Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Team Members Abhinav Dayal Karan Mehta Abhinav Kapoor Manmath Deshpande Ashutosh Shirwaikar Nikhil Joshi Dhwani Shah Niraj Dadhaniya Gauravi Patil Priyanka Pardeshi Huma Shaikh Shruthi Rao Jyotirmoy Mukherjee
Executive Summary
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Aspire
TRANSFORMATION STAGES
Strategic objectives Capability platform Portfolio of initiatives Delivery model Continuous improvement
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Assess
Architect Act
Advance
Executive Summary
Objectives To increase sales by 100 & Net profit by 50% in 3 years To increase market share in Mumbai to up to 45% in 3 years
Challenges
Consumption and Potential
Indian ice cream industry today is worth about Rs 2,500 crore registering a growth of 15-20% annually Per capita consumption of ice cream in India is just about 300 ml or one scoop less than 700 ml in Pakistan, 3 litres in Chennai & 22 countries in US The organised sector holds about 65% of the market share while the unorganised sector has the remaining 35% market share of this industry.
Challenges Lack of cold storage chains Irregular supply of electricity Poor infrastructure for storage and transportation State governments have imposed a high VAT (Value-Added Tax) on ice creams, additionally; a one% excise duty Large no. of unorganised players who offer cheaper products of very low quality
Indian cold storage logistics chain is very poor Ice cream is a highly perishable product Rising price of milk and allied products
Opportunities
FDI
FDI trend in the retail industry, the next few decades should see global ice cream majors wanting to tap into this potential, and possibly a few new domestic entrants as well
Diversification
Diversifying from just ice creams to other markets such as dairy and fruit-based products, and frozen foods Manufacturers are looking to inculcate the habit of consuming ice cream as a dessert in Indian households The increased popularity of bulk ice cream at social functions and corporate occasions
Unbranded ice cream, which contributes a significant proportion of sales in semi-urban and rural India, is likely to have a reduced influence, as branded players will use local retailers to penetrate these areas
Dessert
Unbranded
It links 2.8 Million Village Milk producers and 13,141 Cooperative Societies across 13 Districts to milk and dairy consumers across India
Amul offers a selection of almost 220 products with flavors ranging from exotic Honey Banana to Kesar Pista along with Sugar Free & ProLife Probiotic Wellness Ice Cream which was a first in India for the health conscious individuals In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999 and as of today it sells products around the world in 40 countries
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D
Dairy Products Butter Cheese VHT Kool
I
Ice Cream
L
Liquid Milk
Frozen Paneer
AMUL
Milk Drinks Amul Kool Milk Shaake Amul Kool Amul Kool Cafe Kool Koko Nutramul Energy Drink Amul Kool Chocolate Milk Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack Amul Kool Masti Spiced Buttermilk Amul Lassee Amul Kool Thandai
Fresh Milk Amul Fresh Milk Amul Gold Milk Amul Taaza Double Toned Milk Amul Lite Slim & Trim Milk Amul Fresh Cream Amul Shakti Toned Milk Amul Calci+ Amul Buttermilk
Desserts Amul Ice Creams Amul Shrikhand Amul Mithaee Gulab Jamuns Amul Chocolates Amul Basundi Amul Yogi Yoghurt
Amul Ice-Creams
Launched on 10th March in Gujarat Entered Mumbai in 1997 First to introduce Sugar-Free & Pro-Life Probiotic Wellness Ice-Cream in India Indias no. 1 Ice-Cream Company Also runs many different types of stores Real Milk. Real Ice-Cream. Wins because of:
Price Differential Quality of Products Brand Name
Also, present widely through outlets like Kiosks, Railway stalls, Caf Amul QSR, Amul Scooping Parlours
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Weaknesses:
Scarce Mother Dairy Outlets Less Margin given to the Outlet owners to match the existing competitors
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Strengths:
Strong brand awareness Never-ending focus on fun combined with our commitment to innovation and a quality customer experience is important when you're considering investing in a business Baskin-Robbins has over 5,000 global locations in over 40 countries and we are continually opening new franchises. More than 1000 flavors of ice-cream in the library include low fat and no sugar ice-cream Provide several services for different age group Good support from the master franchisor
Weaknesses:
Not all branches offer the same products The customers might not be able to buy their favorite ice cream flavor at all branches in their area Quite expensive initial investment Some people might find it difficult to open their own Baskin-Robbins ice cream parlor
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Weaknesses:
Targeting only premium segment crowd Higher price point
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Weaknesses:
Improper delivery Improper packaging Replacement problem
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Weaknesses:
Gelato major organizational weakness is its lack of experience in niche market like India. Legal and bureaucratic obstacles can be faced during the opening of the business Introduction of Indian flavors requires to hire local manpower and they need to be trained.
