Course Code: MKT201 Course Title: Essentials of Marketing

Course Instructor: DR.Gursiranjit Singh Section: Q1904

Academic Task No.: 02 Academic Task Title: Amul the taste of India

Date of Allotment: 07/10/2020 Date of submission: 7/10/ 2020

Student’s Roll no: B47 Student’s Reg. no: 11917856

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Introduction
Amul is an Indian dairy cooperative society based at Anand in the territory of Gujarat. The
word “Amul” is derived from the Sanskrit word ‘Amulya’ which means ‘priceless’ or
precious’. Founded in 1946, Amul is a cooperative brand managed by a cooperative body,
the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is
together possessed by 3.6 million milk producers in Gujarat. Amul started India's White
Revolution, which made India the world's biggest maker of milk and milk products. Amul
was initiated by Tribhuvandas Patel under the direction of the First Deputy Prime Minister
of India, Sardar Vallabhbhai Patel. Therefore, Kaira District Milk Union Limited was
conceived in 1946. Tribhuvandas headed the organization until his passing in the 70s. He had
procured Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to remain and help with the
mission. This article will give you more facts and information about Amul case study. So,
let's dive into it. Amul cooperative was registered on 19 December 1946 as a reaction to the
exploitation of local milk producers, as milk often went sour in summer, by dealers & agents
of the main dairy of that time, the Polson dairy. The prices of milk were randomly
determined. The government had given monopoly rights to Polson to collect milk from Kaira
and supply it to Mumbai city. Agitated due to partial treatment, the farmers of Kaira
approached Sardar Vallabhbhai Patel under the administration of their leader Tribhuvandas
K. Patel. He advised them to frame an organization i.e. Kaira District Co-usable Milk
Producers' Union and supply milk directly to the Bombay Milk Scheme rather than Polson.
He sent Morarji Desai to sort out the farmers. In 1946, the milk farmers went on a strike
which prompted the setting up of the helpful to gather and process milk. Milk collection was
decentralized, as most makers were minor farmers who could provide 1–2 liters of milk for
each day. Cooperatives were framed for every town, too. By June 1948, the KDCMPUL had
begun pasteurizing milk for the 'Bombay Milk Scheme'. Under the leadership of
Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji Desai,
Maniben Patel, and Verghese Kurien. The cooperative was additionally created and headed
by Dr. Verghese Kurien with H.M. Dalaya. With Dalaya's innovation of making skim milk
powder from buffalo milk for the first time in the world and then making it on a commercial
scale with Kurien's help led to the first modern dairy of the cooperative at Anand. It
competed against many established players in the market.

Business Model Of Amul:

Amul pursued a one of a kind plan of action, which planned for giving 'esteem for cash' items
to its purchasers while securing the premiums of the milk-creating farmers who were its
providers just as its proprietors. As milk was a transient thing, the rancher endured a
misfortune on the off chance that it was not sold before the part of the bargain.

The business model is categorized as below:

Analysis of Products Dimension
Amul Product focused on bringing more productive products and expanding the market
rapidly. It was founded in 1946. It has a history of over 75 years and its business has grown
tremendously stepping at higher growth and satisfying consumer needs by giving higher and
superior quality of brands. Their brand name including the features, quality, reasonable price,
would help them in growth of rapid sales and keeping trust of around million of Indians using
this product every single day by marking it as the best and a reasonable product. Amul cares
for its huge customers and tries to offer them the best products at best price.

 Amul Bread Spreads Range

 Amul Beverage Range / Milk Drinks

 Amul Powder Milk Range

 Amul PRO

 Amul Fresh Milk Range

 Amul Cheese Range

 Amul Cooking Range

 Amul Dhai Range

 Amul Mithai / Desserts Range

 Amul Health Drink

 Amul Chocolates

 Amul Icecreams

 Amul's New Products

Amul Bread Spreads Ranges

Amul has varieties of Bread Spreads ranges and are preferred by many consumers on a daily
basis. These are outlined below.
Amul Butter:

Amul Butter is made up of pure milk fat. It consists of 100g,

500g, 50g, 20g, and 8.1g packing. It can be eaten with bread, paratha, roti, nans, and
sandwiches

Amul Lite

Amul Lite is a low cholesterol, low calorie and low fat bread
spread. It is available in 100g, 500g, and 200g packing. It is been used for topping on
parathas, pav-bhaji, and also for preparation of cakes.

