LOVELY PROFESSIONAL UNIVERSITY

Academic Task-3

MITTAL SCHOOL OF BUSINESS

Name of the faculty member: Dr. Prashant Chauhan

Course Code: MKT 509 Course Title: Consumer Behaviour

Class: MBA Term: Third Trimester Section: Q5E54 (Group A)

Batch: 2019-2021 Max. Marks: 30

Date of Allotment: 05-04-2020 Submission Date: 28th April 2020

NAME – ROHIT KUMAR ROLLNO-RQ5E54A30

Amul- the taste of india

 Introduction:
 COMPANY BACKGROUND:

Amul was founded in 1946 in Anand, Gujarat, with a mission to prevent middlemen from
exploiting the farmers. Amul is managed by Gujarat Co-operative Milk Marketing Federation
Ltd., which is jointly owned by 3.6 million Gujarat milk producers.It all started 65 years ago
when poor farmers who worked hard, day in and trip were exploited by the local traders and
given small incentives. Angered by unfair and manipulative practices followed by local
traders, the farmers under the leadership of Tribhuvan as Patel approached Sardar
Vallabhbhai Patel to resolve their grievances. Empathising with the farmers, Patel Ji advised
them to be self-sustaining entrepreneurs and work for themselves. The farmers took the
recommendation seriously and formed their own cooperative societies. What started with
only some farmers producing 247 litres of milk grew into a fully-fledged organisation with
quite 3.6 million milk producers producing around 14.85 million litres per day (Data till
2015).

Amul has been awarded the Guinness record for the longest running advertisement campaign.
The Amul girl is that the advertising mascot employed by the corporate to push the brand.
The brand has been cleverly using the cartoon figure in its longest running crusade, to instil a
part of humour into its print ads. The content is liked by the people and ends up in better
customer engagement. This increases the brand recall value for Amul. Hence, the Amul girl
ad campaign is commonly described in concert of the simplest Indian advertising concepts.
Amul follows the Branded House Architecture way, wherein whatever they promote; they
market it under one common name – Amul. The prime focus is on promoting the parent
brand instead of individual products which helps them gain more brand visibility and ends
up in lesser marketing and advertising costs.

Vision and mission of Amul

Vision- Amul ‟s vision is to provide more and more satisfaction to the farmers, employees
and distributers

Mission-We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to

satisfy the tasteand nutritional requirements of the customers of the world, through excellence
in marketing byour committed team. Through co-operative networking, we are committed to
offering quality products that provide best value for money.

 Different campaigns and initiatives by Apple:

1.Amul Scholarships:
To inspire excellent children of farmers to pursue higher education Amul launched
scholarship schemes in 1992. Children earn scholarships for Diploma, Graduation,
Postgraduate and Doctorate degrees. Every year outstanding children from the villages are
found and scholarships are granted to fulfill their vision of achieving academic
excellence.This effort has motivated greatly children to excel in their studies and spread
education in rural areas.

2.Tree Plantation:
According to statistics of Forest Survey of India considering on an average 30-40 cm
diameter of these trees, 106 trees would provide one hectare of green tree cover. Considering
47% survivability of planted trees (based on post plantation survey data, around 148.12 lakhs
out of 311.98 lakhs tree planted survived during the last five years), when they fully grow up,
would provide additional 1,39,735 ha. of green cover which is additional 6.41% forest cover
of Gujarat State of India

3.Dairy Demonstration Farm:

In 1946, the unfair trade practises of the middle men brought the farmers of Kaira to unite
and fight against this system which brought Amul into existence. Their unwavering efforts to
better their socio-economic conditions eventually led to their role as a model for our country's
dairy development programme, popularly known as Anand Model. Replication of Anand
Pattern through Operation Flood programme helped India to achieve first position in
production of milk in the world.

 POSITIONING, TARGETING AND SEGMENTATION OF AMUL:

Positioning of a brand is a marketing effort and can only be done through promotion and
advertising. A company’s brand identity, its elements, its product and its communication,
they all play an important role in positioning a product. So, what really is positioning of apple
in the market?

