A PROJECT REPORT ON
“B.C.G. MATRIX & S.W.O.T ANALYSIS OF AMUL COMPANY”
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR
MASTER OF COMMERCE (M. COM)
MANAGEMENT GROUP
SEMESTER-II
IN
STRATEGIC MANAGEMENT
TO
UNIVERSITY OF MUMBAI
BY
ROLL NO.: 04
UNDER THE GUIDANCE OF
PROF. SWATI VORA
RIZVI EDUCATION SOCIETY’S
RIZVI COLLEGE OF ARTS, COMMERCE & SCIENCE
RIZVI COMPLEX, BANDRA (W), MUMBAI-50
1
DECLARATION
I, , student of Master of Commerce (M.Com) in Management Group
Semester-II, Rizvi College of Arts, Commerce and Science, hereby declare
that I have completed the project entitled “B.C.G. MATRIX OF AMUL
COMPANY” in the subject Strategic Management for the academic year
2012-2013.
_________________
(HANEEN SHEHBAZ KHAN)
Roll No.: 04
Date: 15th March, 2013.
2
CERTIFICATE
I, Prof. Swati Vora hereby certify that , Roll No. - 04 of M.Com. Semester-II
of Rizvi College of Arts, Commerce and Science , has successfully completed
project on “B.C.G. MATRIX OF AMUL COMPANY” in the subject
Strategic Management for the academic year 2012-2013.
_____________ _____________
Internal Guide External Guide
_____________
Co-ordinator
3
ACKNOWLEDGEMENT
I, HANEEN SHEHBAZ KHAN student of RIZVI COLLEGE OF ARTS, COMMERCE &
SCIENCE. RIZVI COMPLEX, BANDRA (W), MUMBAI-50 studying in Master of
Commerce (M.Com) in Management Group Semester-II, hereby declare that I have completed
the project on “B.C.G. MATRIX OF AMUL COMPANY”, Academic Year 2012 – 2013,
under the guidance of Prof. Swati Vora, as a partial fulfillment of the course curriculum in
Master Of Commerce (M. Com.)
The information submitted is true and original to the best of my knowledge.
DATE: 15 th March 2013 _______________________
SIGNATURE OF STUDENT
PLACE: MUMBAI (
4
RIZVI COLLEGE
OF ARTS, SCIENCE AND COMMERCE
M.COM PART- I. (SEM II)
2012-2013
EVALUATION SHEET
NAME OF THE
STUDENT :
ROLL NO : 04
SUBJECT : STRATEGIC MANAGEMENT
SR.NO. PARTICULARS MARKS SIGNATURE
1 EVALUATION BY INTERNAL
2 PRESENTATION
3 EVALUATION BY EXTERNAL
4 VIVA
TOTAL
5
CONTENTS
Topic Pg. No.
Chapter I
1. Introduction…………………………………………………………………………….......7
2. History Of AMUL COMPANY……………………………………….…………..……..10
3. Objectives & Rationale of the study……………………………………………..………13
4. Research Problems…………………………………………………………………..……14
5. Research Methodology………………………………………………………………..….14
Chapter II
1. Review of AMUL COMPANY………………………………….…………………..…..15
Chapter III
1. List of AMUL Products.…………………………………………………………….…….16
2. Success……………………………………………………………………………………..21
3. Product Strategy……………………………………………………………………………22
Chapter IV
1. B.C.G Matrix………………………………………………………………………………23
2. 4 Cell Of B.C.G……………………………………………………………………..…….24
3. 4 P’s of Marketing …………………………………………………………………….....27
4. S.W.O.T Analysis……………………………………………………………………...….31
Chapter V
1.Conclusions ………………………………………………………………………;.………33
2. Recommendations……………………………………………………………….;;.………34
BIBLIOGRAPHY 35
6
CHAPTER I
1. INTRODUCTION
GCMMF
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly
50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than
700000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today in
over 40 countries of the world. AMUL is exporting a wide variety of products which include
Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee)
and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the
Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China,
and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to
enter the Japanese market in 1994 did not succeed, but it plans to venture again.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands:
Amul is No. 1"
AMUL7
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million
milk producers in Gujarat, India. It is based in Anand town of 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, which has made India the largest producer of milk and milk products
in the world. It is also the world's biggest vegetarian cheese brand.
