Académique Documents
Professionnel Documents
Culture Documents
ON
BY
MUDIT RANJAN
IN THE PARTIAL FULFILLMENT OF
PUNE UNIVERSITY.
TABLES OF CONTENTS
• Preface
• Acknowledgment
• Executive Summary
• Objective
• Research Methodology
• Industry Background
• Competitive Situations
• Product Range
• Analysis
• SWOT Analysis
• Suggestions
• Conclusion
• Bibliography
• Questionnaire
PREFACE
This project has been a memorable experience and a great opportunity for
me to associate with one of the top companies in INDIA Gujarat Co-
operative Milk Marketing Federation (AMUL).I am very grateful to the
people by whose assistance and cooperation I got my project successfully
completed. It gave me an opportunity to know the practical aspects of
marketing and to acquaint myself with modern environment management.
I do hope, I have made a useful attempt so as to meet the project brief given
to me and that the project would be able to deliver desired results that can
benefit Gujarat Co-operative Milk Marketing Federation (AMUL) in
incorporating those results while formulating their marketing strategies.
ACKNOWLEDGEMENT
The project assigned for the period of 2 months was Sales promotion of
Amul milk and also to find the Market share of Amul milk in comparison to
other pouch milks and loose milk among the customers of Lucknow. The
aim of this project was evaluating the position of Amul milk among
customers on different parameters, creating awareness about the various
products of the company, brand image and generating leads for future
business prospects.
3) Some respondents could not provide any time for the survey because
of their busy schedules.
My study on this project will help the company to know its strengths
and weaknesses with respect to other brands available in the market and to
make strategic future decisions to improve its market awareness and
penetrations and thus finally enhance its services.
• Primarily this study will enable the company to evaluate its position among
the competitors in respect to all important factors related.
• Secondarily this study will enable the company to check the customer
perception about Gujarat Co-operative Milk Marketing Federation (AMUL)
…and judge the market share of AMUL milk in comparison to other pouch
milks and loose milk in LUCKNOW.
OBSERVATIONS AND FINDING:-
1) In the consumer survey it came out that 96% people are aware of
Amul milk. So almost every person is aware about Amul milk.
2) The two most important media of spreading awareness about Amul
milk are television and wall paintings.
3) Only 37% of people prefer to buy pouch milk rest of them prefer to
use loose milk.
4) Market share of Amul milk is less than its competitor PARAG.
5) In consumer survey it came out that from all the customers of Amul
milk only half of them are there loyal customers, remaining prefer to
buy Amul milk along with Parag & other brands.
6) Consumers prefer to use Amul Gold (Full Cream) than Amul Tazza
(Toned Milk) might be because of it’s good taste.
7) Amul milk reaches to the customers mostly by the retailers, than by
the road side vendors. The home delivery is also becoming an
important way so selling Amul milk as some retailers and new APO’s
are providing home delivery.
8) Most of the customers know about the good taste and quality of Amul
milk as it is shown in analysis that 66% of customers repurchase
Amul milk.
9) Customers rate Amul milk as good quality milk.
10) About pricing of Amul milk most of the customers say that it is
average.
11) They have complaints about 1 liter. Pack as its price is one rupee
more than its major competitor’s price.
12) Some customers also have complaints about the availability of amul
milk.
SWOT ANALYSIS
STRENGTHS
• In just over few years, there are so many customers across the country &
the number keeps on increasing.
• The good taste, quality and brand image of Amul milk is playing a
important part in competition with other pouch milks.
• Amul is having nearly a large market share in the pouch milk segment.
This reveals that Amul is undoubtedly a market leader in this segment.
• Company is having a very good Distribution Channel all over the country.
So any kind of delay in delivery is not possible.
WEAKNESS
• The product range is not very large as company is having only two main
variants in (500 ml & more) pouch milk segment.
OPPORTUNITIES
• As the middle class income level is increasing very rapidly so the company
can also make use of this data also to attract more customers.
• By home delivery at door step of customers in quick time can earn more
repute and value from customer.
THREATS
• As the various alternatives are available in the market so the customer can
go for other options.
• Rising manufacturing cost.
SUGGESTIONS:-
• First and the foremost action is that Amul should improve its service
and availability.
• Amul should do more for the new outlet and for exclusive Amul
Parlours. Amul can insist retailers to do home delivery.
• The pricing of one liter pack of Amul is one rupee more than their
major competitor PARAG in Lucknow
CONCLUSION:-
• This survey was done to assess the market share of Amul milk among
the customer at various places in Lucknow, so that company can
follow the weak points of its policies and make efforts to rectify them
in future to increase its market share.
• The quality of Amul milk is good and brand image is also very good
but due to poor services and availability it becomes useless.
• Mostly distributors deals with the retailers who are not enough
capable of handling the situation and due to this retailers gets away
from brand.
