Product Mix of Amul

Himanshu Ahire 13 Dhiraj Kakati 05 Executive Full Time PGDM  ( 2009-2010 ) Trimester 2 Symbiosis Institute of Management Studies

Symbol of “AMUL”(Anand Milk Union Ltd.) is a ring of four hands, which are coordinated with each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer.It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as

Objective Introduction Product MARKETING OBJECTIVES Product STRATEGIES
Product Place Price Promotion

4 5 7 12 12
12 12 13 13

The different product for different people Amul Product Mix
Amul Product Portfolio Product-Width Product-length Product Depth Line stretching Conclusion

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15 18 18 18 22 22

OBJECTIVE

To understand the product mix strategy of Amul . To correlate the findings with the help of the theoretical concepts that we have been taught during this semester on Marketing Management. To gain an insight on the product range offered by Amul.

INTRODUCTION
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. The brand name AMUL means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2009). Today Amul is a symbol of many things of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterate farmers by the private traders. The traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

Members No. of Producer Members No. of Village Societies Total Milk handling capacity Milk collection (Total – 2003-04) Milk collection (Daily Average 2003-04) Milk Drying Capacity Cattle feed manufacturing Capacity

12 district cooperative milk producers' Union 2.36 million 11,333 6.9 million litres per day 1.81 billion litres 4.97 million litres 511 metric Tons per day 2340 MTs per day

PRODUCT
“A product is anything that can be offered to a market for attention , acquisition , use, consumption that might satisfy a want or need “ A product is anything that satisfies a need or wants and can be offered in the exchange. A product can be goods, service or idea. Without product there is no marketing. This includes product variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its product very carefully so that the consumer gets only good quality products. or

RAW MILK

pasteurization

Condensed Ghee Butter Cream

Packaged Milk Ice cream Beverages

Dried Skimmed Milk Powder

List of Products Marketed Bread spreads Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza Amul Emmental Cheese

Desserts Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos Fresh Milk Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Ganthiya Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix For Cooking Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee Amul Malai Paneer Mithai Mate Pro-biotic Dahi Masti Dahi Utterly Delicious Pizza

Powder Milk Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Amul Ice creams Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids

SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health Isabcool Chocolate & Confectionery Amul Milk Chocolate Amul Fruit & Nut Chocolate Brown Beverage

Nutramul Malted Milk Food

Milk Drink

Amul Kool Flavoured Milk

Health Beverage

Amul Shakti White Milk Food

Ready to Serve Soups

Masti Tomato Soup

Masti Hot & Sour Soup

MARKETING OBJECTIVES
•Identify & cater to emerging markets all over India •Create awareness about the brand name and increase customer loyalty. •Tackle the problem of imitation of design. •Increase retailer satisfaction by providing better margins.

PRODUCT STRATEGIES

Product •Create awareness about its different brands thereby enabling the customer to differentiate between its various brands. •Copy-write the packaging design to preserve the distinguishing identity barring competitors from imitating the same. •Introduction of larger volume pouches in line with economy packs to provide large scale buyers price benefits. •Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul Tazaa, rectangular shaped for Amul Gold, etc.

Place Place refers to marketing activities that make products available to consumers at the right time in a convenient location. It is the process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple. AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the disbursement of product to the various marketing channels.

Price It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well – known, well – regarded products, partly because of the image created through advertising and other promotions. This includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products. However, the price is inclusive of several elements like, •Cost of milk. • Labour cost. •Processing cost. •Packaging cost. •Advertising cost. •Transportation cost. •Sales promotion costs. •Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products. Promotion Place refers to marketing activities used to communicate positive, information about an organization, its products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers. AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE

Amul never forgot its “primary customer” Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth Amul launched Chocolate milk under brand name of ‘Amul Kool Koko’ targeting the youth.

Product for diabetic people India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

Product for the health conscious Amul Launched “low fat, low cholesterol bread spreads” Product for the price sensitive India Low Priced Amul Ice Creams and affordable ‘sagar’ whitener

Product for the urban class Amul launched emmental, gouda and pizza mozzarella cheese

AMUL PRODUCT MIX

Amul Product Portfolio
Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods Examples Durable Goods :-Milk Powders,Ready to Serve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams

Dairy

Non Dairy

Fresh Milk Milk Drinks & Desserts Bread Spreads Cheese Products Veg. Oils Snacks Instant Food

Product Mix -Width

Bread Spreads

Cheese

Desserts

Butter

Shredded Pizza Cheese.

AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) AMUL Amrakhand.

Low Fat Bread Spread.

Emmental Cheese.

Cooking Butter.

Gouda Cheese.

AMUL Mithaee Gulabjamuns. AMUL Mithaee Gulabjamuns Mix. AMUL Mithaee Kulfi Mix.

Product Mix Length

Malai Paneer (cottage cheese) Frozen and Tinned. Utterly Delicious Pizza.

Cooking Amul
/
Sagar
Pure
Ghee Amul
Malai
Paneer Mithai
Mate Pro‐biotic
Dahi Masti
Dahi Utterly
Delicious
Pizza Nutramul

Health Drink

Amul
Shakti
Health
Food
Drink

Milk Drinks Amul Kool Millk Shaake Amul Kool Amul
Kool
Cafe
 Kool
Koko

Powder Milk Amul
Spray
Infant
Milk
 Food Amul
Instant
Full
Cream
 Milk
 Sagar
Skimmed
Milk
 Powder Sagar
Tea
Coffee
 Whitener Amulya
Dairy
Whitener

Fresh Milk Amul
Fresh
Milk Amul
Gold
Milk Amul
Taaza
Double
 Toned
Milk Amul
Lite
Slim
and
Trim
 Milk Amul
Fresh
Cream Amul
Shakti
Toned
Milk Amul
Calci+ Amul
Buttermilk