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the
state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder
what combination of influences and incentives is needed to multiply such a model a thousand
times over in developing regions everywhere." The Amul Pattern has established itself as a
uniquely appropriate model for rural development. Amul has spurred the White Revolution of
India, which has made India the largest producer of milk and milk products in the world. It is
also the world's biggest vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1050 million (2006-07).
Currently Amul has 2.6 million producer members with milk collection average of 10.16 million
liters per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid
to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the
8
Japanese markets. Other potential markets being considered include Sri Lanka. Dr Verghese
Kurien, former chairman of the GCMMF, is recognized as the man behind the success of Amul.
On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of
GCMMF.
Vision of Amul India:
“Air to liberate farmers form economic oppression and lead them to prosperity and also serve
the interest of consumers by providing affordable quality products.”
Mission of Amul India:
“To have threefold increase to the current group turnover of diary cooperatives of Gujarat of Rs
9600 Crores by the Year 2020.”
2. HISTORY OF AMUL
9
In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected
the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived from the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested
the brand name “AMUL”. Amul products have been in use in millions of homes since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of
many things like of the high-quality products sold at reasonable prices, of the genesis of a vast
cooperative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers' organization. And have a proven model for dairy development (Generally known as
“ANAND PATTERN”).
GCMMF
10
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy
Cooperatives in Gujarat have created an economic network that links more than 3.1 million
village milk producers with millions of consumers in India. These cooperatives collect on an
average 9.4 million litres of milk per day from their producer members, more than 70% of whom
are small, marginal farmers and landless labourers and include a sizeable population of tribal
folk and people belonging to the scheduled castes. turnover of GCMMF (AMUL) during 2010–
11 was 97.74 billion (US$1.78 billion). It markets the products, produced by the district milk
unions in 30 dairy plants. The farmers of Gujarat own the largest state of the art dairy plant in
Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 3.0 million litres of milk per day
and process 160 MTs of milk powder daily. Amul Dairy established at Anand is the crown glory
of the district. By launching the milk business in a scientific way, the dairy heralded White
Revolution in Gujarat which is well established now. The dairy has provided the farmers an
important source of supplementary income through animal husbandry. Today it has become a
world renowned organisation.
On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman
of GCMMF, following a court's intervention.
Achievements of GCMMF
11
3.1 million milk producer member families
15,760 village societies
15 District Unions
9.4 million liters of milk procured per day
150 million (US$2.73 million) disbursed in cash daily
GCMMF is the largest cooperative business of small producers with an annual turnover
of 53 billion (US$964.6 million)
The Govt. of India has honoured Amul with the "Best of all categories Rajiv Gandhi
National Quality Award".
Largest milk handling capacity in Asia
Largest cold chain network
48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets
Export to 37 countries worth 150 crore (US$27.3 million)
Winner of APEDA award for eleven consecutive years
3. OBJECTIVE AND RATIONALE BEHIND THE STUDY
12
To get detailed knowledge of AMUL’S product
To increase span of amul products through Pushcarts.
To know the factors which affects consumer’s buying behavior to purchase amul’s
product?
Create awareness about amul product against its competitors.
To collect detail data with respect to amuls popular products.
Increase focus on strategy and results.
Improve organizational performance by measuring what is the BCG MATRIX.
Improve communication of the organization’s Vision and Strategy.
Basic concepts of the BCG MATRIX and how it can be used to improve organization
performance.
4. RESEARCH PROBLEMS.
13
There were many problems faced during the research process, some are as follows:
Limited time and cost for research.
Confidential details could not be collected due to privacy policies of the company such as
sales and revenue, current turnover details etc.
5. RESEARCH METHODOLOGY.
The data was collected through secondary sources only.
The primary sources of data could not be collected due to some limitations.
The sources of secondary data are the search engines, various websites and company websites
Method of Data Collection & Sources of Data:
Primary Data: Not Available.
Secondary Data: Secondary data was collected through online search engines, news
articles, web sites etc.
