ABOUT AMUL

Amul is definitely an Amoolya brand. Amoolya in Sanskrit means something which is

invaluable or priceless. With a presence in almost every product which can be made by milk,
Amul has won over hearts along with market share to become a highly valued brand with an
Indian origin. Amul was formed because of a revolt of dairy farmers. And today, Amul is a
brand against which companies want to compete and come on top but the same is not being
allowed by the smart minds in Amul.

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer
of milk and milk products. In the process Amul became the largest food brand in India and
has ventured into markets overseas. Dr Verghese Kurien, founder-chairman of the GCMMF
for more than 30 years (19732006), is credited with the success of Amul.

Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,545
Total Milk handling capacity per day 28 Million litres per day
Milk Collection (Total - 2015-16) 6.2 billion litres
Milk collection (Daily Average 2015-
16.97 million litres
16)
Cattlefeed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2015-16) Rs. 22972 Crores (US $ 3.5 Billion)
Tagline The taste of India; Utterly butterly delicious
Indias most trusted and popular dairy products
USP
brand

SWOT ANALYSIS
 High brand equity and top of the mind brand
Strong network of over 3 million milk producers
Worlds largest manufacturer of pouched milk
Number of popular milk products like ice cream, ghee,
butter, paneer, dahi, milk, etc.
Products available at affordable price
STRENGTHS Market leader in butter segment
Responsible for white revolution in India
Successful advertising and marketing campaigns
Strong network of Amul retail outlets, stalls and
parlours
A popular mascot in the Amul girl

Low market share in chocolate segment

Strong competition from international and domestic players in
WEAKNESSES the ice cream segment means limited market share
Cost of operations is high

Introduce new products in the chocolate segment

To tap the untapped market, increase its reach in rural markets
OPPORTUNITIES Rise in purchasing power of Indian people
Increase in exports
E-competency

Strong competition from international players

THREATS Economic slowdown and inflation
Population of milch animals

SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION
The segmentation of Amul is the mass population and in general, people of different age
groups and demography enjoying Amul products. This is because Amul is not only present in
Ice cream, but also in Milk, Butter, Cheese and other such products. As it has a very deep
product portfolio, it does not differentiate in its customers but uses a mass marketing
principle.
Amul has different types of segmentation. Few of them are mentoned below:

Consumer based segmentation

1. Kids Amul Kool, Chocolate, Amul milk, Nutramul, Energy Drink
2. Women Amul Calci+
3. Youth Amul Pizza Cheese, Amul Cheese Spread
4. Calorie conscious Amul lite butter, Skimmed milk powder
5. Health conscious Amul Shakti
Industry based market segmentation
1. Milk Ice Cream manufacturers, coffee shop chains, food chains
2. Butter/ Cheese/ Ghee Bakery, Confectioneries, Pizza, Snack retailers

TARGETING

The target audience are the regular middle class people. This is because higher end customers
do have a lot of high end products as an alternative in ice cream. However, for other products
like Butter and cheese, both high end and low end customers are the target.

POSITIONING

In terms of positioning, Amul has top of the mind positioning because it is the first brand
which comes in mind when talking of Ice cream, milk, cheese, butter or any other milk based
products.

Amul has positioned itself as a butter to be used in ones daily meal

It has cultivated a family based image as it has following components:
1. Emotional components: Campaigns like Taste of India
2. Functional attributes: Value for money, product availability

Butter is synonymous with the Amul brand in the mind of the Indian consumer. Amul is
inherently associated with the image of its logo, the Amul Butter Girl. It is a very strong asset
for the firm.

MARKETING MIX OF AMUL

PRODUCT MIX

Amul has a very strong product portfolio. Amul product portfolio is comprised mainly of
Dairy products Amul butter; Amul cheese and Amul ice cream are cash cows for Amul as
they have the major market share in their product category. Amul ice cream is amongst the
top 10 ice cream brands of India.

Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact Amul milk has
26% of market share in the packaged milk segment. The only disappointing performance is
seen in Amul Chocolates which are a burden for Amul and lot of push is required for the sales
of the same. This is because the chocolate market has established players like Parle, Dairy
milk and others.

The Amul family tree has the following brands Amul Milk, Amul bread spreads, Amul
Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul ice cream, Amul Paneer,
Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul mithai range,
Amul mithai mate, Amul chocolates, Amul butter milk. Thus the product portfolio of Amul
considering its dairy origins is astounding. Amul has various competitors based on different
products. In ice cream it is Vadilal, Dinshaws and Havmor. In butter and milk there is mother
dairy, Britannia and others. However, no competitor has such a vast dairy based product
portfolio as Amul. This is the major reason that Amul has a sustainable competitive advantage
over its competitors.

NEW PRODUCT DEVELOPMENT

Amul introduced small packaging sugar free sweetened milk, for health conscious people
who usually travel long distances. It could be a direct mix for coffee and other protein
powders. A lot of people prefer the taste of sweetened milk over plain milk but they dont
consume flavored milk due to the calories attached to it so this product can be the best for
them.

The Product line and depth of AMUL Milk is shown below: -

Product line includes all the different types of milk provided by Amul like Pouch milk, UHT
Milk, flavored milk (Amul KOOL).

-------------------------------------------PRODUCT LINE-------------------------------------------

POUCH MILK. UTH MILK. FLAVORED MILK

(AMUL KOOL).
AMUL TAZA. AMUL GOLD. THANDAI.
AMUL GOLD. AMUL TAAZA. CHOOLATE.
AMUL DIAMOND. AMUL CALCI. ELAICHI.
AMUL CHAI MAZA. AMUL SLIM. KESAR.
AMUL SHAKTI. AMUL MOTI. ROSE.
AMUL SLIM TRIM. BADAM.
AMUL KOOL CAF.
AMUL KOOL KOKO.
STAMINA DRINK.
PRO DRINK.
PRICE MIX

Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But penetrative
pricing strategy is used when the market has a high level of competition and a player wants to
establish itself in the market by giving low prices. However, in the case of Amul, when Amul
started, there were no national players and the dairy market was unorganized. During the
introduction stage itself, Amul had a vision to provide their products to end customers at the
best affordable rates. And the same vision is in place even today.

Today also, you will find that Amul butter, milk and cheese are available at affordable prices
keeping in mind the end customers. You may call these products costly, but the cost has
nothing to do with Amuls strategy. Remember that transportation costs as well as storage and
distribution costs are very high in FMCG. Thus, as the cost of transportation, storage and
distribution has increased over the years, so has the cost of Amul products gone up. But
considering their value for the average India consumer, these products are still priced at an
affordable rate.

PLACE MIX

Amul has a massive distribution network because its ice creams, milk, butter and cheese is
found practically everywhere. As it is a FMCG product, Amul follows the methodology of
breaking the bulk. The initial factory output is in bulk. Later on this bulk becomes smaller
and smaller and finally one individual slab of butter or scoop of ice cream is sold at the retail
place.

There are two different channels through which Distribution happens in Amul. One is the
procurement channel, which is responsible for collection of Milk through dairy co-operatives.
The other is the distribution channel which is responsible for distributing the finalized
product to the end customers.

In the procurement channel, the milk is individually delivered from farmers to the co-
operatives. The co-operatives then collect all this milk and send the bulk to the manufacturing
facility. At the manufacturing facility, the milk is used to manufacture the finalised products.

In the distribution channel, there are carrying and forwarding agents, distributors, dealers and
retailers involved. There are also Amul shops which sell all products in the Amul product
portfolio.

The distribution is as follows:

1. AMUL >> Carrying & Forwarding Agents >>Distributors >>Dealers/Retailers/Amul

shops >> Customers.

2. AMUL >> Modern retail.

Thus there is a lot of transportation involved for all of Amuls products. However, the
distribution channel of Amul ensures that the products reach every nook and corner of India.

