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INTRODUCTION

Amul is an Indian dairy cooperative, based at Anand in


the state of Gujarat, India.
Formed in 1946, it is a brand managed by
a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is
jointly owned by 3.6 million milk producers in Gujarat.
Amul spurred India's White Revolution, which made the
country the world's largest producer of milk and milk
products. In the process Amul became the largest food
brand in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for
more than 30 years (19732006), is credited with the
success of Amul.
Vision of amul
The main Motto of Amul is to help
f a r m e r.
A m u l s y s t e m works under objective of highe
s t p o s s i b l e p r i c e t o t h e m i l k producers and
lowest possible price to consumer. Farmers
are p a i d m o n e y i n c a s h p a y m e n t f o r t h e
m i l k . M i l k g i v e s t h e m money for daily
necessities. Amul is the one who started using their
profit for the milk producer common.

AMUL Products
Amul's product range includes milk powders, milk,
butter, ghee, cheese, dahi, yoghurt, buttermilk,
chocolate, ice cream, cream, shrikhand,paneer, gulab

jamuns, flavoured milk, basundi and others. Amul PRO


is a recently launched brown beverage just
like bournvita and horlicks offering with protein, DHA
and essential nutrients. In January 2006, Amul launched
India's first sports drink, Stamina, which competes
with Coca-Cola's Powerade and PepsiCo's Gatorade.
Amul offers Mithai Mate which competes with Milkmaid
by Nestle by offering more fat at lower price.
In August 2007, Amul introduced Kool Koko, a chocolate
milk brand extending its product offering in the milk
products segment. Other Amul brands are Amul Kool, a
low-calorie thirst quenching drink; Masti Butter Milk;
and Kool Cafe, ready to drink coffee.
Amul's icecreams are made from milk fat and thus are
icecreams in real sense of the word, while many brands
in India sell frozen desserts made from vegetable fat.
Amul's sugar-free Pro-Biotic Ice-cream won The
International Dairy Federation Marketing Award for
2007.

District Union The 2nd Tier District Union: District Union:


A District Cooperative Milk Producers' Union is ow
cooperative societies. It is a Union of primary vill
societies within a district. The Union buys all the
then processes and markets fluid milk and produ
provides a range of inputs and services to village
societies and their members: feed, veterinary ca
insemination to sustain the growth of milk produ
cooperatives' business. Union staff train and pro
services to support village co-operative society l

The State Federation 3rd Tier The State Federation:


The cooperative milk producers' unions in a state form a
State Federation which is an apex marketing body
responsible for marketing of milk and milk products of
member unions. The Federation also plays a role in the
overall development of the district unions federated to it.
Maximizing farmer profit and productivity through
cooperative effort is the hallmark of the Anand Pattern.

Social impact
The spread of the co-operative movement in the villages is contri
changes. Some of the changes are:

The democratic process election of the village societys office-be


down social and economic divisions. The society is being perceive
livelihood unlike, say, a panchayat. The feeling, therefore, is tha
managed by those who are likely to run it most efficiently not ne
entrenched elite.

District Union The 2nd Tier District Union: District Union:


Caste barriers are slowly breaking down in equal
before the milk collection centre. In the tradition
untouchables could not have even dreamt of sel
common consumption. This social barrier has be
milk co-operatives.

Modern concepts like organization, technology, a


are entering the rural areas. In their search for s
compartments of life, farmers often used the exp
something like the dairy or similar to what the

Education in a non-school sense is also spreading. Veterinary care


balanced cattle feed, and artificial insemination centres are contr
education, nutrition education and sex education.

There is a change in the status of women. Generally income from


to be earned by them. Men concede that those women should ha
this money is to be spent.

What is market strategy?


An organization's strategy that combines all of
its marketing goals into one comprehensive plan. A
good marketing strategy should be drawn
from marketresearch and focus on the right product mix in
order to achieve the maximum profit potential and sustain the
business.

Need of marketing strategy


Marketing is a strategy used by companies to communicate with the
consumer and make him knowledgeable about the various features of
their products and services. It is an essential part of attracting the target
buyers to a particular product, and companies use various innovative or
tried-and-tested techniques to stay ahead of their competitors and make
their place in the market.