1. NAME –
2. ADDRESS--
3. INCOME GROUP--
a) YES b) NO
5. If, yes how you come to know about Amul pouch milk?
e) Household survey
7. If pouch milk then which of the brand you were buying earlier?
a) AMUL b) PARAG c) OTHERS
a) Yes b) No
Quality
Price
Brand Image
Services
Availability
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
……………………………………………………………………………
BIBLIOGRAPHY:-
o Internet:
• www.amul.com
• www.amulb2b.com
• www.agencyfaqs.com
• www.magindia.com
• www.sify.com
• www.mouthshut.com
• www.thehindu.com
• www.indiantelevision.com
• www.indiadairy.com
• www.etgmr.com
• www.etstrategicmarketing.com
• www.tribuneindia.com
• www.economictimes.com
• www.indiatimes.com
• www.rediff.com
• http://www.youthxchange.com
• www.indiainfoline.com
• www.india-seminar.com
o Magazines:
• USP AGE, August 2004
• Business Today
• Business World
o News papers:
• Times of India
• Economic Times
ANALYSIS
1. INCOME GROUP—
5000 – 10000 98
5000-10000
10000-
45% 15000
15000 &
above
30%
No 18
4%
Yes
No
96%
3. If, yes then how you come to know about AMUL pouch milk ?
Hoarding 112
Television 377
Newspapers 58
Household Survey 27
400
350
300
250
200
150
100
50
0
Hordings T.V Wall News paper House hold
painting survey
Pouch
milk
37%
loose milk
63%
5. If pouch milk then which of the brand you were buying earlier ?
AMUL 172
PARAG 217
ANY OTHER 23
250
200
150
100
50
0
Amul Parag Any other
AMUL TAZZA 45
Amul
tazza
26%
Amul
gold
74%
Point of purchase
Road side
vendor
33% RETAIL
OUTLET
Home
delivery
boy
52%
15%
9. Have you repurchased Amul milk?
Yes 168
No 332
Yes
34%
No
66%
10. How do you rate Amul Milk?
300
250
200
Excellent
150 Good
100 Average
50 Poor
0
Quality Price Brand Service Availablity
image
RESEARCH OBJECTIVES
RESEARCH METHODOLOGY
RESEARCH DESIGN
PRIMARY SOURCES
SECONDARY DATA
SAMPLING
1. ROUTE RIDING
I spent the time in market for collecting the information about the various
product of the company at different retail outlets and knowing the opinion of
the retailers and as well as customers.
2. DATA COLLECTION
3. DIRECT INVOLVEMENT
4. RESEARCH INSTRUMENTS
MISSION
VALUES
3. Integrity 4. Co-operation
5. Excellence 6. Leadership
7. Quality 8. Innovation
The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of
the Himalayas. Similar is the story of Amul which inspired 'Operation Flood'
and heralded the 'White Revolution' in India. It began with two village
cooperatives and 250 liters of milk per day, nothing but a trickle compared
to the flood it has become today. Today Amul collects processes and
distributes over a million liters of milk and milk products per day, during the
peak, on behalf of more than a thousand village cooperatives owned by half
a million farmer members. Further, as Ganga-ma carries the aspirations of
generations for moksha, Amul too has become a symbol of the aspirations of
millions of farmers. Creating a pattern of liberation and self-reliance for
every farmer to follow.
The brand name AMUL, from the Sanskrit Amoolya, meaning priceless, was
suggested by a quality control expert in Anand. The first products with the
Amul brand name were launched in 1955. Since then, they have been in use
in millions of homes in all parts of India, and beyond. Today Amul is a
symbol of many things: Of high quality products sold at reasonable prices,
of availability, of service.
There is something more, though, that makes the Amul brand special and
that something is the reason for our commitment to quality and value for
money. Amul is the brand name of 2 million farmers, members of 10,000
village dairy cooperative societies throughout Gujarat. This is the heart of
Amul, it is what gives strength to Amul, and it is what is so special about the
Amul saga.In the early days of Kaira Union there was no dearth of cynics. Could
‘natives’ handle sophisticated dairy equipment? Could western-style milk products be
processed from buffalo milk? Could a humble farmers’ cooperative market butter and
cheese to sophisticated urban consumers? The Amul team – farmers and professionals –
confounded the cynics by processing a variety of high-grade dairy products, several of
them for the first time from buffalo milk, and marketing them nationally against tough
competition.
Amul: The secret of success
Between 1946 and 1952, AMUL's policy was directed towards obtaining
monopoly rights for the sale of milk to the Bombay milk scheme. In 1952, it
succeeded in achieving its purpose after the Government of Bombay
cancelled the contract with Polson’s and handed over the entire business of
supplying milk from the Kaira district to AMUL. However, as the Bombay
milk scheme was committed to purchasing all the milk produced by the
Aarey Milk Colony in Bombay, it would not take AMUL's milk during the
peak winter months. The disposal of this surplus milk posed difficulties for
AMUL, forcing it to cut down on purchases from its member societies,
which affected members' confidence. The answer was the production of milk
products: in 1955, a new dairy plant was set up at Anand to produce butter,
ghee and milk powder.
A second dairy was built in 1965, and a product manufacturing unit was
established in 1971 to cope with increasing milk procurement. In 1993, a
fully automatic modern dairy was constructed adjacent to the original
AMUL dairy plant at Anand.
People’s power:
GCMMF has connected its Zonal Offices, Guwahati Regional Office as well
as Member Dairies, Milk Unions and its own Unit-Mother Dairy through
VSAT for seamless exchange of “Online” information. All Sales Offices,
C&F points & Wholesale distributors of GCMMF have been connected
through TCP/IP Internet Mail Account for exchange of information.
Here I tried my level best to provide some insights into management of very
large supply chains by adapting and integrating a variety of strategies and
techniques. This includes building networks, developing trust & values in
the network, developing fair mechanisms for sharing benefits across the
supply chain, coordination for operational effectiveness, innovation and new
technology for gaining competitiveness. It is noteworthy that these successes
were achieved within the framework of a network of cooperatives organized
in a hierarchical manner. There are many lessons in AMUL’s success not
only for the cooperative sector but also for firms who intend to do business
in emerging markets.
