Amul.docx

SWOT Analysis for AMUL: Strength 1. Amul has a high brand equity and top of the mind brand recall 2. Strong network of over 3 million milk producers are associated with Amul 3. It is the world’s largest manufacturer of pouched milk 4. India’s largest food brand:Amul is trusted for its quality 5. Number of popular milk products are offered like ice cream, ghee, butter, paneer, dahi, milk, etc. 6. Products available at affordable prices 7. In India, It is a market leader in butter segment 8. Amul is responsible for white revolution in India 9. Successful advertising and marketing campaigns has enhanced the brand presence. 10. Strong network of retail outlets, stalls and parlours 11. A popular mascot in the Amul girl

Weakness

• Low market share in chocolates segment

• Strong competition from international & domestic players in the ice cream segment means limited market share

Opportunity • Introduce new products in the chocolate segment

• To tap the untapped market, increase its reach in rural markets 3.Rise in purchasing power of Indian people

Threat • Strong competition from international players like Britannia, Nestle, Mother Dairy, Local dairies. • Economic slowdown and inflation.

PEST ANALYSIS Political:  Reliance on state & district cooperatives to provide milk producers with :  Facilities and support services  Training programs  Conflict resolution  Export of Milk powder was banned in 2012

Economical:  India high GDP growth rate implies increase in per capita income of people and thus more increase in demand for food products.  Expansion plans:  Cost of implementation of system  Is system adding any significant value to the company.

 Break even for the investment

Social:  Lifestyle- fast food culture caters more demand for ice cream, cheese, etc.  Culture- Custom of morning tea, more accustomed to milk and milk products.  Demographic- growing youth population, more health consciousness and huge children population.

Technological:  Innovation in cold chain technology  Extending the reach of the network to more and more villages and towns.  Amul Dairy has adopted low carbon technology at the Amul chocolate plant at Mogar in Anand district.

MARKETING MIX 1. PRODUCT: At AMUL GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF) does the product planning at national level. It is the duty for GCMMF to plan the new product by conducting the marketing survey at the state and national level. However the issues of the product lunch at the local level are taken care of AMUL itself. The AMUL has set up the commercial department , which conduct the survey in the local areas through business. The new product decisions are also taken by AMUL. 2. PRICE: The price of product are also decided by AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products. However , the price is inclusive of several elements like , cost of milk , labor cost , processing cost , packaging cost , etc. the

GCMMF considers all these cost aspects and set up in pricing structure to decide the selling price of milk and milk products. 3. PROMOTION: AMUL promotes products through newspaper. Television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more. 4. PLACE: AMUL has developed federation and AMUL parlors located in several parts of country. The GCMMF handles the works relating to managing of stocks and distribution in country. Thus GCMMF looks after the disbursement of products to the various marketing channel.

KEY SUCCESS FACTORS CHARACTERISTICS Leadership

Strategy and Business Model of AMUL Organization

Operations and Supply Chain

Marketing

ELEMENTS Charisma, long term vision , commitment, trustworthy, selfless gain, strong managerial style, technocrat, persuasion. Farmer orientation, technology, cost leadership, product variety in later years. Network of cooperation, National Dairy Development Board, nature of professional managers. Robust logistic, effective production, implementation of start of art technology. Gujarat Cooperative Milk Marketing Fedration.

PEST ANALYSIS POLITICAL: 

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Political stability and importance of Foreign Regional Banks sector in the country's economy. Risk of military invasion Level of corruption - especially levels of regulation in Financial sector. Bureaucracy and interference in Foreign Regional Banks industry by government. Legal framework for contract enforcement Intellectual property protection Trade regulations & tariffs related to Financial

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Favored trading partners Anti-trust laws related to Foreign Regional Banks Pricing regulations – Are there any pricing regulatory mechanism for Financial Taxation - tax rates and incentives Wage legislation - minimum wage and overtime Work week regulations in Foreign Regional Banks Mandatory employee benefits Industrial safety regulations in the Financial sector. Product labeling and other requirements in Foreign Regional Banks

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Type of economic system in countries of operation – what type of economic system there is and how stable it is. Government intervention in the free market and related Financial Exchange rates & stability of host country currency. Efficiency of financial markets – Does HDFC Bank Limited needs to raise capital in local market? Infrastructure quality in Foreign Regional Banks industry Comparative advantages of host country and Financial sector in the particular country. Skill level of workforce in Foreign Regional Banks industry. Education level in the economy Labor costs and productivity in the economy Business cycle stage (e.g. prosperity, recession, recovery) Economic growth rate

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Discretionary income Unemployment rate Inflation rate Interest rates

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Demographics and skill level of the population Class structure, hierarchy and power structure in the society. Education level as well as education standard in the HDFC Bank Limited ’s industry Culture (gender roles, social conventions etc.) Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship while some don’t. Attitudes (health, environmental consciousness, etc.) Leisure interests

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Recent technological developments by HDFC Bank Limited competitors Technology's impact on product offering Impact on cost structure in Foreign Regional Banks industry Impact on value chain structure in Financial sector Rate of technological diffusion.

