AMUL: A Marketing Perspective

Marketing Management I

Presented By:
GROUP – 7,Section – D
Anup Abhipsit B Praveen Manish Bhatt Manish Verma Prasoon Kumar R. Manika Rajan Gaurav Somwanshi PGP27205 PGP27211 PGP27220 PGP27221 PGP27236 PGP27239 PGP27254

Acknowledgement
We would like to take this opportunity to thank everyone who has been crucial in enabling us complete this project. Our sincere thanks to Prof. Dr. Ashish Dubey for his invaluable guidance and support that was crucial for successful completion of this project. We would like to appreciate his continuous effort to impart quality learning in the field of Marketing Management and motivating us to pursue research in this field and prepare this project. We would like to thank the seniors and classmates for their valuable inputs and suggestions. This has helped us adding newer perspective to our understanding of marketing and delivering this project more effectively. Finally we would like to thank the institution for the library and the infrastructure provided that helped us a lot to do research on the topic and prepare this project.

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Abstract
The analysis of Amul‟s Market structure was done to get an interrelation between the market structure and consumer behavior environment and the Different Marketing Concepts of the Marketing Management. We analyzed the Social, Political and Economic factors that had a significant effect on the Amul‟s Market. The Political factors like Excessive Government Interference in Decision-Making, Politicization of Cooperatives, and Government dictated input-output pricing and the effects of different government Acts passed, have been collected from an exhaustive study and have been interrelated to the different possible Legal factors of a company as per Marketing Management. In Economic factors the different factors like GDP, and fluctuating international prices which had a direct impact on the pricing of Amul products, has been explained in details. In Social Factors, the influence of the culture, lifestyle and the food habits of Indians has been discussed in detail. In Consumer behavior analysis the different factors which effect the consumer buying behavior, in terms of buying the Amul Products has been explained in detail. An in-depth analysis of the factors like Product, price, price and promotion has been explained in details. The consumer psychological factors like Motivation, perception, learning and memory has also been explained in details for the buyers of Amul products. The Consumer Decision Making behavior factors have also been explained broadly on the basis of Cultural factors and Social and Personal Factors. And the Five Stage Model has been applied to the Amul Market and a detailed explanation of the consumer analysis has been depicted in different segments of the Five Stage Model Analysis. Since Amul has a large variety of products, a detailed analysis of Amul‟s competitors has been analyzed. And Amul‟s Competency against this large set of competitors has been portrayed.

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Summary_____________________________________________________________35 11. Acknowledgement_______________________________________________________1 2. Analysis of competition___________________________________________________8 5. Consumer behavior analysis_______________________________________________11 6. Branding______________________________________________________________27 9. Segmentation. Abstract_______________________________________________________________2 3. Product_______________________________________________________________19 a) Company‟s Product Hierarchy b) Product Mix Analysis c) Packaging Analysis 7. Targeting and Positioning____________________________________23 8.Content 1. Bibliography___________________________________________________________36 3 . Macro Environment Component Analysis_____________________________________4 4. Pricing Component______________________________________________________33 10.

and not market forces guiding the decision-making of the cooperatives. Orissa and Uttar Pradesh. Overstaffing. The two-pronged objectives for the government were first to augment the supply of milk for domestic consumption and second to increase the returns to dairy farmers by providing the infrastructure for producing value-added dairy products. Politicization of Cooperatives: Politicization of cooperatives has caused a plethora of problems. Here we are going to review the impact of macro-environmental factors on Amul. and a backward movement of inputs. As one of the biggest programmes for development of dairy came the “Operation Flood” in the year1970-71. Given the nutrition and hunger problems in the country. and pressure groups that influence & limit various organizations & individuals. Consequently. India was a milk-stressed country with domestic demand far outstripping the domestic production of milk. low capacity utilization. Sometimes these laws also create new opportunities for businesses. With electoral forces. which received liberal grants from the Government of India (NDDB). Post-independence. and they could play a major role during political elections. 4 . Operation Flood worked to create an integrated national milk-market. improving opportunities for weaker sections of society and alternative institution for property ownership. government agencies. Thus. there was a forward movement of milk from the village cooperative societies to the processing and pasteurizing plants (dairy unions). the World Bank and the European Economic Commission (EEC). Amul being a cooperative run business gained from government‟s initiative as government usually see cooperatives as channel for re-distributing wealth. Excessive Government Interference in Decision-Making: Excessive government interventions in the cooperatives due to vested political interests have led to massive politicization of dairy cooperatives. It worked through setting-up of small milk producers‟ cooperatives. most cooperatives have become agencies for implementing the populist policies of the government. the cooperatives fail to respond to neither the needs of the producer farmers. process and market the milk and milk products. These bureaucrats do not have the professional skills required to manage such producer cooperatives. Appointment of bureaucrats as managers of the cooperatives has been the case in Madhya Pradesh.Macro environmental factors affecting Amul Macro environmental factors represent non-controllable events which shape business landscape while presenting opportunities as well as threats. the government took upon itself the task of development of the domestic dairy industry. with millions of farmers as members. and established institutions to cost-effectively procure. technology and modern dairying practices from the unions to the local village cooperatives. nor the needs of the industry. This was a rural development programme. These cooperatives have a very large rural base. and provided them with inputs and services. which procured milk from farmers in the village. Political-Legal Environment The political & legal environment consists of laws. under such bureaucratic heads. and thus unprofitable and unviable business units. weak market orientation and poor financial controls have become the norm rather than exception in case if most Indian dairy cooperatives.

For instance in Maharashtra and Punjab. The Infant Milk Substitutes. Some elements of the law are still in place and hence creating bottle-necks in the Amul‟s ambitious export plan. This act is still in place and acts as a potential barrio to many possible competitors of Amul. Consumer Protection Act. Economic Environment Globalization & liberalization: The globalization and liberalization propelled change in consumption patterns. As per Central Statistics Office (CSO) estimates the real growth rate in 2010-2011 was 8. Better Growth in industry segment will cause increase in corporate wages. This has caused inevitable distortions in the pricing of processed dairy products. 1986: The Act provides for constitution of District Forum/State/National Commission for settlement of disputes between the seller/service provider and the consumer. Supply and Distribution) Act.7 % leaving more money in the hands of rural consumers. 1986: This Act incorporates rules for the manufacture.This if taken as a challenge gives Amul an opportunity to diversify its product range to compete with global products. and has adversely affected the financial health of the cooperatives. Pollution Control (Ministry of Environment and Forests): A no-objection certificate from the respective State Pollution Control Board is essential for all dairy plants. use. Globalization in foods market is still at a nascent stage and is affecting and shaping Amul‟s growth plans in many ways. The selling price is determined by the government through on the spot interventions in case of Andhra Pradesh and Karnataka. It caused demand for global products . Export (Quality Control and Inspection) Act.8 % in 2011-2012 fiscal year. Centre for Monitoring Indian Economy (CMIE) predicts that Personal Final Consumption Expenditure (PFCE) has grown by 8. 5 . low inflation and new job opportunities increasing spending power of urban consumer. GDP Trends: It is projected that India will have robust GDP growth of 8. Recent modifications in the act have forced Amul to revise its product manufacturing process to enhance safeguards and implement new guidelines. 1963: The Act aims at facilitating export trade through quality control and inspection before the products are sold to international buyers.6 % in 2010-2011 compared to 4. Environment Protection Act. the State Government fixes the selling price of milk to government dairies.The grain production is projected to grow by 3.6 %. import and storage of hazardous microorganisms / substances / cells used as foodstuff.Government dictated input-output pricing: In case of most cooperatives the state government fixes the minimum producer price. Feeding Bottles and Infant Foods (Regulation of Production.3 % of previous fiscal. 1992 and Rules 1993: This Act aims at promoting breast feeding and ensuring proper use of infant milk substitutes and infant food.

