You are on page 1of 10

Amul

“White Revolution to White Lie”
Prepared for: Dr. Rohit Singh
Prepared by: Amiteshkumar Rajput, MBA 3rd Semester, 6th Block
Date: December 4, 2014
Proposal: Rural Marketing, AURO University, MBA

 

In 2013-14. etc.18 million lit per day from 17. Its success has not only been emulated in India but serves as a model for rest of the World. Pizza cheese. health beverages. GCMMF took giant strides in expanding its presence in International markets. has earned respect and recognition across the world. Japan. 13. (GCMMF) is India's largest food product marketing organisation with annual turnover (2013-14) US$ 3. GCMMF is India's largest exporter of Dairy Products.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. and traditional Indian sweets.23 million milk producer members. It has been accorded a "Trading House"status. For the year 2009-10. Its daily milk procurement is approx. popularly known as 'AMUL'. milk powder. It is the Apex organisation of the Dairy Cooperatives of Gujarat. Many of our products are available in USA. ghee.Singapore.025 village milk cooperative societies. Its product range comprises milk.Ice-cream. 1 | AURO University MBA Rural Marketing . Amul’s presence on Global Dairy Trade (GDT) platform in which only the top six dairy players of the world sell their products. Gulf Countries. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. one of the largest such networks in India.0 billion.Amul India: A Social Development Enterprise Introduction   Gujarat Cooperative Milk Marketing Federation Ltd. It operates through 53 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. China and Australia. butter. GCMMF could not only realize better prices as per market demand but it also firmly established Amul in the league of top dairy players in world trade. GCMMF has been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA. chocolates. cheese. 17 member unions covering 31 districts. By selling milk powders on GDT. Paneer. The Philippines. and 3.

GCMMF has received AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN Innovating for better tomorrow award in 2014. It has given farmers the courage to dream. To live. Inspired by the freedom movement The seeds of this unusual saga were sown more than 65 years back in Anand. Synopsis of the Case Study 1. Angered by unfair and manipulative practices followed by the trade. GCMMF has received numerous awards and accolades over the years. but also a movement. The Amul brand is not only a product. It all began when milk became a symbol of protest 2. they formed their own cooperative in 1946. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. customer focus and dependability. To hope. In 1946. For the tree plantation activity GCMMF has received seven consecutive Good Green Governance award from Srishti during 2007 to 2013. and the guidance of leaders like Morarji Desai and Tribhuvandas Patel. Under the inspiration of Sardar Patel. Founded in 1946 to stop the exploitation by middlemen 3. the representation of the economic freedom of farmers. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. In 2003. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement.For its consistent adherence to quality.2003 for adopting noteworthy quality management practices for logistics and procurement. a small town in the state of Gujarat in western India. processing and marketing under their control. the farmers of this area went on a milk strike refusing to be cowed down by the cartel. For the innovations. It is in one way. 2 | AURO University MBA Rural Marketing . which would have procurement. He advised them to get rid of middlemen and form their own co-operative. the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. it was awarded the The IMC Ramkrishna Bajaj National Quality Award .

He understood that the success of Amul could be attributed to four important factors. they employed professionals to operate the dairy and manage its business. Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. the Kaira District Co-operative Milk Producers Union Ltd. their elected representatives managed the village societies and the district union. The farmers owned the dairy.This co-operative. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country. At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. the co-operatives were sensitive to the needs of farmers and responsive to their demands. the founder Chairman and the committed professionalism of Dr Verghese Kurien. Dr. Most importantly.who was entrusted the task of running the dairy from 1950. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. The then Prime Minister of India. 3 | AURO University MBA Rural Marketing .

The Amul Model The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district 4 | AURO University MBA Rural Marketing .