CHAPTER II
14
1. REVIEW OF AMUL.
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk producer
self-reliant and conduct milk- business with pride. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers. Amul created
history in following areas:
a) First self motivated and autonomous farmers‟ organization comprising of more than 5000000
marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection centers owned by
them.
c) Computerized milk collection system with electronic scale and computerized accounting
system.
d) The first and only organization in world to get ISO 9000 standard for its farmer’s co-
operatives.
e) First to produce milk from powder from surplus milk. Amul is the live example of how co-
operation amongst the poor marginal farmers can provide means for the socio-economic
development of the under privileged marginal farmers.
CHAPTER III
15
1. LIST OF AMUL’S PRODUCTS
Amul ButterUtterly Butterly Delicious
Amul LiteLow fat, low Cholesterol Bread Spread
Delicious Table MargarineThe Delicious way to eat healthy
Milk DrinksAmul Kool Milk Shake Amul Kool
Amul Kool Cafe Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste
Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids
Amul Kool Chocolate Milk
Amul Kool Flavoured Bottled Milk
Amul Kool Flavoured Tetra Pack
16
Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink
Amul Lassee
Amul Kool Thandai
Powder MilkAmul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby
Amul Instant Full Cream Milk PowderA dairy in your home
Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.
Sagar Tea Coffee Whitener
Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener
Fresh MilkAmul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.
Amul Gold Milk
17
Amul Taaza Double Toned Milk
Amul Lite Slim and Trim Milk
Amul Fresh Cream Amul Shakti Toned Milk
Amul Calci+ Amul Buttermilk
CheeseAmul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet
Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..
Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma
Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!
Gouda Cheese
For Cooking
18
Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.
Cooking Butter
Amul Malai PaneerReady to cook paneer to make your favourite recipes!
Utterly Delicious Pizza
Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy colour with a pleasant taste.
Masti Dahl
Pro-biotic Dahi
DessertsAmul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul ShrikhandA delicious treat, anytime.
19
Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.
Amul ChocolatesThe perfect gift for someone you love.
Amul Basundi Amul Flaavyo Yoghurt
Health DrinkNutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.
MOST POPULAR PRODUCTS.
Amul Butter
Amul Lite Bread Spreads
Amul Milk
Amul Butter Milk
Amul Shrikhand
Amul Cheese
Amul Ghee
Amul Milk Powders
Amul Masti Dahi
Amul Ice-cream
Amul Milk Chocolate
Nutramul Malted Milk Food
20
2. SUCCESS
Robust Supply Chain:Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets.
Low Cost Strategy:Low Cost Strategy Amul adopted a low-cost price strategy to make its products. Affordable and attractive to consumers by guaranteeing they value for money.
Diverse Product Mix:Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya.
Strong Distribution Network: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.
Technology and e-initiatives:Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.
21
3.PRODUCT STRATEGIES
Product Positioning Strategy:
Low price Amul Ice - Creams made Kwality walls difficult to survive.
Chocolate milk was launched ‗Amul Kool which no other Indian company had launches.
Product Overlap Strategy
Amul Processed Cheese Vs Cheese Spread Nutramul
Energy Drink Vs Amul Kool4.
Product Design Strategy
Use of Utterly Butterly Girl since 19675
Product Elimination
Eliminated Amul Chocolates
Diversification Strategy
Dairy Products E.g.: Fresh Milk- low fat milk and full fat etc.,
Milk Drinks & Desserts, Bread Spreads, Cheese Products etc
22
CHAPTER IV
1.B.C.G. MATRIX
Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by
BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic
representation for an organization to examine different businesses in it’s portfolio on the basis of
their related market share and industry growth rates. It is a two dimensional analysis on management
of SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business
potential and the evaluation of environment.
According to this matrix, business could be classified as high or low according to their industry
growth rate and relative market share.
Relative Market Share = SBU Sales this year leading competitors sales this year.
Market Growth Rate = Industry sales this year - Industry Sales last year.
The analysis requires that both measures be calculated for each SBU. The dimension of
business strength, relative market share, will measure comparative advantage indicated by
market dominance. The key theory underlying this is existence of an experience curve and
that market share is achieved due to overall cost leadership.