Amul is also exporting bulk pack milk powders in the Persian Gulf.The demand for milk and milk products is income elastic and growth in per capita income is fuelling demand for dairy products Increase in rural and urban consumption rate. Vegetarianism still accounts for a larger section of population & dairy product being integral part of their regular diet. Impacts on AMUL :The successful implementation of Amul cooperative model contributed for growth in per capita milk supply. 6 .the young population has started playing greater part in consumer expenditure. These products are heavily subsidized in EU and US. fuelled by high GDP growth rate coupled with health conscious consumers acts as a catalyst for dairy products consumption. etc. Increase in disposable income levels and globalization effect of demand for ready to eat products made Amul to introduce new products like cheese and pizza. International price fluctuations: The diary product prices are most distorted in international markets. especially the European Union under its export restitution scheme and diary under Dairy Export Incentive Programme. Africa and Bangladesh markets. mainly due to subsidies given by developed countries. This young population has higher literacy level which is more health conscious. readymade milk products. The factor for high dairy product consumption is high children population. Dairy & related products have been always high on priority for health conscious people. eating habits of urban as well rural population has also changed in due course of time. This presents a great opportunity for Amul to innovate its product line while maintaining its quality. Fast food culture is on ascendency where consumer is demanding more of ice-creams. Import substitution policy of Restriction of import duty of 35 % is helping Amul to retain market share in ghee and butter. Social Environment Lifestyle &food habits: Due to changing life style of larger part of earning population. Amul is pitching for 40 % import duty and for easing of subsidies by EU and US which are signatories of GATT. It also introduced its first probiotic ice cream for health conscious consumers. This activity is partly funded by Amul through its earnings. helping farmers to invest in cattle. Demographic composition: In a young country like India where the average age of population is below thirty years .

4% per year. TQM. in the organized sector both cooperative and private companies and the traditional sector cater to this market. Amul can aim to tap the tier-2 and tier-3 cities to expand its market there. The expected rise in urban population would be a boon to Indian dairying. It has been able to connect both sides of the supply chain by using GIS. Education: With India‟s literacy and education level going high. This has minimized the costs of product storage and the time in transition. Presently. Also traditional Indian culture stresses on consuming higher amount of milk due to the association of it to better health. Technological Environment: The technological environment has changed dramatically over the last four decades and the impact on Amul has been wide spread. Rate of obsolesce of Technology – Low to Moderate: The low rate of obsolesce of technology in dairy industry has enabled Amul to invest on newer technology on a long run at a larger scale. the consumers are getting more aware about food‟s nutritional value. Overall this provides an opportunity for Amul to introduce new products meeting consumer choices and tap new market of locally sold milk products by its packed and processed items. These have helped Amul to provide prompt support to the supply chain and its customers. Urbanization: India is experiencing high rate of urbanization with currently 29% of its population residing in urban areas and the urbanization rate is high at 2. This has forced many organisations including Amul to revise their energy consumption technology. E-Commerce: Evolution of E-Commerce has helped Amul to sell its products online and collect the money online. The factors are discussed below: Energy Consumption and Recovery: There has been enormous growth in the green energy technology space. 7 . Quality Management: Implementation of various quality control technologies like ISO. Due to this rapid urbanization consumption of milk has drastically increased during last two decades. HACCP (Hazard Analysis and Critical Control Points) has helped Amul maintain and continuously improve the quality of its products.Culture: Indians are accustomed to eating high amounts of milk based sweet products causing higher consumption of milk and milk based products. Net Enabled Kiosks and Service Support: The improvement in these technologies has helped Amul venture into newer market and penetrate existing market. Also as most Hindu Indians believe its auspicious to keep cattle Amul doesn‟t have to worry about continuous supply of milk for production. hence implementation of these standards by Amul has not only improved its productivity and quality standards but also improved the brand image of Amul in the market. These new industry approved quality standards have been widely accepted. But this shift is good for milk producers as the demand is increasing. Larger number of customers is getting aware about foreign cuisines and their food choices are changing. AMUL‟s innovations in the areas of energy conservation and recovery have also contributed to reduction in cost of its operations. Also awareness about hygienic production and packaging of food is increasing.

Competitors of Amul (Amul Butter and Amul Milk Powder) Analysis of competition:Two levels of economic competition have been classified:  The most narrow form is direct competition (also called category competition or brand competition). In 2009. Amul has been selling its butter at Rs 72 for a 500 gram packet and Rs 15 for a 100 gms packet  Amul currently has 86 per cent of the market share in the state. they compete against each other in the soft-drink market. where products which are close substitutes for one another compete. due to the unavailability of raw materials due to bad monsoon forced Amul to reduce its production by 25 percent. Mother Dairy compete with Amul in the butter market itself. The next form is substitute or indirect competition. The rest 10 percent is shared. butter competes with margarine. for instance "Mother Dairy to cut prices in butter war with Amul"  Mother Dairy has launched its butter in Mumbai market at Rs 70 for 500 Gms and Rs 14 for 100 gms. Coke and Pepsi are direct competitors. These two points illustrate the fact that Amul enjoys monopoly over the butter market in India. For example. Sanchi in Central India ) This is the Direct Competition which Amul faces. mayonnaise and other various sauces and spreads. Nestle and others ) combined could not fill the gap. Some recent happenings are given below:  The market share of Amul has grown from 86 to 90 percent in the last five years. amongst  Britannia Milkman Butter  Nestle Butter  Mother Dairy Butter  Regional Rivals( like Gowardhan in Maharashtra. mainly. Britannia. The void left was so huge that even the other players( Britannia.   Amul Butter : Direct Competitors :Amul enjoys a market share of 90 percent in the butter market of India. For example. However the threat from direct competitors is ever increasing. Mother Dairy is eyeing 10 per cent of the butter market in its initial stages 8 . Nestle. where products performing the same function compete against each other.

