Amul Marketing Mix Strategy

We have broadly analyzed 4Ps of marketing mix for AMUL it has strong distribution
network which is integrated with manufacturing using strong IT infrastructure. When it
comes to promotion it has relied strongly on famous Amul girl which remains vigil to
current trends and news in the market and always remains fresh in the mind of
customers.

Product:
Amul has a very diverse product range and is competing in many product categories.
.It collects the milk from the rural market fist and tries to process it there itself and some part of the
milk is sold at the first processing unit there itself to satisfy local milk needs.
a) Customer based:
 Women – Amul Cacli+
 Calorie conscious –, Trim milk, Amul Lite Amul Shakti
 Kids –Chocolates, Amul Kool, Nutramul
 Youth –Cheese, Desserts, Milk shakes, Café
b) Industry based:
 Butter/Ghee/Cheese – Bakery, Pizza joints, Snacks retailers
 Milk – Ice cream manufacturers, Coffee shops, Restaurants

Price:
Amul has a strategic pricing strategy because of its rural milk collection network it aims to provide
the best quality dairy products with a very low cost to consumers of all economical segments. With
this initiative they followed the low pricing strategy. Products which covers a huge market segment
and are used on the daily basis like milk, ghee, ice-cream, cheese, butter. They have different SKUs
for rural market as well which are smaller packs for ghee, butter and milk as well which is available
in small pouch where as in urban markets it has tetra pack which is priced higher.

Place:
Because of strong distribution network they have successfully reached broad geographical areas,
consumer segments and consumer age groups by ensuring product availability to the market. By
doing so we intend to further strengthen our existing very unique and robust distribution model
which serves consumers through four distributionhighways—fresh, ambient, refrigerated, and
frozen.
In order to critically monitor and improve focus on the progress expansion drive, Amul has
eighth zonal sales office and overall branch strength to 62 which are placed on logistical
reasoning. Working ahead on our aim of being closer to the consumers
and also to encash upon the added infrastructure availability, GCMMF has added 1,574 more
Wholesale Dealers (WDs) and Area Delivery Agents (ADAs) in the current year—a growth of
15% over last year.
To increase our reach in smaller markets (any town up to 10,000 population), we have been
very aggressively pushing for direct reach in such markets by appointing direct WDs. We have
appointed more than 750 distributors through whom we plan to enhance our range
availability in such interior markets. In the current year, we continued to bring new
distributors to the Distribution Management System (DMS) fold, thereby enabling our Sales

Information Technology Integration

We are happy to inform you that your Federation has successfully completed eight years of
operations on SAP ERP. Besides AmulFed Dairy, Vidya Dairy and your Federation, a total of 17
member unions are deriving benefits of using SAP for business transactions

Promotion:
The promotional and advertising strategy in the Amul marketing strategy is as follows:
Amul is one of the fewer company who is in charge of one of longest and successful campaign with a
promotional character – The Amul girl. Amul generally uses the current news scenario in their
promotion that too in a little sarcastic manner which connects the user. Most of their promotion is
mainly for butter. As Amul has always stand at the top edge so it doesn’t spends more than 1% of its
revenue on promotion because it would directly influence the cost of product.

Amul is one of the few companies that has been running the longest and one
of the most successful promotional campaigns with a promotional character
– “Amul Girl”

Amul uses the current scenarios and gives a tongue in cheek viewpoint on
those current happenings.

The promotions done by Amul are mainly for its Butter and mainly uses ATL
( OOH ) and BTL promotion during the launch of their new products.

As per Amul, just to maintain the economies and not to affect the cost of the
product, their advertising budget does not exceed 1% of their turnover.
It is because of these reasons that Amul is able to provide quality products at
affordable prices.
Segmentation
 Segmentation is not easy because of mixed audience & various culinary applications of Amul
products.
Nevertheless, segmentation can be done as follows:

Amul TV
Amul has sponsored major TV programs-
Amul STAR Voice of India
Amul Master Chef India
Amulya Surabhi
Amul Maharani Bano Contest
Amul Chote Ustaad
Amul Music Ka Maha Muqabla
Amul Food Maha Challenge

Retail Census:

GCMMF undertakes a census of all retail outlets (over 500,000) to evaluate customer perceptions and
distribution efficacy of their network. Interestingly, this is being done by wholesalers in their respective
territories at their own cost. This information is used for policy deployment exercise. The extent of IT
usage includes a B2C ordering portal, a ERP based supply chain planning system for the flow of material
in the network, a net based dairy kiosk at some village societies (for dissemination of dairy related
information), automated milk collection stations at village societies and a GIS based data network
connecting villages societies to markets. Milk collection information at more than 10,000 villages is
available to all dairies (or Unions) to enable them make faster decisions in terms of production &
distribution planning, and disease control in more than 6,700,000 animals.