Case Studies and Management Resources
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Case Studies and Management Resources |
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In July 2001, Amul planned to enter the instant coffee market through a tie-up with Tata Coffee. GCMMF had a strong national distribution network while Tata Coffee had expertise in manufacturing and marketing coffee. As a part of the tie-up, Amul was to source the instant coffee from Tata Coffee and distribute it. The domestic coffee market was estimated at Rs.11bn, with the instant coffee segment being around Rs.4.5bn. In August 2001, Amul decided to enter the ready-to-eat stuffed paratha[5], cheeseburger, cheese and paneer pakoda[6], and cheese sandwich segments. The products were to be marketed under the SnowCap brand. The SnowCap brand would also include tomato sauce and ketchup. Amul was also restructuring its chocolates business[7] . Seven of its brands that were withdrawn from the market were to be relaunched soon.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[8]. Amul marketed Milklairs, which was manufactured by Campco. This tie-up was expected to help Amul in the expansion of its chocolate business.
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Paneer or cottage fresh cheese is made from low fat milk, without involving long, complicated procedures.It is rich in proteins. [3] In 1983, Amul had introduced branded milk in 500-ml tetrahedron-shaped packs priced at Rs.4.50 and one litre rectangular packs at Rs.9. Amul felt that the tetrahedron pack was well ahead of its time, which was why it was not accepted in 1983. Moreover, the packaging was not convenient and it was difficult to store. [4] The three main players in the Rs.360 bn packaged milk market are Amul, Nestle and Vijaya. The market is important to all three. Nestle is looking at a Rs.1.50 bn business from milk alone by 2004. Amul Taaza is expected to be a Rs.1 bn brand by 2001, and Vijaya could achieve Rs.1.2 bn sales from packaged milk. Amul is investing Rs.300 mn in two new factories in Andhra Pradesh and Maharashtra. Nestle is targeting the south as a potential big milk market. Nestle is setting up two more plants (amount invested yet to be revealed) in the southern region and is aggressive on the price front, pegging its Pure Milk brand at Rs 20 a litre against Amul Taaza's Rs.22. [5] A flat unleavened bread made from flour, water and clarified butter. [6] A deep-fried fritter made by dipping pieces of vegetable, meat or shellfish in chickpea flour batter and generally eaten as a snack. [7] Amul's chocolate portfolio includes brands like Amul Bitter, Amul Premium, Amul Crisp, Amul Fruit & Nut, Amul Badam Bar, Amul Milk and Amul Crunch. [8] 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.
2001, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted
in any form or by any means - electronic or mechanical, without permission.
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