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Amul leaves housewives for youth

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Amul leaves housewives for youth
Rupinder Sodhi is giving the firm a makeover and expanding its reach
Kalpesh Dam or & Vinay Um arji / Ahm edabad Jan 24, 2012, 00:38 IST
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Shine.com/Pharma_Jobs From sponsoring F1 teams to orienting products towards youth, Amul’s Sodhi is giving his company a makeover. Yet, it also needs to focus on pricing. Rupinder Singh Sodhi looks like a man in a hurry. After taking charge as the managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), or Amul, on January 4, 2011, Sodhi has been busy trying to reinvent Amul’s brand as well as expand it into new categories. For instance, the year 2011 saw Asia’s largest milk brand sponsor both the Netherlands’ cricket team in the ICC Retirement Cricket World Cup as well as Switzerland-headquartered Sauber’s F1 team at the Planning. inaugural Indian Grand Prix. Then, there are new products, such as fresh fruit www.principalretirementind… yogurt called Flaavyo, pro-biotic lassi, close to 30 new varieties in the ice-cream Understand Financial segment, a re-packaging and re-branding of its ghee (butter oil) products Sagar Options, Get Right Advice and Amul, as well as energy drink Stamina and the company’s latest venture into From PRAs, Consult Us! the quick service restaurant (QSR) business couple of months ago. Come Summer 2012, Amul is also set to revamp its cheese and condensed milk brand and will also launch a frozen yogurt brand soon. It is not as if Amul hasn’t forayed into new territory before but the buzz around the company and its recent marketing efforts are in sharp contrast to the kind of attention Amul was getting a little more than a year ago, thanks to the controversial exit of its former managing director BM Vyas and a no-trust vote moved against its chairman Parthi Bhatol. (Though Vyas bid adieu to GCMMF, Bhatol survived the no-confidence motion.) At a time when Amul was dogged by controversies, Sodhi, the then-chief general manager at GCMMF, was appointed as stand-in MD in June 2010 and later on officially took charge as MD in January 2011. Sodhi, who has logged 29 years in marketing and sales functionalities, has a very clear idea of where he wants to take Amul. “Despite its reach and strong network, Amul was perceived as a local brand. The intention behind sponsoring sporting events was to re-position Amul as a global brand while retaining its focus on India,” says RS Sodhi, a member of the first batch (1982) to graduate from the Institute of Rural Management Anand (IRMA). Sodhi has been with Amul since 1982.

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- Govt approves Rs 19,000 cr for There’s more to Sodhi’s gameplan. For a company traditionally perceived as J&K rail project hosting a brand for housewives, Amul is now aggressively focusing on GenNext, - Sriramulu hopes to stump BJP sponsorship of world events being one of the conscious efforts in this direction. in bypoll “These sports events that we sponsored were basically done to target youngsters and teenagers. The whole idea is to promote Amul as a young brand,” he adds. (Even while re-packaging its ghee brand, Amul positioned it as a health product aimed at youth and made it more contemporary. Re-branding of its energy drink Stamina was yet another step in that direction.) TVS Sreekanth, research associate, FMCG & Media at Angel Broking believes that Amul has grown by leaps and bounds just in the past year. “Amul launched a flurry of new flavours in ice-cream and increased its focus on Amul Parlours. This has added value to its retail and distribution chain by huge proportions. The smart thing that Amul has done as an industry leader is that it has made its presence felt in new and fresh product categories like Tetrapak milk and gourmet flavours of ice-cream,” says Sreekanth. There is a distinct change in the way that Amul presents itself today. “Amul has been conservative in its approach but it seems it has now turned aggressive, thanks to Sodhi. Various developments have taken place on marketing, advertising and new product range fronts,” says the MD of Sumul Dairy, Jayesh Desai. (Sumul Dairy is run by Surat District Cooperative Milk Producers Union, which is one of the 15-member unions of GCMMF.) “Design and packaging has also changed noticeably,” adds Desai. From being involved in low-cost marketing for years, Sodhi has propelled Amul in a new trajectory, and has suddenly