BCG matrix has four cells, with the horizontal axis representing relative market share and
the vertical axis denoting market growth rate. The mid-point of relative market share is set at
1.0. If all the SBU’s are in same industry, the average growth rate of the industry is used.
While, if all the SBU’s are located in different industries, then the mid-point is set at the
growth rate for the economy.
23
Resources are allocated to the business units according to their situation on the grid. The
four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each
of these cells represents a particular type of business.
2. FOUR CELLS OF B.C.G. MATRIX
24
1. Stars:
Stars represent business units having large market share in a fast growing industry. They
generate high cash inflow but because of fast growing market, stars require huge
investments to maintain their lead. Net cash flow is usually modest. If successful, a star will
become a cash cow when the industry matures.
2. Cash Cows:
Cash Cows represent business units having a large market share in a mature, slow growing
industry. Cash cows require little investment and generate cash that can be utilized for
investment in other business units. These SBU’s are the corporation’s key source of cash, and
are specifically the core business. They are the base of an organization. These businesses
usually follow stability strategies.
3. Question Marks:
Question marks represent business units having low relative market share and located in a
high growth industry. They require huge amount of cash to maintain or gain market share.
They require attention to determine if the venture can be viable. Question marks are
generally new goods and services which have a good commercial prospective. There is no
specific strategy which can be adopted. If the firm thinks it has dominant market share,
then it can adopt expansion strategy, else retrenchment strategy can be adopted.
25
4. Dogs:
Dogs represent businesses having weak market shares in low-growth markets. They
neither generate cash nor require huge amount of cash. Due to low market share, these
business units face cost disadvantages. Generally retrenchment strategies are adopted
because these firms can gain market share only at the expense of competitor’s/rival firms.
These business firms have weak market share because of high costs, poor quality, ineffective
marketing, etc. Number of dogs should be avoided and minimized in an organization.
Amul Products in the BGC Matrix:
STARS
Amul Pure Ghee range
Amul Cheese Spread
Amul Kool
Amul Ice-cream
Question Marks
- Amul Masti Dahi
Amul Lassi
Amul Mithai mate
Cash Cows
- Amul fresh Milk range
Amul Butter range
Mozzarella Cheese
Dogs
- Amul Chocolates
Nultramul Energy Drink
Amul Shakti Infant Milk Range
Amul Pizza
26
3. 4 P’S OF MARKETING
Product
Satisfaction suffices. But delight dazzles the average company will compete for customer by
conforming to her expectation consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step additional benefits which she would never
have imagined possible. Cadbury’s offer such product. The wide variety products offered by the
company include:
List of AMUL Products
Bread spreads
Amul Butter
Amul Lite Low Fat Bread Spread
Amul Cooking Butter
Cheese Range
Amul pasteurized processed Chedder Cheese
Amul Processed cheese Spread
Amul Pizza (mozzarella) cheese
Amul Shredded pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (Cottage Cheese)
Mithaee Range
Amul shrikhand (Mango,Saffron,Almond Pistachio,Cardamom)
Amul Amrakhand
Amul Mithaee Gulab Jamub Mix
Amul mithaee Kulfi Mix
27
Amul Avsar Ladoos
Milk Range
Amul Shakti 3% Fat Milk
Amul Taaza 1.5% Fat Milk
Amul Gold 4.5% Fat Milk
Amul Lite Slim-n-Trim Milk 0% Fat Milk
Amul Shakti Toned Milk
Amul Fresh Cream
Infant Milk Rang
Amul Infant Milk Formula 1(0-6 months)
Amul Infant Milk Formula 2(6 months)
Amulspray Infant Milk Food
Milk Powders
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea & Coffee Whitener
Sweetened Condensed Milk
Amul Mithaimate Sweetened Condensed Milk
Fresh Milk
Amul Taaza Toned Milk 3% Fat
Amul Gold Full Cream Milk 6% Fat
Amul Shakti Standardized Milk 4.5% Fat
Amul Slim &Trim Double Toned Milk 1.5% Fat
Amul Saathi Skimmed Milk 0% Fat
Amul Cow Milk
Pure Ghee
Amul Pure Ghee
28
Sagar Pure Ghee
Amul Pure Ghee
Brown Beverage
Nutramul Malted Milk Food
Curd Products
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (Fresh Curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Milk Drink
Amul Kool Flavoured
Amul Kool Cafe
Health Beverage
Amul Shakti White Milk Food
Chocolate & Confectionery
Amul Milk Chocolate
Amul Fruit & Nut Chocolat
Amul Ice-Cream
Royal Treat Range(Butter Scotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)
Nature’s Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)
Utterly Delicious(Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic)
Pro-Biotic
29
Pricing
Second P of marketing is not another name for blindly lowering prices and relying on this
strategy alone to increase sales dramatically. The strategy used by Cadbury’s is for matching the
value that customer pays to buy the product with the expectation they have about what the
production is worth to them.
