Brand building @ amul.coop Brand building @ amul.coop Jayen Mehta GCMMF Ltd.

, Anand November 10, 2006 Contents Amul History and Current Operations Amul Brand Details Amul Brand Management Amul.com Extension in the Digital era Amul in Retailing Amul as Asias largest Milk Brand The birth of Amul Linked to the freedom movement of India Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen Inspiration of pre-eminent national leaders A cooperative movement - member control on milk production, processing & marketing A humble beginning with 2 village societies and 246 litres of milk...

Amul - today 2.5 million milk producers families part of a fraternity of 13 million coop producers nationwide 13,000 village societies there are over 113,000 coop milk societies pan India 8.1 million litres of milk procured in peak season on a single day India is the largest producer of milk in the world ! Rs 100 million handled in cash daily Milk is the biggest agricultural crop in India ! 13 district Unions there are 180 cooperative dairy unions across the country GCMMF - Operations Indias largest food products marketing organisation 4 Distribution Highways 20 Product Groups 400+ SKUs 34 Supply Centres 50 Sales Offices 300 member sales team 5000 Stockists 700,000 Retail outlets Rs 4,500 crore (US$ 1 billion) annual Sales Turnover Amul

It means priceless in Sanskrit and many Indian languages Amul Commitment to Quality Value for money The generation of awareness The fostering of loyalty Development of strong brand identity

Amul 1956 Ice Chocolates Shrikhand Fresh Milk cream 1973 1980 1956 1996 Milk Power 1958

Cheese Ghee Breadspread 1962 1956

Fat UHT Cheese Cow Free Nutrauamul Gulabjamun Amulspray Amul Butter Range Spread Ghee Dessert 1973 1997 1968 1956 1980/99 1986 2002 2002 Softy Mix 2001 Eclairs 2001 Amul Shakti 2003 Chocozoo 2005 Gulabjamun Condensed mix Milk 1999 1996 Amul WMP 1960 Paneer 1997 pizza Cheese 1998 Amul Lite 1994 Margarine 2004

Kulfi Mix Buttermilk Amulya 2001 1998 1987 Laddoo 2004 Basundi 2005 Khoa 2006 fresh Curd 1999 Flavoured Milk 2001 Fresh Cream 2002 Kool Cafe

Amul IMF Emmental 1&2 Cheese 2001 1999 Instant FCMP 2002 Frozen Pizza 2002 Gouda Cheese 2002

2005

GCMMF: PRODUCT PORTFOLIO CATEGORY BRAND NAME IMF AMULSPRAY DAIRY WHITENER AMULYA FCMP AMUL WMP SMP SAGAR SMP BUTTER AMUL BUTTER BREADSPREAD AMUL LITE CHEESE AMUL CHEESE CHEESE SPREAD AMUL CH SP. EMMENTAL SWISS CHEESE MOZARELLA PIZZA CHEESE MKT SH % 65 % 60 % 80 % 40% 80% 80% 60% 90% 90% 75% RANK #1 #1 #1 #1 #1 #1 #1 #1 #1 #1

GCMMF: PRODUCT PORTFOLIO CATEGORY MILK GHEE ICE CREAM CONDENSED MILK ETHNIC SWEET CHOCOLATES BROWN BEV BRAND NAME AMUL SAGAR GHEE AMUL GHEE AMUL ICECREAM MITHAI MATE MKT SH % 10 8 40 50 RANK #1 #1 #2 #1 #1 #1 #3 #4

AMUL SHRIKHAND 50 AMUL 10 CHOCOLATES NUTRAMUL 15

Amul : Brand Management Appointment of Professional Advertising Agencies since 1956 (ASP, dCA, Radeus, Ulka) Appointment of Professional Distribution Agency (Voltas, Spencers) till 1983 Creation of GCMMF in 1973 A marketing Team Product Management Group for brand care.. Amul : Brand Repositioning

Scenario post liberalisation in 1992: Likely threat of competition in various categories Increasing media costs and fragmentation Decision to consolidate brand position as The Taste of India in 1995 Brand Equity : Indicators Perceived Quality Perceived Value Loyalty Brand Awareness Market Share Leadership Brand Personality Distribution Coverage Price Premium Organisational Association

Brand : Core Identity Augmented by : Brand as Product Product Scope Product Attributes Quality/Value Uses & Users Brand as Organisation Organisation attributes Local v/s Global Brand as Person Brand Personality Brand - Customer relationship Brand as Symbol Visual imagery and metaphors Brand Heritage

Why is it hard to build brands ?

Pressure to compete on price Proliferation of competitors Fragmenting markets and media Complex Brand Strategies and Relationship Bias towards changing strategies Bias against innovation Pressure to invest elsewhere

 Short Term pressures Amul The Challenges in 90's Consumer Demand to widen the product range. Franchising the brand pan India to increase availability of fresh products. Globalisation : Dedicated brand building campaign in international markets. www.amul.com Among first Indian corporates on the net (since March 1996) Launch of Amul Cricket Rankings (Sep 1998) Launch of Amul Cyberstore in US (March 1999) Launch of Amul Cyberstore India (June 1999) Launch of Amulmail.com (Sep 1999) Launch of Member Dairies Websites (Sep 2000) Launch of Amulgreetings.com (Dec 2000) Launch of Amul Icecream Cyberstore (Jan 2001) Launch of Amul.tv (Jan 06) Launch of Amulwd.com (March 06)

Digital Marketing : Key Benefits Experienced

Accessibility of brand & organization becomes global. Dramatic increase in export enquiries since 1996 both from trade as well as consumers High customer involvement due to emotional attachment' with the brand The topical advertising campaign (updated weekly) and Cricket Rankings (updated daily) helps in generating continuous interest Regional Hubs ( USA , Dubai , India , Singapore ) to facilitate ebusiness transactions in a highly restricted dairy product export market.

Next Steps
Build Product specific sites Build WAP site Build each Member dairy web site

 Enable e-transactions in village coops Afghanistan Algeria Angola Australia Bahrain Bangladesh Benin Bhutan Botswana Brunei Cambodia China Dubai Ethiopia Fiji Gambia Hong Kong Iraq Japan Korea Kuwait Laos Madagascar Malaysia Maldives Mauritius Myanmar Nepal New Zealand Nigeria Oman Pakistan Philippines Qatar R Russia Saudi Arabia Sierra Leone Singapore South Africa Sri Lanka Sudan Syria Taiwan Tanzania Thailand UAE Uganda UAE Vietnam West Indies Yemen Zanzibar

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