GO enjoys 10-12 per cent of the market share in Mumbai and Pune. " Even as Amul focused on strengthening its leadership position in butter-which was not affected even by the aggression of new entrants like Britannia-the margarine market has grown in its backyard to gain a size of around Rs 300 crore. Nandini (Karnataka). Britannia. HUL compete with Amul in the milk powder market itself. it faces stiff competition from regional players locally like Gowardhan selling under the brand name of Gowardhan or GO. Indirect Competitors :Amul faces a major threat from the indirect competitor. As quoted in Times Of India. Since. 10 percent. Amul is the clear leader in the milk powder segment. Margarine is a substitute for butter but with no cholesterol which makes it popular among the consumers. has been at second position with a share of under 30%. GCMMF's late entry into margarine with brand Delicious.  Indirect Competitors :- 9 . which was launched mainly to restrict Nutralite from making a dent into the butter segment. it has grown on to acquire the 70 percent of the butter-like market. Nestle. 23 percent and then Britannia. Verka (Punjab). Dinshaw (Madhya Pradesh & Chhattisgarh) are dominant in their area and thus affect sales of Amul Milk. Mother Dairy. Regional Rivals – In milk segment the main opponents of Amul are regional rivals. Regional Rivals like Milma (Kerala) and Vijaya (Andhra Pradesh). On a national level. Parag (Uttar Pradesh) and Saras (Rajasthan). Nutralite's introduction in India. However." If not curbed.  Amul Milk Powder : Direct Competitors :The main competitors of Amul in the Milk Powder segment are  Britannia Milk Powder  Nestle Everyday Milk Powder  Mother Dairy Milk Powder  Regional Rivals( like Gowardhan in Maharashtra ) This is the Direct Competition which Amul faces. margarine market will start eating into the market share of Amul in butter market. Amul has a 45 percent market share followed by Nestle. Nutralite (Margarine).

Hero Honda started eating into the market share of Bajaj and around 2002 it became the market leader in the two-wheeler segment. the consumers started moving to motorcycles and discarding the scooters mainly. variants and identifying multiple uses are the only option in this nascent market to grow. "Buland Bharat ki nayi tasveer. Adding more nutrients. Margarine worldwide is consumed three time than the butter because of its no cholesterol attribute. The loose milk market is estimated to be around Rs 470 billion. Bajaj were a bit late in responding to the change. It needs to utilize the emotional value. like Bajaj did by maintaining the emotional value. "the taste of India". Amul needs to change certain attributes of its product and advertise it properly to make the consumers aware of it. From that point of time. around 1998 two wheeler segment witnessed a change . because of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations). at the same time through advertising convincing people that they are changing with times. Milk powder market is only 7% of the whole milk market. it is bound to lose its market share to Nutralite as Bajaj did to Hero Honda. Way Forward:A Precedent:Bajaj Auto Ltd till the mid 90's enjoyed most of the market share of the two wheelers segment mainly on the account of the scooter's it produced. higher access to relatively inexpensive financing. it faces an increased threat from Nutralite which is trying to eat into its market share. humhara Bajaj". and increasing availability of fuel efficient motorcycles. by the time they launched Pulsar( their first success against the Hero Honda motorcycles) and change their positioning through advertising they had already lost their monopoly which they had enjoyed for almost 25 years. Amul also needs to do the same. So. the processed milk market is only around Rs 10000 crores. 10 . Amul:Amul is the market leader in the butter and milk powder market. In such a scenario if Amul does not make any changes. However. However. of their brand in consumers mind.Milk (in the liquid form) is the main indirect competition. Consumers in India are becoming more and more health conscious.

Let us illustrate the stimulus-response model first- Stimuli:Stimuli is any such cause that has an indirect or direct effect on the mind of the consumer which has a certain impact on the perception of the consumer. the whole study will centre on what are the consumer‟s perceptions and how these perceptions were eventually formed by Amul‟s marketing strategies. as we have selected Amul.Consumer Behaviour Analysis The Stimulus-response model of consumer behaviour basically works by dividing and studying stimuli and response of a consumer and the point is to understand what happens in the consumer‟s consciousness between the arrival of the stimuli and the ultimate purchase decision. Stimuli can be broadly classified into 2 typesa) Marketing Stimuli b) Environmental/Other Stimuli Marketing Stimuli:Again this comprises of following 4 componentsa) b) c) d) Product Price Promotion/Distribution Place 11 . For our case.

sell in only one outlet b) Selective. The next task ahead was to differentiate themselves by using the values of „transparency‟ and „clarity‟ in their modes of business. B. Amul achieved this by making a supply chain that was extremely complex and efficient.A. the only competitor of Amul being Polson. would gain from the brand value initially created by the initial product or products. and for the people of India. They product gained a default differentiation from its competition because of its nationality. How does my product fit into the whole scene? Amul decided to use the „Umbrella Branding Strategy‟ for its milk products. Some describe the competition of Amul and Polson in terms of the the fable of David and Goliath. Hence the challenge before Amul was to upstage Polsons‟ monopoly over the market as well as capture the booming mild products market. and they used their famous „Three-Tier‟ model to implement it. How does my product life cycle affect my plans? Milk. being a very short-lived product with a very low shelf-life. it decided to use the “Swadeshi ” value of their own product. Polson. It was a movement by the people of India. wherein Amul is David and Polson is the giant Goliath. under which. around the middle 1940‟s. Place Here we face two questionsa) What distribution strategy should I use? b) On what basis should I choose a channel of distribution? Distribution strategy can be broadly defined into three typesa) Exclusive. some companies like Procter & Gamble go for individual product branding. maybe because it was the sole producer in the market of milk and milk products. In contrast. How will I differentiate my Product? At that time. has to be distributed earliest and the distribution and transportation must maintain the utmost hygienic conditions to avoid „spoiling‟ of the product. a foreign company which was already infamous among the rural masses for its exploitive practices.Sell in only a few outlets in each market 12 . Product Decision:Product decisions must answer these 3 questionsa) How does my product fit with my other products/ in market/ other competitors? b) How will I differentiate my Product? c) How does the product life cycle affect my plans? Let us go after these questions one by one. all its other products after milk. was notorious for practicing exploitive measures. The challenge in this for Amul was first to challenge the big and sole company in the businessPolson.