Below are the factors which attributed to the positioning of Apple in the market

 Brand Identity:

All intangible brand assets such as Amul brand values, its culture, staff, Brand colors,
Tagline, Style of Imagery, etc. all of these elements contribute to the development of a
particular role in the minds of the consumer.

 Segmentation For AMUL

Market segmentation is a method of dividing a large consumer or business market, typically
consisting of current and potential customers, into sub-groups of consumers (known as
segments) based on certain types of common characteristics.
The goal of AMUL's segmentation is to define and target prime consumer groups (e.g. 20%
that account for 80% of your sales) so that they get the maximum return from a small
marketing budget.
 TARGETING FOR AMUL

Targeting is when the company decides on which target customer segment they want to go
after, which they think will be profitable for them.
For Amul, the market segmentation and target are clearly defined as 

 Age group: preferred by all

 Gender: Male and Female
 Income: Being an affluent brand, Amul targets medium to high-income
individuals
 Behaviour: Hard-core loyalists  – Once an Amul user, always an Amul user!.
These customer groups become very loyal to a brand and hardly change their
brand.

PRODUCT AND SERVICES:

 Amul Butter
 Amul Dahi
 Amul Health Drink
 Amul Milkshake
 Amul Lassi
 Amul Cheese
 Amul Shrikhand
 Amul Spray
 Amul Cheese
 Nutramul
 Amul Ghee
 Amul Milk
 Amul chocolate
 Amul Ice cream

 ANALYSIS OF INTERNAL INFLUENCE:

Internal influences are also known as personal influences and it includes perceptions, attitude,
motivation, lifestyle, learning and roles. These internal influences affect all our purchase
decisions and these factors affect the way how consumers behave when making buying
decisions and how they identify themselves with the brand. Following are the internal
influences on consumer behaviour towards Amul-

1) Perception:

Consumer perception is characterized as perception as the mechanism by which knowledge is

obtained, chosen, organized and interpreted by an person.

Amul has had a marketing record for years. It is now becoming an example of social media
customer support. The company has demonstrated that it is really using social media to be
attentive to its customers and to answer their questions on the Face Book. A dissatisfied
customer posted pictures of Amul Gold Milk on 10 October 2014. The photos in the post
were presented as a very negative portrayal of the brand. After four days, the company
launched and clarified itself on its Facebook page. It allayed the concerns that had been
instilled in its clients and also received specific information that the company needed.

Learning and Memory:

People learn when doing things, and as they do things over and over again, they finally learn.
If the consumer is satisfied with the product he / she has purchased, he / she would repeatedly
go to the product, which in turn would be a learning process. He will know and memorize
that he / she is more inclined towards what features or designs he / she has, and he / she
would go for that brand that would have all those aspectsAmul tries to keep its customer base
loyal to it by effectively disseminating the concept of the commercials and providing them all
knowledge about the product and continuing to sell the new product so that consumers can
have a positive experience from the company and retain a good memory and learn about the
product in their minds.

Motives-

Motivation is the reason for behaviour. A motive or motivation is an inner force which provides a
specific direction to the mind towards a particular goal. If we talk about Maslow’s need hierarchy theory
(one of the motivational theories) we would be categorising the Amul products on a higher level of this
theory i.e. physiological needs and safety needs.
Amul comes on the lower levels of Maslow’s Hierarchy of needs. The physiological needs are fulfilled
by the products of Amul. Amul is one such brand on which the consumers trust so it comes in the
safety aspect of this hierarchy. This is because the consumers trust that the quality standards of Amul are
high being a trustworthy brand and has captured a big market share
Amul would come in safety needs as to say that the Amul customers are generally considered
as loyal customers as they think Amul gives pure product and its gives product under safety
measurement and customers think it is better than any other product available same as Amul.
They feel a sense after buying an Amul product.

2) Personality:

Personality is individual’s characteristics response tendencies across similar situation. Amul

focuses on managing good quality and its advertisement show the same. Amul focuses
always on giving best to the customers that’s why for last 2 years Amul is short of its
products although there are many substitutes’ presents on behalf of Amul but Amul has
different brand value in mind of the people.