Affinity Marketing - Also known as Partnership Marketing, this technique links


complementary brands, thereby creating strategic partnerships that benefit both
companies. While one adds value to existing customers by generating more income,
the other builds new customer relationships.
Alliance Marketing - Here two or more entities come together to pool in their
resources to promote and sell a product or service, which will not only benefit their
stakeholders, but also have a greater impact on the market.
Ambush Marketing - This strategy is used by advertisers to capitalize on and
associated themselves with a specific event without the payment of any sponsorship
fee, thereby bringing down the value of sponsorship. It has sub-categories like direct
or predatory ambushing or indirect ambushing by association, to name a few.
Call to Action (CTA) Marketing - CTA is a part of inbound marketing used on
websites in the form of a banner, text or graphic, where it is meant to prompt a
person to click it and move into the conversion funnel, that is, from searching to
navigating an online store to converting to a sale.
Community Marketing - This technique caters to the needs and requirements of the
existing customers, as opposed to using resources to gather new consumers. This
promotes loyalty and product satisfaction and also gives rise to word of mouth
marketing among the community.
Content Marketing - In this case, content is created and published on various
platforms to give information about a certain product or service to potential
customers and to influence them, without making a direct sales pitch.
Cross-media Marketing - As the name suggests, multiple channels like emails,
letters, web pages etc. are used to give information about products and services to
customers in the form of cross promotion.

Diversity Marketing - The aim of this strategy is to take into account the different
diversities in a culture in terms of beliefs, expectations, tastes and needs and then
create a customized marketing plan to target those consumers effectively.

Evangelism Marketing - It is similar to word-of-mouth marketing, where a company


develops customers who become voluntary advocates of a product and who promote
its features and benefits on behalf of the company.
Freebie Marketing - Here a particular item is sold at low rates, or is given away free,
to boost the sales of another complimentary item or service.
Free Sample Marketing - Unlike Freebie Marketing, this is not dependent on
complimentary marketing, but rather consists of giving away a free sample of the
product to influence the consumer to make the purchase.

Segmentation, targeting, positioning in the Marketing strategy


of Amul
The segmentation of Amul is the mass population and in general, you
will find people of all different age groups and demography enjoying
Amul products. This is because Amul is not only present in Ice cream,
but also in Milk, Butter, Cheese and other such products. As it has a very
deep product portfolio, it does not differentiate in its customers but uses
a mass marketing principle. And till date, this principle has worked very
well for the marketing strategy of Amul. Similarly, the target audience
are the regular middle class people. This is because higher end
customers do have a lot of high end products as an alternative in ice
cream. However, for other products like Butter and cheese, both high
end and low end customers are the target. In terms of positioning, Amul
has top of the mind positioning because it is the first brand which comes
in mind when talking of Ice cream, milk, cheese, butter or any other milk
based products.

Product in the marketing mix of Amul Amul has a very very strong
product portfolio. Amul product portfolio is comprised mainly of Dairy
products. Amul butter, Amul cheese and Amul ice cream are cash cows for
Amul as they have the major market share in their product category. Amul
ice cream is amongst the top 10 ice cream brands of India.
Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact
Amul milk has 26% of market share in the packaged milk segment. The
only disappointing performance is seen in Amul Chocolates which are a
burden for Amul and lot of push is required for the sales of the same. This

is because the chocolate market has established players like Parle, Dairy
milk and others.
The Amul family tree has the following brands Amul Milk, Amul bread
spreads, Amul Cheese, Amul Milk, Amul Kool and its variants, Amul pro,
Amul ice cream, Amul Paneer, Amul Dahi, Amul Ghee, Amul Milk powders,
Amul Nutramul, Amul mithai range, Amul mithai mate, Amul chocolates,
Amul butter milk. Thus the product portfolio of Amul considering its dairy
origins is astounding. Amul has various competitors based on different
products. In ice cream it is Vadilal, Dinshaws and Havmor. In butter and
milk there is mother dairy, Britannia and others. However, no competitor
has such a vast dairy based product portfolio as Amul. This is the major
reason that Amul has a sustainable competitive advantage over its
competitors.
Price in the marketing mix of Amul Amul has a strategy of low cost
pricing. Some may call it penetrative pricing. But penetrative pricing
strategy is used when the market has a high level of competition and a
player wants to establish itself in the market by giving low prices. However,
in the case of Amul, when Amul started, there were no national players and
the dairy market was unorganized. During the introduction stage itself,
Amul had a vision to provide their products to end customers at the best
affordable rates. And the same vision is in place even today.
Place in the marketing mix of Amul Amul has a massive
distribution network because its ice creams, milk, butter and cheese is
found practically everywhere. As it is a FMCG product, Amul follows the
methodology of breaking the bulk. The initial factory output is in bulk.
Later on this bulk becomes smaller and smaller and finally one individual
slab of butter or scoop of ice cream is sold at the retail place.
There are two different channels through which Distribution happens in
Amul. One is the procurement channel which is responsible for collection of
Milk through dairy co-operatives. The other is the distribution channel
which is responsible for distributing the finalized product to the end
customers.
In the procurement channel, the milk is individually delivered from farmers
to the co-operatives. The co-operatives then collect all this milk and send

the bulk to the manufacturing facility. At the manufacturing facility, the


milk is used to manufacture the finalised products.