In 1967." For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. Amul hence went with the Mass or Intensive strategy.Sell in as many outlets as possible Considering the scope of their market and the nature of the product. That October. The baseline simply said. food was something one couldn't afford to fool around with. gimmickry and all else. It was a matter of just a few hours before the daCunha office was ringing with calls. had a staid. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. the country saw the birth of a campaign whose charm has endured fickle public opinion. And who better than a little girl?" says Sylvester daCunha. the first two strategies are out of the question. clothed in a tantalizing choli all but covering her upper regions. Not just adults. It was a decision that would stand the daCunhas in good stead in the years to come. which numbered around 10. Sylvester daCunha decided it was time for a change of image. Thoroughbred. created as a rival to the Polson butter girl. "We knew our campaign was going to be successful. for too long.c) Mass or Intensive. Sylvester decided that giving the ads a solid concept would give them extra mileage. so to say. C. "The response was phenomenal. Promotion It all began in 1966 when Sylvester daCunha. In India." recalls Sylvester daCunha. even children were calling up to say how much they had liked the ads. The year Sylvester daCunha took over the account. lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. clinched the account for Amul butter. This one was sexy. which had been launched in 1945. primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine. 13 . Utterly Butterly Delicious Amul. It had been taken too seriously. The Amul girl who lends herself so completely to Amul butter. village belle. then the managing director of the advertising agency. ASP.000. And so it came about that the famous Amul Moppet was born. in selling at as many outlets as possible. boring image. more dum. corporate ads. The butter.

Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever." says Rahul daCunha in amused tones. That we laugh because the humour is what anybody would enjoy. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. everyday fun. That was the first of the many topical ads that were in the offing. It is surprising how vigilant the political forces are in this country. They have to say something. Amul's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. afterall. The high command came down heavy on that one. They make them aware of what is happening around them." There were other instances too." he says laughing. Indians do have a sense of humour. or making an impact. If the Naxalite movement was the happening thing in Calcutta. There are numerous ads that are risque in tone. DaCunhas have made it a policy not to play it safe. India looked forward to Amul's evocative humour." Despite some of the negative reactions that the ads have got. So despite their reluctance the hoardings were wiped clean. So ultimately we discontinued the ad. Over the years the campaign acquired that all-important Amul touch." she laughs. cholbenacholbena (won't do. GanpatiBappa More Ghya (GanpatiBappa take more). Then there was the time when the Amul girl was shown wearing the Gandhi cap. "He said that he had seen the hoarding while passing through a small district in UP." says Sylvester daCunha. "says Mrs. I didn't want the hoardings to be pleasant or tame.In 1969. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny. 14 . The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. From the Sixties to the Nineties. There are stories about the butter that people like to relate over cups of tea. Heroin Addiction. It is pure and simple. Sylvester daCunha. We have a campaign that is strong enough to make a statement. "Then there was an ad during the Ganpati festival which said. "For over 10 years I have been collecting Amul ads. then the creative team working on the Amul account came up with a clincher -. Amul would be up there on the hoardings saying. What does she do with these ads? "I have made an album of them to amuse my grandchildren. The Gandhi cap was a symbol of independence. 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 a laughter out of them. I especially like the ads on the backs of the butter packets. when the city first saw the beginning of the Hare Rama Hare Krishna movement. aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. A fine balance had to be struck. "The Indian Airlines one really angered the authorities. "We had the option of being sweet and playing it safe. They don't pander to your nationality or certain sentiments. If there was an Indian Airlines strike Amul would be there again saying." says Rahul daCunha. "Bread without Amul Butter. "We ran a couple of ads that created quite a furore. Mohammad Khan and UshaBandarkar. the Amul ads have come a long way. they couldn't have anyone not taking that seriously. Indian Airlines Won't Fly Without Amul. Hurry Hurry'.'Hurry Amul. They said if they didn't take down the ads they would stop supplying Amul butter on the plane. SumonaVarma. Rebecca Mark wrote to us saying how much she liked them. From then on Amul began playing the role of a social observer. Even when the Enron ads (EnrOn Or Off) were running. won't do). "They are almost part of our culture.

so as to invoke the patriotic feelings of the consumer. Political and SocialA consumer‟s political inclinations and preconceptions highly affect his decisions. we have to see whether they will change the communication strategy also. what happens in the consumer‟s consciousness between the arrival of the outside stimuli and the ultimate purchase decisions. which had to be utilised in the earliest or else it faced wastage. 15 . Their tagline. D. “Black Box” analysis/ Consumer Characteristic and Psychology This is termed as Black Box because it is extremely difficult to analyse it. To keep their products affordable to the consumer. they kept their prices well within the purchasing range of the farmers. This helped AMUL BUTTER to create its brand image in the household sector of the society. and modest consumption levels of milk and other dairy products. Amul thus bought this excess milk at low prices. Environmental/Other Stimuli a) Economic b) Political c) Social EconomicConsumer‟s economic background highly affects his purchasing decisions. and the marketer‟s task is to understand what happens in this “black box”. Despite competition in the high value dairy product segments from firms such as Hindustan Lever. Under the influence of the British Raj.What I like most about the Amul brand is that they have been consistant over the communication campaign and brand strategy. Now since Amul has unveiled its global ambition. Nestle and Britannia. i. The poor people of the villages mostly are in the agricultural and fairy business. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. consumers had limited purchasing power. with the majority of the nation‟s population residing in the villages. best captures this scenario. AMUL has positioned itself as " Taste of India " and have ensured that their communication is in line with their positioning strategy. Price At the time Amul was formed. Amul had a market that mostly comprised of poor and middle class people. and this profited both the farmer and the company. which also gave the whole Amul brand a positive image. GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic.The taste of India”. And sometimes there was a surplus of milk. It also had the support of the government in the later stages. “Amul. it was this very sensible to brand the product as “Swadeshi”.e. When launched in the 1940‟s. affordable price to appeal the common masses.

Consumer Psychology a) b) c) d) Motivation Perception Learning Memory a) Motivation In the context of Amul. Consumer Characteristics The customer behaviour is influenced by the following factors mainly: 16 . The consumer‟s patriotic level can be used. “Safe”. “Traditional” and “Swadeshi”. “Dependable” . there is now a tendency in the consumer to “discriminate” the Amul brand among other brands. the marketer can trace the consumer‟s motivations from the stated instrumental ones to more terminal ones. Amul. mainly butter and milk. which is where Amul places their products so as to gain the customer‟s attention. as it targets the very bottom of the pyramid. b) People are more like to notice stimuli they anticipate. it is very easy to see the motivation of the consumer for buying Amul products.The Amul Girl (a familiar figure)”. Also. an Indian consumer expects to see butter and milk in the top and lowermost shelves. one can say with confidence that Amul is now ubiquitously identified with aspects like “Been here for a long time”. b) Perception Amul very much efficiently uses the method of “Selective attention”. “Brand mascot. as well the level of familiarity which the consumer has with Amul can be used. satisfy the daily needs of a consumer and are used on a daily basis. and in the context of the associative network memory model. “Reliable”. “Reputable”. being the producer of Milk products.When looking at a glass refrigerator. directly gains advantage even from Maslow‟s model of needs.The Physiological needs. It uses the first two findings of the perceptive modela) People are more likely to notice stimuli that relate to a current needAmul products. To use the “laddering” concept of Sigmund Freud. c) LearningAmul has used the technique of positive re-enforcement since decades and it is still bearing fruits to the company as well as its still on the rise. “Conservative”. simply because it‟s brand value is too high and it considered far too reliable compared to its counterparts. d) Memory The common Indian man associates Amul brand with many positive aspects.