Delicious Table Margarine

Delicious Table Margarine is the substitute of butter. Margarine is

prepared from vegetable oils and fats. It contains zero cholesterol and fortified with vitamin
A & D. 100g, 500g, 200g tub & Single serve pack are available.
Amul Beverage Range / Milk Drinks

Amul Kool Milk Shaake

Amul Kool Millk Shaake comes with four awesome flavours

which are Banana, Mango, Strawberry and Badam. The price of this is Rs. 22 for 220 ml can.
These are also sold in tetra pack in three flavours i.e. Mango, Strawberry and Banana. The
price of this is Rs 15 for 180 ml tetra brick. It is rich in nutrients and is the healthiest drink
against any other soft drinks.

Amul Kool

Amul Kool is very tasty and healthy drink and come with five flavour i.e
Kesar, Elaichi, Rose, Mango, and Strawberry. Available in 200ml Glass Bottle, 200ml Tetra
Pack, 250ml Can, and 1 Litre Tetra Pack.
Amul Kool Café

Amul Kool Café is a tonned milk flavoured with coffee. It is very

good and convenient for parties, picnics, etc. Available in 200ml Glass Bottle, 200ml Tetra
Pack, 250ml Can.

Amulya Diary Whitener

Amulya Diary Whitener is made from partially skimmed milk and

sugar. It is used in preparing Tea, Coffee, Sweets, Curd, Cakes, etc.

Analysis of Price Dimensions

 Pricing Strategy:

India is a price sensitive market, hence, Amul tries to cater to the needs of all the
Indian market segments keeping in mind the wallet size of its target customers
without compromising with the product quality. Amul deals in daily need dairy
products like milk,butter, cheese, ghee, cream, ice-cream at comparatively lower
prices offered by its competitors which in return helps Amul to capture huge market
share.
  Segmentation, Targeting, and Positioning Market strategy of Amul

Amul's target segment is the mass population, we generally see people of all age
groups and demographics enjoying Amul's dairy products,as Amul's dairy products
are a common product for all, have you ever heard of any ice-cream or butter only to
be consumed by aged people?
As it has a very vast product portfolio, the company doesn't differentiate in its
customers but uses Mass Marketing principle,and this strategy has proven itself to be
the most suitable one,as this principal is still working well with the Amul's marketing
strategy.

 Amul's target audience are the regular users and middle class people. However, for
products like Butter and Cheese, both upper middle class and lower middle class
people are the target audience.

 Positioning Strategy used by Amul is at the top of the mind, as it got some leverage
fopr being the first brand which comes in mind when talking of milk, cheese, butter,
ice-cream or any other dairy product from Amul's product portfolio.

Amul Marketing Mix (4Ps) Strategy

Marketing Mix of Amul analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Amul marketing strategy. As of 2020, there are several
marketing strategies like product/service innovation, marketing investment, customer
experience etc. which have helped the brand grow. Marketing strategy helps companies
achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework
to define the strategies.
Amul Product Strategy:
The product strategy and mix in Amul marketing strategy can be explained as follows:

Amul is one of the leading brands in milk products in India. Amul has a very diverse product
range in its marketing mix. It mainly involves all the available dairy products. Amul uses the
milk obtained from their primary source and then turn it into different products after going
through various process. The list of products which Amul contains are: Amul Milk, Amul
Taaza, Amul slim trim milk etc, Bread spreads (Amul butter, Amul Lite, delicious table
margarine, unsalted butter, garlic butter), Amul Cheese, UHT milk, Amul Beverages (Amul
kool flavoured milk, Amul masti buttermilk), Amul Ice cream, Paneer, Dahi, Ghee, Amul
chocolates, fresh cream, pouch butter milk. Amul has always been known for coming up with
new innovative products for different customer segments. From the above products we can
see how it has classified its products in different niche segments according to demand or need
of consumers. Amul cheese, butter and ice-cream are the products which undoubtedly have a
very big market share and contributes a lot in Amul’s yearly revenue. Amul milk dahi and
paneer’s consumption has also been increasing in a good way. For every product range there
are lot of competitors but no one has been overcome Amul because of its very highly diverse
and innovative dairy products.
Amul Price/Pricing Strategy:
Below is the pricing strategy in Amul marketing strategy:

Amul from starting only when there were no national player as there competitor has a vision
to provide the best quality dairy products with a very low cost to consumers of all economical
segments. With the same initiative they have followed the low pricing strategy in their
marketing mix. To make this strategy follow they segmented out their own products.
Products which covers a huge market segment and are used on the daily basis like milk, ghee,
ice-cream, cheese, butter were provided to the consumers at a lower rate in comparison to
competitors whereas the price of products which were of niche segment like amulspray,
prolite, milk powder were completion oriented. Mostly Amul follows a strategy which is
more incline towards market. In Amul GCMMF sets up the price range of different products
which is based on different factors like raw materials, labor cost, distributors margin, farmers
profit, Administrative and manufacturers overhead, demand and supply of products,
competitors prices, transportation cost, packaging cost, govt. taxes etc. With the rise in Indian
economy transportation cost, storage cost has piled up but still Amul provides quality
products at a fair and affordable price in comparison to others.

Amul Place & Distribution Strategy:

Following is the distribution strategy of Amul:

One of the key reason of Amul to stand at the top in such a volatile market with overloaded
competition is because it has an enormous distributive channel which covers almost all parts
of our country. Amul’s whole model works on collecting the raw material in mass and then
keep it chunking down into small and small size which finally reaches as a single unit to
consumer. There are two distinct channels through which Distribution occurs in Amul. One is
the acquisition channel which is in charge of gathering of Milk through dairy co-agents. The
other is the distribution channel which is in charge of circulating the concluded item to the
end clients. In the acquisition channel Amul works up with farmers then to village co-
operative society then it goes to manufacturing units then to company depots, wholesale
distributors and finally to retailers. There is also one more channel which consist of carrying
and sending specialists who helps in minimizing the administrative and transportation costs.
Amul Promotion & Advertising Strategy:
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. With an increase in the number of e-commerce users recently Amul has
also shifted on e-commerce platform with an Amul online app through which they could
deliver products to e-commerce users. This app also has helped Amul in promoting their
brand through different social media sites i.e. through digital marketing. Hence, this
completes the Amul marketing mix.

Recommendations
Unlike private organizations it has a typical system of decision-making. It has to follow a
series of formalities before taking any concrete decision or applying any change in the system
or organization. It therefore lacks the pace in decision making which affects the marketing
performance. It is recommended that for important administrative decisions, authority should
be given to the concerned administrators so that the right decision at the right time can be
taken. exactly replicated. Some degree of freedom has been given to the cooperatives by the
state governments because of which the co-operative structure has deviated from the basic.
This vested interest of the politicians has affected the major cause and purpose of dairy co-
operative movement. The result is that the benefit is transferred to some group of farmers
only. The government is expected to take action here by amending the law and making the
three tier model applicable throughout. Dairy companies in order to expand and gainfully
exploit the opportunities should go for business combinations with national and international
companies. The combined strength of unit will give the right impetus for growth and
development. The partnership can be financial, managerial, technical or all. Creating,
maintaining and enhancing good working relations between the Board of Directors and senior
management of co-operatives is required for healthy functioning of co-operatives. There
should be proper division of work and responsibility. The board should be responsible for
employee welfare activities and management should take care of the administrative part of
the organization. The relation between these two should be of transparency and
accountability.