Product Mix Length

Nutramul
Energy
Drink Amul
Kool
Flavoured
 Bottled
Milk Amul
Kool
Flavoured
 Tetra
Pack Amul
Masti
Spiced
 Buttermilk Amul
Lassee Amul
Kool
Thandai

Table 3

Product-Width

The width of a product mix refers to the total number of items in the mix. Example: The total number of items are 8. ( bread spreads , cheese , desert, cooking,health drink, milk drinks,powder milk & fresh milk Product-length The length of a product mix refers to the total number of items in the mix. Example: The total Length of Amul’s Product mix is 42 The Total width of Amul’s Product mix is 8 ( No of lines) Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6 Product Depth The depth of a product mix refers to how many variants are offered of each product in the line Amul’s Product Depth Name of Product Amul Butter Amul Butter Variants 100g Pack 500g Pack Price Rs. 25 Rs. 122

Delicious Table Margarine Delicious Table Margarine

100g Pack 500g Pack

Rs. 13 Rs. 60

Amul Lite Lowfat Breadspread

200g Tub

Rs. 32

Name of Product Amul Cheese Amul Cheese Slices Amul Cheese Chiplets Amul Cheese Amul Cheese Spread

Variants 400g Tin (EOE) 200g Pack 200g Pack 1kg Block 200g Tub

Price Rs. 117 Rs. 77 Rs. 66 Rs. 233 Rs. 50

Amul Pizza Cheese

200g Pack

Rs. 55

Amul Emmental Cheese

400g Pack

Rs. 160

Amul Gouda Cheese Amul Gouda Cheese

250 g 1 kg

Rs. 115 Rs. 440

Amul Malai Paneer

200g Dice Pack

Rs. 36

Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee

1 Litre Tin 500ml Pouch 2 Litre Tin 5 Litre Tin

Rs. 265 Rs. 125 Rs. 495 Rs. 1,225

Amul Pure Ghee Amul/Sagar Pure Ghee

1 Ltr Refill 1 Ltr Pouch

Rs. 260 Rs. 242

Amul Shrikhand Amul Shrikhand Amul Shrikhand

500g cup Elaichi 500g cup Mango 500g cup Kesar

Rs. 53 Rs. 55 Rs. 66

Name of Product Amul Shrikhand

Variants 500 g Badam Pista

Price Rs. 61

Amul Mithaee Gulabjamun Amul Mithaee Gulabjamun

1kg Tin 500g Tin

Rs. 115 Rs. 64

Nutramul

500g Refill

Rs. 110

Amul Chocolates Amul Chocolates

35g Milk 35g Fruit & Nut

Rs. 15 Rs. 16

Amul Almondbar

35g

Rs. 15

Amul Chocozoo Amul Chocozoo Tub

232g Tin 500 g

Rs. 125 Rs. 180

Amul Taaza Double Toned Milk Amul Taaza Double Tone Milk Amul Tazza Toned Milk Nothern Eastern States

1 Litre Tetra

Rs. 35

200 ml Tetra

Rs. 9

1 Litre Tetra

Rs. 38

Amul Gold Milk Amul Lite Skimmed Milk Amul CALCI + high calcium milk Mithaimate Sweetened Condensed Milk

1 Litre Tetra 1 Litre Tetra 1 Litre Brik

Rs. 39 Rs. 40 Rs. 42

400g Can

Rs. 58

Name of Product

Variants

Price

Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF

500 g Pouch 500g Refill 500g Tin 1 kg Pouch 1 kg Tin

Rs. 110 Rs. 111 Rs. 115 Rs. 202 Rs. 222

Sagar Skimmed Milk Powder

500g Pouch

Rs. 110

Amulya Dairy Whitener Amulya Dairy Whitener Amulya Dairy Whitener

500g Pouch 500g Refill 1 kg Pouch

Rs. 113 Rs. 114 Rs. 227

Amul Shakti Health Food Drink (Kesa Almond)

500g Refill

Rs. 115

Amul Kool (Kesar, Elaichi, Rose) Amul Kool (Kesar, Elaichi, Chocolate) Amul Kool Kesar Amul Kool Cafe Amul Kool Cafe Amul Kool Cafe Amul Kool Koko Amul Kool Millk Shaake

200ml Bottle

Rs. 12

200ml Tetra 250 ml can 200 ml Glass Bottle 250 ml Can 200 ml Tetra Brik 250 ml Can

Rs. 12 Rs. 25 Rs. 15 Rs. 22 Rs. 15 Rs. 22

( M a n g o , S t r a w b e r r y & 220 ml Can Badam)

Rs. 22

Name of Product Amul Kool Millk Shaake (Mango & Strawberry) Amul Fresh Cream Amul Fresh Cream

Variants 180 ml Tetra Pack 200 ml Tetra Brik 1 Lit Tetra Brik

Price Rs. 15 Rs. 30 Rs. 113

Amul Masti Spiced Butter milk Amul Masti Spiced Butter milk

200ml Tetra Brik

Rs. 10

1 Litre Tetra Brick

Rs. 35

Amul Lassee(Rose) Amul Basundi Amul Mithai mate

200 ml Tetra Brick l Ltr Tetra Brick 400 g EOE can

Rs. 12 Rs. 103 Rs. 58

Line stretching Every company’s product line covers a certain part of the total possible range. Line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line down market, up-market or both ways. Example : group.) Amul has been introducing products with consistent value addition but never left the core philosophy of “Providing milk at a basic, affordable price” Conclusion This summarizes our research work on Amul’s Product Mix. There are various other strengths of Amul’s marketing but we have only brought into context the above topic. Amul is now aggressively adopting the down market stretch by introducing ( CHHOTA

AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income

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