the farmers and customers of milk products faced exploitation by the hands of the then only competitor. Thus a child growing up in a traditional middle-class family in India is exposed to the values of Amul like trusted brand. It quickly gained the trust of its market. as Amul has built the brand very carefully on the grounds of very affordable price. Of high-quality products sold at reasonable prices. This particular impression of the brand amul among people is positively increasing at an exponential rate. Amul Milk Powder. Amul Shrikhand.Hunger. religions. racial groups. and became the leading supplier of Milk Products. he always gets a positive feedback. Today Amul is a symbol of many things.  Informational Search 17 . Amul Cheese. Hence. due to its multicultural marketing. Amul Milk and Amulya have made Amul a leading food brand in India. due to the following facts. In the current context. These set of values or preferences are acquired since child hood from family and other key institutions. liked by the whole family etc.Polson. And the brand Amul is known for its „quality for money‟ type of products and at a very low price when compared to any of its competitors. The Buying Decision Process: The Five-Stage Model  Problem Recognition In the initial stages of its inception. tasty. and this is where Amul came into the picture. which is accepted by the target segment while spilling a positive influence on other cultural groups. a) Cultural factors : Culture is the fundamental determinant of person‟s wants and determinants. Hence no matter which social group a customer belongs to. Amul Butter. Amul Ice cream. a consumer‟s “problem recognition” can well be associated with the basic necessity. Amul Chocolates. Hence is trusted by all family members of a customer who belongs to a middle class family.a) Cultural Factors b) Social and Personal factors. the scenario is very positive. In case of Amul. the cultural influence of Amul remains same. 52. Amul Ghee. This has a considerable effect on the purchasing decision of him. b) Social and Personal Factors Amul is a product has been being used by several families since a long time. there was a need for a much more honest and reliable company. Nutramul. and high quality. and always comes across a satisfactory response from both the primary and secondary groups. Even if we segment the people in India into subcultures like nationalities.55 billion in 2007-08). The situation remains unaltered even if the customer contacts an opinion expert. Excess of milk that was produced by the farmers was also being purchased at an unreasonable price by Polson. Amul products have been in use in millions of homes since 1946. (Turnover: Rs.

as a consumer may buy a higher priced Amul product rather than going for a cheap but local product. as it has confidence in the satisfaction level of the customer after consuming its products. they are purely physical.  Post Purchase Behaviour Amul also relies on word-of-mouth publicity. Amul must differentiate itself from the alternatives. it faces stiff competition from the market. and if this is considered then it may be a compensatory model too. Price can be fluctuated. as being a food product. although Amul still leads the market. To face this. as well as its strong distribution channel ensures that it will be present in the nearest store of the targeted consumer. and it gains the attention of the customer by using its brand value.Considering the limited scope of information search done by the consumers. it has to be good in all its aspects. Talking about the perceived risks associated with Amul. it becomes necessary for Amul to quickly establish itself in the minds of the consumer as well as in the stores near him. 18 . and Amul has done well to minimise them by maintaining high standards of quality and hygiene. it is definitely a non-compensatory model of consumer choice. It also has a toll free number so as to listen to consumer complaints and suggestions. as mentioned in the earlier topics. Amul does this by regularly printing its comics in the papers and thus leaves an impression in the mind of the consumer.  Purchase Decision In the context of Amul.  Evaluation of Alternatives Currently.

(Bread spreads.PRODUCTS OF AMUL Amul Product Portfolio Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods Examples: Durable Goods:-Milk Powders. cooking. Ready to Serve Soups Non-Durable Goods: . Cheese Range & Ice creams Dairy Non products Dairy products Cheese Product-Width The width of a product mix refers to how many different product lines the company carries.Fresh Milk. milk drinks. Example: Product Length of Amul‟s Product mix is 66 Product Width of Amul‟s Product mix is 5 (No of lines) Hence the average product length is (Total Length / Number of lines) = 66/5 is more than 13 Product Depth The depth of a product mix refers to how many variants are offered of each product in the line 19 . 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 number of items is 8. cheese. desert. health drink.

440 Rs. 115 Rs. 15 Rs. 110 Rs. 113 Rs. 222 Rs. 16 Rs. 125 Rs. 260 Rs. 66 Rs. 42 Rs. 125 Rs. 64 Rs. 25 Rs. 265 Rs. 180 Rs.225 Rs. 60 Rs. 9 Rs. 61 Rs. 39 Rs. 38 Rs. 122 Rs. 202 Rs. 115 Rs. 114 20 . 13 Rs. 115 Rs. 55 Rs. 58 Rs. 55 Rs. 15 Rs. 32 Rs. 40 Rs. 233 Rs. 495 Rs. 117 Rs. 1. 53 Rs. 160 Rs.Amul’s Product Depth Name of Product Variants Price Name of Product Amul Butter Amul Butter Delicious Table Margarine Delicious Table Margarine A m u l Lite Low fat Bread spread Amul Cheese Amul Cheese Slices Amul Cheese Chiplets Amul Cheese Amul Cheese Spread Amul Pizza Cheese Pack Amul Emmental Cheese Amul Gouda Cheese Amul Gouda Cheese Amul Malai Paneer Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul/Sagar Pure Ghee Amul Pure Ghee Amul/Sagar Pure Ghee Amul Shrikhand Amul Shrikhand Amul Shrikhand Amul Shrikhand Amul Mithaee Gulabjamun Amul Mithaee Gulabjamun Nutramul Amul Chocolates Amul Chocolates Amul Almondbar Amul Chocozoo Amul Chocozoo Amul Taaza Double Toned Milk Amul Taaza Double Toned Milk Amul Tazza Toned Milk -Nothern East States Amul Gold Milk Tetra Amul Lite Skimmed Milk Amul CALCI + high calcium Milk Mithaimate Sweetened Condensed Milk Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF Amulspray IMF Sagar Skimmed Milk Powder Amulya Dairy Whitener Amulya Dairy Whitener Variants 100g Pack 500g Pack 100g Pack 500g Pack 200g Tub 400g Tin (EOE) 200g Pack 200g Pack 1kg Block 200g Tub 200g 400g Pack 250 g 1 kg 200g Dice Pack 1 Liter Tin 500ml Pouch 2 Liter Tin 5 Liter Tin 1 Liter Refill 1 Liter Pouch 500g cup Elaichi 500g cup Mango 500g cup Kesar 500 g Badam Pista 1kg Tin 500g Tin 500g Refill 35g Milk 35g Fruit & Nut 35g 232g Tin Tub 500 g 1 Liter Tetra 200 ml Tetra 1 Liter Tetra 1 Liter 1 Liter Tetra 1 Liter Brik 400g Can 500 g Pouch 500g Refill 500g Tin 1 kg Pouch 1 kg Tin 500g Pouch 500g Pouch 500g Refill Price Rs. 111 Rs. 35 Rs. 36 Rs. 50 Rs. 77 Rs. 242 Rs. 110 Rs. 66 Rs. 110 Rs.