AMUL’s Journey towards Excellence:-
Leadership Charisma, long term vision, commitment, Constantly raising the bar,
trustworthy, selfless gain, strong managerial promoting a can-do attitude,
style (bordering on stubbornness), communication of the vision to
technocrat, pan-Indian farmers, consumers and the
vision/nationalism, persuasion government
Strategy:
Organization:
Building an organizational network that would represent the farmers and the
customers was the most complicated task. A loose confederation was
developed with GCMMF representing the voice of the customers, the
Unions representing the milk processors and the village societies
representing the farmers. Competition in the markets ensured that the entire
network was responding to the requirements of the customers at prices that
were very competitive. The task of ensuring that returns to the farmers was
commensurate with the objectives with which the cooperatives were setup
was achieved through representation of farmers at different levels of
decision making throughout the network – the board of directors of societies,
Unions and the Federation comprised farmers themselves. In order to ensure
that most returns from sales went to the producers, the intermediaries had to
operate very effectively and on razor thin margins. This turned out to be a
blessing in disguise – the operations remained very “lean” and started to
provide cost based advantage to the entire network.
Marketing:
GCMMF is the marketing arm of the network and manages the physical
delivery and distribution of milk and dairy products from all the Unions to
customers. GCMMF is also responsible for all decisions related to market
development and customer management. These activities, which range from
long-term planning to medium-term and short-term operational decisions are
described below.
As mentioned earlier, introduction of new products and choice of product
mix and markets should be consistent with the growth strategy, and
synchronous with growth in milk supply. GCMMF’s demand growth
strategy may be characterized by two key elements: (i) developing markets
for its high value products by graduating customer segments from low
value products, and (ii) maintaining a healthy level of customer base for its
base products (low value segment).
This strategy often requires GCMMF to allocate sufficient quantity of milk
supply to low value products, thereby sacrificing additional profits that
could be generated by converting the same to high value products.
Operations:
Robust coordination is one of the key reasons for the success of operations
involving such an extensive network of producers and distributors at
GCMMF. Some interesting mechanisms exist for coordinating the supply
chain at GCMMF. These range from ensuring fair share allocation of
benefits to various stakeholders in the chain to coordinated planning of
production and distribution. More importantly, the reason for setting up of
this cooperative is not amiss to any one in this large network organization.
Employees, third part service providers, and distributors are constantly
reminded that they work for the farmers and the entire network strives to
provide the best returns to the farmers, the real owners of the cooperative.
AMUL’s growth during the past five decades has been fuelled primarily by
growth in milk supply with corresponding pricing strategy to generate
demand. This growth has been sustained by a two-pronged strategy – (a)
growth in the number of member farmers by widening its coverage with
more village societies and increasing the membership in each society, and
(b) growth in per capita milk supply from its members.
This growth is achieved by increasing milk yields and by helping members
raise their investments in cattle. It is worth noting that AMUL has funded
these support activities from its earnings (instead of repatriating them to the
members either as dividends or with a higher procurement price). It is
expected that AMUL’s growth in the immediate future will continue to rely
on this strategy. However, in the new emerging environment, several
challenges have become apparent and AMUL network needs to evolve
proactive mechanisms to counter these threats.
First, competitors are cutting into milk supply by offering marginally higher
procurement prices thereby challenging the practice of provision of services
for long-term growth in lieu of higher prices in the short-term.
OBJECTIVE:-
Composition:
Special features:
Amul milk is the most hygienic liquid milk available in market. It
is pasteurized in state-of-the-art processing plants and pouch-packed to make
it conveniently available to consumers.
Product specification:
Amul milk meets the PFA standards for the respective type of
milk
Amul Gold
Amul Gold is Long Life standardized milk. It is fresh and only fresh milk,
Which has been processed with a technology called UHT (ultra high
temperature), hence also known as UHT milk. Notwithstanding popular
misconception, UHT technology does not involve any use of preservatives.
The UHT treatment ensures zero microbial activation, while preserving the
maximum flavor, taste and nutritional value. The aspect packaging system
protects the product from air and light and guarantees a long shelf life of 180
days without refrigeration.
Amul Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for
making sweet dishes (like kheer, payasam etc.) and for setting curds. It is
also ideal for drinking straight from the pack for kids and adolescents who
simply love its creamy taste sans the inconvenient cream layer! Amul Gold
comes in convenient 1 liter and 500ml and new 220ml packs.
Amul Taaza Double Toned Milk
Amul Taaza is Long Life double toned milk. It is fresh and only fresh milk,
Which has been processed with a technology called UHT (ultra high
temperature), hence also known as UHT milk. Notwithstanding popular
misconception, UHT technology does not involve any use of preservatives.
The UHT treatment ensures zero microbial activation, while preserving the
maximum flavor, taste and nutritional value. The aspect packaging system
protects the product from air and light and guarantees a long shelf life of 180
days without refrigeration.
Amul Taaza contains 1.5% and 9%SNF minimum and is ideal for tea and
coffee whitening and for setting curds. It is also just right for drinking
straight from the pack for those who would like to enjoy the taste the
goodness of natural while avoiding the hazards of too much fat! Amul
Taaza comes in convenient 1 liter, 500ml and 200ml pack.
Amul Lite is long life skimmed milk. It is fresh and only fresh milk,
Which has been processed with a technology called UHT (ultra high
temperature), hence also known as UHT milk. Notwithstanding popular
misconception, UHT technology does not involve any use of preservatives.
The UHT treatment ensures zero microbial activation, while preserving the
maximum flavor, taste and nutritional value. The aspect packaging system
protects the product from air and light and guarantees a long shelf life of 180
days without refrigeration.
