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Product Mix of Amul

Himanshu Ahire 13

Dhiraj Kakati 05

Executive Full Time PGDM  ( 2009-2010 )

Trimester 2

Symbiosis Institute of Management Studies


Symbol of “AMUL”(Anand Milk Union Ltd.) is a ring of four hands, which
are coordinated with each other. The actual meaning of this symbol is
coordination of hand of Different People By Whom This Union is now at top.
The first hand of Farmer, second hand of Processor, third hand of Marketer
and fourth hand of Customer.It’s a joint efforts & productive team work have
achieved success in all its new venture, how famous worldwide & known as
Objective 4

Introduction 5

Product 7

MARKETING OBJECTIVES 12

Product STRATEGIES 12

Product 12

Place 12

Price 13

Promotion 13

The different product for different people 14

Amul Product Mix 15

Amul Product Portfolio 15

Product-Width 18

Product-length 18

Product Depth 18

Line stretching 22

Conclusion 22
OBJECTIVE

To understand the product mix strategy of Amul .

To correlate the findings with the help of the theoretical concepts that we have been taught during this
semester on Marketing Management.

To gain an insight on the product range offered by Amul.


INTRODUCTION

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per
day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT
CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name AMUL means “AMULYA”. This word derived from the Sanskrit word “AMULYA”
which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul
Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2009).
Today Amul is a symbol of many things of the high-quality products sold at reasonable prices, of the
genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND
PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of
milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy
limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from
the Kaira district. This system leads to exploitation of poor and illiterate farmers by the private traders. The
traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single
word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively
appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel
advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying
milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-
operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He
advised the farmers to form a society for collection of the milk.

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is
managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling 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.
Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

Members 12 district cooperative milk producers' Union


No. of Producer Members 2.36 million
No. of Village Societies 11,333
Total Milk handling capacity 6.9 million litres per day
Milk collection (Total – 2003-04) 1.81 billion litres
Milk collection (Daily Average 2003-04) 4.97 million litres
Milk Drying Capacity 511 metric Tons per day
Cattle feed manufacturing Capacity 2340 MTs per day
PRODUCT
“A product is anything that can be offered to a market for attention , acquisition , use, or
consumption that might satisfy a want or need “

A product is anything that satisfies a need or wants and can be offered in the exchange. A product
can be goods, service or idea. Without product there is no marketing. This includes product
variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the
product i.e. milk; it has to plan its product very carefully so that the consumer gets only good
quality products.

RAW MILK

pasteurization

Condensed
Packaged Milk
Dried
Ghee Skimmed Milk
Ice cream
Butter Powder
Beverages
Cream
List of Products Marketed

Bread spreads
Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range
Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and


Tinned

Utterly Delicious Pizza

Amul Emmental Cheese


Desserts
Amul Shrikhand (Mango, Saffron, Almond
Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

Fresh Milk
Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Ganthiya

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

For Cooking

Amul Pure Ghee


Sagar Pure Ghee

Amul Cow Ghee

Amul Malai Paneer

Mithai Mate

Pro-biotic Dahi

Masti Dahi

Utterly Delicious Pizza


Powder Milk
Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 (6 months above)

Amulspray Infant Milk Food

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Amul Ice creams

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi
Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

Millennium Ice cream (Cheese with Almonds, Dates with


Honey)

Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi


Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista
Kulfi)

Cool Candies (Orange, Mango)

Cassatta

Tricone Cones (Butterscotch, Chocolate)

Megabite Almond Cone

Frostik - 3 layer chocolate Bar

Fundoo Range - exclusively for kids


SlimScoop Fat Free Frozen Dessert (Vanilla,
Banana, Mango, Pineapple)

Health Isabcool

Chocolate & Confectionery


Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage
• Nutramul Malted Milk Food

Milk Drink
• Amul Kool Flavoured Milk

Health Beverage
• Amul Shakti White Milk Food

Ready to Serve Soups


• Masti Tomato Soup

Masti Hot & Sour Soup


MARKETING OBJECTIVES
•Identify & cater to emerging markets all over India

•Create awareness about the brand name and increase customer loyalty.

•Tackle the problem of imitation of design.

•Increase retailer satisfaction by providing better margins.

PRODUCT STRATEGIES

Product

•Create awareness about its different brands thereby enabling the customer to differentiate between its
various brands.

•Copy-write the packaging design to preserve the distinguishing identity barring competitors from
imitating the same.

•Introduction of larger volume pouches in line with economy packs to provide large scale buyers price
benefits.

•Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul
Tazaa, rectangular shaped for Amul Gold, etc.

Place

Place refers to marketing activities that make products available to consumers at the right time in a
convenient location. It is the process of moving products from the producer to the consumer, which may
involve several steps and the participation of multiple.

AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF
handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the
disbursement of product to the various marketing channels.
Price

It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering.
Pricing and product image are closely related. Customers will pay a higher price for well – known, well –
regarded products, partly because of the image created through advertising and other promotions. This
includes list price, discount, allowance, and credit terms. The prices of products of 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.

• Labour cost.

•Processing cost.

•Packaging cost.

•Advertising cost.

•Transportation cost.

•Sales promotion costs.

•Taxes etc.

The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling
price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about an organization, its
products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of
techniques including advertisement, sale promotion, public relation and personal selling that are used to
communicate with customers and potential customers.

AMUL promotes its products through newspaper, T.V.; hoarding etc. 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.
THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE

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

India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

Product for the health conscious

Amul Launched “low fat, low cholesterol bread spreads”

Product for the price sensitive India

Low Priced Amul Ice Creams and affordable ‘sagar’ whitener

Product for the urban class

Amul launched emmental, gouda and pizza mozzarella cheese


AMUL PRODUCT MIX

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable goods category but also
produces durable goods

Examples

Durable Goods :-Milk Powders,Ready to Serve Soups

Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams

Dairy Non
Dairy

Fresh Milk

Veg. Oils
Milk Drinks &
Desserts
Snacks
Bread Spreads

Cheese Instant Food


Products
Product Mix -Width

Bread Spreads Cheese Desserts

Butter Shredded Pizza Cheese. AMUL Shrikhand (Mango,


Saffron, Almond Pistachio,
Cardamom)

Low Fat Bread Spread. Emmental Cheese. AMUL Amrakhand.

Cooking Butter. Gouda Cheese. AMUL Mithaee


Gulabjamuns.
Product Mix Length

Malai Paneer (cottage AMUL Mithaee


cheese) Frozen and Tinned. Gulabjamuns Mix.

Utterly Delicious Pizza. AMUL Mithaee Kulfi Mix.

Cooking Health Drink

Amul
/
Sagar
Pure
Ghee Nutramul

Amul
Malai
Paneer Amul
Shakti
Health
Food
Drink

Mithai
Mate

Pro‐biotic
Dahi

Masti
Dahi

Utterly
Delicious
Pizza
Milk Drinks Powder Milk Fresh Milk

Amul Kool Millk Shaake Amul
Spray
Infant
Milk
 Amul
Fresh
Milk


Food

Amul Kool Amul
Instant
Full
Cream
 Amul
Gold
Milk


Milk


Amul
Kool
Cafe
 Sagar
Skimmed
Milk
 Amul
Taaza
Double



Powder Toned
Milk

Kool
Koko Sagar
Tea
Coffee
 Amul
Lite
Slim
and
Trim



Whitener Milk
Product Mix Length

Nutramul
Energy
Drink Amulya
Dairy
Whitener Amul
Fresh
Cream

Amul
Kool
Flavoured
 Amul
Shakti
Toned
Milk
Bottled
Milk

Amul
Kool
Flavoured
 Amul
Calci+
Tetra
Pack

Amul
Masti
Spiced
 Amul
Buttermilk
Buttermilk

Amul
Lassee

Amul
Kool
Thandai

Table 3
Product-Width

The width of a product mix refers to the total number of items in the mix.

Example: The total number of items are 8. ( bread spreads , cheese , desert, cooking,health drink, milk
drinks,powder milk & fresh milk

Product-length

The length of a product mix refers to the total number of items in the mix.

Example:

The total Length of Amul’s Product mix is 42

The Total width of Amul’s Product mix is 8 ( No of lines)

Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6

Product Depth

The depth of a product mix refers to how many variants are offered of each product in the line

