The Brand Building Challenge

Prepared and Submitted by Paresh Ashara (S11MMMMM00440) Ranjeet Shriwastva (S11MMMMM00452) Manoj Kaushik (S11MMMMM00453) Sudip Kumar Das (S11MMMMM00765) Vivek Wamorkar (S11MMMMM00416) SMP07, NIIT Imperia Bangalore Center

Amul

Feb 28, 2011

..... 3 2.................................................................................................... 6 4.....The Brand Building Challenge – Amul Table of Contents of Contents 1..... Introduction ..................................... and Symbolism ................................................... Role of Advertisement .......................... rsonality........ Future Steps for Brand Consolidation ............................... 9 6... Brand Drivers... References ............................................................... Strategic decisions taken to build the brand ................. Brand Positioning ........................... Consumer Insights ..................................................................................................................................................................... 10 7...................... 14 .......................................................................... 8 5................. 13 9............................. 12 8........ 4 3..............................................

322 village societies and the total capacity for handling milk is around 13. The management of the brand name is done by the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) which is a cooperative organization.80. Amul is located in the town Anand which is in the state of Gujarat and it has set up itself as a model for development in the rural areas. The Amul Brand has started the White Revolution in India which has helped to make the country the biggest manufacturer of milk and its by-products in the whole world. each day[1]. The brand's capacity for milk drying is around 647 Mts.amul. milk powder.053 million in FY2009-10. condensed milk.      GCMMF bags Agricultural and Processed Food Exports Development Authority (APEDA) AWARD for 11th year in a row in 2006-07 Amul Pro-Biotic Ice-cream receives No. 1 Award At World Dairy Summit in 2007 GCMMF emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award .Amul Introduction Company History Amul was set up in 1946 and its full form is Anand Milk. Achievements Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. sweets.The Taste Of India (GCMMF) Receives International CIO 100 Award For Resourcefulness in 2003 Rajiv Gandhi National Quality Award . flavored milk. each day and its capacity for cattle feed manufacturing is about 3740 Mts. milk. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.producers Union Ltd. chocolates and confectionary. Amul has around 2. Amul’s sales turnover for the past 16 years has been depicted in the chart below. ghee.07 million liters every day. IIM Calcutta and NIIT Imperia Bangalore .html. cheese.The Brand Building Challenge . [1] Source: http://www. ice cream. The Brand Amul is a movement in dairy cooperative in India. Amul Brand Umbrella caters several products under broad categories of butter. Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. Data as of FY2009-10 (3) Senior Management Program Batch 07.com/organisation. health beverage. curd.1999 Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.9 million producer members covering 15.2003 Amul . It has grown at a CAGR of 11% over the past 16 years achieving the turnover of Rs.

" from the Sanskrit "Amoolya. It is representation of the economic freedom of dairy farmers. Since 1967 Amul has successfully built the brand personality with a cute little moppet girl wearing a polka-dotted frock as its mascot (symbol) and made her a part of our lives. Amul continues to show the same six-year-old girl in the “Utterly butterly delicious” advertisement of Amul butter.Amul CAGR = 11% Figure 1: Amul ." was suggested by a quality control expert in Anand. Amul has fetched a greater mileage for itself by introducing ‘The Taste of India’ campaign after the liberalization of the Indian economy in 1991. either making fun of it or mocking at it.. AMUL” The Amul brand is not built as a product but as a movement to make India the largest producer of milk in the world. each time minimizing the impact of the event & people mentioned but highlighting and emphasizing only and only “UTTERLY BUTTERLY DELICIOUS. The brand name "Amul. which reflects that the brand never gets old.Sales Turnover AMUL means "priceless" in Sanskrit.The Brand Building Challenge .Give the best quality product to the consumer . The core values of the company are: .To provide remunerative returns to the farmers .and the best possible price (4) Senior Management Program Batch 07. She just comes in so casually each time with an all new dimension to something already existing. IIM Calcutta and NIIT Imperia Bangalore .

which includes Amul butter. Pride Variety Value Quality Available Food Taste Indian Figure 2: Brand Personality (5) Senior Management Program Batch 07.Amul Amul as an umbrella brand is presently used for sub branding for the different products manufactured by Amul. Amul ice-creams and the like. like Amul Gold and Taaza in the milk category amongst other products. IIM Calcutta and NIIT Imperia Bangalore .The Brand Building Challenge .