12 Rs.The inherent structure similar to the corrugated arch structure provides good mechanical properties. 25 Rs. 12 Rs. 58 Line stretching Every company‟s product line covers a certain part of the total possible range. They provide the list of the nutrients and the quantity in which they are present in Amul Butter.Amulya Dairy Whitener Amul Shakti Health Food Drink Amul Kool (Kesar. 15 Rs. affordable price” Packaging of Amul Products:Amul Butter:Printed Corrugated Cartons: . 113 Rs. 15 Rs. 12 Rs. 22 Rs. 22 Rs. up-market or both ways. Elaichi. 115 Rs. The company can stretch its line down market. Line stretching occurs when a company lengthens its product line beyond its current range.e. 22 Rs. the cartons are light weight and the transportation cost associated with it is small. 10 Rs. 30 Rs. 21 . Elaichi. 15 Rs. Marketing: . 103 Rs. to individual of low income group) Amul has been introducing products with consistent value addition but never left the core philosophy of “Providing milk at a basic. 35 Rs. It acts as a barrier for moisture and heat.Chocolate) Amul Kool Kesar Amul Kool Café Amul Kool Café Amul Kool Café Amul Kool Koko Amul Kool Milk Shake (Mango & Badam) Amul Kool Milk Shake (Mango & Strawberry) Amul Fresh Cream Amul Fresh Cream Amul Masti Spiced Butter Milk Amul Masti Spiced Butter Milk Amul Lassi(Rose) Amul Basundi Amul Mithai mate 1 kg Pouch 500g Refill 200ml Bottle 200ml Tetra 250 ml can 200 ml Glass Bottle 250 ml Can 200 ml Tetra Brik 250 ml Can 220 ml Can 180 ml Tetra Pack 200 ml Tetra Brik 1 Lit Tetra Brik 200ml Tetra Brik 1 Liter Tetra Brick 200 ml Tetra Brick l Liter Tetra Brick 400 g EOE can Rs.The print on the cartons provide for information transmission. Example: Amul is now aggressively adopting the down market stretch by introducing (CHHOTA AMUL. They communicate about the benefits of the product.They serve the dual purpose of Protection: . 5 to take advantage of the Bottom of the Pyramid i. 227 Rs. Moreover. Rose) Amul Kool (Kesar. Priced at Rs.

leading to a rapid loss of quality and caking or lumping. Such a packaging protects the milk powder form moisture. light.Amul Milk Powder:The packaging is varied as small sachets or standard sized packets or in tins. 22 . In absence of package. heat and maintains their quality and shelf life. milk powder readily takes up moisture from the air. oxygen.

Business Market . They are very price sensitive and are characterized by high price – demand elasticity.Regular User 23 . 2. This has resulted in efficient communication of its value offering to its customers and capturing of leading position in most of its product category.Medium . Amul has broadly segmented the Butter and Milk Powder market in India into 2 categories: 1. Examples: .Segmentation. Consumer Market .Households using it for cooking 2. We have analysed below how it could have segmented the market for Butter and bread spread category and Milk Powder category.Heavy These categories have distinct needs in terms of price.Light .1st time user . size of product package availability etc. quality etc. They are the mass market who purchase frequently but at lower volumes. organisations and institutions who purchase these products for either their own consumption or as a raw material to produce some other products to be sold in the market. User Status According to usage status the consumer market of butter can be divided into the following categories: . but stress on availability.Small Families/School Going Kids . They are not greatly affected by minor changes in price. Targeting and Positioning: Amul has carefully segmented the market for each of its product offerings and wisely selected the target market for each product category. Segmenting the Butter Market in India: Consumer Market: 1. They are high volume purchasers of Amul.It involves all households and individuals who purchase these products for their own consumption. Accordingly Amul has leveraged the knowledge of these needs by introducing product offerings in different package sizes and at different distribution channels. Usage Rate (Frequency and Quantity) According to the frequency and quantity of usage the consumer market of butter can be divided into the following categories: .Potential User .It involves the industries.

The Outdoor-oriented and frequent traveller segment can be targeted for the Amul Butter Munna pack – a smaller pack ideal for one serving. also Southern cities prefer Amul Lite/Bread Spreads over butter. Institutions. 4. West It has helped target the market with unique product offerings in terms of size and packaging for these markets. 3. The various segments it has targeted can be summarized as below: Industry type: Hotels/Restaurants. Offices For example it has targeted the Airlines segment by introducing Airline packs of Amul Butter and Amul Lite. Region India shows definitive differences in usage of butter across different regions. Airlines. Lifestyle The lifestyle of consumers is a unique criterion Amul has used to segment and target the market for its Amul Lite product.Heavy 24 . North.Light . Price sensitive Customers who may start to use butter regularly if they get it at a lower cost. Accordingly Amul has segmented the market into different regions as below: South. Confectionaries. East. Bakeries. Business Market: Amul has effectively segmented the business market according to their unique needs. Usage Rate (Quantity & Frequency): According to the frequency and quantity of usage the consumer market of Milk Powder can be divided into the following categories: . Segmenting the Milk Powder Market in India: Consumer Market: 1.The potential users include Users of butter substitute. The market is segmented as per following criteria: Health/Calorie Conscious Outdoor-oriented Frequent Travellers Here the health/calorie conscious consumers are most likelyt to use Amul Lite product as a low calorie butter substitute. Also differs the form of butter people prefer to use across the regions. For example usage rate is higher in North and Western India as compared to South India.Medium .

. For example. Its market positioning can be characterized by the following: • • • Quality with affordability Value for money Indigenous Product with world-class standards 25 . Demographic: Amul has utilized demographic segmentation of the business market according to the industry the business falls in.Young singles – 15-35 years .Health/Calorie Conscious Persons . 4. Educational Institutions. Industry type: Hotels/Restaurants. urban households where daily purchase of fresh milk is low can be targeted for Amulya/Sagar Skimmed Milk Powder. Ice-cream manufactures.0-3 years . Lifestyle: Lifestyle is a determining factor for segmenting customers of its products like Amulspray and Sagar Skimmed Milk. Accordingly Amul has leveraged the knowledge of these needs by introducing product offerings in different package sizes and at different distribution channels. Offices. Business market: 1. For example the below segments can be targeted for Amul Milk Powder for the business markets. size of product package availability etc. a milk substitute. Amul has effectively targeted the below to market segments for these two products. as protein supplement etc.These categories have distinct needs in terms of price. Hospitals Market Positioning: Amul has been able to create a wide market recognition where its products and Amul as a brand is positioned quite uniquely as compared to other competitors.Working mothers 3. 2. . Accordingly Amul has segmented the market into different age segments and met the unique needs of these segments. Age: It has been observed that the users of Milk Powder are largely affected by the age of the users. City/Semi-Urban: The consumption pattern of Milk Powder differs significantly across places with different levels of urbanisation.50+ years People in these age groups need Milk Powder for different purposes as baby food.