SWOT analysis of HDFC

Strengths 

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HDFC bank is the second largest private banking sector in India having 2,201 branches and 7,110 ATM’s HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customers through Telephone banking The bank’s ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be the most preferred card for shopping and online transactions HDFC bank has the high degree of customer satisfaction when compared to other private banks The attrition rate in HDFC is low and it is one of the best places to work in private banking sector HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia country awards etc HDFC has good financial advisors in terms of guiding customers towards right investments

Weaknesses: 

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HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct competitor is expanding in rural market HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in terms of banking services. HDFC lacks in aggressive marketing strategies like ICICI The bank focuses mostly on high end clients Some of the bank’s product categories lack in performance and doesn’t have reach in the market

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The share prices of HDFC are often fluctuating causing uncertainty for the investors

Opportunities 

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HDFC bank has better asset quality parameters over government banks, hence the profit growth is likely to increase The companies in large and SME are growing at very fast pace. HDFC has good reputation in terms of maintaining corporate salary accounts HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are high when compared to government banks HDFC has very good opportunities in abroad Greater scope for acquisitions and strategic alliances due to strong financial position

Threats: 

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HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight variation it’s not a good sign for the financial health of the bank The non banking financial companies and new age banks are increasing in India The HDFC is not able to expand its market share as ICICI imposes major threat The government banks are trying to modernize to compete with private banks RBI has opened up to 74% for foreign banks to invest in Indian market.

4 P’s

Product in the marketing mix of HDFC

HDFC offers mainly banking services, but there are many financial products which it offers along with banking. HDFC ergo, HDFC life and HDFC home loans are some of the products. In total, the financial product portfolio of HDFC is huge. The USP of HDFC is that it designs competitive products which guarantees great response from the market and an almost unlimited longevity for business life. In terms of a banking, its product are its services, like netbanking and ATM, and being a major bank, HDFC has planned its products in proportion with the ever increasing customer’s needs, demands and expectations. Apart from offering accounts, it has carried forward its namesake of being a housing finance corporation, and offers large variety of loans for purchasing houses, construction, re-construction, buying housing land, apartments etc. with maximum loan cover of up to 85%, and maximum repayment period of up to 20 years which is a major propulsion factor for it as a bank. Being into the services business, the major support for the product lies in its distribution. Thus, after the product, the place and distribution of HDFC bank services is most important for the success of HDFC. Place in the marketing mix of HDFC The bank has an amazing 3488 branches in 2231 cities across the world. It is headquartered in Mumbai, India. HDFC bank has 11,426 ATM’s across India. Furthermore, the banks services are delivered not only through ATMs or branches, but also through an excellent netbanking service, phone banking, mobile banking and SMS banking. HDFC ensures that it has a presence so that it can concentrate on its huge commercial clientele along with being present for its retail clients. Banking is an intricate function as it includes certain confidential and security invoking processes that are to be carried on a regular basis, and they are done with minimal margin of errors, that cannot function in an unsafe environment. To make sure that all the daily confidential

processes are duly met, placing these facilities becomes a very thoughtful function in itself, and HDFC has overcome these challenges by placing its operational premises at some of the most easily accessible locations across cities and towns, that are made available to its large number of account holders at strategically planned branches. Price in the marketing mix of HDFC HDFC is known to hold major market share in the banking sector of India, and this is because of reasonable yet profit invoking price structure for its services, which is justified to an extent, as every corporation has to sustain inflation and overcome market hurdles. HDFC bank has premium competitive pricing. When compared with national and PSU bank, the pricing is premium, because the minimum amount required to open an account is high. But at the same time, there are many rules, like home load interest, which are as per RBI guidelines and are competitive in nature. Thus, prices for these products are in control by the market and not by the corporation. It provides reasonable loans at maximum repayment tenure and at par interest rates to both old and new customers. Apart from regular charges, it does not charge anything for miscellaneous and associated functions such as cheque replacement, advance loan repayment, take over etc. that justifies a lot. Thus, in some places HDFC is premium priced, whereas in others it is evenly priced as per competition. Promotion in the marketing mix of HDFC From the very beginning, HDFC has planned and executed its promotional activities in a manner that has suited its service catalogue, and has maintained a 360 degree approach in planning its commercials, campaigns and marketing activities in general. These promotional activities include variety of subtle television commercials with a message, a recent and innovative method of promotion by placing signboards and milestones in the

rural portions of country in local/native language, and placing “No Parking” boards outside residential and commercial buildings, that has promoted its connection with the masses and making prospective client base associated with the name i.e. HDFC. HDFC uses undifferentiated marketing techniques, it mainly focuses on introducing its financial products to everyone. Because banking in general, is a mass market product. However, for the HNI customers, well trained relationship managers, wealth managers are used to retain the HNI clients with HDFC. Thus, this service too is a promotional product for HDFC. At the end, the promotions are focused on one thing only – to spread the name of HDFC far and wide. Key success factors  HDFC bank is the second largest private banking sector in India having 2,201 branches and 7,110 ATM’s  HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customers through Telephone banking  The bank’s ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be the most preferred card for shopping and online transactions  HDFC bank has the high degree of customer satisfaction when compared to other private banks  The attrition rate in HDFC is low and it is one of the best places to work in private banking sector  HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia country awards etc

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HDFC has good financial advisors in terms of guiding customers towards right investments