9. Amul has a robust distribution network: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors
10. Amul being an Indian company creates a feeling of oneness in the mind of the customers
11. It provides quality and imprints confidence and thus befits loyalty in the minds of the customers since it manufactures only milk and milk products which is purely vegetarian
12. It is aiming at to enter into the rural segment also, which covers a large area of its loyal and prospective customers, which other companies had failed to target and exploit this lucrative opportunity
13. Amul has a huge customer and market base in India with its butter and dairy products and so can easily promote selling of chocolates without fearing of losses and decreasing revenue
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15. It has a strong dependency on its weak infrastructure
16. It has many alliances with the third parties who do not belong to the organized sector which can make it pretty vulnerable
17. There are various big players in the chocolate market, which acts as major competitors restricting their growth and expansion opportunities
18. Capital investment and market capitalization is relatively lower in absolute terms as compared to the amount of capital invested by other companies
19. It suffers with an improper distribution channel across its network in India
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21. Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc
22. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting
23. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future
26. Growing price of milk and milk products may reduce its volume of sales and profit margin
27. It may face serious issues on capitalizing on its foreign exchange reserve due to the prohibition exerted on its exports of milkpowder
28. There exists no particular brand loyalty in the chocolate market as consumers frequently shift their brands due to changing tastes and preferences.
29. New companies’ entering in the Indian domestic market like Fantasie fine may pose issues and lot of problems for Amul
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31. The Growing middle class of cities and urbanization of the general population as a whole
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33. Payout to the farmers has also been registered amounting to 23% CAGR in the preceding last 4 years.