Intelligent Marketing • Expansion to foreign shores GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese. GCMMF has written and re-written rules of the game. GCMMF spends a mere 1% of its turnover on promotions. pure ghee. Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets. Intelligent marketing of milk.level and a federation of member unions at the state level. Marketing Mix of Amul One of the most conservative FMCG entities. 50 per cent of Americans being medically obese. and if Amul is really looking to capture the hearts of 5 | AURO University MBA Rural Marketing . Amul butter girl is one of the longest running ad campaigns in the country for 41 years. Shrikhand. ice cream and butter milk. Nutramul.

which contributed 3% to the brand’s total turnover in year 2009. Hence targeting the large Indian community in the US markets with its niche products like mithai. Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various issues increased brand‘s fan following. • Changing retail environment Striking out on its own. the category was re-visited in 1999. • Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages) Being exposed to a brand. as it has a cool imagery associated with its segmentation. Amul Kool is targeted at children. Amul food festival. The recipe can be submitted on Amul‘s website. it is natural for a customer to try more products Defense Strategy • Wide range of product categories caters to consumers across all market segments. there are now over 4700 Amul parlours across the country. Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko cold chocolate drink Promotion. After ice-creams were launched in 1996.the second. Amul‘s approach is to promote its brands in a rotational cycle of two to three years. while teenagers prefer Kool Café. in order to improve availability of the product and make it affordable. would make a lot of commercial sense. offering low-fat versions of its brands. packaged ready to eat foods market it can definitely expand its market to a large extent. with Amul Outlets or parlours to deliver consumers total brand experience Launched in 2002. The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%). Given this wide product portfolio.and third-generation Indians. which has been held for the last four year between October and December in about 50. The focus shifted to cheese in 2001. Slogan Likho Disneyland Dekho Contest Promotion Amul Maharani contest: in this contest questions about Amul are asked 6 | AURO University MBA Rural Marketing .000 retail outlets. For example.

Dairy Products E.: Fresh Milk. Product Re-Positioning Strategy .Creams made Kwality walls life. AMUL sponsored the Singing Competition AMUL Star Voice of India. Milk Drinks & Desserts. Diversification Strategy . Product Overlap Strategy -Amul Processed Cheese Vs Cheese Spread Nutramul .Energy Drink Vs Amul Kool 4. Product Elimination .g.Eliminated Jaldhara 6.Low price Amul Ice . Amul music ka maha mukabla. and Bread Spreads. Product Design Strategy -Use of Utterly Butterly Girl since 1967 5. Amul Master Chef Part I and II Promotion Successful Product Startegy: 1. Cheese Products Non Dairy Products Egg: Veg.Product Positioning Strategy .Jaldhara .Chocolate milk was launched ‗Amul Kool koko‘ 2. Oils. Instant Food Successful Product Strategy 7 | AURO University MBA Rural Marketing .Narmada Neer 3. Snacks. .Promotion.

INTERNATIONAL MARKET Ø PRICE § AFFORDABILITY 1. LOW PRICING STRATEGY Ø PROMOTION § AWARENESS 1.Ø PRODUCT § ACCEPTABILITY ` 1. ADVERTISEMENT 8 | AURO University MBA Rural Marketing . RURAL AND URBAN MARKET 2. DAIRY PRODUCTS 2. COOKING PRODUCTS Ø PLACE § AVAILABILITY 1.

2. be it process. 6. The phase of transition in leadership is also affecting the success of Amul. The major issues for its success are as follows: 1. Amul’s focus had been in developing managers. The challenges from external environment were another threat to their existence. 8. people. 7. not assuming the milk powder for sale. As each adopted a different perspective. The liberalization process curtailed the decrease in the tariff structures. 5. The general belief was that milk grant would be better alternative. The conflicts between the farmer-members and professional members. not leaders. 3. Transition in leadership affects whole functioning of the business. with limited innovation in their product line. not just marketing a developing process. As India progressed towards liberalization and globalization there were policies that hampered the growth of Amul. Kurien. the opponents did not appreciate the manner in which he handled the expansion of the industry. These plans were termed as WHITE LIE. 4. which appeared to be absent in the current generation of professional managers. The conviction and leadership were what the founders portrayed. which would not ensure an equal playing field for all dairy economies. these groups were unable to communicate effectively. The spirit of level can be seen and felt in everything what they do. systems and processes.Amul is in the business of development. process. Amul is experiencing this shift. This aspect challenged the system. As white revolution was going under Dr. 9. 9 | AURO University MBA Rural Marketing . and as their sophistication of comprehension differs.