The Value offerings of the products we are studying is given below: 26 . We have observed that it is the effect of unique value proposition of Amul as a brabd and its product offerings.We have studied how Amul has been able to create the Market Positioning for itself.

Amul Lite. which is a chubby butter girl usually. Packaging: Amul focuses a lot on packaging. This type of Branding is called Umbrella Brand structure. Sagar Skimmed Milk Powder. Amul Cooking Butter. dressed in polka dotted dress is the Mascot of the brand. It gives a quality packaging such that products packed inside are intact and doesn‟t get destroyed in handling. By this company wants to say that the brand is so widely used in India that it has become a unique ingredient in all dishes of India and thus the taste of India. Amul Full Cream Milk Powder ) simultaneously. Mascot: “Amul Baby”. The colour of the packages is also eye smoothing and images on the packaging gives tempting look Point of Parity Vs Point of Differences The following POPs and PODs are applicable to all our considered products ( Amul Butter. Slogan: Slogan is “The Taste of India”. Amul doesn‟t use any celebrity to endorse its brand but instead it used this mascot.e. 27 . Amulya.Branding: Amul uses „Amul‟ as the Primary brand and all its products like Amul Butter and Amul Milk Powder are used as Secondary brands. Amulspray. Sagar Tea Coffee Whitener." from the Sanskrit "Amoolya" (meaning „Precious‟) Brand Logo: Logo is very simple with two rectangle crossing each other and name of the brand i. Amul and slogan is mentioned. This mascot is very famous in India and Amul has not changed it since its introductionin1966. Brand Elements: Brand Name: The brand name "Amul.

2. And the consumer satisfaction is assured when it comes to value for money. 28 . along with the packaging structure.For Amul Butter: Amul is the market leader when it comes to butter. 5. The fact that Amul butter never got a complaint regarding its hygiene factors since it was launched in 1956. Amul has a very well connected retail structure with more than 500 Retail outlets spread throughout india. And the most important factor contributing to this is clearly the good taste assured by Amul butter. with the quantity he receives for the amount paid and the hygiene factors maintained. by continuously innovating on the methods. proves that the quality of hygiene maintained by Amul butter is worth the trust that has been developed on the product by 90% of the consumer market. Emphasis on Quality Control: Amul concentrates on its quality control through continuous innovation in the means to improve the quality of the product. Availability at large number of stores: Amul products are available in all its retail stores spread throughout india. It also keeps its position as the market leader with respect to its competitors by maintaining high quality standards. Point of Parity (POP) of Amul Butter The Points of Parity of our Amul Butter products includes: 1. Value for money: Amul has been able to provide a fair quantity of the product at affordable price since the beginning. Ready to Use: Amul Butter like all of its competitors is a ready to use product with added preservatives to increase its shelf life by a considerable extant. 3. Amul was also the first to enter the butter market in india. Affordable price: Amul butter has always been available at an affordable price to a common man. 7. 4. Good Taste: Amul butter is liked and preferred over other butter products since 1956. Inspite of these competitive advantages Amul maintains its parity with its competitors. Points of Differences (PODs) of Amul Butter products The following points of differences can be associated with amul butter products. 1. And this is clear from the highest market share it has. Hygiene: Amul butter is manufactured in a plant where extreme precautions is taken to maintain the hygiene and quality of the product. All the care that could be taken to assure the freshness that can be taken by its competitors is already being taken care of and improvising on it. Freshness: The freshness of the butter is assured by taking great care in the pattern of packing and by adding special ingredients to increase the shelf life of butter. owning 90% of the market. hence Amul enjoys the Customer loyalty of nearly 90% of the market and also most of its competitors are market followers of Amul butter. 6.

4. The POPs and the PODs of the Amul Milk Powder Products are as follows. Hygiene: Amul Milk powder is manufactured in a plant where extreme precautions is taken to maintain the hygiene and quality of the product. 3. This feature of home delivery service added to the product makes the Amul product a more preffered product when compared to its competitors. so that the products can be directly purchased online where in it will be delivered to the consumer at his door. Good Taste: Amul Milk Powder is liked and preferred over other Milk powder products since 1958. and trust on Amul Milk powder is to such an extent that is used as a supplement for milk to very young children. Point of Parity (POP) of Amul Milk Powder Products The Points of Parity of our Amul Butter products includes: 1. along with the packaging structure. E-initiatives i. 29 . which increases the shelf life of the butter by a considerable extant.2. 5. 3. making Amul the company occupying the highest market share. Amul has been continuously growing in acquiring more and more Milk Powder market share since its launch. Freshness: Amul Milk Powder is known for its freshness. then he might have to store the remaining part of the pack for later use. Good Packaging: Amul butter is a ready to use product hence in case the consumer purchases a higher amount of the product than required. For Amul Milk Powder: Amul Milk Powder occupies 45% of the Market share. Value for money: Amul has been able to provide a fair quantity of the product at affordable price since the beginning. And the most important factor contributing to this is clearly the good taste assured by Amul Milk Powder due to the latest technology used to manufacture it. Innovative and Attractive Products: Amul is known for continuously Innovating its products by introducing new flavours to the already existing products. with the quantity he receives for the amount paid and the hygiene factors maintained. And the consumer satisfaction is assured when it comes to value for money. online selling of products: Amul was one of the first FMCG (fastmoving consumer goods) firms in India to employ Internet technologies to implement B2C commerce Amul has made its products available online. 2. Amul introduced Amul Lite and Amul Margarine.e. Amul butter‟s packing has a wrapper covering the butter which the consumer can use to wrap the remaining butter.And the Plant of Amul where the Amul products are produced is a HACCP certified plant with all the latest equipments installed to assure superior hygiene in iits products. 4.. In case of Amul butter. And the way the packing presents itself gives an assurance to the consumer that the butter is absolutely hygienic to be consumed. Ready to Use: Amul Milk Powder like all of its competitors is a ready to use product with added preservatives to increase its shelf life by a considerable extant.

