PMK Amul Group3 6
PMK Amul Group3 6
Another of Amul’s large competitors, especially in the North Indian market, is Mother Dairy. It
was set up by the National Dairy Development Board in 1974 and has a comprehensive
distribution strategy through milk booths set up throughout cities in the Delhi region. They have
further garnered goodwill by giving preference to stores set up by ex-servicemen and war
veteran’s families. The company has a variety of milk varieties, including:
People in India still believe that milk from local Dairy operators is fresh and purer than the one
in polybags from the market. Thus, it gives local Dairy operators an excellent opportunity to serve
people in their range. A graph of milk from different milk suppliers is given below for Mumbai
city, which shows that though Amul is a very big brand, local Dairy operators still have a fair
share in the market. This share increases when we consider small towns and villages.
Principles of Marketing Group 3 BM-D
BARGAINING
COMPETITIVE
POWER OF
RIVALRY
SUPPLIER
BARGAINING
POWER OF
BUYER
THREAT OF THREAT OF
NEW ENTRY SUBSTITUTION
1) The threat from new entry While buyers have a 1) There are a wide range of
is low for Amul Milk variety of choices when it substitutes available in the
2) New entrants will require a comes to milk which will market for milk like Aerated
huge capital for setting up make switching of brands drinks, Fruit based drinks etc.
the factory and need to set easy, the market is huge 2) Milk is deep rooted in
up a robust distribution which reduces the power Indian culture and it is very
channel which is a difficult of a buyer and thus the rare for a family to not
task bargaining power of buyer consume milk on a daily
3) Amul enjoys high level of is moderate basis
brand loyalty and brand 3) Hence the threat of
preference from customers substitutes is low to moderate