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Case Studies and Management Resources
Asia's Most Popular Collection of Management Case Studies |
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Amul was also restructuring its chocolates business9. Seven of its brands that were withdrawn from the market were to be relaunched soon. Amul tied up with Campco, the cocoa and arecanuts farmers' cooperative in Karnataka and Kerala, for the supply of cocoa beans.10 Amul marketed Milklairs, which was manufactured by Campco. This tie-up was expected to help Amul in the expansion of its chocolate business.
Why Diversify?With the liberalization of the Indian economy in the early 1990s, and the subsequent entry of new players, there was a change in lifestyles and the food tastes of people. The new team that took over the management of the GCMMF in the mid-1990s hoped to take advantage of the change. The management adopted Total Quality Management (TQM) and set for itself higher benchmarks (in terms of growth). They also diversified the Amul portfolio, offering a range of food stuffs such as ketchup, jam, ice-cream, confectionaries, cheese, and shrikhand.11 According to some analysts, this diversification was probably not entirely demand-driven. Being a cooperative, GCMMF was compelled to buy all the milk that was produced in Gujarat. |
And with milk production having increased since the mid 1990s, GCMMF had to make use of additional milk, and hence the pressure to make and market more and more processed-milk products. Amul had to expand the consumption base of milk-based products in India.
9] Amul's chocolate portfolio includes brands like Amul Bitter, Amul Premium, Amul Crisp, Amul Fruit & Nut, Amul Badam
Bar, Amul Milk and Amul Crunch.
10] Amul followed a strategy of roping in cooperatives to aid growth around the country. Amul ice cream is now
manufactured in seven locations across the country. Pune Milk Cooperative and Akluj Dairy (near Baramati in
Maharashtra) have been roped in to sell 0.2 mn litres of milk per day under the Amul brand name in Mumbai. In
TamilNadu, Salem Dairy has signed up to produce milk and ghee under the Amul brand name.
11] A dessert made of curd, cardamom, saffron leaves and sugar.
Case Code : MKTG014
Themes: Brand Management
Case Length : 7 Pages
Period : 1996-2001
Organization : Gujarat Cooperative Milk Marketing Federation
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Food, Beverages & Tobacco
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