Marketing Management (MG 401

Project Presentation Group 6 Company: AMUL

. brand name managed by an apex cooperative organisation. • Amul has spurred the White Revolution of India. India.AMUL – The Brand Amul (Anand Milk Union Limited) Formed in 1946 • Dairy cooperative movement in India. • It is one of the best examples of co-operative achievement in the developing economy. which has made India the largest producer of milk and milk products in the world. • Currently Amul has 2.8 million milk producers in Gujarat. (GCMMF). which today is jointly owned by some 2. • Sterling example of a co-operative organization's success in the long term. World's biggest vegetarian cheese brand.8 million producer members with milk collection average of 10.16 million litres per day. Gujarat Co-operative Milk Marketing Federation Ltd. • Largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07).

. especially the highly successful one known as AMUL. will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. the dairy cooperatives in the state of Gujarat.” Alexander Fraser Laidlaw. Cooperatives and the Poor .AMUL – The Brand "Anyone who has seen ..

SWOT Analysis – Strengths ▫ An extremely well managed distribution channel that has stood the test of time as well as expansion. ▫ Well established brand ▫ Sense of trust ▫ Image of „social welfare firm‟ which is targeted to help the farmers in rural region rather than bagging in huge amount of profits. ▫ Low cost inbound logistics from the basic level of the input production. ▫ Decentralised milk collection from various sources at the cheap rates and competitive quality. . ▫ Highly influential and the longest running ad campaign (Utterly Butterly Girl). ▫ Wide variety of products. ▫ The pasteurization process is being outsourced for much superior quality in the final products. ▫ It captures almost all of the economy based market segments right from A1 to C2.

▫ There have been incidents of slackening of the supply because of the problems faced at the very basic level in the input collection. ▫ Some of the products are not very popular in their desired markets. ▫ Umbrella branding strategy. This results in the huge losses to the company as well as the compromise in the image of the brand name. Substandard product in the market affects the whole image of the brand.) .SWOT Analysis . Maharashtra and Rajasthan because FMCG need to be taken special care in terms of freshness and quality and their transportation to far away areas is difficult. ▫ It supplies primarily in Gujarat.Weaknesses ▫ All the farmers which provide the milk are deemed as co-owners of the company under the co-operative ANAND. ▫ The extreme low class do not buy dairy products from Amul. (This was an input received from mess secretaries in IIT hostels.

Strong brand name will help gain an edge over the local producers. However. This can happen either by the farmers in the pre production phase or by the factories in the production cum processing phase. quality walls in ice creams and Britannia in cheese markets.SWOT Analysis – Opportunities & Threats Opportunities: ▫ It can expand in the various other parts of the country by either upgrading logistics or by establishing a new plant in other parts with associations with the rural farmers. . ▫ It can sell the processed milk products at the prices comparable to that of MNCs. ▫ The regional famous brands like Saras in Rajasthan receive regional political support. Threats: ▫ Any compromise on the quality will lead to the severe depreciation of its brand value. the capitalist policies are against the basic ideology of the company which says that it has to provide the best quality milk products at affordable prices to the Indian households. ▫ The competition from the multi national companies like Cadbury‟s in chocolate.

the magnitude of sales needs to be very large in order to gain profits due to the lack of expensive products in the range. It is not affected by minor changes in the regional market as it caters to a much larger target market. Socio-cultural: The ad campaign by the company leaves a strong impact on the society as the ads generally based on the contemporary issues. Also. the state governments may try to encourage their own establishments for more and more profits.PESTLE Analysis Political: Political support in Gujarat because most of the rural livings in the state are directly or indirectly related to Anand. no one poses any unnecessary threats in their operations there. Economic: Low prices of the local good may cause a shift away from Amul products. But in other states. So. . They are not only a source of amusement but also create awareness among its consumers thereby leaving positive impact on all the demographic segments of the society. It has made the farmers of Gujarat self-sufficient and proved crucial in transforming their lives.

Besides. Brought a stay order on sales on Amul‟s sugar free products claiming copyright violations. it won a copyright infringement case against local shops using the name „Amul‟ to increase sales.PESTLE Analysis Technological: It uses only pasteurised milk for producing all its goods. Amul has also launched a mass tree plantation plan under which it has planted around 152. Zydus Cadila Ltd. It also provides milk with various degrees of fat content depending on the various psychographic sections of the society. . On the other hand. Amul has found itself in the court on both sides. Although. Environment: It is does not cause any kind of externalities in direct or indirect form. Also uses high quality packaging for its products like tetra pack in which milk remains fresh for a longer period of time. In one case. refrigerated trucks for purity and freshness parameters. there is no major threat in the legal arena.78 lakh trees by year 2009. It has technologically advanced logistics e. Legal: It is a cooperative firm and follows the same legal procedures as any other firm.g.