AMUL has developed federation and AMUL parlours 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.

PROMOTION MIX

Amul is responsible for one of the most unique and longest running outdoor campaign as well
as one of the most known outdoor advertising characters The Amul girl. We would like to
take this opportunity to specially thank Mr. Eustace fernandes, the creative brain behind the
sweet girl. But we should know by now that the Amul girl is hardly sweet or cute. She is
known to be the most naughty advertising girl ever. Amul hoardings mainly feature the
current news and are used to take a tongue in cheek viewpoint at current happenings.
However, each advertisement hits the nail on the head.

The promotions of Amul are mainly for butter but for all the other products there is hardly
any promotions. During the launch of products, Amul is known to go ATL and advertise milk,
butter etc. The Smita Patil ad where in Smita patil is shown as a village milk collector is one
of the most famous ads for Amul. But overall, the main advertisement is BTL through
outdoor, trade promotions, discount schemes and sales promotions.
The major reason for Amuls absence in hardcore advertising is that Amul does not want to
give away margins in advertising its products. As per Amul, their maximum budget for
advertising is 1% of the turnover. Above and beyond that will directly affect the cost of the
product. And the major reason for Amuls strong presence in the market is its excellent
quality combined with the affordable price. Thus, overall promotions will always be low for
Amul except for the outdoor advertising of Amul butter.

Amuls Advertising Campaign Simple, Creative & Always Funny.

Amul the Amul ad campaign which is Indias longest running ad campaign at present is
going to make a bid in the Guinness Book of World Records for being one of the longest
running ad campaigns in the whole world (Only the American Smokey Bear campaign is
older). The Amul ads have almost become a part of folklore in the Advertising and
Communications industry nowadays.

Amuls advertising strategy has followed the concept of umbrella Branding. Amul is the
common brand name for most of its products across categories. For instance, the Amul girl
has also been used to advertise Amul ghee and milk. Its ad campaign Amul doodh peeta hai
India, conceptualized & created by FCB ulka, was drafted to proclaim its leadership position
and was targeted at people across all income categories. Their corporate campaign

THE TASTE OF INDIA caters to people belonging to all walks of life & across cultures. It is
circled around a one-day-old child who needs milk as such as to dead man who needs ghee.

This is what one would call keeping it straight and simple!

Another one from the days when things were beginning!

During 2007 T20 world cup win!

Given its wide product portfolio, Amul has stuck to the kind of promotional activities it does
but still has been the number 1 in the market.

Amul Butter has dominated this field, being one of the early entrants in terms of branding,
and pretty much owns the category. The positioning taken by it is strongly topical, as the
hoardings of the Amul Moppet keep changing to reflect the changes taking place in the
nation.

They have promoted Butter also through various cookery shows and other such food related
programmes to target the consumers like housewives and chefs.Their pricing and promotion
strategy together have made it available at food hawkers and stalls on Indian roads only to
gain maximum visibility across all consumer groups.
COMPARISON OF SELLING PREPOSITIONS
PRODUCT
Amul India
Amul Gold is Pasteurized milk and most
hygienic liquid milk available in the
market.
Amul Gold is available in Poly Pack -
500ml, 1000ml, 5 Ltr
Amul Gold can be used for Tea or Coffee,
Sweets, Khoa, Curd, Buttermilk, Ghee
Amul Taaza is pasteurized milk and most
hygienic liquid milk available in the
market
Amul Taaza is available in Poly Pack -
500ml, 1000ml, 200ml, 5 Ltr
It can be used for Direct consumption,
Making of: Tea or Coffee, Sweets, Khoa,
Curd, Buttermilk, Ghee
Mother Dairy
Mother dairy full cream is wholesome and packed
with energy and nutrition thats essential for
growing kids It makes them stronger from within
and keeps them active and healthy.
Mother Dairy Toned Milk is a perfect blend of
good health and wholesome taste. Its an ideal
choice for people in search of a nutritionally
balanced diet that does not compromise on taste.
It is the right way to stay fit and fine, jolly and
cheerful.

