Description
bcg matrix
1
UNIVERSITY OF MUMBAI’S ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES
2
SYBMS SEM II
NAME OF THE STUDENT ROLL NOS AHSAN KHAN AJAY DHUTAWALE 45 11
SIGNATURES
ARUN IYER
ANAS KHAN VIKAS GUPTA
28
48 25
VIVEK KAMBLE
39
3
Submitted to :- Prof. Anita Boabade Mam
Topic : -
4
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my Prof. Anita Bobade Mam as well as our Director who gave us golden opportunity to do this wonderful project on the topic “BCG Matrix of AMUL”. While studying this project I gained lot of knowledge and information. Secondly I would also like to thank my Parents and Friends who helped me a lot in finishing this project within the limited time. I have made this project not only for marks but to also increase my knowledge.
5
Contents
? What is BCG Matrix? ? The BCG growth- share matrix ? STARS ? CASH COWS ? DOGS ? QUESTION MARKS ? History of Amul ? Reasons for Success ? GCMMF – Over View ? Facts ? Amul - Business Model ? SWOT Analysis ? Customer Based Market Segmentation ? Industry Based Market Segmentation
6
Contd…….
? Advertisements ? Mix… Product for every one
? Product Mix of Amul
? Amul - Product Diversification ? The 3 C’s…
? Amul – BCG Matrix
? Amul – Product Portfolio ? What more can Amul do? ? Benefits ? Limitations ? Conclusion ? Bibliography
7
What Is BCG Matrix?
? BOSTON CONSULTING GROUP (BCG)
MATRIX is developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.
? According to this technique, businesses or
products are classified as low or high performers depending upon their market growth rate and relative market share.
8
9
THE BCG GROWTH-SHARE MATRIX
? It is a portfolio planning model which is based on
? ? ? ?
the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs
? It is based on the combination of market growth and
market share relative to the next best competitor.
10
STARS
High growth, High market share
? Stars are leaders in business.
? They also require heavy investment, to
maintain its large market share. ? It leads to large amount of cash consumption and cash generation. ? Attempts should be made to hold the market share otherwise the star will become a CASH COW.
11
CASH COWS
Low growth , High market share
? They are foundation of the company and often
the stars of yesterday. ? They generate more cash than required. ? They extract the profits by investing as little cash as possible ? They are located in an industry that is mature, not growing or declining.
12
DOGS
Low growth, Low market share
? Dogs are the cash traps. ? Dogs do not have potential to bring in much
cash.
? Number of dogs in the company should be
minimized.
? Business is situated at a declining stage.
13
QUESTION MARKS
High growth , Low market share
? Most businesses start of as question marks.
? They will absorb great amounts of cash if the
market share remains unchanged, (low). ? Why question marks? ? Question marks have potential to become star and eventually cash cow but can also become a dog. ? Investments should be high for question marks.
14
History of Amul
? Amul (Anand Milk Union Limited), formed in 1946,
is a dairy cooperative movement in India.
Marketing Federation Ltd. (GCMMF).
? It is managed by Gujarat Co-operative Milk
? AMUL is based in Anand, 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.
It is also the world's biggest vegetarian cheese brand.
15
Success!!
16
Robust Supply Chain
? The vast and complex supply chain ? Hierarchical network of cooperatives ? Stretches from small suppliers to large
fragmented markets
17
Low Cost Strategy
? Amul adopted a low-cost price strategy to
make its products.
? Affordable and attractive to consumers by
guaranteeing them value for money.
18
Diverse Product Mix
? Amul Butter,
? Milk Powder,
? Ghee, ? Amulspray, ? Cheese, ? Chocolates, ? Shrikhand, ? Ice cream, ? Nutramul, ? Milk and Amulya
19
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.
20
Technology and e-initiatives
? New products ? Process technology ? Complementary assets to enhance milk
production
? E-commerce.