Amul Lite Milk is a unique offering to health conscious milk lovers. With
virtually 0% fat contents, nil cholesterol and 8.7% SNF minimum, it gives
you all the proteins, vitamins and minerals of natural milk without your
having to imbibe unnecessary flab in the deal ! Amul Lite Milk comes in
convenient 1 liter, 500ml and 200ml packs.
Amul Shakti Toned Milk
Amul Shakti is Long Life toned milk. . It is fresh and only fresh milk,
Which has been processed with a technology called UHT (ultra high
temperature), hence also known as UHT milk. Notwithstanding popular
misconception, UHT technology does not involve any use of preservatives.
The UHT treatment ensures zero microbial activation, while preserving the
maximum flavor, taste and nutritional value. The aspect packaging system
protects the product from air and light and guarantees a long shelf life of 180
days without refrigeration.
Bread spreads:
• Amul Butter
• Amul Lite Low Fat Bread spread
• Amul Cooking Butter
Cheese Range:
Pure Ghee:
Milk Powders:
Fresh Milk:
Curd Products:
Brown Beverage:
Milk Drink:
• Amul Shakti Flavored Milk
• Amul kool flavored milk (Mango, Rose, Chocolate, Strawberry)
Health Beverage:
The story of Amul (Anand Milk Union Limited) began way back
in 1946 as an offshoot of the freedom movement with an aim to do away
with the exploitation of middlemen in milk collection and give the villagers
the best returns for milk. Amul began the dairy cooperative movement in
India and formed an apex cooperative organization, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which is jointly owned by some
2.2 million milk producers in Gujarat, INDIA. Now, not only had the milk
collection and the number of co-operative members increased but Amul was
giving a stiff challenge to the multinationals. Consider this: Amul was a
leader in baby food, dairy whiteners, chess and ice creams. It held an 86%
market share in butter. Exports of milk and milk products were Rs.80 crore
p.a. This was certainly a giant leap when one considered that in 1946 when it
began, it had only two village societies and a collection of 247 liter of milk
daily. The primary goal of Dr. v. Kurien, chairman GCMMF, the ‘Milkman
of India’, had been to build a strong Indian society through an innovative
cooperative network, to provide quality service and products to end-
consumer and good returns to the farmer members. Kurien averred, “We
have traversed a path that few have dared to. We are continuing on a path
that still fewer have the courage to follow. We must pursue a path that even
fewer can dream of pursuing. Yet, we must we hold in trust the aims and
aspirations of millions of our countrymen.”
During 2001-02, GCMMF’s member unions put together procured 45.87
lakh liters of milk per day (LLPD), with the leading contributor being
Mehsana (11.15 LLPD), Karia at (6.88 LLPD), followed by Banaskantha
(6.86 LLPD), Sabarkantha (6.18 LLPD), Surat (5.29 LLPD), Baroda (2.44
LLPD), Panchmahal (2.01 LLPD), Valsad (1.83 LLPD), Ahmedabad (1.15
LLPD), Gandhi nagar (1.05 LLPD), Rajkot (0.81 LLPD), and Bharuch
(0.24LLPD).
Competitive Pricing
GCMMF can procure milk at lower prices as compared to competitors;
Amul has launched a substantial price discount to main competitors. This
has helped in attaining a good volume grown in a short time span.
Brand Awareness is High
The Amul brand has a strong equity in milk products and GCMMF has
managed to leverage on this brand equity and attained over 20% market
share in Mumbai within a year of its launch.
GCMMF already has a wide retail distribution network, which market its
other milk products such as cheese and butter. Hence distribution reach the
single most important factor in creating a critical mass is already available.
Distribution expansion in emerging markets of Small Towns continued to be
a major initiative of our Federation during this year. Almost 500 new
Distributors were inducted as Channel partner—mostly in Small towns. At
the same time, to cope up with the fast emergence of organized Retail in
India, suitable Distribution model was developed during the year for
servicing Modern format stores. Along with the changes in ‘consumption
occasions’, distribution was expanded to Highways, Railways, Airports, Bus
Stations, Schools, Colleges, Industrial Canteens etc.
Our Amul Yatra Program ensures that our Distributors visit Anand,
thereby, imbibing an appreciation of cooperative philosophy and culture as
well as operational systems and processes. Top retailers of the Country also
participate in Amul Yatra. So far, 2779 Distributors, 1654 salesman, and
1490 top retailers have participated in Amul Yatra. During this year of 80
key decision makers of top Modern format stores from various Metros have
also participated.
The company has gone national during FY01 with setting up proper
infrastructure facilities of cold storage for eastern markets. It has also tied up
with various regional dairy cooperative like Mother Dairy (DELHI) for
northern market, Mother Dairy (BANGLORE) for the southern market; and
the Patna Dairy Project for increasing its reach. The company presently is
said to be in talk with cooperative Dairies in Ujjain and Lucknow for its
operations in northern and eastern market. The company also launched a
number of flavours during the year and response to HLL’s Max it launched
its Fundoo range of ice creams in price category of Rs 1 onwards.
SALES
During the year, sales of our Federation registered a growth of 29% to reach
Rs. 3773.55 crores (Rs. 37.74 billion) including consignment sales of Rs.
39.42 crores (Rs. 0.39 billion). This is a very robust growth rate shown by
our Federation vis-à-vis the industry average. I am pleased to note that our
federation has done remarkably well in most of the value added consumer
packs. Sales of Amul Milk in pouches increased by 31%. UHT Milk has
grown in value terms by 12% with 60% market share. Amul Ice cream
achieved a sales value growth of 18%, and has strengthened its position as
the undisputed market leaders with 35% market share. Sales of Masti Dahi
grew by 25%. The sales of the Amul Cheese range is increased by 18%.
