Topic : - BCG MATRIX OF

NAME OF THE STUDENT Kushal Kantawala 10BSP1251 Priyanka Zope 10BSP0923 Enrollment No. Kushal Kantawala 10BSP1251 Priyanka Zope 10BSP0923 Mithila Bhargaw 10BSP1248 Raju Singh 10BSP0926 Sailesh Nagari 10BSP0935 Sumit Chawla 10BSP0957 Rishabh Jain 10BSP0930 Submitted to :- Prof. Arun Prasad

History of Amul Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). 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.

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.

BCG MATRIX High BUSINESS GROWTH RATE Low HIGH LOW MARKET SHARE

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.

STARS High growth, High market share Amul Butter – 86% market share Amul Lite – 80% market share Amul Instant Full Cream Milk Powder- 80% market share Amul Milk – 75% market share Ice Creams -37% market share (HUL-9%, Mother dairy and vadilal -7%)uld be made to hold the market share otherwise the star will become a CASH COW.

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.

CASH COWS Low growth , High market share Amul Spray – 65% market sharear Sagar Tea Coffee Whitener – 40% market share Processed Cheese -50% market shareocated in an industry that is mature, not growing or declining.

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.

QUESTION MARKS High growth , Low market share NUTRAMUL – 15% market share (Competitors- Bournvita, Horlicks, complan, boost) Amul Chocolates – 10% market share (Competitors – Cadbury – 70% market share, Nestle)

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.

DOGS Low growth, Low market share Amul Pizza – 5% market share situated at a declining stage.

Product Mix of Amul

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

Mix… Product for every one Product for the health conscious - Amul Launched “low fat, low cholesterol bread spreads” Product for the price sensitive India - Low Priced Amul Ice Creams and affordable ‘sagar’ whitener Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese

Amul – Product Portfolio Category Market Share Market Position Chocolate Drink 90% 1 Butter, Ghee 85% Cheese 50% Sweets Milk Powder 40% Ice-cream 37% 2 Chocolate 10% 3

Amul – Product Portfolio in Graph Market share

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.

LIMITATIONS… 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.

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 .