Pricing 3. packaging and Amul’s approach to marketing is based on the changing taste buds of the consumers. Product Portfolio 5. Today customers can order a variety of products through the Internet and be assured of timely delivery with cash payment upon receipt. Quality 4. Village societies are encouraged through subsidies to install chilling units. milk collection as well as the marketing process.The Brand Building Challenge . i. Farmers now has better access to information on the output as well as support services while providing a better planning tool to marketing personnel. Technology 2. Distribution Network 1. consumers had limited purchasing power. (6) Senior Management Program Batch 07. Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increase in milk yields. GCMMF has also implemented a Geographical Information System (GIS) at both ends of the supply chain. IIM Calcutta and NIIT Imperia Bangalore . and modest consumption levels of milk and other dairy products. Automation in processing and packaging areas is common. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Technology Strategy:  The technology.Amul Strategic decisions taken to build the brand The strategic decisions that developed Amul as a brand can be classified in the following broad categories: 1. The technology strategy is characterized by four distinct components:  new products  process technology  complementary assets to enhance milk production  e-commerce  Few dairies of the world have the wide variety of products produced by the Gujarat Cooperative Milk and Marketing Federation (GCMMF) network. GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet technologies to implement business to consumer (B2C) commerce. Another e-initiative underway is to provide farmers access to information relating to markets. Pricing Strategy At the time Amul was formed.     2. as is Hazard Analysis Critical Control Point (HACCP) certification. technology and best practices in the dairy industry through net enabled kiosks in the villages.e.

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. The network follows an umbrella branding strategy. 5.) For example. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted.500 distributors. Amul is the common brand for most product categories produced by various unions: liquid milk.  4. reliant on a structured approach based on data gathering and analysis.000 retail outlets across India through its network of over 3. Sabar Union's records show a reduction from 2. (Undertaken by multi-disciplined teams. Distribution Network Amul products are available in over 500. All GCMMF branches engage in route scheduling and have dedicated vehicle operations.  A regular Friday meeting is conducted that has its pre-set format in terms of Purpose. Similar processes are in place at the village societies.Amul 3. Kaizen are highly focused projects.  A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation. sweets.0% to 0. cheese. IIM Calcutta and NIIT Imperia Bangalore .The Brand Building Challenge . o implementation of Zero Stock Out through improved availability of products at depots and o implementation of Just-in-Time in finance to reduce the float Kaizen at the unions have helped improve the quality of milk in terms of acidity and sour milk. the village societies and the distribution channel (TQM activities). butter. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. cocoa products. ice-cream and condensed milk. Quality Amul has not changed its core values –give the best quality product to the customer. the unions and even at the wholesaler and C&F agent levels as well. the unions. (7) Senior Management Program Batch 07. This just-in-time inventory strategy improves dealers' return on investment (ROI).5% in the amount of sour milk/curd received at the union. ghee. o improvement in ROI of wholesale dealers. Enhance Product Portfolio Amul’s strategy of umbrella branding has also helped establish its brand fir mly in people’s minds. Examples of benefits from recent initiatives include o reduction in transportation time from the depots to the wholesale dealers. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. milk powders.

Who buys . Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. the main thing that has helped Amul sail smoothly is that they have not changed their core values—give the best quality product to the consumer. In fact. connecting the dairy farmer to the consumer through its organic network. Sex . It holds true in any era. Usage rate Demographic • Income .The Brand Building Challenge . IIM Calcutta and NIIT Imperia Bangalore . MRP Rs. it is not just the core values at Amul that have remained the same. Family Psychographic • Activities and lifestyle Geographic • International . Amul have time to time used several marketing research data and consumer insights for following customer aspects and have defined their market segmentation accordingly. Amul strategy of umbrella branding has also helped establish their brand firmly in people’s minds. This has helped maintain consistency in market communication. The success of this model ignited interest across India.25 However. have played a pivotal role in the growth of Amul. and the best possible price. Despite competition in the high value dairy product segments Amul 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.      Behavioral • User status . where this model was replicated. and DaCunha and FCB Ulka. Regional Buying condition • Purchase location . Amul milk enjoys 86% market share in India. the core team associated with the brand is still the same. compared with 7-8% (spent) (8) Senior Management Program Batch 07. and modest consumption levels of milk and other dairy products. in essence leading to the White Revolution.122 MRP Rs. consumers had limited purchasing power. This helped AMUL BUTTER to create its brand image in the household sector of the society. despite the fact that Amul only spends than 1% of our turnover for marketing. Type of buy The Amul Model narrowed the gap between the producer and the consumer. Even the advertising agency hasn’t changed. affordable price to appeal the common masses. This. Age .Amul Consumer Insights At the time Amul was formed.