and the amul has a higher hand in this regards over its competitors as none of its competitors were able to acquire the HACCP Standards in its packaging 3. as it is packed in a Tin Container which can be used at a container to preserve the Product if incase the consumer wishes to use it in small quantities. 3. online selling of products: Amul has made its products available online.Amul WMP(in 1960). Good Packaging: Amul Milk Powder is known for its packing.6. Availability at large number of stores: Amul products are available in all its retail stores spread throughout india.Amulya(in 1987). Amul Milk powder is currently a rapidly developing product in the market currently occupying 45% of the market share due to its competitive pricing.. 6. Emphasis on Quality Control: Amul concentrates on its quality control through continuous innovation in the means to improve the quality of the product. 5. Product Related Attributes of Amul are: Amul has been the brand of quality and availability. 8. Nutrient Rich Products Freshness of the Product Availability of products Quality Packaging Taste of products Robust Distribution Network ISO 9002 certification at village cooperatives TQM approach for consistent Quality Brand Portfolio of Amul: 30 . Innovative and Attractive Products: Amul Milk Powder is known for continuously Innovating its products by introducing new flavours to the already existing products. Affordable price: Amul Milk Powder is available in attractive Tin Containers with a reasonable price when compared to any of its competitors. Amul has a very well connected retail structure with more than 500 Retail outlets spread throughout india. so that the products can be directly purchased online where in it will be delivered to the consumer at his door. 7. In case of Amul Milk Powder .e. E-initiatives i. Amul introduced Amul Spray(in 1968). 4. This feature of home delivery service added to the product makes the Amul product a more preffered product when compared to its competitors. Points of Differences (PODs) of Amul Milk Powder products The following points of differences can be associated with amul butter products. And the consumer can choose to select the Amul powder sold in the paper boxes a well. It also keeps its position as the market leader with respect to its competitors by maintaining high quality standards. 2.Amul Instant FCMP(in 2002) and Sagar SMP(in 2005) 4. 1. Amul has tried to achieve this through following: 1. 7. 2.Amul IMF(in 2001).

Amul Fresh Milk: It is the basic product started by Amul. Including it as it is considered as particular flavour directly related to the Amul milk products. It launched a Sports Drink called „Stamina‟ this year aimed at capitalising on the interest generated in the health and wellness market and the run-up to the Commonwealth Games held in India. By insisting on an umbrella brand. Amul is the common brand for most product categories produced by various unions. cocoa products. The range of products includes liquid milk. 4. Amul butter and Amul lite comes under its sub brands. 3. ghee. milk powders. Bread Spreads: It includes three sub-brands each of them meeting AGMARK standard and BIS specifications. It has 8 different sub-products further available in various flavours. bottles etc. 5. It includes 11different sub-brands. ice-cream and condensed milk. Tea coffee whitener and hasa total of 5 sub-brands. cheese. Amulya. This product variety is really successful inTier-1 cities like New Delhi and is really gaining much share in the recent past. The network follows an umbrella branding strategy. It is a genesis of a vast co-operative network.Amul has been present in a number of variants. 31 .None of our selected Amul products comes under this category. The company has further added variety to these brands by providing them in various flavours and various forms like pouch packs. Powder Milk: It includes varieties like milk for Infants. butter. The influences made by the products under consideration are as follows: 1. Amul Spray. Milk Drinks: It is the largest and most selling product for Amul. sweets. 2. GCMMF not only skilfully avoided inter-union conflicts but also created an opportunity for the members to cooperate in developing products. Some of the varieties are available in different weight packs. Amul Full cream Milk Powder(FCMP) and Sagar tea Cofee whitener comes under its sub-brands. Cheese: It includes various sub-products. These different product varities has been adding value to Amul by adding flavours to the already existing amul products. Amul has launched 8 different kinds of products since its beginning.

Amul 1956 Chocolates 1973 Shrikhand 1980 Fresh milk 1956 Milk Powder 1958 Cheese 1962 Breadspread Ghee 1956 Icecream 1996 Nutrauamul 1973 Gulab jamun 1997 UHT Range 1980/99 Amul spray 1968 Cheese Spread 1986 Amul Butter 1956 Cow Ghee 2002 Fat Free Dessert 2002 Eclairs 2001 Gulabjamun mix 1999 Condensed Milk 1996 Amul WMP 1960 Paneer 1997 Amul lite 1994 Softy Mix 2001 Amul Shakthi kulfi Mix 2001 Butter Milk 1998 Amulya 1987 Pizza Cheese 1998 Margarine 2004 Chocozoo 2005 Laddo 2004 Fresh Curd 1999 Amul IMF 1&2 2001 Emmental Cheese 1999 Basundi 2005 Flavoured Milk 2001 Instant FCMP 2002 Frozen Pizza 2002 Khoa 2006 Freash Cream 2002 Sagar SMP Gouda Cheese 2002 Kool Kafe 2005 32 .A detailed Hierarchical structure of different product categories of amul is displayed below . which will help in getting a clear structure of different products associated with different product varieties launched by Amul.

Competition 2. To maintain the brand image and also to establish the emotional connect to its billions of customers – by communicating itself as “The taste of India”. Competitive and marginal lower pricing Amul takes into consideration the following aspects while deciding upon the prices of its products: 1. Value pricing involves winning loyal customers by charging a fairly low price for a high quality offering as compared to competitors. Amulspray and Amulya Rs. Example: Amul Butter Munna Pack.Pricing Component: At the time Amul was formed. It has thus focused on becoming a low cost producer without sacrificing quality to attract a large number of valueconscious customers. GCMMF ensures that the product mix and the sequence in which Amul introduces its products in consistence with its core philosophy of providing milk at a basic. 3. 5 and Rs. affordable price. 33 . Commitment to deliver economical products at the best and affordable prices. Amul has successfully been able to employ both Value pricing as well as Going Rate pricing strategy to its product range. and modest consumption levels of milk and other dairy products. consumers had limited purchasing power. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. 10 packs.

Amul‟s policy has been to offer wide range of products at all price points to reach maximum segment of market. the only viable option for AMUL was to price its products as low as possible.Cost Leadership: AMUL‟s objective of providing a value proposition to a large customer base led naturally to a choice of cost leadership position. Given the low purchasing power of the Indian consumer and the marginal discretionary spending power. 34 .

Consumer behavior analysis for Amul delves into market and other stimuli. Undoubtedly Maul is market leader in milk segment and butter products.Summary In this project our team has discussed various macro environmental. Amul girl slowly positioned itself in hearts of Indian consumers. political and technological factors and their impact on Amul. 35 . To be in a position of being a market leader in the categories where Amul is either challenger or follower its main threat is from regional brands. The competitor analysis explains the position of Amul in relation to various MNCs such as Britania. It is challenger in ice-cream and chocolates segment of the market. health drinks and pizza. political trends captured the share of consumer‟s mind. It presents various threats as well as opportunities for Amul. These stimuli act on consumer and influence his decision to buy a product. In marketing stimuli Amul is compared with Polson and how maul is evolved over a period of time. Mother Diary and other regional brands. The advertising strategy of making sarcastic and funny comments on social. Amul is follower in dairy products like cheese. Nestle. The macro environment analysis emphasizes on social. legal. paneer. consumer behavioral factors and competitor analysis of Amul. economical.

amul.http://www.nic.com/ 2).com 36 .Bibliography References: 1).cmie. http://mospi.in/ 3) http://www.