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Distribution Channel of AMUL

GCMMF is the exclusive marketing organization for milk and milk products under the Amul brand name. It was founded in 1946 as the Anand Milk Federation Union and helps spur India's White Revolution. GCMMF operates on a cooperative model that returns 80-20 profits to milk producers and consumers. It has a 3-tier structure that moves milk from villages to district unions to state federations and then to consumers, removing middlemen. One of GCMMF's dealers, Laxmi Enterprise, services the Sashtrinagar area of Ahmedabad through retail shops and institutional buyers using a mobile app to take orders. However, the summary also notes some negatives like low retailer margins, lack of special incentives, and issues

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317 views13 pages

Distribution Channel of AMUL

GCMMF is the exclusive marketing organization for milk and milk products under the Amul brand name. It was founded in 1946 as the Anand Milk Federation Union and helps spur India's White Revolution. GCMMF operates on a cooperative model that returns 80-20 profits to milk producers and consumers. It has a 3-tier structure that moves milk from villages to district unions to state federations and then to consumers, removing middlemen. One of GCMMF's dealers, Laxmi Enterprise, services the Sashtrinagar area of Ahmedabad through retail shops and institutional buyers using a mobile app to take orders. However, the summary also notes some negatives like low retailer margins, lack of special incentives, and issues

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Distribution channel of AMUL

GCMMF
Anand Milk Federation Union Limited founded
in 1946 and later renamed as Gujarat
Cooperative Milk Marketing Federation Ltd
Exclusive marketing organization for Milk and
Milk products under brand name of Amul and
Sagar.
Amul spurred India's White Revolution.

GCMMF Ideology
Cooperative organization working for the
welfare of masses.
80 -20 profit sharing model.
Best quality products at reasonable prices.
Removes the middle men between milk
producers and consumers,
Provide highest value through excellent
operational efficiencies.
GCMMF Structure
Inbound
Outbound
3 tier - INBOUND
District milk Co-
operative union

Milk Producer
Village Dairy Co-
operative
2 Tier - Outbound
State co-operative
milk marketing
Federation
Consumers
Distribution
Channel
Distribution Channel Matrix
Products /Outlets Perishable Long shelf life
Below freezing
Point
Retail shops
Institutional buyers
Exclusive stores
Laxmi Enterprise
Catered to Sashtri nagar area of Ahmedabad
West.
Owned and ran by Hemangini.
Dealer of Long shelf life dairy products.
Supplied to retailers and APOS.
Used Mobile app for order booking.
Sashtrinagar area
A majority of middle class locality.
Low to moderate in education.
Densely residential area.
Buying pattern mostly traditional milk
products
Observations - Positives
Very strong brand loyalty in some of the pockets.
Wide product portfolio in comparison to other
competitors.
A strong backward flow of information.
A strong umbrella Branding encompassing all the
products.
Strong distribution reach.
An agile channel for inventory management with an IT
backbone.
Inventory diversion in case of expiry approaching
powered by wide reach.
Observations - Negatives
GCMMF ideology not conveyed.
Low budget spent for local advertisements.
Shops selling AMUL products, were having big
shine boards of competitor brands.
Margin low at 8% on average to retailer.
Few or no special incentives to retailers for
bulk buying or so.
No incentive to dealers on basis of sell.

Observations - Negatives
Supply of certain very popular product not
there. (E.g. 500 gm ghee pouches).
Fast change in packaging of certain
products(Lassi).
Push of products is very weak.(new shrikhand
with mango pieces)
Certain products ill segmented (Amul Moti).
Observations - Negatives
Pricing of certain products very odd in number
(Chassh @ 12 so consumers not giving 2 rs
change and some retailers stopped it.)
Return of certain products was not present.

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