3) Attitude:

Attitude refers to the way a person, thinks, feels and act towards some aspect of his or her
environment. Whenever Amul launches a product, people think we have to try this once and
Amul always go beyond their expectation. Amul is one of the leading brands if in market 10
types of Butter are being sold citizens will definitely go for Amul because it has different
brand value among all the company. This shows that what customer attitude is toward the
brand Amul.

4) Beliefs:

Consumers have blind faith in Amul, they know this brand will not cheat them in any way
and this kind of faith comes over a period of time. Amul is perceived as a local brand in
various regions of India: it is perceived as a brand of my region or my city and that’s how
consumer belief in brand Amul. Infect Amul also never broken the faith of people. In India
Amul is the largest among all the dairy production and have continuing faith of the people.
The shared belief between Amul and consumer’s along with positive product and their
quality are critical in establishing the brand in the mind of the consumers.
  ANALYSIS OF EXTERNAL INFLUENCES-

What a consumer eats, wears, and believes are all learned and influenced by the culture they
live in, their family, childhood and social environment. All of these are external factors that
affect purchases. People are social and they want to belong to special groups. Group members
share common interests, influence each other, and share rules and values. Primary groups are
those with the most influence, such as family members; secondary groups have less
interaction than the primary group, such as clubs and organizations. As children grow into
teenagers, their parents become less of an influence and peer groups become more of an
influence. All groups exert what is called social power; some groups have more power than
others over consumers’ decisions. External influences can also include situational influences,
sometimes called atmospherics—sensory items in an environment that may change buying
patterns, such as offers, color, smell, and packaging. If a store gives good offer, they may
attract people.

Following are the external influences on consumer behaviour towards Amul-

1) Demographics:

Demographics describe a population in terms of its size, distribution, and structure.

Demographics influence consumer behaviours both directly and by affecting other attributes
of individuals.

Amul considered as a brand for the entire family. Our target audience starts from consumers
aged five to people in their 70s. Amul cater to all income groups. A taxi driver in Mumbai is
as much a target for Amul as anybody from the upper class of society. Amul try to reach
different sets of consumers through Print and Television. The general entertainment channels
reach out to millions of households in the country. For this reason, the best customers for
Amul tend to be of any age or group.

2) Culture:
Amul products are Daily Uses product. They depict the taste and a status symbol culture
across the world. Customers are attracted towards Amul because of the culture that Amul
products create by attracting different people from various demographics. For example Butter
or cheese are preferred to be used by various people from different fields people from
businesses to homes everyone uses it. So it creates a culture for all fields person to buy these
products as they are being used by every other person from that field or most of those
businesses out there.

3) Sub Culture:

It has been observed that most of the Amul users have a culture in their society that if one
family buys an Amul product then the other family also start switching to Amul products as
well. The Amul products are so tasty and pure that are equipped with by many families. Amul
can be very easily used by any person from any age group or people with disabilities as well.
Whenever you need to be hungry you just spread Amul butter on a piece of bread and you
can finish your hunger.

4) Social status:

A person is always in want for a good lifestyle and a social status. With Amul products,
Consumers perceive to have achieved a higher level of satisfaction as products from Amul
are pure and genuine. But what mostly attracts the customers more is the Word-Of-Mouth.
Apple users experience a convenience in most of the aspects which a proper product or just to
say a Amul ice cream or Amul Butter. People feel that the convenience apart from a social
status they are experiencing, they feel that it should be shared with others as well. So, just to
have that experience too people buy Amul products.

5) Reference Group:

Reference groups have potential in forming a person attitude or behaviour. The impact of
reference groups varies across products and brands. The reference group has a great impact
on the consumer behaviour because reference group are the one who serves as a point of
comparison for an individual in the formation of either general or specific values, attitudes, or
behaviour. The demand for Amul products is highly affected by reference groups and peer
pressure. For example: Amul, the Indian dairy brand, is so trusted by all levels of society it
does not do the sort of market segmentation other brands customarily undertake, but that trust
has been built over decades, based on quality and a local focus.