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1 million today. where it had no presence earlier. namely its ferocious expansion into product categories. Also.Air India grounds six Dreamliner aircraft - From being involved in low-cost marketing for years. 2012 as compared to 11. while poultry businesses have seen a growth of eight per cent. . “FDI retail is not in favour of farmers. This amounts to real growth. hits fresh 2-year high Pilots involved in fudging records face strict action Odisha seeks re-allocation of Baitarani block to OHPC IDBI to raise Rs 3. Amul must now look to strongly consolidate its brand. the turnover of the co-operative federation is likely to increase from Rs 8.” adds Sodhi.Markets Reports on Every Trading Day. “Amul may be rightfully incentivising farmers by raising prices keeping farmers’ interests in mind. Kurien is no doubt nodding in emphatic approval. GCMMF is eyeing presence in 3. This has turned out very good for the brand in last one year.” says renowned economist YK Alagh who is also chairman of Institute of Rural Management. GCMMF’s marketing and philosophy remains wedded to the path that the father of India’s ‘White Revolution’.000. says Sodhi. is focusing on expanding its reach. is there a catch in this farmer-centric worldview? Take.000 crore in 2011-12. a branding and marketing expert. numbering 3. says Harish Bijoor.business-standard.Only Buy Now Amul Amul India Oil Housewives Sorry. comments to this story are closed www.com/Reebok/Offers Get New Customers Online :Advertise On Google.9 million litres per day in the corresponding month last year. the company will take a breather from its relentless pace in introducing new products to market and instead. 280/.” says Bijoor.” adds Alagh.000 this year from 6.The Most Awarded Car. Australia & New Zealand. paved. especially of Amul’s. In the past two years. . Sodhi has propelled Amul in a new trajectory.com/india/news/amul-leaves-housewives-for-youth/462691/ 2/3 . . Dr Verghese Kurien. Sensex ends at fresh 2-year high. Sodhi said. Explaining the rationale behind retail expansion. focused on protecting the interest of its dairy farmers. the dairy business. Now. Anand (IRMA) and former member of the Planning Commission. Get 2000 INRAdvertising Credit When You Sign-Up www. milk procurement by GCMMF has increased to 14 million litres per day in January. the number of Amul parlours is expected to rise to 7.You Could Win a Polo or a Vento in the 13th minute of any Hour.Up to 20% Off on Diamond Jewellery. Similarly.” Dr. each covering 15 small cities. Click here . the farmers have received up to 40 per cent higher prices for the milk they supply to GCMMF dairies—Rs 460 to Rs 470 per kg fat in 2011-12 as compared to Rs 337 per kg fat.1/18/13 Amul leaves housewives for youth . the poultry business whose price decisions are consumer-centric versus Amul’s farmer-centric decisions. which according to Sodhi.Our Cheapest fares to London.Luxury villa and residence a haven of privacy & luxury. “This is our biggest achievement.Open a Sharekhan Online Trading and a Demat Account for FREE! . Click here . On the other hand. We should be ready with our retail network. Cities and Happiness! Click here Ads by Google BS POLL Should India offer a military response to Pakistan over the killing of its soldiers? Yes No Table for Two Now available at Special price Rs.000 crore in 2009-10 to Rs 12.com/AdWords Other Stories Sensex closes above 20. despite all of this.Experience North America like never before.Jabong.280/. preference shares to govt Diesel price hike to have benign impact on inflation: Montek Tags : Amul | Rupinder Singh Sodhi | Gujarat Co-operative Milk Marketing Federation | Netherlands? Spectrum Grab Now available at Special price Rs.Special Fares to China. Another thing for the company to watch out for is the very thing that has allowed it to grow at such a clip.Deploy Applications on-premises or in the Cloud. “What used to be a very advertising-oriented approach is now witnessing an increased focus towards brand promotion through other channels like events.000 Oil firms allowed to fix diesel price subsidised LPG cap raised More New Ipad Application :Business Standard's all new IPad App Click here to download for free Ads by Google Reebok Sale Upto 70% Off :Offer Available till Stock LastsOrder Now & Get Fastest Delivery! www.Mobile Number Portability Get Idea without Changing Number. Amul could increase its efficiency if it looks at pricing from consumers’ perspective. Click here to know more . Click here to know more . Buy now.” says Bijoor. and has suddenly increased its high-cost activities. grows only by five per cent.Only Buy Now cricket team | Read Business news in Advertisements . Click here .Creating Sustainable Homes. “Hence. if FDI is allowed in retail. Yet. Click here . though. which happens to be the industry leader.000 small towns in India.000 as of June 2011. It will appoint 200 super dealers.Flight Offers . Know more . Still. “This has resulted in a great degree of brand dissipation. whereas the poultry businesses do not raise prices as much as Amul does for its milk. Book A Test Drive. for example.000 cr via QIBs. But both poultry and milk have almost same income elasticity. Hits 20.Google. Learn More.

. 09:35 IST Amul has grown exponentially. Member Area Subscribe to print product Subscribe to online product BS Products Write to the Editor Business-standard(Daily) Newsletter BS Hindi RSS Indian Management Archives BS Motoring Advanced Search BS Motoring Portfolio Tracker Economy & Industry BS Books BS e-paper Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion Life & Leisure | Management & Marketing | Tech World | General News About Us | Partner With Us | Code of Conduct | Careers | Advertise with us | Terms & Conditions | Disclaimer | Contact Us www. The real strength of AMUL is that there are no middlemen in the entire value chain.com/india/news/amul-leaves-housewives-for-youth/462691/ 3/3 . like Mr Sodhi who is a product of IRMA . procurement. professionals committed and answerable to the farmer-members. as well as the consumers. processing and most importantly MARKETING where the real cream (value) lies. comments to this story are closed Latest Messages Amul leaves housewives for youth Posted by: Joseph Anthony Purat January 24 .from production.. It is also run by professionals. C ongratulations and best wishes to the AMUL family of which the real foundation was built and strengthened by Dr V Kurien. rightly called the Father of India's White Revolution. 2012.1/18/13 Sorry.. politically and economically. thanks to the wonderful win-win business model that takes care of the interests of the farmer-members of AMUL (unlike what the authors have mentioned. This is a model worth trying in other agri products/areas as it also empowers the farmers socially.business-standard. AMUL is not a 'C ompany' but a farmer-owned C ooperative).