Amul’s Product Depth

Name of Product Variants Price

Amul Butter 100g Pack Rs. 25

Amul Butter 500g Pack Rs. 122

Delicious Table Margarine 100g Pack Rs. 13

Delicious Table Margarine 500g Pack Rs. 60

Amul Lite Lowfat


200g Tub Rs. 32
Breadspread
Name of Product Variants Price

Amul Cheese 400g Tin (EOE) Rs. 117

Amul Cheese Slices 200g Pack Rs. 77

Amul Cheese Chiplets 200g Pack Rs. 66

Amul Cheese 1kg Block Rs. 233

Amul Cheese Spread 200g Tub Rs. 50

Amul Pizza Cheese 200g Pack Rs. 55

Amul Emmental Cheese 400g Pack Rs. 160

Amul Gouda Cheese 250 g Rs. 115

Amul Gouda Cheese 1 kg Rs. 440

Amul Malai Paneer 200g Dice Pack Rs. 36

Amul/Sagar Pure Ghee 1 Litre Tin Rs. 265

Amul/Sagar Pure Ghee 500ml Pouch Rs. 125

Amul/Sagar Pure Ghee 2 Litre Tin Rs. 495

Amul/Sagar Pure Ghee 5 Litre Tin Rs. 1,225

Amul Pure Ghee 1 Ltr Refill Rs. 260

Amul/Sagar Pure Ghee 1 Ltr Pouch Rs. 242

Amul Shrikhand 500g cup Elaichi Rs. 53

Amul Shrikhand 500g cup Mango Rs. 55

Amul Shrikhand 500g cup Kesar Rs. 66


Name of Product Variants Price

Amul Shrikhand 500 g Badam Pista Rs. 61

Amul Mithaee Gulabjamun 1kg Tin Rs. 115

Amul Mithaee Gulabjamun 500g Tin Rs. 64

Nutramul 500g Refill Rs. 110

Amul Chocolates 35g Milk Rs. 15

Amul Chocolates 35g Fruit & Nut Rs. 16

Amul Almondbar 35g Rs. 15

Amul Chocozoo 232g Tin Rs. 125

Amul Chocozoo Tub 500 g Rs. 180

Amul Taaza Double Toned


1 Litre Tetra Rs. 35
Milk

Amul Taaza Double Tone


200 ml Tetra Rs. 9
Milk

Amul Tazza Toned Milk -


1 Litre Tetra Rs. 38
Nothern Eastern States

Amul Gold Milk 1 Litre Tetra Rs. 39

Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40

Amul CALCI + high calcium


1 Litre Brik Rs. 42
milk

Mithaimate Sweetened
400g Can Rs. 58
Condensed Milk
Name of Product Variants Price

Amulspray IMF 500 g Pouch Rs. 110

Amulspray IMF 500g Refill Rs. 111

Amulspray IMF 500g Tin Rs. 115

Amulspray IMF 1 kg Pouch Rs. 202

Amulspray IMF 1 kg Tin Rs. 222

Sagar Skimmed Milk Powder 500g Pouch Rs. 110

Amulya Dairy Whitener 500g Pouch Rs. 113

Amulya Dairy Whitener 500g Refill Rs. 114

Amulya Dairy Whitener 1 kg Pouch Rs. 227

Amul Shakti Health Food


500g Refill Rs. 115
Drink (Kesa Almond)

Amul Kool (Kesar, Elaichi,


200ml Bottle Rs. 12
Rose)

Amul Kool (Kesar, Elaichi,


200ml Tetra Rs. 12
Chocolate)

Amul Kool Kesar 250 ml can Rs. 25

Amul Kool Cafe 200 ml Glass Bottle Rs. 15

Amul Kool Cafe 250 ml Can Rs. 22

Amul Kool Cafe 200 ml Tetra Brik Rs. 15

Amul Kool Koko 250 ml Can Rs. 22

Amul Kool Millk Shaake


( M a n g o , S t r a w b e r r y & 220 ml Can Rs. 22
Badam)
Name of Product Variants Price

Amul Kool Millk Shaake


180 ml Tetra Pack Rs. 15
(Mango & Strawberry)

Amul Fresh Cream 200 ml Tetra Brik Rs. 30

Amul Fresh Cream 1 Lit Tetra Brik Rs. 113

Amul Masti Spiced Butter


200ml Tetra Brik Rs. 10
milk

Amul Masti Spiced Butter


1 Litre Tetra Brick Rs. 35
milk

Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12

Amul Basundi l Ltr Tetra Brick Rs. 103

Amul Mithai mate 400 g EOE can Rs. 58

Line stretching

Every company’s product line covers a certain part of the total possible range. Line stretching occurs
when a company lengthens its product line beyond its current range. The company can stretch its line
down market, up-market or both ways.

Example : Amul is now aggressively adopting the down market stretch by introducing ( CHHOTA
AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income
group.)

Amul has been introducing products with consistent value addition but never left the core philosophy of
“Providing milk at a basic, affordable price”

Conclusion

This summarizes our research work on Amul’s Product Mix. There are various other strengths of Amul’s
marketing but we have only brought into context the above topic.