Products like Amul Masti Spiced Buttermilk, Flavoured Milk, Amul Fresh
Ice cream, Paneer and Mithaimate demonstrated their potential to become
dominant brands in the coming few years. New products like Amul Basundi,
Stamina, Yogi Flavoured Yoghurt, Kool Café etc. launched during the year
are expected to do well in the current year while diversifying our portfolio of
offerings the consumer further.
VALUE-ADDED PRODUCTS:
Amul had humble, yet solid beginnings. From milk alone, the portfolio had
expanded to include some very marketing-intensive products. Amul
commissioned IMRB to do a study on what products the customers expected
from its stable. Butter and ghee were the old success stories. Flavored mild
under the brand name ‘Kool’ has also been accepted as a success story. Over
time, Amul expects to collect sufficient data to validate the same. Says R S
Sodhi, “We have been trying to figure out how we can dispose of the milk
procured. Its 52 lakh liters a day, so how does one maximize returns on it?
Hence the foray into value-added products.” Amul outlined its advantages as
follows:
The key categories were chocolates, ice creams, soups and retail initiatives.
1. CHOCOLATES:
GCMMF, which had been lying low for a while with its generic chocolate
variants such as Fruit & Nut and Milk, intended segmenting its chocolates,
catering to different age groups and categories that were likely to consume
its brand. Sanjay K. Panigrahi, General Manager, GCMMF, said, “We
intended to take advantage of our already existing cold chain to get more
active in the growing market of molded chocolates and confectionery.”
Having launched an occasion-related sub-brand of Nuts ‘bout U on the eve
of Valentine’s Day and Kite Bite for the kite flying festival in Ahmedabad,
Amul decided to segment the market with brands catering to the `impulse’
and `teen’ segments, as well as having brands catering to different occasions.
2. ICE-CREAMS:
For its ice-cream and milk business, GCMMF had invested in increasing its
milk capacity. It firmed up plans to invest Rs 100-120 crore to expand this
from 1.1 million liters a day to 1.8 million liter a day at its Gandhinagar
factory. The cooperative also planned to expand its production facilities
beyond Gujarat to service other regions in India. GCMMF bought an ice-
cream manufacturing unit in Nagpur and installed a dairy unit alongside.
Through this unit, Amul extended its milk supply to over 10 cities spread
over Rajasthan, Madhya Pradesh and Maharashtra.
Amul also focused on its supply system. Efforts were on to ensure greater
availability of Amul ice-cream at pushcarts and small outlets. The company
felt that availability was the most important factor in ice cream sales. Thus,
Amul ice-cream could be found in ‘just around the corner shops,’ local STD
booths, local kirana shops, chemists and bakers, who stocked the ice-cream
in deep freezers.
Both Amul and Hindustan Lever’s (HLL) Kwality Walls claimed to be the
largest selling ice-cream brands in India. While HLL quoted a market
research study by AC Nielson, which put Kwality Walls at the No 1 spot, an
independent study by Ahmedabad-based Consumer Education and Research
Society (CERS) ranked Amul as No 1, followed by Kwality Walls (among
four brands including Vadilal and four loose samples) on various parameters
of taste, melting quality, weight, fat and sugar content.
Amul ice-cream was positioned as ‘real ice-cream’ made from real milk
cream, while HLL’s Kwality Walls was made from vegetable oil and its
items were dubbed Frozen Deserts. There was also stiff competition from
the other cooperative, NDDB in the form of Mother Dairy Ice Creams. Amul
sold its Ice Cream in New Delhi, India’s biggest Ice Cream market, where its
anti-compete agreement with Mother Dairy had expired. Amul had been
sourcing its entire Ice Cream requirement for the northern market (including
Delhi) from its Gandhinagar plant.
3. SOUPS:
Amul introduced ready-to-use (just pour and heat) soups branded ‘Masti’ in
tetra packs of one liter. To begin with they were introduced in two flavors -
Hot ‘n’ Sour and Tomato. Said Sodhi, “It was a test marketing drive in
Gujarat and in a month or two it would be introduced all over India.” And
there wasn’t much competition for there were not many companies in India
that sold ready-to-use soups.
Sodhi added, “Soup is a milk product and that’s a secret. You will come to
know only when you consume it.” Keeping the ingredients a closely guarded
secret, the company stated that one of the reasons to launch soups was to
utilize the already installed equipment for tetra packaging.
4. RETAILING:
The retailing initiative included not only milk booths, but also restaurants.
Amul had also taken the initiative to set up 100 of its own brand retail
parlors under the name ‘Utterly Delicious’, an initiative which would give it
a retail edge, compared to its competitors such as HLL and Cadbury.
Panigrahi estimated Rs. 100 crore in turnover in the three years after
launching the `Utterly Delicious’ parlors. As an extension of this retail
initiative, Amul also test-launched a restaurant chain under the Utterly
Delicious brand at Vashi in Navi Mumbai. Amul wanted to open more of
such eateries in Mumbai soon, which would dish out ready-to-eat stuff like
parathas, lassi, buttermilk, sandwiches and pizzas, using ingredients from
Amul and also vending the products already available under the Amul
franchise like soups, butter, ghee etc;
Utterly, Butterly, Delicious Story
Story:
It was Bombay, summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a
28-year-old housewife is out in the balcony drying clothes. From her second
floor flat she can see her neighbours on the road. There are other people too.
