Competitive Priorities of Amul Essay Example

practices in manufacturing strategy by incorporating state-of-the-art technology, robust supply chain management, effective quality management, and best labor practices. These strategies have helped Amul become the market leader in its segment and keep competition at bay.

Amul's ability to maintain its market leader status and effectively manage competition is rooted in its market analysis and strategic positioning of products. A key factor contributing to this success is Amul's cost management approach. As an organization owned by milk producers themselves, Amul has a vast network of milk farmers that ensures a consistent supply of milk. Consequently, Amul does not need to rely on external suppliers but instead manages its own supply chain for necessary resources. This enables the company to benefit from economies of scale by purchasing inputs in large quantities at lower costs. By passing these savings onto consumers, Amul can offer its products at more affordable prices compared to competitors. Therefore, the pricing strategy employed by Amul plays a crucial role in driving the overall success of the company.

Amul products cater to a diverse range of consumers, including those in different size and market segments. This includes options for slum dwellers as well as high-class chefs managing 5-star hotel kitchens. For instance, they offer a low-cost butter that can be purchased in either an 8 grams pack or in cases of 30 packs, where each pack weighs 500 grams. The various packaging choices have led to different pricing structures. Overall, the availability and affordability of Amul products have given the brand a substantial competitive edge.

2) Amul products are known for their combination of affordable prices and high quality. They implement world standard methods such as

Total Quality Management throughout their operations. From the supply side, they utilize practices like Kaizen to maintain the quality of the milk in terms of acidity and sourness. Their processing procedures meet the AGMARK standard and BIS Specifications No. IS:13690:1992, which serves as evidence of their commitment to quality control.

All these proactive initiatives provide a strong foundation for Amul to pursue their marketing policies. They have over 47 Sales Offices and a network of 5000 dealers and 10 lakh retailers, making it one of the largest networks in India. With efficient supply chain management, Amul's products are always readily available in the market. They also secure prominent placement in retail shops and malls, ensuring high visibility. Amul utilizes modern production facilities and technology to implement time-reduction techniques. Their supply chain is extensive and well-connected.

Amul has achieved a leading position in its industry by reducing hold time in warehouses and ensuring quick delivery to consumers. The supply chain management encompasses both sourcing inputs and distributing outputs. Amul's flexibility is evident in its strategy of mass customization, providing products of different sizes and prices to cater to all market segments. Responding to the growing health consciousness, Amul introduced new products like Amul Lite, a low-fat butter, and Amul Delicious, a no-cholesterol table margarine as a substitute for butter.

Amul products have a broader reach among the health-conscious target group. They serve various purposes and offer value additions. For instance, Amul Butter can be spread, used as a topping, included as an ingredient in biscuits, cakes, breads, or used as a cooking medium for numerous delicious recipes.

AMUL Butter serves a wide range of customers, including both slum dwellers and

chefs in 5-star hotels. It is known for its excellent quality and continuous advancements in manufacturing, storage, and packaging. Amul employs cutting-edge technology and machinery instead of traditional methods to deliver top-notch products that are reasonably priced. Ultimately, Amul's competitive edge stems from its capability to incorporate various competitive priorities.

Amul has become the leading player in India's milk products industry, capturing a dominant 86% market share and leaving its nearest competitor with a challenging job to catch up.