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BCG Matrix of Amul - Final
BCG Matrix of Amul - Final
Enrollment No.
Kushal Kantawala Priyanka Zope Mithila Bhargaw Raju Singh Sailesh Nagari Sumit Chawla Rishabh Jain
Submitted to :- Prof. Arun Prasad
History of Amul
Amul (Anand Milk Union Limited), formed in 1946, is a
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.
MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s.
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
MARKET SHARE
LOW
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
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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.
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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)
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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.
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DOGS
Low growth, Low market share
Amul Pizza 5% market share situated at a
declining stage.
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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 - Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
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Product for the urban class - Amul launched emmental, gouda and pizza mozzarella cheese
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Market share
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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 companys future growth and profitability.
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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.
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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 .
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