Wipro. the company has its roots deep in the dairy market and is increasingly focusing on the value added segment that includes health drinks. IIM-A.Amul by most of the food and consumer product companies. Ask Amul synonymous for all things dairy. They need a great taste but they are equally health and quality conscious.a. It is one of the longest running advertisements in the world Target Market and segment: Amul has positioned variety of products for different market segments e. Neutramul Energy drink . Brand Consistency: Amul runs the Topical campaign for last 4 decades.    Striking out on its own. being marketed since 1946. with its first product. High profile locations: Amul parlours are today present on campuses of Infosys. Brand Positioning Life begins at 60. Amul is the oldest and the most established dairy brand in the country. Positioning Components:   Emotional Component: Through the campaigns like “Gift for someone you loved” and “Taste of India” Functional attributes: Unique functional attributes of Amul are: o o  Value for money – The best quality diary product at the reasonable price Product Availability – Amul has huge supply chain and distribution networks across India and has strong link back to the sourcing farmers. From Utterly butterly delicious Amul to The Taste of India.k. with Amul Outlets or parlours to deliver consumers total brand experience Launched in 2002.The Brand Building Challenge . IIT-B. Amul butter. This segment of consumers is urban and knowledgeable. middle class society. a. be it a customer or the supply chain. Temples. Descriptive Factor – Amul has become a family brand and it relates to its Homely image. “Munch Time” (9) Senior Management Program Batch 07.g. It focuses on India's largest consumer segment. Brand positioning statement: “The taste of India” It has created a value for everyone in the value chain. Amul Kool. Metro rail and railway stations in Gujarat. cheese and dairy based desserts Amul has carefully cultivated its family based homely image. which contributed 3% to the brand ’s total turnover last year. Today. there are now 5000 Amul parlours across the country. IIM Calcutta and NIIT Imperia Bangalore . Amul continues to be the toast of the country. chocolate milk.  To target teenager Amul launched products like.

primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine. It all began in 1966 when Sylvester daCunha. since 1967.200 tons a year in 2009-10. Role of Advertisement 64 years after it was first launched. No other brand comes even close to it. relating to day-to-day issues. had a staid. IIM Calcutta and NIIT Imperia Bangalore . Y and even Z. So the new television commercials. which had been launched in 1945. this little girl appears at billboards. Sylvester daCunha designed an advertisement campaign as series of hoardings with topical ads. strategically placed all over India. focusing on the item of the week – tongue in cheek. Amul launched Pro-Biometic Wellness Ice cream & sugar free Delights for the diabetics For Women Amul Launched Amul Calci+ Point of Differences (POD):     Quality with affordability Amul is a Mass market player with no premium offering Sheer size and scale of operations Value additions to the customer Positioning Method: Impulse purchase: Simple memorable slogan message “A gift for someone you loved” Brand Re-positioning: For young people below the age of 20. corporate ads.Amul    In Nov 2007. Amul launched “Fresh Paneer” that claims to be Free from any harmful chemicals For Health conscious segment. then the managing director of the advertising agency. a little girl who would warm her way into a housewife’s heart. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. created by DCB Ulka. boring image.30. So while the ponytailed Amul girl will continue to be the brand ambassador with her Utterly Butterly spoofs. Thus was born the Amul Moppet. of course (10) Senior Management Program Batch 07. Amul's sale figures have jumped from 1000 tons a year in 1966 to over 9. position the products on the 'Utterly Healthy' platform where thin is in. the brand has started changing its lingo to cater to Generation X.The Brand Building Challenge . The butter. clinched the account for Amul butter. ASP.Most famous is billboard campaign using Amul moppet and topical ads Call her the Friday to Friday star because Every Friday. Amul since then have been following different promotion and advertising campaigns with Amul moppet taking central role in the advertisement   Uses a variety of media to communicate . Amul is now moving away from its carefully cultivated image of just a family brand popular with the homemaker.

From the political scene. and is conducted at city. she has a line for everything.000 retail outlets The Chef Of India promo invites hotel chefs to come up with recipes using as many Amul products as possible. the billboards became. and still are. a topic of conversation amongst millions. from local news to international. With their “hing -lish” (a combination of Hindi and English) punch -lines. which has been held for the last four year between October and December in about 50. they have won the maximum number of awards in India for any ad campaign ever! This little thumbelina seems to have the masses. right where she wants them – wanting (11) Senior Management Program Batch 07. to entertainment. Often said to be playing the role of a “social observer with evocative humor”.Amul   Amul food festival.The Brand Building Challenge . from sports to stars. state and national level Figure 3: Advertisement Amul Topical (Amul Hits) There are no boundaries and nothing is off limits. IIM Calcutta and NIIT Imperia Bangalore .