Market Segmentation a.teenagers.all age groups d. Demographic: i) Income groups: A1. iii) Age – Different segmentation for different products . Target Market . Target Segments: 1. Living standards. All age groups otherwise iii) Psychographic: Health conscious people . Market . Nutramul etc.e. .double toned milk. B1. A2.People who buy dairy products. b.People who buy packaged edible products. Demographic i) Income – All income classes ii) Psychographic – Lifestyle. c. Rajasthan and Maharashtra 2. B2 ii) Age: Amul Kool . Geographic i) Gujarat ii) Neighbouring states i. Segments: 1. Geographic i) Gujarat ii) Outside Gujarat 2.

company follows routine protocol of consumer complaints in case of any dissatisfaction Returns: major share in returns . Mainly meant for the retail purposes – not B2B Services: No direct services – retails is most of the market share .motto of Amul .has also launched a cyber store Warranties: No warranty provided .large width of product lines .market leader – Milk and ice creams contribute tremendously to the returns .depth of the product lines is also considerable Quality: Comparable to MNCs .affordable and good packaging Brand Name: Single brand name .catering to the different needs.The 4 Ps of Marketing PRODUCT: Variety: A wide range of products .social initiative rather than a profit motivated company Sizes: Available in different sizes .AMUL .considered one of the most trusted .Brand perception .providing supreme quality at affordable prices Design and Packaging: Average household‟s needs .AMUL butter .

absence of B2B transactions Payment period: Payment Instant in almost all cases Credit Terms: As such there are no credits terms by the company itself but the dealers may see the credit terms at their own level. PROMOTION Sales Promotion: No specific sales promotion events Advertising: Various ad schemes – Has had the most successful ad campaign in the history of the Indian consumer market .The 4 Ps of Marketing PRICING List price: Mentioned on the product itself – decided with motive to achieve minimum price without compromise in quality Discounts and Allowances: No discounts or allowances – direct retail based market individual specific .signifies the “taste of India” by promising the best taste and simultaneously pointing out relevant issues Public Relations: Management has people who listen and respond to the complaints posted by the consumers regarding any aspect of the product .

Inventory: FMCG – inventory is minimal – transactions are rapid Transport: huge and advanced system of transportation . Maharashtra and Rajasthan.The 4 Ps of Marketing PLACE Channels: Extensive channel to supply the products to all the retail stores – even rural regions Coverage and Locations: States of Gujarat.

The brand name of the product will be “Chandravilaas” .traditional Indian Sweets or Mithai.New Product The team has envisioned a horizontal related expansion plan The new product includes. The product .

Cow logo courtesy: DeviantArt .

Holi. Rakshabandhan etc Geographic: Only Rajasthan.STP Analysis SEGMENTATION Psychographic: A semi-urban to urban lifestyle .packaged sweets will be costlier than the normal sweets available in the market – More hygiene specific – Desire brand value in the product . Gujarat and the adjoining states due to the transportation constraints and the behavioural preferences .contemporary youth which respect Indian traditions and culture is also a major segment Behavioural: Occasions at which the sweets are used as gift items e.g. Diwali.

It would be the brand of the youth which respects Indian culture and tradition.STP Analysis TARGETING People living in these specific geographic regions with moderate income level The target consumer prefers buying sweets which are hygienically prepared and have brand value associated with them People who have their roots in traditional Indian culture but with decent financial footing – prefer traditional sweets over chocolates and other competing goods POSITIONING Trusted household FMCG brand which has been in the circulation in the market for many years. Initial market wave is expected to be in favour of the launch of new comestible item. . Amul would be positioned as a brand that the new India trusts. Bikaji poses a threat in Rajasthan as it has a headstart in the packaged sweets market.

All packets will be gift – packed with ribbons and will have a very regal/festive look to them. Also it will be dependent on the variety of products. . The aim to project the product in the same festive light that Cadbury has achieved with its celebrations brand. 500 grams and 1000 grams. The price of our product would range from 90 to 100 per kilo gram depending on the geographic location in which we are selling the product. Pricing strategy: Brands like BIKAJI in Rajasthan prices at 80 INR for 1 kilogram.Policy and Strategy Decisions Product Design: The product will be available in packet sizes of 250 grams.

The aim would be that the user is compelled to buy the normal pack of the other mithai too.Policy and Strategy Decisions Promotion strategy: Initially. This will introduce the whole range of sweets to the consumer more effectively. Major part of promotion would be during the festive season. These will be aggressively promoted and advertised. a small complimentary pack of sweets of another variety will be given free with a large pack of sweets. Distribution strategy: Current supply chain would be used – transport and work force channels which distribute the milk products. As such Amul will not require expanding the given level of infrastructure to distribute the new product as both old and new products are equally perishable and require the same amount of quality control – Our forté would be that the sweets would be easily accessible – as easily as Amul‟s other milk products. There will be special packs and assorted ranges priced at various levels. .

Thank You! So long… .

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