The crowd seems to be growing larger by the minute. Unable to curb her
curiosity Sheela Mane hurries down to see what all the commotion is about.
She expects the worst but can see no signs of an accident. It is her four-year-
old who draws her attention to the hoarding that has come up overnight. "It
was the first Amul hoarding that was put up in Mumbai," recalls Sheela
Mane. "People loved it. I remember it was our favourite topic of discussion
for the next one week! Everywhere we went somehow or the other the
campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at
you, from strategically placed hoardings at many traffic lights. She is the
Amul moppet everyone loves to love (including prickly votaries of the Shiv
Sena and BJP). How often have we stopped, looked, chuckled at the Amul
hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous
Urmila or simply as herself, dressed in her little polka dotted dress and a red
and white bow, holding out her favourite packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan
following intact. So much so that the ads are now ready to enter the
Guinness Book of World Records for being the longest running campaign
ever. The ultimate compliment to the butter came when a British company
launched butter and called it Utterly Butterly, last year.
“The Man behind the Success”
It all began in 1966 when Sylvester DaCunha, then the managing director
of the advertising agency, ASP, clinched the account for Amul butter. The
butter, which had been launched in 1945, had a staid, boring image,
primarily because the earlier advertising agency which was in charge of the
account preferred to stick to routine, corporate ads.
The year Sylvester daCunha took over the account, the country saw the birth
of a campaign whose charm has endured fickle public opinion, gimmickry
and all else.
The Amul girl who lends herself so completely to Amul butter, created as a
rival to the Polson butter girl. This one was sexy, village belle, clothed in a
tantalising choli all but covering her upper regions. "Eustace Fernandez (the
art director) and I decided that we needed a girl who would worm her way
into a housewife's heart. And who better than a little girl?" says Sylvester
daCunha. And so it came about that the famous Amul Moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with
the moppet on a horse. The baseline simply said, Thoroughbread, Utterly
Butterly Delicious Amul,. It was a matter of just a few hours before the
daCunha office was ringing with calls. Not just adults, even children were
calling up to say how much they had liked the ads. "The response was
phenomenal," recalls Sylvester daCunha. "We knew our campaign was
going to be successful."
The Rebecca
Mark
favourite
In 1969, when the city first saw the beginning of the Hare Rama Hare
Krishna movement, Sylvester daCunha, Mohammad Khan and Usha
Bandarkar, then the creative team working on the Amul account came up
with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with
a fervour that was almost as devout as the Iskon fever.
That was the first of the many topical ads that were in the offing. From then
on Amul began playing the role of a social observer. Over the years the
campaign acquired that all important Amul touch.
There are stories about the butter that people like to relate over cups of tea.
"For over 10 years I have been collecting Amul ads. I especially like the ads
on the backs of the butter packets, "says Mrs. Sumona Varma. What does
she do with these ads? "I have made an album of them to amuse my
grandchildren," she laughs. "They are almost part of our culture, aren't they?
My grandchildren are already beginning to realise that these ads are not just
a source of amusement. They make them aware of what is happening around
them."
Despite some of the negative reactions that the ads have got, DaCunhas have
made it a policy not to play it safe. There are numerous ads that are risque in
tone.
"We had the option of being sweet and playing it safe, or making an
impact. A fine balance had to be struck. We have a campaign that is strong
enough to make a statement. I didn't want the hoardings to be pleasant or
tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha.
"The Indian Airlines one really angered the authorities. They said if they
didn't take down the ads they would stop supplying Amul butter on the
plane. So ultimately we discontinued the ad," he says laughing. Then there
was the time when the Amul girl was shown wearing the Gandhi cap. The
high command came down heavy on that one. The Gandhi cap was a symbol
of independence; they couldn't have anyone not taking that seriously. So
despite their reluctance the hoardings were wiped clean. "Then there was an
ad during the Ganpati festival which said, Ganpati Bappa More Ghya
(Ganpati Bappa take more). The Shiv Sena people said that if we didn't do
something about removing the ad they would come and destroy our office. It
is surprising how vigilant the political forces are in this country. Even when
the Enron ads (Enr on or off) were running, Rebecca Mark wrote to us
saying how much she liked them."
There were other instances too. Heroine Addiction, Amul's little joke on
Hussain had the artist ringing the daCunhas up to request them for a blow up
of the ad. "He said that he had seen the hoarding while passing through a
small district in UP. He said he had asked his assistant to take a photograph
of himself with the ad because he had found it so funny," says Rahul
daCunha in amused tones. Indians do have a sense of humour, after all.
From the Sixties to the Nineties, the Amul ads have come a long way. While
most people agree that the Amul ads were at their peak in the Eighties they
still maintain that the Amul ads continue to tease laughter out of them.
Where does Amul's magic actually lie? Many believe that the charm lies in
the catchy lines. That we laugh because the humour is what anybody would
enjoy. They don't pander to your nationality or certain sentiments. It is pure
and simple, everyday fun.
Amul Girl: A Classic Ad
SHE RARELY, if it all talks about butter. She celebrates and laughs at
Sports, Politics, International affairs, Celebrities and Bollywood armed with
a golden yellow slice of bread and hopes the message gets across.
Butter was Amul’s second product after milk and the challenge to now non-
existent Polson in the 1950s. Today 22 percent of India’s population
consumes the Creamy, Delicious, Sinful spread we call table butter, yet no
other brand has managed even a foothold in the market. At best even the
multinationals like Nestle, Le Bon or Locals like Britannia and Verka have
managed amere two to three percent at best.
