AMUL Marketing Strategy

GROUP MEMBERS

INDEX
Introduction Marketing Mix Business Model Marketing Strategy Competitors & Conclusion

LARGEST FOOD BRAND AND BUSINESS IN INDIA

INTRODUCTION

Formed in 1946, is a dairy cooperative movement in India. A brand name managed by Gujarat Co-operative 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.

INTRODUCTION

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

BUSINESS MODEL

Amul followed a unique business model. "Anand pattern" cooperative system Every day Amul collects 8.4 million liters of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country.

AMUL GROWTH
Sales Turnover Of 1505 million US dollar in 2008-2009

Sales US $ (in million)

1600

1400

1200

1000 Sales US $ (in million)

800

600

400

200

THE MARKETING MIX

Product Dairy Products Cooking Products

Price Low Pricing Strategy

Place Promotion Rural & Urban Market Advertisements International Market

Intelligent Marketing

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

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 Maharani contest: in this contest questions about Amul are asked

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

BRITTANIA NESTLE HLL CADBOURY MOTHER DAIRY

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

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

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.

THANKYOU