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SWOT Analysis
trengths
1. Good product range include various flavors, party packs, sticks, cones etc 2. Good quality and packaging, and good advertising 3. Amul is one of the most respected top-of-the-mind brands 4. Also launched probiotic and sugarfree icecreams 5. Offers over 200 products across India
eaknesses
1. Growing competition form international and other brands means limited market share 2. Limited international presence as compared to leading global brands 3. Family pack packaging
pportunities
1. High End ice-cream to tap the higher income group also 2. Tie-up with food chains, restaurants 3. Mobile vans for better visibility
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hreats
1. Kulfi in rural markets 2. Local ice creams and sweet dishes 3. Health conscious people refraining from sweets 4. Other competitor s like Kwality Walls, Baskin Robbins, Vadilal etc
Amul, 10
Vadilal, 7 Havmor, 6
Brand Recall
Aided 33 4 24 16 8 19 24 19 Unaided 43 8
41+ yrs.
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Key Insights: The emphasis on Convenience to Buy & Freshness attributes increases towards older age groups who are the actual Decision Makers. Customization & Variety attributes catch the attention of Users & Influencers. Brand Recall is higher from Packaging & Tagline.
Experience
Customization Convenience to buy
Basis
HaagenDazs Narula Mother Dairy
100 80 60 40
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Vadilal's
Swensen 's
MacD
Naturals
Amul King's
Kwality Wall's
Differentiation
The clear differentiation would be in terms of the addition of the customized segment into the portfolio In sync with Amuls red ocean strategy matching competition at every price points
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Differentiation
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Differentiation
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Basis
Middle-heavy buyer spread will continue to grow in that direction...
Population Growth
2000 1000 0
Under 1564 15 65+ Total
2000 2005 2010 2015 2020
Consumer Segments
5% 15% 25%
5-14 15-25 26-40 41-55 56+
20%
35%
Put together, Delhi and Gujarat consume about 30% of the total ice-cream in the country. The west region leads the total national consumption with 35% mark Demand for 500 ml and one-litre packets Ice Cream Consumption By has doubled in recent years Region Though the volumes come from South 20% traditional flavours (60% block), consumers West 35% East like experimenting 15% North International flavours, including 30% different varieties of chocolate, are going to be in this season
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Segmentation
The AMUL Shopp will be distributed as per the segment done based on major hawking zone shown to the right Separate trade license and DBA to be done
Further segments are to be done based on the amount of spending on ice cream per region this information will be available through the point of sales data
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Segmentation
Major consumer segments are divided into distinct age groups as per sales data The groups 15-25 is the most price sensitive group The group between 26-55 has the greatest purchasing power among all segments
Consumer Segments
5% 15% 25%
5-14 15-25 26-40
20%
41-55 56+
35%
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Targeting
The major focus should be on the groups 26-55 as the product is aspirational in nature and most of the time an impulse buy The age group 15-25 is the most price sensitive group, hence should be excluded from the premium dairy segment of products At the same time, Mumbai being a corporate hub, presents an opportunity for bulk corporate
Consumer Segments
5% 15% 25%
5-14 15-25 26-40
20%
41-55 56+
35%
deals
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Competitive Positioning
Referring back to the perceptual map, we can identify that, Amul lacks the premium dairy image in the consumers mindshare At the same time, Amul already has a brand perception of a pure product This is a complimentary attribute in position matrix which aptly fortifies the premium image as we equate pure quality with premium The positioning for customizable premium dairy is as shown to the right
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100 N M 50
H B N
Premium Flavour Pure Variety Consistent
0 K K
S
N
M A
Brand Image
Core Proposition
Pure Milk & Quality Product Amul Milk & Distribution Network
Brand Position
Indigenous Manufacturing
Substantiator
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Product
Prolife
500ml, 80ml
Probiotic
500ml, 80ml
Sundae
125 ml
Block
500ml, 1.25l, 1.5l, 2.2l
Cups
100ml, 90ml, 40ml
Frostik
Vanilla
Vanilla
Candy
Two-inOne
Strawberry
Gourmet
Tricone
Butterscotch
Butterscotch
Butterscotch
Chocolate
Chocolate
Fundoo
Chococrun ch Kulfi
Fruit-n-Nut
Kaju
Balls
Alphonso Marvel
Alphonso
Pista 38 38
Product Suggestions
Amul should provide small pack
of milk Ice-cream
Amul should also start making wafer Ice-cream because sale of wafer Ice-cream of mother diary and nestle is very high in Mumbai region Improve the variety of ice-cream with competitive prices The custom made Gelato, gourmet, cone and sundae variants should be added to the portfolio To revamp Amul Tri-cone to compete with Cornetto
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Ice Cream MakersBenefits Total customization Revenue from selling the machines More purchase due to wastage On demand
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Service
Online / Telephone order Toll Free number Pilot customized variants Customers should be able to select Material / Waffle of the cone Base layer Middle layer Top crust & toppings Add ons such as fudge cakes, brownies or pretzels Online order tracking and time bound delivery Delivery charge would be levied above the billing amount
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Service
Sample online order tracker
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Suggested Packaging
Hamara Apna Deep Freezer has an opaque door - > Change it to transparent Inclusion of Amul Girl on the logo of Amul Ice Cream
SUGGESTED LOGO
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Pricing
Milk Raw material cost Major costs Transportation
Other costs Cocoa Dry fruits Waffle Freezers Packaging
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Sugar
Pricing
Wide range of products from low cost to premium Low cost Product Frostik Tricone (120ml) Amul Range (Rs.) 10-20 20/22 Kwality walls Range (Rs.) 20 30-40
120-180
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Range (Rs.)