21
GCMMF – Over View
? GCMMF: Gujarat Cooperative Milk Marketing
Federation
? GCMMF is India's largest food products marketing
organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
? CRISIL, India's leading Ratings, Research, Risk
and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
22
Facts
Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 200809): Milk collection (Daily Average 2008-09): Milk Drying Capacity: 13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million litres per day 3.05 billion litres 8.4 million litres 626 Mts. per day
Cattle feed manufacturing Capacity:
3500 Mts. per day
23
Amul - Business Model
RAW MILK
pasteurization
Condensed
Packaged Milk Ice cream Beverages
Ghee Butter Cream
Dried Skimmed Milk Powder
24
SWOT Analysis
25
26
Strengths
• Largest food brand in India
• High Quality, Low Price
• World's Largest Pouched Milk Brand • Annual turnover of US $1504 million • Highly Diverse Product Mix • Robust Distribution Network
27
28
• Risks of highly complex supply
chain system
• Strong dependency on weak
infrastructure
• Alliance with third parties who do
not belong to the organized sector
29
30
Opportunities…….!
• Penetrate international
markets
• Diversify product portfolio to
enter new product categories
• and expand existing categories
like processed foods, chocolates etc
31
32
Threats…!
• Competitors - Hindustan Lever, Nestle
and Britannia
• Still competition from MNCs in butter • Growing price of milk and milk products • Ban on export of milk powder
33
Kids
Women
Youth
Calorie Conscious
Health Conscious
34
Kids
I. Amul Kool II. Chocolate Milk III.Nutramul Energy Drink
IV.Amul Kool
V. Millk Shaake
35
Womens
?Amul Calci
36
Youth
I. UtterlyDelicious Pizza II. Amul Emmental Cheese III.Amul Cheese Spreads
37
Health Conscious
I.Nutramul II.Amul Shakti Health Food Drink
38
Calorie Conscious
I.Amul Lite
II.Sagar Skimmed Milk Powder III.Amul Lite Slim and Trim Milk
39
40
Ice-cream Manufacturers
Restaurant/Food Chains
Milk
Coffee Shop Chains
Temples
41
Butter/Cheese/Ghee
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
42
Advertisements
? AMUL is well known for its innovative hoardings. Find below a
few:
43
Advertisements
44
Product Mix of Amul
45
Mix… Product for every one
?
Amul never forgot its “primary customer” - Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth - Amul launched Chocolate milk under brand name of „Amul Kool Koko? targeting the youth
?
?
Product for diabetic people - India?s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
46
Mix… Product for every one
? Product for the health
conscious
-
Amul Launched “low fat, low cholesterol bread spreads”
? Product for the price
affordable „sagar? whitener
sensitive India - Low Priced Amul Ice Creams and
? Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese
47
Amul - Product Diversification
Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products Secret Philosophy ? Progressive addition of higher value products while maintaining the desired growth in existing products. ? Amul introduced products with consistent value addition but never left the core philosophy of “providing milk at a basic, affordable price”
48
BCG MATRIX
High
BUSINESS GROWTH RATE
Low
HIGH
LOW
MARKET SHARE
The 3 C’s…
•Defending against Mahananda, Vijay, Milma & other co-operative milk brands •Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality
Competitor
•Customers extremely satisfied •Moved from loose milk to •packaged milk •Ready to try more products •Improved socio-economic conditions Customer
Company
•Largest milk brand in Asia •More than 30 dairy brands •Market leader in ghee & butter •Very strong supply chain •Enjoys Fine reputation •Quality with Affordability
Amul – Product Portfolio
Category Chocolate Drink Butter, Ghee Cheese Sweets Milk Powder Ice-cream Chocolate Market Share 90% 85% 50% 50% 40% 24.75% 10% Market Position 1 1 1 1 1 2 3
51
Amul – Product Portfolio in Graph
Market share
52
What more can Amul do?
To improve further Amul can try out the following ideas: I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products, II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. 53
54
BENEFITS
?BCG MATRIX is simple and easy to understand. ?It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. ?It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability.
55
What to do ?
56
?BCG MATRIX uses only two dimensions, “Relative Market” share and “Market Growth rate”. ?Problems of getting data on market share and market growth. ?High market share does not mean profits all the time. ?Business with low market share can be profitable too.
57
CONCLUSION
? Amul one of the fastest growing industries of
India. This industry 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 .