She is the quintessential girl. Yet, she was just a twinkle in Chairman Dr.
Verghese Kurien’s eye, in a story that goes back 60 years to the Kaira Co-
operative where the Gujarat Co-opearative movement started. The Amul
brand name was coined by Kurien, to stand for Anand Milk Union Ltd. It
also turned out that the name meant ‘priceless’ in Sanskrit. While Indian
homes had Amul product since 1946, the name became a brand only in 1955
and the first “Utterly Butterly Delicious”- Amul hoarding went up in 1966,
when the brand was handled by Advertising and Sales Promotion (ASP).
Mr. Eustace Fernandes, then art director at ASP, drew up the butter girl.
She was an Orange-Faced, Winking, Blue Cherubic Girl, Wearing a Polka-
Dotted Dress; one knee bent and teasing us with her perfectly sliced buttered
golden bread. The team then consisted of K. Kurian Group Head then at
ASP, not to be confused with Amul’s Dr. Kurien), Mike Khanna, Sylvester
da Cunha and Fernandes.
The hoardings focus on urban people. Company appeal to them through the
cheapest form of advertising. Perhaps three out of 10 hoardings won’t be
understood by everyone. Earlier when establishing the brand the headline
and the baseline had to be Amul. Today again, only third of them really plug
the product.
Sylvester da Cunha takes a strong point of view. “Despite what any of the
others may have said, butter is an elite product,” he says it is not a rural
product. You have to follow the cold chain. In some parts of India, they
would rather use ghee than butter. So, it is not a Janata Product. So in that
sense the hoardings cannot be Janata, they have to be elitist, because it is
an elitist product. “He goes on explain, “Within the butter market Amul is
the undisputed leader. Have the hoardings built the strength of the brand? I
would say possibly so.
ONE, top of mind awareness is what the hoardings give to customer. TWO
is the topicality- it involves the beholder. THREE, it is the humour which
wins over the consumer’s Heart. FOUR, it is the taste. Research shows that
once AMUL eater is always an AMUL eater.
Its fact that the Moppet works better than any of the vogue celebrity based
campaign. She’s far cheaper than celebrities and better than any of them; in
fact, when the occasion demands it, without any starry tantrums, she gives
up her polka-dotted frock to don their coats. “Celebrities are a waste of
money! The greatest icons ever created are the Amul Butter Girl and the Air-
India Maharaja,”
Last year’s domestic consumption of butter in India was over 45,000 tonnes.
Amul butter has posted 19 percent growth in sales in FY04. In addition to
the regular salted Yellow Butter, varities include Amul Lite low fat spread,
Amul Cooking Butter and the most recent launch, Amul White Butter. The
figures are huge and growing. Amul is the da Cunha’s oldest Brand and
holds pride of place in the agency.
The advertising budget of GCMMF is very tiny. May be most of people
wouldn’t believe it. It’s probably 0.01 percent of the sales. It’s infinitesimal.
(Source: USP AGE, August 2004)
The da Cunhas advertising agency handle 18 brands for the Amul co-
operative, including Cheese, Dahi, Kool milk and a new range of soups.
Dairy brand need to diversify, because they can’t just get by with Milk. You
can’t grow because the cattle population in India is Static- we’ll have to
displace food crops {to sustain a larger population.} The co-operatives has
to give greater income to its farmer members. You have to increase turnover.
Amul is the largest food company in India, but it needs to diversify to keep
growing.
The Indian Industry is rapidly growing trying to keep pace with the
galloping progress around the world. India’s dairy sector is expected to
triple its production in next TEN years in view of expanding potential
for export to Europe and the West.
In the organized segment the major national and multinational players and
their significant brands are as under.
Chandigarh
Punjab State Cooperative Milk Producer’s Federation Ltd.
DELHI
Bikanerwala Foods Pvt Ltd
Daily Foods
Delhi Milk Scheme
Fun Foods Pvt Ltd
Ganga Dairy Pvt Ltd
Garhawal paneer Bhandar
Haldiram Foods Ltd
Kandhar Dairies
Mother Dairy Fruits & Vegetable Ltd
Nagar Milk Products
Nanak Food Industries
Narula Paneer Stores
Pure Dairy Farm Products
Raj Dairy (Regd.)
Rattan Milk Products
Rupa Dairy (Regd.)
Rupa Ice Cream Parlour
VRS Foods Ltd.