Swirl (405 g)
Sugar Free (540 g)
80-100
120-140
180
Pricing
Real milk Real ice-cream
Therefore, We suggest not to alter with the current price points Issues: Current packaging of take away packs have to be improved, might raise the prices slightly Sugar price deregulation might add pressure on maintaining the same prices
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Amul Total revenue Revenue from Amul scooping parlors Revenue from retail shops
Since major portion of the revenue is obtained from the scooping parlors, as seen later, our promotion strategy would be aimed more towards these parlors and improving their serviceability
Jamnalal Bajaj Institute of Management Studies Team 1
Current Suppliers
Mumbai Supplier
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Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.
Retailers Consumers 500,000 (17.5% on MRP)
GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives. Bracket figures indicate the margins.
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GCMMF
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Distribution Features
Partners 6828 distributors in India More small time distributors being added each year Distribution through Cyber Store Almost 5000 dealers across India Tie ups with deep refrigeration chains like Carrier, HADF, Voltas etc. Network Depots to buffer entire product range inventory Cash transactions maintained throughout the supply chain JIT strategy to improve dealers ROI Route scheduling strategies and dedicated vehicle operations
Assets Retailers being provided deep freezers through HADF 300 stock keeping units 18000 strong cold chain Decentralized facilities 47 depots with cold storage facilities
Unsold/Spoilt Goods Policy Retailer bears cost if product crosses shelf life In case of transportation errors or customer complaint, Amul bears cost Unsold goods returned to manufacturer No Reverse Logistics
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Distribution Analysis
Problems: Retailer mindset that deep freezers involve high initial investment Flawed replacement strategy Supply Unavailability Problems Deep Freezer servicing errors Increase in electricity bills of retailers Cases of non-delivery within stipulated time Recommended Solutions: Regular distributor visits Put in place schemes for rewarding good retailers Increase distribution man-power Meet customer complaints on time Put in place measures to provide prompt after sales service
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Place Recommendations
Key Findings: Current Amul preferred outlets (APOs) 8000 Retail outlets - around 80000 Less presence in modern retail Traditional Presence challenged by competitors Less number of Brand Outlets Low Brand Recall Premium Facility Outlets to be opened at strategic locations Increased presence in key Modern Retail stores Creating robust distribution system by rectifying errors Recommendations: Atleast one more Contract Supplier or Manufacturer in Mumbai Expansion to places having good connectivity
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Place Expansion
Introduction of Caf Amul chains in Mumbai Amul Railway Parlors at all stations Amul Ice Cream Push Carts at major locations Tie ups with major retailers like Big Bazaar and D-Mart
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Promotions
Continue with 1+1 Free - Amul Double Supreme & Flavor of the Month schemes due to high success rate
Promotions
Shop Sign Boards & Supply Trucks Hoardings giving good visibility at low cost
Promotions
Amul Kiosks in major metro malls with special discount on
Bulk Orders
The endearing Amul girl and pun at various issues to increase brand recall, but depicting Ice-creams as well Marketing strategy competitions for B-school students
Promotions
An Ad Campaign positioning Amul as a Family Ice cream & Family Outing Experience to hit the emotional cords of the target Market Lets go out for an Amul Ice-Cream
Link twitter feed to Facebook & Use hash tags such as #amulicecreams, #goout foramulicecream & #realmilkpersonalicecreams
Fans to share videos & upload them, generate views & shares. Winners will get gift hampers, special holiday packages, special gift coupons, etc.