58
? www.amul.com ? www.wikipedia.com ? www.scribd.com ? www.google.com
59
60
doc_118684697.ppt
bcg matrix
1
UNIVERSITY OF MUMBAI’S ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES
2
SYBMS SEM II
NAME OF THE STUDENT ROLL NOS AHSAN KHAN AJAY DHUTAWALE 45 11
SIGNATURES
ARUN IYER
ANAS KHAN VIKAS GUPTA
28
48 25
VIVEK KAMBLE
39
3
Submitted to :- Prof. Anita Boabade Mam
Topic : -
4
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my Prof. Anita Bobade Mam as well as our Director who gave us golden opportunity to do this wonderful project on the topic “BCG Matrix of AMUL”. While studying this project I gained lot of knowledge and information. Secondly I would also like to thank my Parents and Friends who helped me a lot in finishing this project within the limited time. I have made this project not only for marks but to also increase my knowledge.
5
Contents
? What is BCG Matrix? ? The BCG growth- share matrix ? STARS ? CASH COWS ? DOGS ? QUESTION MARKS ? History of Amul ? Reasons for Success ? GCMMF – Over View ? Facts ? Amul - Business Model ? SWOT Analysis ? Customer Based Market Segmentation ? Industry Based Market Segmentation
6
Contd…….
? Advertisements ? Mix… Product for every one
? Product Mix of Amul
? Amul - Product Diversification ? The 3 C’s…
? Amul – BCG Matrix
? Amul – Product Portfolio ? What more can Amul do? ? Benefits ? Limitations ? Conclusion ? Bibliography
7
What Is BCG Matrix?
? BOSTON CONSULTING GROUP (BCG)
MATRIX is developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.
? According to this technique, businesses or
products are classified as low or high performers depending upon their market growth rate and relative market share.
8
9
THE BCG GROWTH-SHARE MATRIX
? It is a portfolio planning model which is based on
? ? ? ?
the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs
? It is based on the combination of market growth and
market share relative to the next best competitor.
10
STARS
High growth, High market share
? Stars are leaders in business.
? They also require heavy investment, to
maintain its large market share. ? It leads to large amount of cash consumption and cash generation. ? Attempts should be made to hold the market share otherwise the star will become a CASH COW.
11
CASH COWS
Low growth , High market share
? They are foundation of the company and often
the stars of yesterday. ? They generate more cash than required. ? They extract the profits by investing as little cash as possible ? They are located in an industry that is mature, not growing or declining.
12
DOGS
Low growth, Low market share
? Dogs are the cash traps. ? Dogs do not have potential to bring in much
cash.
? Number of dogs in the company should be
minimized.
? Business is situated at a declining stage.
13
QUESTION MARKS
High growth , Low market share
? Most businesses start of as question marks.
? They will absorb great amounts of cash if the
market share remains unchanged, (low). ? Why question marks? ? Question marks have potential to become star and eventually cash cow but can also become a dog. ? Investments should be high for question marks.
14
History of Amul
? Amul (Anand Milk Union Limited), formed in 1946,
is a dairy cooperative movement in India.
Marketing Federation Ltd. (GCMMF).
? It is managed by Gujarat Co-operative Milk
? AMUL is based in Anand, 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.
It is also the world's biggest vegetarian cheese brand.
15
Success!!
16
Robust Supply Chain
? The vast and complex supply chain ? Hierarchical network of cooperatives ? Stretches from small suppliers to large
fragmented markets
17
Low Cost Strategy
? Amul adopted a low-cost price strategy to
make its products.
? Affordable and attractive to consumers by
guaranteeing them value for money.
18
Diverse Product Mix
? Amul Butter,
? Milk Powder,
? Ghee, ? Amulspray, ? Cheese, ? Chocolates, ? Shrikhand, ? Ice cream, ? Nutramul, ? Milk and Amulya
19
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.
20
Technology and e-initiatives
? New products ? Process technology ? Complementary assets to enhance milk
production
? E-commerce.