HARYANA
Bharat Dairy Udyog
Daily Foods (India)
Gokul Dugdh Udyog Pvt Ltd
Haryana Dairy Development Cooperative Federation Ltd : Ambala,
Ballabgarh, Bhiwani, Jind, Rohtak, Sirsa
Haryana Milk Foods ltd
Indo-Nippon Foods Ltd
Industrial Progressive (India) Ltd
Kamdhenu Foods Ltd
Karnal Milk Foods Ltd
Kwality Dairy India Ltd
Milkfood Ltd
Model Dairy Plant (NDRI)
Modern Dairies Ltd
Nanak Food Industries
National Dairy Research Institute
Parul Food Specialties Pvt Ltd
Rahul Dairy & Allied Products Ltd
Rishabh Agro Industries Ltd
Riverside Dairy Ltd
Sarvopari Dairy Pvt Ltd
HIMACHAL PRADESH
Cocusan Foods Ltd
Himachal Pradesh State Cooperative Milk Producer’s Federation Ltd:
Kangra, Mandi, Shimla
Mahaan Foods Ltd
UTTAR PRADESH
Ajanta Dairy
Ajanta Raj Proteins Ltd
Amrit food
Bhole Baba Milk Food Industries Ltd
Brook Bond Lipton India Ltd
Central dairy Farm (UP Pashudhan Udyog Nigam Ltd)
Continental Mikose (India) Ltd
Corydon Food Dairies Pvt Ltd
Goga Foods Ltd
Green Park Dairy Products Ltd
Gyan Dairy
Heinz India Ltd
J K Dairy & Food Ltd
Jebi Milk Food Ltd
K S Singhal Dairy
Kap steel Ltd
Lacchu Ram
Mahaan Proteins Ltd
Manish Dugdh Shala
Maulak Milk Plant
Mohan Dairy
Nanak Food Industries
Nutricia India Pvt Ltd
Parag Dairy, Noida
Poushtik Milk Products Ltd
Pradeshik Cooperative Dairy Federation Ltd : Agra, Allahabad, ALomara,
Azamgarh, Bareilly, Binjore, Dehra Dun, Faizabad, Farukabad, Garhwal,
Gorakhpur, Jalaun, Jaunpur, Kanpur, Lucknow, Mathura, Meerut,
Moradabad, Nanital, Pithoragarh, Pratapgarh, Rae Bareilli, Shahjahanpur,
Unnao, Varanasi
Propene Product Pvt Ltd
Radhika Milk Foods Ltd
Rama Agro & Allied Industries Pvt Ltd
Rama Dairy Products Ltd
Rich Harvest Dairy Products Ltd
Roorkee Milk Products Pvt Ltd
SMC Foods Ltd
Sheel International Ltd
Shiv Dairy
Tasty Dairy Specialties Pvt Ltd
Tullu Agrotech (P) Ltd
Upper India Dairy
VRS Foods Ltd
Veer Milkfoods Ltd
The level of income is the most important determinant for the demand for
milk and its products. But with an increase in per capita income, the income
elasticity of demand for milk is more than one. NSS data for 1993-94
indicates that the expenditure on liquid milk constitutes about 91% of the
total per capita monthly expenditure on its products. The rapid changes in
lifestyle and the increasing disposable income of strong middle class have
considerably increased its demand. The market share of the organized sector
is increasing gradually, while the unorganized sector’s share appears to be
on the decline. Branding of milk too has become an integral part of all
marketing activity. With the increase of per capita income, the consumption
habits too have changed and expenditures for packaged and processed food
have increased manifold. In the value terms, milk is the country’s number
one agriculture commodity. Out of the total production of milk, 46% is
consumed as fluid milk and dominates the consumption of livestock
products across all income groups, while the market for packaged milk
stands at a mere 15%.
The milk market has always been an unorganized sector with local milk
vendors catering to the household demand throughout the country. Besides
these milk vendors, there are local pouch milk suppliers who again sell milk
in their respective areas without bothering much about quality. However
with the emergence of Amul as an all India milk provider, things are
changing, at least in quite a few major towns in India where Gujarat
Cooperative Milk Marketing Federation ………
Paras groups claims of introducing the ‘best and safest’ milk ever’,
thanks to a process called BACTOFUGATION, has been countered by milk
majors Amul and Mother Dairy. Bactofugation uses centrifugal force
technology which physically removes bacteria, spores and pathogens from
milk, making the milk 100% harmful-bacteria free. Sources at NDDB, which
controls the lion’s share of Delhi’s liquid pouch milk market with its Mother
Dairy milk, say they follow the clarification and pasteurization process,
making its milk 100% bacteria free. “We don’t know what Paras is talking
about,” said a senior Mother Dairy official.
According to R.S Khanna, Regional Manager at Gujarat Cooperative Milk
Marketing Federation, Amul has been selling bactofuged milk since 4 years.
“It’s not a new technology. Claim made by Paras is incorrect. Paras officials
insist that their milk is the only brand in pouches that is being pasteurized
and bactofuged across Delhi and the NCR.
Says K.K Bhandra, head of milk marketing, Paras Group, “Mother Dairy,
Amul and DMS sell only pasteurized milk. We have invested about 1 crore
in the bactofugation technology, which is a new benchmark in milk
technology.”
AMUL
Brand : Amul
Even as the sales of Amul milk in pouches increased by 31% and Ultra Heat
Treated (UHT) in tetra packs by 16% during 2005-06 over the previous
fiscal, Gujarat Cooperative Milk Marketing Federation (GCMMF) proposes
to increase its reach in the metros and other cities.
GCMMF, which had introduced pouch milk in Kanpur, Lucknow and
Bhopal last year to overwhelming response from consumers, plans to focus
on expanding distributing network in the exizting markets of Kolkata, Delhi
and Mumbai said company sources here.
The objective is to launch milk and milk products across India,
strengthening the cooperative movement and at the same time preventing
market takeovers by Multi-National Companies (MNC’s).
And , since Amul as a brand has very strong association with liquid
milk, it is attainable, sources assert.
Allaying some unfounded fears, sources said, no cooperative has lost
sales consequent to launch of Amul in respective markets.
Rather, it has increased the overall sale of packed milk from the
organized sector, as with ‘Mother Dairy’ and ‘Metro’ in Kolkata,
encouraging local procurement of milk in all such markets.
As against GCMMF’s total turnover of Rs 3,773 crore, the share of
Amul pouch milk was Rs 900 crore in 2005-06, up from 625 crore in 2004-
05, becoming the company’s main growth engine, virtually replacing its
flagship products like Amul butter and cheese.
The growth of UHT milk during the same period was 12% as it
captured 60% of the country’s milk market in tetra packs.
NDDB
PARAG