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INTRODUCTION

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.

Vision of amul
The main Motto of Amul is to help farmer.
A m u l s y s t e m works under objective of highest
P o s s i b l e p r i c e t o t h e m i l k producers and lowest possible
price to consumer. Farmers are p a i d m o n e y i n c a s h
p a y m e n t f o r t h e m i l k . M i l k g i v e s t h e m money for
daily necessities. Amul is the one who started using their profit
for the milk producer common.

AMUL Products
Amul's product range includes milk powders, milk, butter, ghee,
cheese, dahi, yoghurt, buttermilk, chocolate, ice
cream, cream, shrikhand,paneer, gulab jamuns, flavoured
milk, basundi and others. Amul PRO is a recently launched brown
beverage just like bournvita and horlicks offering with protein, DHA
and essential nutrients. In January 2006, Amul launched India's
first sports drink, Stamina, which competes with Coca-
Cola's Powerade and PepsiCo's Gatorade.
Amul offers Mithai Mate which competes with Milkmaid by Nestle
by offering more fat at lower price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand
extending its product offering in the milk products segment. Other
Amul brands are Amul Kool, a low-calorie thirst quenching drink;
Masti Butter Milk; and Kool Cafe, ready to drink coffee.
Amul's icecreams are made from milk fat and thus are icecreams in
real sense of the word, while many brands in India sell frozen desserts
made from vegetable fat.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy
Federation Marketing Award for 2007.

District Union The 2nd Tier District Union: District Union:


A District Cooperative Milk Producers' Union is owned by d
societies. It is a Union of primary village co-operative societ
Union buys all the societies' milk, then processes and market
products. Union also provides a range of inputs and services
societies and their members: feed, veterinary care, artificial i
the growth of milk production and the cooperatives' business
provide consulting services to support village co-operative so
The State Federation 3rd Tier The State Federation:
The cooperative milk producers' unions in a state form a State Federation
which is an apex marketing body responsible for marketing of milk and milk
products of member unions. The Federation also plays a role in the overall
development of the district unions federated to it.

Maximizing farmer profit and productivity through cooperative effort is the


hallmark of the Anand Pattern.
Social impact

The spread of the co-operative movement in the villages is contributing to social c


changes are:
The democratic process election of the village societys office-bearers is break
economic divisions. The society is being perceived as a means of livelihood unli
The feeling, therefore, is that it ought to be managed by those who are likely to run
not necessarily by the entrenched elite.

District Union The 2nd Tier District Union: District Union:


Caste barriers are slowly breaking down in equalizing queue
collection centre. In the traditional societies untouchables co
dreamt of selling milk for common consumption. This social
removed by the milk co-operatives.

Modern concepts like organization, technology, and social co


rural areas. In their search for solutions in other compartmen
used the expression, something like the dairy or similar to
Education in a non-school sense is also spreading. Veterinary care, the supply of b
artificial insemination centres are contributing to health education, nutrition educ

There is a change in the status of women. Generally income from milk is consider
them. Men concede that those women should have a say in how this money is to b

What is market strategy?


An organization's strategy that combines all of its marketing goals
into one comprehensive plan. A good marketing strategy should be
drawn from market research and focus on the right product mix in
order to achieve the maximum profit potential and sustain the
business.

Need of marketing strategy


Marketing is a strategy used by companies to communicate with the
consumer and make him knowledgeable about the various features of
their products and services. It is an essential part of attracting the
target buyers to a particular product, and companies use various
innovative or tried-and-tested techniques to stay ahead of their
competitors and make their place in the market.
Affinity Marketing - Also known as Partnership Marketing, this
technique links complementary brands, thereby creating strategic
partnerships that benefit both companies. While one adds value to
existing customers by generating more income, the other builds new
customer relationships.

Alliance Marketing - Here two or more entities come together to


pool in their resources to promote and sell a product or service, which
will not only benefit their stakeholders, but also have a greater impact
on the market.

Ambush Marketing - This strategy is used by advertisers to


capitalize on and associated themselves with a specific event without
the payment of any sponsorship fee, thereby bringing down the value
of sponsorship. It has sub-categories like direct or predatory
ambushing or indirect ambushing by association, to name a few.

Call to Action (CTA) Marketing - CTA is a part of inbound


marketing used on websites in the form of a banner, text or graphic,
where it is meant to prompt a person to click it and move into the
conversion funnel, that is, from searching to navigating an online
store to converting to a sale.
Community Marketing - This technique caters to the needs and
requirements of the existing customers, as opposed to using resources
to gather new consumers. This promotes loyalty and product
satisfaction and also gives rise to word of mouth marketing among the
community.

Content Marketing - In this case, content is created and published on


various platforms to give information about a certain product or
service to potential customers and to influence them, without making
a direct sales pitch.

Cross-media Marketing - As the name suggests, multiple channels


like emails, letters, web pages etc. are used to give information about
products and services to customers in the form of cross promotion.

Diversity Marketing - The aim of this strategy is to take into account


the different diversities in a culture in terms of beliefs, expectations,
tastes and needs and then create a customized marketing plan to target
those consumers effectively.

Evangelism Marketing - It is similar to word-of-mouth marketing,


where a company develops customers who become voluntary
advocates of a product and who promote its features and benefits on
behalf of the company.

Segmentation, targeting, positioning in the Marketing strategy of


Amul
The segmentation of Amul is the mass population and in general, you
will find people of all 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. And till date, this principle has
worked very well for the marketing strategy of Amul. Similarly, 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 is the target. 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.

Product in the marketing mix of Amul

Amul has a very 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.
Price in the marketing mix of Amul 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.