21
GCMMF – Over View
? GCMMF: Gujarat Cooperative Milk Marketing
Federation
? GCMMF is India's largest food products marketing
organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
? CRISIL, India's leading Ratings, Research, Risk
and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
22
Facts
Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 200809): Milk collection (Daily Average 2008-09): Milk Drying Capacity: 13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million litres per day 3.05 billion litres 8.4 million litres 626 Mts. per day
Cattle feed manufacturing Capacity:
3500 Mts. per day
23
Amul - Business Model
RAW MILK
pasteurization
Condensed
Packaged Milk Ice cream Beverages
Ghee Butter Cream
Dried Skimmed Milk Powder
24
SWOT Analysis
25
26
Strengths
• Largest food brand in India
• High Quality, Low Price
• World's Largest Pouched Milk Brand • Annual turnover of US $1504 million • Highly Diverse Product Mix • Robust Distribution Network
27
28
• Risks of highly complex supply
chain system
• Strong dependency on weak
infrastructure
• Alliance with third parties who do
not belong to the organized sector
29
30
Opportunities…….!
• Penetrate international
markets
• Diversify product portfolio to
enter new product categories
• and expand existing categories
like processed foods, chocolates etc
31
32
Threats…!
• Competitors - Hindustan Lever, Nestle
and Britannia
• Still competition from MNCs in butter • Growing price of milk and milk products • Ban on export of milk powder
33
Kids
Women
Youth
Calorie Conscious
Health Conscious
34
Kids
I. Amul Kool II. Chocolate Milk III.Nutramul Energy Drink
IV.Amul Kool
V. Millk Shaake
35
Womens
?Amul Calci
36
Youth
I. UtterlyDelicious Pizza II. Amul Emmental Cheese III.Amul Cheese Spreads
37
Health Conscious
I.Nutramul II.Amul Shakti Health Food Drink
38
Calorie Conscious
I.Amul Lite
II.Sagar Skimmed Milk Powder III.Amul Lite Slim and Trim Milk
39
40
Ice-cream Manufacturers
Restaurant/Food Chains
Milk
Coffee Shop Chains
Temples
41
Butter/Cheese/Ghee
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
42
Advertisements
? AMUL is well known for its innovative hoardings. Find below a
few:
43
Advertisements
44
Product Mix of Amul
45
Mix… Product for every one
?
Amul never forgot its “primary customer” - Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth - Amul launched Chocolate milk under brand name of „Amul Kool Koko? targeting the youth
?
?
Product for diabetic people - India?s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
46
Mix… Product for every one
? Product for the health
conscious
-
Amul Launched “low fat, low cholesterol bread spreads”
? Product for the price
affordable „sagar? whitener
sensitive India - Low Priced Amul Ice Creams and
? Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese
47
Amul - Product Diversification
Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products Secret Philosophy ? Progressive addition of higher value products while maintaining the desired growth in existing products. ? Amul introduced products with consistent value addition but never left the core philosophy of “providing milk at a basic, affordable price”
48
BCG MATRIX
High
BUSINESS GROWTH RATE
Low
HIGH
LOW
MARKET SHARE
The 3 C’s…
•Defending against Mahananda, Vijay, Milma & other co-operative milk brands •Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality
Competitor
•Customers extremely satisfied •Moved from loose milk to •packaged milk •Ready to try more products •Improved socio-economic conditions Customer
Company
•Largest milk brand in Asia •More than 30 dairy brands •Market leader in ghee & butter •Very strong supply chain •Enjoys Fine reputation •Quality with Affordability
Amul – Product Portfolio
Category Chocolate Drink Butter, Ghee Cheese Sweets Milk Powder Ice-cream Chocolate Market Share 90% 85% 50% 50% 40% 24.75% 10% Market Position 1 1 1 1 1 2 3
51
Amul – Product Portfolio in Graph
Market share
52
What more can Amul do?
To improve further Amul can try out the following ideas: I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products, II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. 53
54
BENEFITS
?BCG MATRIX is simple and easy to understand. ?It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. ?It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability.
55
What to do ?
56
?BCG MATRIX uses only two dimensions, “Relative Market” share and “Market Growth rate”. ?Problems of getting data on market share and market growth. ?High market share does not mean profits all the time. ?Business with low market share can be profitable too.
57
CONCLUSION
? Amul one of the fastest growing industries of
India. This industry 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 .
58
? www.amul.com ? www.wikipedia.com ? www.scribd.com ? www.google.com
59
60
doc_118684697.ppt