Principles of Marketing Group 3 BM-D

• Strategically positioned points of sale where they will purchase on an impulse - outside gyms,
sports complexes, playgrounds
• Large propensity for consuming experimental products like Amul Tru and Tru Seltzer

B. Loyalists
• Want recognizable packaging that allows for quick brand recall
• Purity of milk and an impeccable supply chain is a priority for them
• The basic varieties of milk like Amul full cream milk, toned milk and skimmed milk are the
primarily consumed products
• Slower consumers who are particular about the base flavour of the milk as it is used in tea,
coffee and other beverages
• Used extensively for setting curd and creating other secondary milk products at home
• Indirectly supporting farmers is a large part of their purchase
C. Artisanal/Skeptics
• Seek milk that is ethical, sustainable and coming from cows of local breeds
• Antibiotic and growth hormone-free milk is of the highest priority
• Additional preference for milk from local breeds of cows like Gir, Sahiwal and Hallikar
• Prefer packaging that is ecofriendly and biodegradable
• Health and fitness are a large focus for these consumers
• Amul Desi milk is presently aimed at such customers

2.3 Positioning
Delivering products that can fit in everyone’s pockets and at the best possible quality that can be
provided in that range, Amul aims at reaching every house of this country. Built with the
contribution of a vast number of Indian farmers, the two positioning recommendations that it
can play along are:
For Tru: ‘Tru’ly Indian
For Milk: Amul Doodh peeta hai Indian

3. Amul Milk

3.1Micro-Environmental Analysis (4P)

3.1.1 Product:

Amul sells multiple variants of milk, ensuring that it caters to as many categories of needs of
milk as possible in order to cater to the masses. These variants are:

○ Amul Shakti (3% fat)

○ Amul Taaza (1.5% fat)
○ Amul Gold (4.5% fat)
Principles of Marketing Group 3 BM-D

○ Amul Deshi A2 Cow Milk (from indigenous breeds)

○ Amul Lactose-free Milk (for lactose intolerant individuals)
○ Amul Camel Milk

These varieties of milk are also available in multiple modes of packaging as per the needs of the
consumer, the most common stock-keeping unit being 500ml milk pouches.

3.1.2 Place
Amul’s supply chain network is one of the fastest and most deeply rooted consumer networks in
the world with 2-way access to the rural markets and one-way reach towards the urban
consumer market. Its milk is available everywhere from local grocery and dairy outlets to high-
end malls and supermarkets, even in e-commerce sites that guarantee delivery in a day. All
these products are readily accessible by the consumers.

3.1.3 Price
Amul uses a combination of Low-Cost Pricing and Competitive pricing for its marketing mix.
During the introduction stage itself, Amul had the vision to provide its products to its end
customers at the best affordable rates. And the same image is in place even today. Increasing the
price of Milk proportional to their audience’s increase in income helped them retain their
customer base. For Milk, Amul follows a low-price strategy. The price is decided based on all
the costs incurred and the profits at all the sales level, along with the affordability factor in
mind. As Milk is a daily need of every consumer, it is priced low along with the other values
like the fresh product, trustable brand, etc. in the last three years, it has made only two price
revisions for pouch milk, which works out to be only Rs 4 per litre and less than 3% per annum
increase in MRP. This was due to an increase of almost 25% in the price of cattle fodder. The
current price of Amul Gold is Rs 28 per 500 ml, Taaza is Rs 22 per 500 ml, and Shakti is
available at Rs 25 per 500 ml. These are its most popular variants.

3.1.4 Promotion

Amul markets all its products under the same brand name, thus giving it more visibility as well
as lesser promotion cost. Having been positioned as the company with excellent supply chain and
low-cost products has helped a lot to gain a huge market share. The company has the well-
established trust of all its customers in itself, making it a big brand throughout the country. Amul
has opted for pull product promotion strategy where customers some to buy its products. It is
because of the trust it has gained in past years and its ability to maintain it.

Amul promotes its product showing a girl – a cartoon figure on all its products. It also received
an award from Guinness World Record for the longest-running advertisement campaign. Amul
makes current affairs related posters branding its own product in it, which makes it interesting. It,