PRICE
Amul India Mother Dairy
At the time Amul was formed, consumers had
limited purchasing power, and modest
consumption levels of milk and other dairy
products. Thus Amul adopted a low-cost price
strategy to make its products affordable and
attractive to consumers by guaranteeing them
value for money.
Amul's Taaza brand of toned milk that sold for
Rs 34 now costs Rs 36. In early 2013, it was Mother Dairy toned milk now costs Rs 36
available for Rs 24-26 per litre. Amul Gold, the per liter
full cream variant, now costs Rs 46 over Rs 44. Mother Dairy, the full cream variant, now
The rate in 2013 was Rs 34-36 per litre. costs Rs 46

PLACE
Amul India Mother Dairy

Currently Amul has 2.41 million producer
members with milk collection average of 5.08
million liters/day. Besides India, Amul has
entered overseas markets such as Mauritius,
UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South
African countries. Its bid to enter Japanese
market in 1994 had not succeeded, but now it
has fresh plans of flooding the Japanese
markets. Other potential markets being
considered include Sri Lanka.
PROMOTION
Amul India
Gujarat Co-operative Milk Marketing
Federation (GCMMF) has launched a print
and digital campaign for its brand Amul.
Each ad of the campaign features a person
with a milk moustache who Eats milk with
every meal, and lists exaggerated benefits of - but rather it targets children and are
doing so alongside nutritional benefits of
Amul products. The characters depicted
include a tennis player who wins doubles
playing alone; a man who lifts the car to
change the tyre; an office geek who hasnt
taken sick leave in five years; and a young
woman who flaunts her out-of-the-shower
look 24x7. Amuls dairy product range
including milk, butter, paneer, ice cream and
ghee are showcased.
BCG MATRIX OF AMUL
Amul brand is a renowned name in the dairy industry in India, supplying milk, butter and
other dairy related products to the Indian population. The application of BCG Matrix on the
However, as far as other dairy products
are concerned, Mother Dairy plans to
expand across the board. Other than milk,
for most state federations, dairy products
are still a small part of their operations. So
they are taking their products to regions
across India, where they see enough
market potential. In ice creams, it was
only two years ago that Mother Dairy
entered its first market outside Delhi -UP
and Punjab. Today, it's extended its
operation to Haryana, Jaipur, and Kolkata
as well. Next year, it plans to go south to
Hyderabad and Bangalore. In the case of
butter and cheese, it's present across north
India, Mumbai and Kolkata, and has plans
to enter Bangalore by year-end. In UTH
milk, it has entered Mumbai and the milk-
short areas of West Bengal and north-east.
For ghee, although the current focus is the
northern region, it has plans for a
nationwide presence.
Mother Dairy
On the marketing front, Mother Dairy
says it's trying to take its product
campaigns and communications to a
higher platform. For instance, in the
case of milk, the campaigns do not talk
about the obvious benefits - milk is
good for health, it has calcium and so on
created around ideas such as "The
country needs you, grow faster".
brand can provide information about the products that are a source of revenue for the
organization. Moreover it can also help in pointing out the products that hold no prominent
growth chances in the future due to industry trends and market share. The BCG matrix for
Amul is given below:

FUTURE STRATEGIES
In order to maintain and increase the sales in the metro city, the following recommendations
regarding AMUL; particularly regarding advertisement, distribution, promotional policies
etc.: are hereby suggested

First and foremost Amul should take proper action in to order to improve
service, because although being on a top slot in butter and milk supplies it
does not get the sales in chocolate, which it should get.

Company should brand ambassador which attracts each age segment.

Amul should give local ad apart from the ad given at the national level;
local ad must mention the exclusive Amul shop of the city.

 Company should introduce Product promotion schemes like free weight,
pranky, tattoo, contest, free gifts etc.

Advertisement can be done with the help of animations that attracts

children and teenagers because chocolates are consumed largely in this
segment.