AMUL has launched various products which cater to all customer segments.
So every customer segment has different price expectation from the product.
Therefore maximizing the returns involves identifying right price level for
each segment, and then progressively moving through them.
Physical Distribution Place
In a product and price parity situation, the brand that sells more is the one that reaches the
highest number of customers. India ± 1 billion people, 155 million household has over 4 million
retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq.
Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to, and
be prepared to take step toward the sender. Effective advertising is rarely hectoring or loudly
explicit«. It often both attracts and generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality that good advertising shares with
much worthwhile literature. To penetrate into the inner recesses of her memory, communication
must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and
then extract retention competing with thousands of other units of communication trying to do the
same.
30
4. S.W.O.T ANALYSIS
Strengths
1. The company is having Indian origin thus creating feeling of oneness in the mind of the
customers.
2. It manufactures only milk and milk products, which is purely vegetarian thus providing
quality confidence in the minds of the customers.
3. It is aiming at rural segment, which covers a large area of loyal customers, which other
companies had failed to do.
4. People are quite confident for the quality products provided by Amul.
5. Amul has its base in India with its butter and so can easily promote chocolates without
fearing of loses.
6. The prices of chocolates of Nestles are comparatively cheap as compared to
other companies.
Weaknesses
1. There are various big players in the chocolate market, which acts as major competitors
restricting their growth.
2. Lack of capital invested as compared to other companies.
3. Improper distribution channel in India.
31
Opportunities
1. There is a lot of potential for growth and development as huge population stay in rural
market where other companies are not targeting.
2. The chocolate market is at growth stage with very less competition so by introducing new
brand and intensive advertising there can be a very good scope in future.
Threats
1. The major threat is from other companies who hold the majority share of consumers in
Indian market i.e. Cadburys and Nestle.
2. There exists no brand loyalty in the chocolate market and consumers frequently shift their
brands.
3. New companies’ entering in Indian market like fine poses lot problems for Amul.
32
CHAPTER V
1. CONCULSIONS
When we study the BCG Matrix of Amul India. We found that Amul one of the fastest growing
company of India. This company 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. So when you study the BCG Matrix
of Amul India you found that the growth of the company is very good.
As we know thalamus is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese, which are its main/core products. As we
knowAmul is a co-operative organization but chocolate industry is a profitable industry we can’t
ignore it. With the help of research, company can find out its week points in chocolate product
and can increase its market share through rectify mistakes.
33
2. RECOMMENDATIONS
To earn more or more profit and make the customer loyal toward the amul product the company
should focus of his existing customer and also provide the better services. We know that the food
product is necessary for the public today. Every person wants to eat the fresh milk product.
Amul should take proper action in order to improve service, because although being on a
top slot in Butter and milk supplies it does not get the sales in chocolate, which it should
get.
Reduce the cost of production on products which come under Dogs.
Focus on the products that come under Stars.
Should utilize the excess income generated by the Cash Cows in research and
development of products that were at loss.
Provide better service in term of lowest cost.
Provide proper knowledge to customer.
Add some new product of his basket.
34
BIBLIOGRAPHY
www.amul.com
www.google.com
www.wikipedia.com
www.marketresearch.com
35
Recommended