IIM Calcutta and NIIT Imperia Bangalore . Amul has made India one of the largest milk producers in the world. the Father of White Revolution in India and the architect of the decentralized and highly integrated dairy cooperative model said that the brand name of the movement. No other brand comes close to what Amul has been able to accomplish.9 million farmers. Varghese Kurien. It is the seller’s assurance that the quality is being provided at a fair price”. value for money. each obstacle. If we had failed to do so. and beyond. This is the heart of Amul. will have an even bigger role to play in the next fifty years. they have been in use in millions of homes in all parts of India. Also Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. along with thousands of other brands. “Our commitment to the producer and our contract with the consumer is the reasons we are confident that cooperative brands. The Amul Pattern has established itself as a uniquely appropriate model for rural development.” said Kurien. Milk byproducts and supplementary yield which suffered from the lack of marketing and distribution facilities became encumbrances. and each stumbling block can be turned into a success story. In an interesting piece published in 2001. then Amul would have been consigned to the dustbin of history. members of 15. In the early years. Since then. it enjoys brand equity – then it is because we have honored our contract with consumers for close to fifty years. Amul.The Brand Building Challenge . Instead of being bogged down by their fate they were used as stepping stones for expansion. availability. therefore. Amul is excellent example of brand which demonstrates how each failure. serves the role of a contract. like Amul. The purpose – freedom to farmers by giving total control over procurement. is a brand with a difference. Amul is the brand name of 2. That difference manifests itself in a larger than life purpose. that makes the Amul brand special and that something is the reason for the commitment to quality and value for money. and it is what is so special about the Amul saga. “If Amul has become a successful brand – if. production and marketing. “It is the assurance to the buyer that her specifications will be met. Amul had to face a number of problems.Amul more of her and of Amul.322 village dairy cooperative societies throughout Gujarat. With every problem came opportunity and chance to turn a negative into a positive.      Organizing market to excellent supply chain is critical to the success of marketbased development Infrastructure investment is crucial to rural development From livelihood to wealth creation is equally important for rural development Wealth creation requires transforming community Closer to Nation and developing home grown entrepreneurs (12) Senior Management Program Batch 07. Brand Drivers The first lots of products with the Amul brand name were launched in 1955. There is something more. it is what gives strength to Amul. though. and service. He further said.” According to Kurien the major elements of Amul’s contract with its customers are quality. Amul. in the trade lingo.

baby food products Amul must try to understand the cause of certain products like Amul basundi. Amul Shakti Vidyashree Award and many more in the list are really impressing. Amul stood at rank 21st in the top 21 list of global milk processing companies in 2009. With global market share of 0. gulab jamoon. Future Steps for Brand Consolidation Amul enjoys a good brand recognition and high recall. Amul Baby Growth Plan. accounted for only 21 percent of the market share globally).     (13) Senior Management Program Batch 07. IIM Calcutta and NIIT Imperia Bangalore . Sponsoring more shows on TV. there is still lot to do for Amul to continue garner the customer base and brand loyalty. Amul need to take up thorough market research and work on improving these products Though Amul’s hoardings are a huge success. sports events can be of great help.Amul The journey from Co-operative to Corporate is not that easy. towns and villages – increase branded Amul parlours to capture the consumer attention and keep the competition at bay Amul can venture into offering low-fat versions of its products as it would help capture the hearts of second and third generation Indians in US & Global Market Amul can venture out on new products like dairy based sweets. there is huge potential to capture the unorganized sector (organized sector put together. Amul Relief Trust. it can penetrate even better in the rural areas by advertising actively through the media viz cable channels and newspapers. Recommendations:  Focus on retail expansion in Indian cities.4 percent as of year 2007 data. Initiatives like: Green Amul Green India. Still Amul did not forget its Social Responsibilities. and chocolates etc not being very popular. However. One Member One Tree.The Brand Building Challenge . It has ventured in to broad range of diary based products in the last decade.

scribd.amul.com/doc/19978355/Amul-ppt-Presentation-Largest-Food-Brand-inIndia-Asia  http://www.com) Paresh Ashara (paresh_a@yahoo.ibef.com) Ranjeet Srivastava (toranjeet@gmail.com/ind_marketing_quality.aspx?cat_id=60&art_id=23218 Contact Information Manoj Kaushik (kaushikmanoj@gmail.htm  http://www.org/wiki/Amul  http://www.com/story.Amul References  http://www.amul. IIM Calcutta and NIIT Imperia Bangalore .wikipedia.com) Vivek Wamorkar (vivekvw@gmail.india-seminar.org/artdisplay.html  http://www.com  http://www.indiadairy.html  http://en.com) Sudip Kumar Das (dasu1232001@yahoo.indiainfoline.com) (14) Senior Management Program Batch 07.com/2001/498/498%20verghese%20kurien.The Brand Building Challenge .com/Markets/News/AMUL-Most-Trusted-among-Indias-Food-andBeverage-Brands/5068333116  http://www.

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