant/Food Chains
Milk
Temples
Pizza Retailers
Snacks Retailers
Butter/Cheese/Ghee
Ice-cream
Sweets Chocolate Drink Chocolate
24.75%
50% 90% 10%
2
1 1 3
STRATEGY
As its product lists, GCMMF has capitalized on the value added segment with a wide range of Amul cheeses. The Amul brand represents 'value for money' to the Indian consumer and its cheese portfolio is competitively priced and of assured quality. The company has been aggressively marketing its cheese products, to the extent of even moving away from its umbrella brand strategy and introducing a new mascot, the Amul Cheese Boy.
STRATEGY
When low cost pizzas were introduced, Amul adopted an innovative and successful strategy of increasing sales of an elitist product (cheese) by reducing the price of another elitist product (pizzas). Especially since 2005, the company has focused on expanding its already strong distribution network to smaller cities as cheese demand has rapidly expanded beyond the large metros.
COST SHEET
Particulars
Opening Stock Raw Materials Dry Fruits Milk Flavors Other Ingredients Sugar Cup Cutlery Seasonal Fruits Waffle Cocoa Carriage Inward RAW MATERIAL CONSUMED
CPU
10 3 2.5 3 3.5 2 2.5 1.5 1 0.5 1 1.5 8 1.845 33.845
Amount
1000000 300000 250000 300000 350000 200000 250000 150000 100000 50000 100000 150000 3200000 184500 3384500
Particulars
Direct Expenses Direct Labour PRIME COST Factory Overheads: Fixed: Depreciation Rent Power Insurance Supervisors Salary Variable: Electricity Running exp of machine WORKS COST
CPU
2.2 5.3 40.045
Amount
220000 530000 4134500
Particulars
CPU
Amount
Office Overheads Employee Cost Other Expenditure: Computer Telephone Taxes Carriage Outward COST OF PRODUCTION Opening Stock -Closing Stock COST OF GOODS SOLD
1000000
120000 10000 40000 20000 6229500 200000 6429500
Particulars Amount
Selling&DistExps: Advertisement Delivery Vehicles Petrol Packaging Rates COST OF SALES
CPU
PROFIT
18.5 92.5625
1851250 9256250
SALES
The company is producing 100000 units of cheese at Rs. 74.05 for which the total cost incurred is Rs. 7405000 and the total sales is Rs. 9256250 which implies that that the profit being made is Rs. 1851250. The company is producing a single cup of cheeseat Rs. 92.5625 which includes the cost of a cheese at Rs. 74.05 which again implies that the profit of Rs. 18.5125 is earned on a single unit of Amul ice cream.
Oligopoly competition
Definition:
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). The word is derived, by analogy with "monopoly", from the Greek (oligoi) "few" + (polein) "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others.
Strategy to sell
Create goodwill in the market due to less number of sellers. There is less competition they become the price maker They maintain their quality to be the taste of India.
1. Creative advertising 2.High brand presence 3.High visibility 4.Excellent product quality and trusted name 1. Low product range/ taste 1. Smaller packages 2.No frills packaging for rural customers at lower cost 3.New tastes/varieties 4.Tieup with restaurants/food chains/pizza parlors