 ANALYSIS OF CONSUMER DECISION MAKING-

The term consumer decision produces an image of an individual carefully evaluating the
attributes of a set of products, or services and rationally selecting the one that solves a clearly
recognized need for the least cost. There are various aspects under consumer decision making
which are discussed below-

1) Problem Recognition:

Problem recognition is the first stage in the consumer decision process. Problem recognition
is the result of a discrepancy between a desired state and an actual state that is sufficient to
arouse and activate the decision process.

The first step that comes under the consumer decision making process is Problem
Recognition. Without knowing what a customer wants, he/she cannot proceed further. So, in
this case, if a person has to satisfy his hunger, he needs food. Also, to satisfy his taste buds as
well as his health factor, he needs the food that is tasty, nutritious and safe.

2) Information Search:

It is the next step in decision-making process after recognising the problem. So, the
consumer has to search for the different alternatives when choosing a particular product.
Apple has very innovative marketing strategies. A Word-of-Mouth is also enough for Apple
for altering the consumer’s purchase decision. By gathering information, the consumers learn
about competing brands. Because of the excellent products, the top of the mind positioning,
the fantastic distribution and supply chain channels and finally the point of purchase
branding and advertising of the Amul girl, Amul finds itself in a very strong position where
its brand equity is concerned.

3) Alternative Evaluation: When buying an Amul product, a consumer might make

Affective choice, Attitude-based choice or an Attribute based choice. It all depends on
how a customer wants to perceive an Amul product. Like in Affective choice, a
consumer would like to buy a product focussing on how the product would make him/her
 feel. . Attribute based choices are made when a person has a full knowledge about what
he wants to buy and what features he wants to have in that product and evaluates
products based on his requirements Amul has a great competitive advantage over its
competition brands Because of the large numbers of dairy suppliers; Amul has a
tremendous strength and reliability in its supply chain. This makes it a very reliable brand
in its consumer’s eyes. Not only its superior product quality, but also the fact that it is
easily available in most regions makes it an Indian favourite brand.
4) Outlet Selection: After evaluating and selecting the product, the next step is outlet
selection i.e. from where the person would buy that product. For buying an Amul
product, currently there are AMUL stores in India, but they are also authorised
distributers and retail stores selling Amul products.
5) Purchase and Post-Purchase Processes: During purchasing stage, the value
exchange between buyers and sellers is the key. In the evaluation stage, the consumer’s
preferences among the brand in the choice set and form an intention to buy the most
preferred brand. In executing a purchase intention, the consumer may make up to five
subdivisions:  brand, dealer, quantity timing and payment method. In conclusion, pre-
experience, experience and post-experience have effects on the process of purchasing
decision, the consumer might experience dissonance from noticing certain disquieting
features. Marketing communications should supply beliefs and evaluations that re-in
forces consumer’s choice and help him or her feel good about the brand.

 CONCLUSION:

Summing up all of the sub variables aforementioned, we can very clearly see these factors
affecting consumer behaviour indeed plays a big part in creating brand recall as well as brand
awareness. With a strong brand recall comes with greater brand awareness and this works
especially well to our advantage since Amul products are tangible products. Taking all these
into consideration, product acceptance level would then increase. This will in turn boost the
consumer’s preference and affect their buying decision when purchasing an Amul product.
Amul being a brand that has to use intensive techniques and strategies for creating brand
awareness. Although, people are aware about the brand but not about what the Amul products
actually are. Word-of-Mouth in this context plays a vital role as well as the advertising
campaigns to actually influence the consumer behaviour and make the consumers to buy its
products. Amul has already been very successful in launching various Ad campaigns which
really help in shaping consumers’ minds towards itself.

REFRENCES

https://bbamantra.com/project/segmentationtargeting-and-positioning-of-amul/

https://www.slideshare.net/PrathameshNarkar/project-amul

http://amulmania.blogspot.com/2015/10/consumer-behaviour-and-buying-decisions.html

https://www.ukessays.com/essays/business/amul.php

https://yourstory.com/2017/12/amul-girl-india-rahul-dacunha

http://www.amuldairy.com/index.php/component/content/category/13-csr-initiatives

Books:

Consumer Behavior: Building Marketing Strategy by Hawkins, Motherbaugh, Mookerjee.