Swot Analysis: SWOT Analysis Of Amul

4.4. SWOT analysis for Amul
1. Strength

a. Reputed brand
b. Reasonable price
c. High quality
d. Capacity to supply large quantity of fresh products
e. Good capacity for supplying fresh products

2. Weakness

a. Low margin in other fresh products like Lassi and Dahi
b. Complaints of leakage and Sour age
c. Developing distribution channel
d. Less number of retailers
e. No milk booths
f. Amul plant is located in Khamano village near Ludhiana which is 65kms from Chandigarh. Hence the transportation time is more as compared to Verka.

3. Opportunity

a. Huge market
b. High demand for Amul Paneer
c. Same price of milk as compared to the competitors

4. Threat

a. Cut throat competition from Verka
b. Various schemes provided by brands like Mother

The sales appreciated in two weeks with the support of the GCMMF team and efforts of the owner. The sales through coupons have also increased.
Owing to the response of the consumers, the owner was pursued to start more carts and he was offered the distributorship of Amul. He was appointed as the point ADA. The total carts operated by him are five and he now supplies milk and other fresh products in sector 33, 34, 35 and 36. The total no. of crates has also increased i.e, from 40 crates to 70 crates per day.
The owner is trying to expand his reach in these areas and is investing on new carts. So, he will be operating nine carts in these four sectors.
The cost analysis is as follows:
Cost of a new cart=Rs8000
Cost of licensing the cart and the vendor= Rs1500
Cost of maintenance of a cart= Rs300/month
Average salary of a vendor (if not hired on commission basis) =Rs9000
Salvage value of the cart=

People in Chandigarh consume both loose milk and pouched milk. On the basis of the survey data 76% of the household consume pouched milk and 11% of the household consume both loose and pouched milk. These consumers buy loose milk and whenever they have more requirement of milk, they purchase pouched milk. Figure 15: Milk market in Chandigarh
56% of the total surveyed consumers purchase Verka and 26% purchase Amul and 13% of the household consumes loose milk. Figure 16: Brands purchased by surveyed households
Since people prefer to purchase milk from push cart vendors as it is convenient to them, 61% of the surveyed households purchase milk from carts. Few household purchase milk from retailer due to proximity of shop from their house or they have purchased coupons by paying money in advance. Figure 17: Medium of purchase Figure 18: Medium of purchase for different brands

Loose milk suppliers supplies milk on credit basis i.e; they collect the payment at the end of the month whereas the most of the pouched milk sales happens through either cash payment on daily basis or through coupons by making payment in