Facebook Log-out Ad
Promotions
Consumers face problems for navigating in modern retail stores & also for an impulse buy product, it is important to remind the customer of your presence Also, Blue casting can be used at outlets as an innovative & interactive sales promotion technique
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Visit again & Spread Smiles Thank you for your donation of Rs. 2
Every 2nd visit to the store, Rs.2 will be donated towards a Rural Education Program
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Every 5th visit, you get a free scoop of select flavours & Rs. 2 will again be donated for the Rural Education Program
200 + points per month = Star of the month & Special Incentives
Expected Support raised for Metros in form of Umbrella carts for easy accessibility, better penetration and open visibility
Desired
Unanticipated
Support for class 2 towns in form of cycle carts for easy accessibility, better penetration and cost effectiveness
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Treat people as youd like to be treated. Produce the best for less. Measure, manage and share whats important. Think big and grow. Incentivize what you want to change. Set the bar high, train, never stop learning. Promote from within. We are not ordinary, we are exceptional.
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Recommendations
Reduction in amount stocked leading to lesser damage due to prolonged pressurizing The norms for the maintenance of the fridge (between the refrigerator Companies and AMUL) must be made clear to levy off the responsibility Post the warranty period, the task can be outsourced and retailers can be encouraged with free AMC for a year or two
Train current sales force to report fridge-related issues and communicate the process for acquiring quality maintenance
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Recommendations
Empty packs/1 or 2 pieces less
Distributors argument: The packages are made as per weight prescribed and thus empty packets are Extra in number. The pieces are stolen during transit and delivery Retailers argument: Number of packets replaced with empty packets
This can be taken care by monitoring of the goods while they are being delivered
Allocating
Organizing
Monitoring
Interacting
Customer Reach
Customer Engagement
Brand Loyalty
Increased Sales
EXPECTED IMPACT - AWARENESS x BUZZ x TRIALS x ASSOCIATIONS = BRAND LOYALTY Continuous Monitoring: Target vs. Actuals through SMART Metrics Specific, Measurable, Attainable, Resources, Time
Year 1 Q3 Q4
Work on the social media plan, increase advertising spends Implement the Family Experience & Happy Ice-Cream Hours scheme Work on expansion of outlets & product lines Flourish Customization options Maintain an ATL:BTL spend ratio of 40:60
Year 2 & 3
Implement Spread-a-Smile Campaigns in the second year SOS scheme for Retailers in the second year Implement BlueCasting in the third year Try & look into new supplier avenues for reducing pressure on single supplier Maintain an ATL:BTL spend ratio of 30:70
Amount(`)
79,20,00,000 22,76,00,000 6,20,00,000 4,52,60,000 5,40,80,000
Packaging Cost
Employee cost Direct labour and Prime cost Other costs Depreciation Net income
77
3,88,00,000 77
7,72,00,000 6,45,60,000 5,89,60,000 3,38,40,000 12,97,60,000
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Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
2,20,80,000
1,91,12,000 1,26,08,000 1,71,92,000 5,72,56,000 4,21,92,000 4,12,72,000
2,36,88,000
4,81,68,000
Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
57,09,900
1,50,64,000 1,54,60,500 1,41,13,700 76,72,000 3,09,54,600
Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
79,46,400
35,89,000 42,02,000 45,51,100 1,50,64,000 1,23,22,800 1,12,49,300
76,72,000
2,03,04,600
Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
40,93,600
69,67,000 42,02,000 70,47,900 1,50,64,000 1,90,83,200 1,74,20,700
76,72,000
3,46,24,100
Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
40,93,600
35,89,000 42,02,000 40,45,400 1,50,64,000 1,09,53,600 99,99,400
76,72,000
1,74,82,200
Sales
Raw materials consumed Selling and Distribution expense Advertisement Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
3,20,67,200
2,22,20,000 2,50,18,000 2,79,31,000 6,65,43,100 6,69,85,000 5,11,77,300
3,38,40,000
12,04,83,700
Amount
1,05,70,00,000 53,34,67,900 4,40,20,000 3,12,60,000 3,02,45,000
Advertisement
Delivery Expense Packaging Cost Employee cost Direct labour and Prime cost Other costs Depreciation Net income
3,27,67,000
6,80,80,000 7,57,32,000 5,11,77,300 3,38,40,000 16,64,10,800