amul’s distribution channel

PRATEEK JAIN

DEEPAK SAH

ANUSUYA R.

SOWJANYA KUMARI

DEEPENDER KAUR

SANJAY RATHORE

ASHISH K. GAUTAM

AMUL’s Distribution Channel

Agenda

AMUL’s Profile Distribution Network Market Logistics and Transportation Profit Structure for channel members Credit policy and pricing strategy Facts we gathered Channel integration Suggestions and recommendations

About AMUL

• AMUL was formed in 1946• AMUL is managed by an apex cooperative

organization• Today it’s jointly owned by some 2.6 million milk

producers in Gujarat, India.• Amul is the largest food brand in India and world's

Largest Pouched Milk Brand with an annual turnover of 8,005 cr (09-10)

Distribution Network

Channel members

Selection of channel members

Flow chart which shows upstream and downstream

flow

Channel analysis

Channel members

Type : Intensive, Multichannel, Hybrid ChannelChannel Members:-

Agents, Distributors/Wholesaler and retailers Amul Parlours Exclusive Amul Outlets Internet ( Amul Cyber stores)

Selection Of Channel Members

Authentication by way of identityProof of solvency-details of the bankersSafety of inventory by getting the company stock

insuredProper storage space in forms of refrigeratorsThe company requires the dealers to furnish any

Advertising & Sales initiative undertaken by them on behalf of the company

Channel Analysis

Positives:- Lot Size Waiting and Delivery time. Spatial Convenience Product Variety

Negatives:- Less Margin No Credit

Profit Structure for channel members

Distributor

Wholesaler

Retailer

Credit policy and pricing strategy

Market Logistics and Transportation

Transportation Of Milk

Amul factory Anand--Palwal Godown--GGN distributors/Delhi distributors--retailers

Transportation vehicles are either distributor owned or outsourced.

Company Pays Rs 4.50/- to Rs4.80/-/crate i.e 12liters,to distributors with 350-800 crates per truck.

Distributor collects from company godown /godown till retailer.

Delay in transportation or any damages all beard by distributor

Transportation Of Ice Cream

Two territory(for GGN.)

1. NH8 right

2. NH8 leftThrough R.P Traders and Haryana TradersAll the transportation expenses are beared by the

company Either the refrigerator trucks are comp. owned or

distributor owned on behalf of comp..As No risk of delay and damage is assured as Mother

Dairy and HUL Kwality walls are tough competitorsNewly opened ice cream plant at Manesar reduced the

transportation cost as well as risk associated.

Facts we gathered

Channel Integration

Suggestions and recommendations

• Amul should go in for exclusive outlets in at least all the shopping malls coming up these. 

Pushcarts should be increased in number in order to increase the market reach.

In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items