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Product Mix of Amul

Himanshu Ahire 13 Dhiraj Kakati 05 Executive Full Time PGDM ( 2009-2010 ) Trimest
er 2 Symbiosis Institute of Management Studies

Symbol of AMUL(Anand Milk Union Ltd.) is a ring of four hands, which are coordinat
ed 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, se
cond hand of Processor, third hand of Marketer and fourth hand of Customer.Its a
joint efforts & productive team work have achieved success in all its new ventur
e, how famous worldwide & known as

Objective
MARKETINGSTRATEGIES
Introduction
Product
OBJECTIVES
Product
Promotion
Price
Place
4 5 7 12 12
12 12 13 13
The
Amuldifferent
Product Mix
product for different people
Amul
Product
Product-length
Product-Width
Line
Conclusion
Product
stretching
DepthPortfolio
14 15
15 18 18 18 22 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 semest
er on Marketing Management. To gain an insight on the product range offered by A
mul.

INTRODUCTION
In the year 1946 the first milk union was established. This union was started wi
th 250 liters of milk per day. In the year 1955 AMUL was established. In the yea
r 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. T
his 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 con
trol 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, Nutram
ul, Amul Milk and Amulya have made Amul a leading food brand in India. (The tota
l sale is Rs. 6 billion in 2009). Today Amul is a symbol of many things of the h
igh-quality products sold at reasonable prices, of the genesis of a vast coopera
tive 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 40s, the main sources of earning for the far
mers of Kaira district were farming and selling of milk. That time there was hig
h demand for milk in Bombay. The main supplier of the milk was Polson dairy limi
ted, which was a privately owned company and held monopoly over the supply of mi
lk 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 pr
ices of milk and the farmers were forced to accept it without uttering a single
word. However, when the exploitation became intolerable, the farmers were frustr
ated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading
activist in the freedom movement. Sardar Patel advised the farmers to sell the m
ilk 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 orde
r to gain his cooperation and help. Shri Desai held a meeting at Samarkha villag
e 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 da
iry cooperative movement in India. It is managed by Gujarat Co-operative Milk Ma
rketing 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 de
velopment.

Amul has spurred the White Revolution of India. It is also the world s biggest v
egetarian cheese brand.
Members No. of Producer Members No. of Village Societies Total Milk handling cap
acity Milk collection (Total 2003-04) Milk collection (Daily Average 2003-04) Mi
lk Drying Capacity Cattle feed manufacturing Capacity
12 district cooperative milk producers Union 2.36 million 11,333 6.9 million li
tres per day 1.81 billion litres 4.97 million litres 511 metric Tons per day 234
0 MTs per day

PRODUCT
A product is anything that can be offered to a market for attention , acquisition
, use, 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 pro
duct variety, quality, product design, and brand name, sizes, warranties. AMUL p
roduces and sell the product i.e. milk; it has to plan its product very carefull
y so that the consumer gets only good quality products. or
RAW MILK
pasteurization
Condensed Ghee Butter Cream
Packaged Milk Ice cream Beverages
Dried Skimmed Milk Powder

List of Products Marketed Bread spreads Amul Butter Amul Lite Low Fat Breadsprea
d Amul Cooking Butter
Cheese Range Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spr
ead 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 Amrakh
and 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 Ga
nthiya Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakt
i 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 Mast
i 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 Da
iry Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Amul Ice cr
eams Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Fru
tti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carniva
l, 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, Raspbe
rry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista K
ulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocola
te) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusiv
ely for kids

SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health Isa
bcool Chocolate & Confectionery Amul Milk Chocolate Amul Fruit & Nut Chocolate B
rown 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 bra
nd 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 lar
ge scale buyers price benefits. Different shaped pouches for its products for eas
y 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 consu
mers at the right time in a convenient location. It is the process of moving pro
ducts from the producer to the consumer, which may involve several steps and the
participation of multiple. AMUL has developed federation and AMUL parlors locat
ed 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 exchang
e for the products they are offering. Pricing and product image are closely rela
ted. Customers will pay a higher price for well known, well regarded products, p
artly because of the image created through advertising and other promotions. Thi
s includes list price, discount, allowance, and credit terms. The prices of prod
ucts 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 d
ecides the prices of AMUL products. However, the price is inclusive of several e
lements like, Cost of milk. Labour cost. Processing cost. Packaging cost. Advertisin
g 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 sellin
g price of milk and milk products. Promotion Place refers to marketing activitie
s 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, publi
c relation and personal selling that are used to communicate with customers and
potential customers. AMUL promotes its products through newspaper, T.V.; hoardin
g etc. television is the best media for advertising. The GCMMF however uses hoar
ding for advertising in local areas. Hoarding designed on the creative basis att
ract the customer more.

THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE


Amul never forgot its primary customer Amul collects 447,000 ltrs of milk from 2.1
2 million farmers (many illiterate) Product for youth Amul launched Chocolate mi
lk under brand name of Amul Kool Koko targeting the youth.
Product for diabetic people Indias First Pro-Biotic Wellness Ice cream & Sugar Fr
ee Delights For Diabetics
Product for the health conscious Amul Launched low fat, low cholesterol bread spr
eads Product for the price sensitive India Low Priced Amul Ice Creams and afforda
ble sagar whitener
Product for the urban class Amul launched emmental, gouda and pizza mozzarella c
heese

AMUL PRODUCT MIX


Amul Product Portfolio
Amul mainly produces dairy product which falls under nondurable goods category b
ut also produces durable goods Examples Durable Goods :-Milk Powders,Ready to Se
rve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams
Dairy
Non Dairy
Fresh Milk Milk Drinks & Desserts Bread Spreads Cheese Products Veg. Oils Snacks
Instant Food

Product Mix -Width


Bread Spreads
Cheese
Desserts
Butter
Shredded Pizza Cheese.
AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) AMUL Amrakhand.
Low Fat Bread Spread.
Emmental Cheese.
Cooking Butter.
Gouda Cheese.
AMUL Mithaee Gulabjamuns. AMUL Mithaee Gulabjamuns Mix. AMUL Mithaee Kulfi Mix.
Product Mix Length
Malai Paneer (cottage cheese) Frozen and Tinned. Utterly Delicious Pizza.

Cooking Amul / Sagar Pure Ghee Amul Malai Paneer Mithai Mate Probiotic Dahi Masti Dahi Utter
ous Pizza Nutramul
Health Drink
Amul Shakti Health Food Drink

Milk Drinks Amul Kool Millk Shaake Amul Kool Amul Kool Cafe Kool Koko
Powder Milk Amul Spray Infant Milk Food Amul Instant Full Cream
ea Coffee Whitener Amulya Dairy Whitener

Milk

Sagar Skimmed Milk

Fresh Milk Amul Fresh Milk Amul Gold Milk Amul Taaza Double Toned Milk Amul Lite Slim and Tr
resh Cream Amul Shakti Toned Milk Amul Calci+ Amul Buttermilk
Product Mix Length
Nutramul Energy Drink Amul Kool Flavoured Bottled Milk Amul Kool Flavoured
d Buttermilk Amul Lassee Amul Kool Thandai
Table 3

Tetra Pack Amul

Product-Width
The width of a product mix refers to the total number of items in the mix. Examp
le: 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 Amuls Product mix is 42 The Total width of Amuls 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 man
y variants are offered of each product in the line Amuls Product Depth Name of Pr
oduct Amul Butter Amul Butter Variants 100g Pack 500g Pack Price Rs. 25 Rs. 122
Delicious Table Margarine Delicious Table Margarine
100g Pack 500g Pack
Rs. 13 Rs. 60
Amul Lite Lowfat Breadspread
200g Tub
Rs. 32

Name of Product Amul Cheese Amul Cheese Slices Amul Cheese Chiplets Amul Cheese
Amul Cheese Spread
Variants 400g Tin (EOE) 200g Pack 200g Pack 1kg Block 200g Tub
Price Rs. 117 Rs. 77 Rs. 66 Rs. 233 Rs. 50
Amul Pizza Cheese
200g Pack
Rs. 55
Amul Emmental Cheese
400g Pack
Rs. 160
Amul Gouda Cheese Amul Gouda Cheese
250 g 1 kg
Rs. 115 Rs. 440
Amul Malai Paneer
200g Dice Pack
Rs. 36
Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure G
hee
1 Litre Tin 500ml Pouch 2 Litre Tin 5 Litre Tin
Rs. 265 Rs. 125 Rs. 495 Rs. 1,225
Amul Pure Ghee Amul/Sagar Pure Ghee
1 Ltr Refill 1 Ltr Pouch
Rs. 260 Rs. 242
Amul Shrikhand Amul Shrikhand Amul Shrikhand
500g cup Elaichi 500g cup Mango 500g cup Kesar
Rs. 53 Rs. 55 Rs. 66

Name of Product Amul Shrikhand


Variants 500 g Badam Pista
Price Rs. 61
Amul Mithaee Gulabjamun Amul Mithaee Gulabjamun
1kg Tin 500g Tin
Rs. 115 Rs. 64
232g Tin 500 g
Rs. 125 Rs. 180
Amul Taaza Double Toned Milk Amul Taaza Double Tone Milk Amul Tazza Toned Milk N
othern Eastern States
1 Litre Tetra
Rs. 35
200 ml Tetra
Rs. 9
1 Litre Tetra
Variants
Price
Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF
500g Pouch
Rs. 110
Amulya Dairy Whitener Amulya Dairy Whitener Amulya Dairy Whitener
500g Pouch 500g Refill 1 kg Pouch
Rs. 113 Rs. 114 Rs. 227
Amul Shakti Health Food Drink (Kesa Almond)
500g Refill
Rs. 115
Amul Kool (Kesar, Elaichi, Rose) Amul Kool (Kesar, Elaichi, Chocolate) Amul Kool
Kesar Amul Kool Cafe Amul Kool Cafe Amul Kool Cafe Amul Kool Koko Amul Kool Mil
lk Shaake
200ml Bottle
Rs. 22

Name of Product Amul Kool Millk Shaake (Mango & Strawberry) Amul Fresh Cream Amu
l Fresh Cream
Variants 180 ml Tetra Pack 200 ml Tetra Brik 1 Lit Tetra Brik
Amul Lassee(Rose) Amul Basundi Amul Mithai mate
200 ml Tetra Brick l Ltr Tetra Brick 400 g EOE can
Rs. 12 Rs. 103 Rs. 58