AMUL

Sub title- Strategic Management

By: Pooja H Shah

Index
Introduction Product Variants Business Model Business Strategy Marketing and Advertising Strategies Marketing Mix Market Segmentation Targeting and positioning Product Strategies Conclusion

Introduction
Formed in 1946, is a dairy cooperative movement in India. A brand name managed by Gujarat Cooperative Milk Marketing Federation(GCMMF) Jointly owned by 2.79 million milk producers in Gujarat

Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

 Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.

Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries
Fresh plans of flooding the markets of Japan & Sri Lanka.

Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs 900 crore organized ice-cream segment.

Product Range
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Milk UHT Milk Bread Spread Cheese Beverage Ice cream Paneer Dahi Ghee Chocolate Mithai 12. 13. 14. 15. 16. Mithai Mate Pouched Butter Milk Nutramul Milk Powders Recipies

Objectives Deliver profitable and equitable returns to a large number of farmers for a long period of time. Develop the supplier over the long term through social change

Amuls Business Strategy

Developing Demand

> Limited Purchasing power, Consumption level,

> A low cost strategy products The distribution network >dry and cold warehouses

>cash transactions throughout the supply chain Umbrella brand

>Common brand for most product categories

Third party service providers Logistics of collection ,distribution and sale of dairy products

Reasons Behind the success

Robust Supply chain

Low Cost Strategy

Diversified product mix

Sucess

Strong distribution network

Technology and E initiative

Reasons behind success

High collection rate of milk Required increasing membership with more village societies Better Cattle management Better milk yield Ensure cost to farmers and high quality to customer at low prices

M
1)Quality
No brand can survive long if its quality is not equal or exceed customer expectations. Incase of food product hygienic, taste, bacteriological & organo elliptic standard main essence.

2) Value for money

Customers get more than what they pay. Keep price fair & do best to ensure that retailers dont gain at the expense of customer.

Marketing and Advertising Strategies

3)Availability Brand available when and where customers want. Amul has nations finest distribution network. 4)Service Committed to total quality.

Marketing Mix
Product Dairy Products Cooking Products Price Low Pricing Strategy

Place Rural & Urban Market International Market

Promotion Advertisements

Intelligent Marketing
One of the most conservative FMCG entities, GCMMF spends a mere 1% of its turnover on promotions. Amul butter girl is one of the longest running ad campaigns in the country for 41 years. Intelligent marketing of milk, icecream and butter milk.

Expansion to foreign shores

GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets. 50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and thirdgeneration Indians, offering low-fat versions of its brands, would make a lot of commercial sense.

Hence targeting the large Indian community in the US markets with its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.

Defense Strategy
Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages) Being exposed to a brand, it is natural for a customer to try more products

Segmentation
Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Caf, as it has a cool imagery associated with it.

Targeting
Changing retail environment Striking out on its own, with Amul Outlets or parlours to deliver consumers total brand experience Launched in 2002, there are now over 4700 Amul parlours across the country, which contributed 3% to the brands total turnover in year 2009.

Promotion
Given this wide product portfolio, Amuls approach is to promote its brands in a rotational cycle of two to three years. After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable. The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko cold chocolate drink

Promotion
Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various issues increased brands fan following.

Promotion
Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets. The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amuls website.

Slogan Likho Disneyland Dekho Contest

Promotion
AMUL sponsored the Singing Competition AMUL Star Voice of India, Amul music ka maha mukabla

Successful Product Strategy

1. Product Positioning Strategy Low price Amul Ice - Creams made Kwality walls life hell. Chocolate milk was launched Amul Kool koko

2. Product Re-Positioning Strategy Jaldhara Narmada Neer

Successful Product Strategy

3. Product Overlap Strategy
Amul Processed Cheese Vs Cheese Spread Nutramul Energy Drink Vs Amul Kool

4. Product Design Strategy

Use of Utterly Butterly Girl since 1967

5. Product Elimination Eliminated Jaldhara bottled water

Successful Product Strategy

6. Diversification Strategy Dairy Products Eg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads, Cheese Products Non Dairy Products Egg: Veg Oils , Snacks, Instant Food

BRITANIA NESTLE HUL CADBURY MOTHER DAIRY

Butter Britannia Nestle Cheese Britannia Baby Food Nestle Heinz Dairy Whitener Segment Nestle Britannia Ice creams HUL Kwality

Chocolates & Confectionaries Cadbury Nestle Pizza Pizza Hut Dominos Nirulas Frozen pizza Curd Nestle Mother Dairy Ultra High Treated Milk Nestle Britannia

Sweet Condensed milk Nestle Cottage Cheese (Paneer) Britannia Milk Additives Cadbury Smithkline Beecham Flavored Milk Britannia Nestle

CONCLUSION
Amul has risen from Indian soil and it remains Indian in every sense. There is ample scope in the low priced segment as also in other categories. There are a significant number of retailers who are currently stocking more than two brands. Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.