Promotions in the marketing mix of Amul


Amul is responsible for one of the most unique and longest running
outdoor campaign as well as one of the most known outdoor advertising
characters The Amul girl. We would like to take this opportunity to
specially thank Mr Eustace fernandes, the creative brain behind the
sweet girl. But we should know by now that the Amul girl is hardly sweet
or cute. She is known to be the most naughty advertising girl ever. Amul
hoardings mainly feature the current news and are used to take a tongue
in cheek viewpoint at current happenings. However, each advertisement
hits the nail on the head.
The promotions of Amul are mainly for butter but for all the other
products there is hardly any promotions. During the launch of products,
Amul is known to go ATL and advertise milk, butter etc. The Smita Patil
ad wherein Smita patil is shown as a village milk collector is one of the
most famous ads for Amul. But overall, the main advertisement is BTL
through outdoor, trade promotions, discount schemes and sales
promotions.
The major reason for Amuls absence in hard core advertising is that
Amul does not want to give away margins in advertising its products. As
per Amul, their maximum budget for advertising is 1% of the turnover.
Above and beyond that will directly affect the cost of the product. And
the major reason for Amuls strong presence in the market is its excellent
quality combined with the affordable price. Thus, overall promotions will
always be low for Amul except for the outdoor advertising of Amul
butter.
This concludes the marketing mix of Amul. The bottom line is that we
love that an Indian brand like Amul has reached such staggering heights
and that we are a part of the time when such a white revolution took
place.

SWOT analysis

A study undertaken by an organization to identify its internal strengths


and weaknesses, as well as its external opportunities and threats.

SWOT analysis of Amul


Amul is one of the largest milk and milk based products manufacturer in
India. Known to be the founder of the white revolution in India, Amul has
some strong products and brands up its sleeves, strongest of them being
Amul ice cream. Similarly, the Milk & Dairy products company has a very in
depth product portfolio including cheese, butter, curd, chocolates, ice
cream, and others. You can visit the following link to refer to the marketing
mix of Amul. However, following are the points in the SWOT analysis of
Amul.

Strengths in the SWOT analysis of Amul

Very high market share in ice cream Amul has the top market share
in ice cream segment which further helps it push other products into the
market.
Excellent brand equity amul is a beloved brand over the years and the
contribution of amul girl and her outdoor ads should specifically be
mentioned here.
Excellent quality management even though amul has such a wide
and large distribution network, hardly any quality complaints come for
amul.
Strong distribution network This is one company which is strong in
urban as well as rural distribution. You will find amul present even in small
towns and villages.

Good product portfolio Amul had a deep product portfolio when


compared to any fmcg company. It has many different varieties of milk

milk based food items like cheese, butter, milk, buttermilk, lassi and
many others. In ice creams too, amul has a large variety of flavours.
Strong Supply chain Vendors love Amul and amul is known for the
white revolution in India.
Rural presence Strong rural presence of Amul is its plus point. It is
mentioned here separately because this rural presence gives amul a
strong competitive advantage.
Weaknesses in the SWOT analysis of Amul
Cost of Operations Amuls operation is huge. And so is the cost.
Plus the sector is such that maintaining margins becomes difficult day by
day. Thus, to face international players, Amul needs to maintain the
operations in the same manner it is carrying out today. It is not a
weakness but rather a constant challenge for Amul. In fact, during
summers, the brand faces severe shortage of supply.
Chocolates Amuls expansion to chocolate has failed and hardly any
product of Amul chocolates is selling in the market. Amul needs further
products to expand its product line and increase bottom-line.
Opportunities in the SWOT analysis of Amul
Export Amul can export its product to other countries thereby
increasing its turnover and margins exponentially.
Concentrate more on chocolate market Amul has a no
advertisement policy which creates a problem for its foray into
additional products. Amul should in fact have separate SBUs and
concentrate more on increasing its product line through chocolates or
other such products.
Threats in the SWOT analysis of Amul
Increasing competition in Ice cream segment Many players,
local and international, are entering the ice cream market thereby taking
away share of wallet from Amul. Kwality walls, Naturals, London dairy,

Havmor, Arun ice cream, Vadilal, Ramani, are some of the few brands
who are directly in competition with Amul.