Place in the marketing mix of Amul 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.

Promotions in the marketing mix of Amul

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 naughtiest
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 wherein 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 hard core 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.
This concludes the marketing mix of Amul. The bottom line is that we
love that an Indian brand like Amul has reached such staggering
heights and that we are a part of the time when such a white
revolution took place.

SWOT analysis of Amul

Amul is one of the largest milk and milk based products manufacturer
in India. Known to be the founder of the white revolution in India,
Amul has some strong products and brands up its sleeves, strongest of
them being Amul ice cream. Similarly, the Milk & Dairy products
company has a very in depth product portfolio including cheese,
butter, curd, chocolates, ice cream, and others. You can visit the
following link to refer to the marketing mix of Amul. However,
following are the points in the SWOT analysis of Amul.

Strengths in the SWOT analysis of Amul

1. Very high market share in ice cream Amul has the top
market share in ice cream segment which further helps it push
other products into the market.

2. Excellent brand equity amul is a beloved brand over the


years and the contribution of amul girl and her outdoor ads
should specifically be mentioned here.

3. Excellent quality management even though amul has such a


wide and large distribution network, hardly any quality
complaints come for amul.

4. Strong distribution network This is one company which is


strong in urban as well as rural distribution. You will find amul
present even in small towns and villages.

5. Good product portfolio Amul had a deep product portfolio


when compared to any fmcg company. It has many different
varieties of milk milk based food items like cheese, butter, milk,
buttermilk, lassi and many others. In ice creams too, amul has a
large variety of flavours.

6. Strong Supply chain Vendors love Amul and amul is known


for the white revolution in India.
7. Rural presence Strong rural presence of Amul is its plus
point. It is mentioned here separately because this rural presence
gives amul a strong competitive advantage.

Weaknesses in the SWOT analysis of Amul

Cost of Operations Amuls operation is huge. And so is the cost.


Plus the sector is such that maintaining margins becomes difficult day
by day. Thus, to face international players, Amul needs to maintain
the operations in the same manner it is carrying out today. It is not a
weakness but rather a constant challenge for Amul. In fact, during
summers, the brand faces severe shortage of supply.
Chocolates Amuls expansion to chocolate has failed and hardly
any product of Amul chocolates is selling in the market. Amul needs
further products to expand its product line and increase bottom-line.

Opportunities in the SWOT analysis of Amul


Export Amul can export its product to other countries thereby
increasing its turnover and margins exponentially.
Concentrate more on chocolate market Amul has a no
advertisement policy which creates a problem for its foray into
additional products. Amul should in fact have separate SBUs and
concentrate more on increasing its product line through chocolates or
other such products.

Threats in the SWOT analysis of Amul


Increasing competition in Ice cream segment Many players, local
and international, are entering the ice cream market thereby taking
away share of wallet from Amul. Kwality walls, Naturals, London
dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few
brands who are directly in competition with Amul.

An Overview

The Organisation An Overview

Number of Producer Members 6,83,130


Number of Village Dairy Cooperative Societies 1217

Total Milk Handling Capacity 5 Million liters per day

Milk Collection (Daily Average) 1.9 Million liters

Milk Drying Capacity 150 Mts per day

Whey Drying Capacity 60 Mts per day

Cattle Feed Manufacturing Capacity 2500 Mts per day

Sales Turnover Rs (Million) US $ (in million)

2004-05 6000 138

2005-06 7090 160

2006-07 8220 202

2007-08 10770 272

2008-09 13780 310

2009-10 16950 360

2010-11 21110 469

2011-12 24660 528

2012-13 28500 528

2013-14 34410 574

2014-15 41420 681

2015-16 48250 736


Competitive analysis in the Marketing strategy of Amul

Amul has some good competitors who have entered the market in the last
decade and growing strong steadily. Most of these ice creams entered regionally
but then held on to the regional market share. Thus, even though individually
these brands might not be a worthy adversary, combined and with their total net
aggregate, all of them together are giving a very tough competition to Amul.
Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws,
Arun Ice cream, Baskin Robbins, London dairy and others. Many of these ice
cream products have their own niche or geographic targets. Arun ice cream is
strong in the south whereas Havmor and Vadilal are strong in the west. Besides
these organized players, there are many unorganised local players who also give
competition to Amul by having their own outlets and their own variants of ice
cream. However, the competition in Butter and Cheese and other dairy products
is far lesser.

Market analysis in the Marketing strategy of Amul


The FMCG market is highly competitive in nature and is known to have a
combination of organized players as well as unorganized players. Similarly, in
FMCG, direct competition is equally important as indirect competition. For
example During winters, ice cream and cold milk products will not sell,
whereas butter and cheese will sell equally well. But on the other hand, during
summers the demand of ice cream shoots up so much so that companies are not
able to meet demands. Thus, when we analyse the market of Amul, in some
cases Amul is the clear market leader, whereas in other products it is a
competitor in the market.

Customer analysis in the Marketing strategy of Amul

The typical customers of Amul belong to the Sec B and Sec C segment wherein
they are either middle class or lower class. Amul in general uses mass
marketing and therefore it targets these 2 classes majorly. The high end
customers are more likely to prefer Naturals, a Baskin Robbins, or any other
such brand which meets their taste and status.
Tagline The taste of India.

Mission
We the motivated and dedicated workforce at amul are committed to produce
wholesome and safe foods of excellent quality to remain market leader through
development of quality management system, state of art technology, innovation
and eco-friendly operations to achieve delightment of customers and milk
producers.

Vision

Amul has a vision to provide more and more satisfaction to the farmers,
employees and distributors.