India's Amul: Keeping up with the Times Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Amul is an Indian dairy cooperative founded in 1947, eight months before India's independence from British rule, and owned by over three million farmers in the state of Gujarat. It is the market leader in almost all the groups that it manages in, and is India's biggest food product advertising organization, selling 46 products, including pouched milk, cheese, butter, ice cream and infant food through a million retailers across the nation. Amul is well known among Indian consumers for offering high-quality products at affordable prices, and runs a highly popular advertising campaign that spoofs current events. Amul's cooperative dairy farm model was repeated across several Indian states, thereby helping increase the incomes of 80-100 million farmer families across the nation. Yet, in spite of its success, Amul is beginning to come under increasing pressure. Their presence is increasing in India, and competing fiercely with Amul in value added products like yogurt.

The entry of big multi-brand retailers like Carrefour and Walmart in the Indian market threatens to squeeze Amul's gross profits and sabotage its low cost distribution network. The large youthful inhabitants that is rural in India is shying away from dairy farming in favor of urban jobs, leaving questions about future procurement. Finally, the farmers of Amul form a big vote bank in the state of Gujarat, and its particular cooperative construction dangers being undermined by vested political interests. Should Amul continue together with the business model which has served it so well for decades, or should it alter its strategy to be able to steadfastly keep up with the changing economic, political and social landscape in India?

PUBLICATION DATE: October 25, 2013 PRODUCT #: 514067-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING