Professional Documents
Culture Documents
7. QUESTIONNAIRE 96-98.
8. CONCLUSION 99-100.
REFERENCE 101.
1
CHAPTER -1.1
INTRODUCTION
2
Introduction to Market Analysis
The challenge for any business is to gain a sufficiently detailed understanding of the
fundamentals of a market. Without this insight, it is unlikely that marketing strategies will
prove effective or that marketing objectives will be met.
• Who are the existing competitors and what market shares do they have?
• The extent of branding and customer loyalty in the market
• How the market is segmented to meet different customer needs
• Customer preferences in terms ofwhen and where they buy, what prices they pay and which
methods of promotion are effective
• The potential for developing a competitive position in a market – either through a USP or
through effective price competition
The process of analysing the market should not be considered as a one-off. An
effective marketing team is constantly searching and updating their market knowledge.
However, detailed marketing analysis is particularly important for tasks such as:
• Forecasting sales for new products or investments into new markets
• Gathering evidence to support a finance-raising exercise
3
• To support a new marketing strategy or significant changes to the marketing objectives
• To help make decisions in relation to significant organisational or
operational change
There are several methods of analysing a market that are in common use. The
following methods are covered in the following sections:
• Test marketing
• Trend analysis (extrapolation, moving averages and correlation)
4
INTRODUCTION OF AMUL MARKETING ANALYSIS
Amul is one of the most popular and successful brands in India. With its wide
range of dairy products, Amul has now become a household name in the minds
of Indian families.
I‟m sure that we all have at least one of Amul‟s products in our house. It has
elegantly created its family-friendly and patriotic image with its, “Amul – The
Taste of India” marketing jingle which also evokes empathy towards the brand.
What also makes Amul so special is that it has constantly managed itself in
staying relevant for all these years in the minds of the customers ever since its
foundation.
Thus, this also makes us wonder about what they are doing tostay relevant in
this increasingly competitive and digitized world.
5
In this case study, we will go through Amul‟s online marketing strategies and
campaigns implemented by them over the years which has helped them stay on
top of the game, ahead of its competitors in the industry.
So, Let‟s start with what Amul as a company is all about.
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.
6
CHAPTER-1.2
• Total milk production was estimated at around 802 million tonnes, a significant
increase of +3.3% compared to 2013.
• In 2014, global per capita dairy consumption was estimated at 110.7kg and is
expected to reach 13.7% by2023
• The strongest growth would be in Asia, especially India. India has the highest
livestock population in the world with 50% of buffaloes and 20% of world‟s cattle
population
• Open Government Data (India) expectsthe production to be 144.2078by the end of
2020.
Cooperative Unions
It also enables the consumer an access to high quality milk and milk products.
Dairy cooperatives account for the major share of processed liquid milk
marketed in the country. Milk is processed and marketed by 170 milk producer‟s
cooperative unions, which federate into 15 state co-operative milk marketing
federations.
7
NDDB supports the development of dairy co-operatives by
providing them financial assistance and technical expertise,
ensuring a better future for India's farmers.
Over the years, brands created by cooperatives have become
synonymous with quality and value. Brands like Amul(GCMMF),
Vijaya(AP), Verka(Panjab), Saras(Rajasthan).
8
Type :Cooperative
Industry: Dairy/FMCG
Founded:1946
Website: www.amul.com
9
Amul‟s History
The story of AMUL inspired “Operation Flood” and heralded the “White
Revolution” in India.
It began with two village cooperatives and 250 liters of milk perday.
In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE
MILK PRODUCERS‟ UNION
In the year 1955 the union was established under brand name “AMUL”
Dr. Rajendra Prasad, the president of India laid the foundation on November15,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open
at Amul dairy on November 20, 1955.
10
CHAPTER – 2
PRODUCTION PROFILE OF
AMUL
11
Production profile of amul
Amul is one of the largest food brands in India and has also ventured into
markets overseas.
In the year 1946 the first milk union was established and during this year
AMUL was founded. The brand name AMUL means "AMULYA". This word
derived from the Sanskrit word "AMULYA" which means "PRICELESS".
Amul a leading food brand in as it have many products such as Amul Butter,
Amul Milk Powder, AmulGhee, Amul spray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya.
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.
12
Amul cares for its huge customers and tries to offer them the best products at
best price.
• Amul PRO
• Amul Chocolates
• Amul Icecreams
13
• Amul's New Products
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.
14
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.
15
Amul Masti Spiced Buttermilk
Amul Masti Spiced Buttermilk is a 100% natural drink and free from artificial
Colour, preservatives, acids and sugar. It is available in 200ml Tetra, 500ml
and 1 litre Tetra. The price of this is Rs. 8, Rs. 15, Rs.30 respectively.
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.
16
Amul Fresh Milk Ranges
Amul has varieties of fresh milk ranges and are preferred by many consumers
on a daily basis. These are outlined below.
17
Shrikand
Shrikand is a traditional sweet. It is the only pasteurized Shrikhand
availablewith smooth texture and extended shelf life. Made from most modern
dairyequipment
18
AMUL is all set to storm the Ice cream market with a new range of
probiotic ice cream aimed at the total health conscious.
Improves immunity
Improves digestion
Prevent gut infection
Manages traveler‟s diarrhea
19
Several generations of Indian consumers have grown up eating icecreams, which
traditionally is a combination of full cream milk, lot of sugar and nuts.. Now with
the changing trends, life style and climatic conditions people are becoming more
and more health conscious. Keeping in mind the need of these calorie conscious
people, Amul is introducing first time in India-Amul prolife sugar free probiotic
wellness frozen dessert
Low Fat : Amul Prolife Sugar Free delight is containing 50% less fat than the
normal ice cream.
Benefits:
Has low fat and calorie content: hence reduces obesity
Contains no added sugar
Improves immunity and digestion
Prevent gut infection and manages traveler‟s diarrhea Available in
20
Amul Prolife Sugar free wellness delight is available in :
125ml/500ml+500ml free and 1.25 litrs in 5 flavours
Amul Chocos
Amul has launched pure milk chocolate bars, the Badam bar chocolates which
are completely made of Badam and the Fruit & Nut chocolate bars.
Chocolates Best
Impression
“First Impression is the Best Impression” – this Fruit & Nut Bar is packaged in
a pleasant dark ink blue color (a trademark color for all bar chocolates?)on the
upper half and a nice-looking yellow color at the bottom shining wrapper with
colorful prints of nuts and dry fruits which makes its appearance very special
and catchy !
Nutty
As the name suggests, the chocolate is rich in dry fruits and crusty nuts which
makes eating this crispy and crunchy choco bar a very delightful experience.
Creamy
Rich in chocolate cream, jus‟ running your already mouth-watering tongueon this
yummy chocolate flavor itself is exceptionally enjoyable ! The chocolate bar is
entirely made of chocolate flavor without wafers, but the nuts and fruits make it
very crunchy and youthful !
Ingredients
This Completely Choco Bar is made up of sugar, cocoa butter, milk solids,
chocolate mass, cocoa mass and permitted preservatives and has been
21
carefully manufactured meeting all the requirements under the PFA for Boiled
sugar confectionary.
Amul India (Gujarat Co-operative Milk Marketing Federation Ltd.)
.We manufacture and market a wide range of dairy products in India and abroad
under the brand names of Amul and Sagar. The product categories are Infant
Milk Food, Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener,
Table Butter, Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese
Spreads,
Gouda cheese, Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk
Food,
Blended Bread spreads, Fresh milk, UHT(Long life) Milk, Ice-ream and ethnic
Indian sweets. Each of our products is a market leader in India.
GCMMF is the largest exporter of dairy products from India. We export our
products in consumer packs and bulk to USA, Singapore, UAE, Australia,
Bahrain, Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc.
On a regular basis. We have won 9 awards
consecutively from APEDA, Govt of
India.
22
Gujarat Co-operative Milk Marketing Federation (AMUL)
23
Shri Ramsinh P Parmar, Chairman, Amul Federation, emphasized the fact that
mantra of rapid expansion has clearly yielded rich dividends for Amul
Federation. “Based on estimated growth in market demand for Amul products
and our future marketing efforts, we anticipate at least 20% CAGR growth in
the business of Amul Federation during the next five years.
Shri Jethabhai Bharwad, Vice Chairman, Amul Federation added that member
unions of Amul plans to enhance its milk processing capacity from the current
level of 350 lakh litres per day to 380 – 400 lakh litres per day in the next two
years.
Shri R S Sodhi, Managing Director, Amul Federation said that “We have
achieved volume sales growth in all product categories. Pouch milk which is
the highest turnover product has shown good growth in all most all the market.
He has informed that in all the products category, we are getting double digit
growth in volume. He added that during last financial year, we have launched
new varieties of flavoured milk, chocolates, fruit based Amul Tru, camel milk
and entire new Kulfi range. It is important to note that Amul Federation has
achieved turnover inspite of adverse market condition for dairy products at
National as well as at International level.
24
CHAPTER: 3
25
Amul Marketing Strategies
Amul's Branding as 'The Taste of India' & Amul Girl as Mascot
The first aspect of the marketing strategy of
Amul is branding. The major chunk that led
to the Success of Amul is its Branding
strategies. We are all aware of Amul‟s
tagline- „The taste of
India‟. The tagline banished the notion
that bread and butter are a staple of only the
British breakfast and pulled nationalism in.
The never-aging girl who wore a polka-
dotted dress, with blue hair
and an orange face was the company‟s icon.
Amul marketed all of its products under a
single name, which led
to advertising merely costing one percent of
its revenue.
26
classes. The simple reason behind their retention of customers is because of the
product pricing, which is discussed next.
The third aspect is product pricing. It is one of the best promotional strategies
adopted by Amul. It opted for a low-cost pricing strategy for products that are
consumed regularly. This pricing strategy of Amul made it affordable for its
target audience. Increasing the price of goods proportional to their audience‟s
increase in income helped them retain their customer base. A competitive
pricing strategy, such as a one-on-one offer, was adopted for products facing
heavy competition.
One such product line is ice cream. As Amul is a co-operative, it aimed to get
the best price for the producer as well as the consumer, unlike certain
companies that focused only on profit. But being an FMCG company surely
involved a well-planned production, storage, and distribution network which is
expensive. Yet Amul sold goods at affordable prices. How did they do that?
27
A well-planned and executed logistics and supply chain model was
incorporated. Amul was a three-tier cooperative structure.
This transparent model led to maximum returns for the suppliers- the farmers.
As the prices increased, their income accordingly increased as well. Also, co-
operatives are one big family. Surplus products were sent to areas with high
demand and vice versa. So, that was the Amul distribution strategy. All the
above-mentioned factors were 75 percent. Without the 25 percent, 75 percent
was as good as zero. So what was the 25 percent?
Amul also came up with several taglines such as „Amul Doodh Peetha Hai
India‟,‟ Har Ghar Amul Ghar‟,‟ Pehla Pyaar Amul Pyaar‟, and so on in its
short advertisement videos. Every advertisement was guaranteed to make you
chuckle appreciatively at its wit, warm your heart, or tickle your funny bone.
28
Amul Girl - Advertising Mascot of Amul
The well-known mascot of Amul - ' Amul Girl' is a cartoon of a young Indian
girl dressed in a polka-dotted dress with
blue hair and a half pony tied up. The
Amul Girl's first advertisement portrayed
the Amul product - Amul Butter
as 'Utterly Butterly Delicious'. Which
was a total hit!
An interesting story behind this - The Amul girl was created as a response to
Amul's rival brand Polson's butter- girl. This sales strategy of Amul was
conceived in 1967 once ASP (Advertising, Sales, and Promotion) clinched the
brand portfolio from the previous agency FCB Ulka. The Amul Girl has been
the face of Amul since 1966 and is considered the longest-running advertising
campaign
While not as big a presence in television ads as it used to be, the advertising
strategy of Amul through digital marketing made the most of it through
platforms such as Facebook, Twitter, Instagram, and others. Amul‟s digital
marketing strategy also made it a point to connect with its customers and take
care of any and every complaint rigorously.
29
These Seven aspects of Amul's marketing strategies made Amul a leader in
its sector. While every company had its ups and downs, Amul managed to stand
strong. Its emphasis on quality and integrity was what made it a survivor in the
current market.
Segmentation:
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
Targeting:
The target audience is 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 is the target.
30
Positioning:
Competitive advantage–
There are two major competitive advantages of Amul over other brands. First
and foremost is the supply chain. Because of the large numbers of dairy suppliers,
Amul has a tremendous strength and reliability in its supply chain. Hence it is
able to produce such high volumes. The second competitive advantage is the wide
product portfolio due to which it can run Amul Shoppe‟s and also have its
products present in retail.
BCG Matrix–
When we plot the BCG matrix, Amul has certain products which are stars
whereas others are cash cows. And in fact, Amul chocolates are question marks
because they have very low market share in a growing market. However, when
compared with the same type of product, then Amul has a high market share.
Thus, these products are stars for Amul.
Distribution strategy–
Amul concentrates on breaking the bulk. It supplies in huge amounts to its C&F,
who is required to have the right arrangements to store Amul products in
bulkThus, in the marketing strategy of Amul, distribution is another strength of
the brand.
Brand equity–
Because of the excellent products, the top of the mind positioning, the fantastic
distribution andsupply chain channels and finally the point of purchase branding
31
and advertising of the Amul girl, Amul finds itself in a very strong position
where its brand equity is concerned
Competitive analysis–
Amul has some good competitors who have entered the market in the last decade
and growing strong steadily. Most of these ice creams entered regionally but then
held on to the regional market share. However, the competition in Butter and
Cheese and other dairy products is far lesser.
Customer analysis-
The typical customers of Amul belong to the Sec B and Sec C segment wherein
they are either middle class or lower class. Amul in general uses mass marketing
and therefore it targets these 2 classes majorly.
32
#How It All Started
The cooperative movement was triggered off when the farmers were angered by
the unfair and manipulative trade practices followed by the local trade cartel in
Anand, Gujrat. The farmers sought
help and advice of Sardar Vallabhbhai
Patel. They were then advised to get
rid of the middlemen and market their
milk through a co-operative society of
their own which would have
procurement, processing, and
marketing under them. Hence under
the guidance of Tribhuvandas Patel, Sardar Patel and Morarji Desai, they
formed their own cooperative Kaira District Cooperative Milk Producers Union
Limited (KDCMPUL) which was later better known as Amul.
#Launching
33
#Efficient Supply Chain Management:
The Amul model is a three-tier cooperative structure which consists of a dairy
cooperative society at the village level that is affiliated with milk unions at the
district level which in turn is federated to a milk federation at the state level.
Milk is collected at the village dairy society, procured and processed at the
district milk union and marketed at the state milk federation. The model was
found to be so amazing that Dr. Verghese Kurien was asked to replicate this
model all over the country under Operation Flood in the 1970‟s as this model
had the efficiency and swiftness in its operations. The Amul model has helped
India become the largest milk producer in the world.
The Amul Girl was created as a response to Amul‟s rival brand Polson‟s butter-girl back
in 1967. It
34
has made a world record for the longest run ad campaign that ever happened on
planet earth!
Amul‟s mascot strategy has worked out very well offline but lets us now check
how is it working on the digital fronts.
35
In this increasingly digitized world, every brand needs to revamp its marketing
strategy. Amul too has cut down its expenditure on TV Ads and has started
focusing more on the online form of advertising just like its competitors.
But before that let‟s have a look at its social media presence from the below
table.
36
Moreover, Amul created graphics to enlighten its consumers about the various
scenarios in which they could consume Amul products (along with the
numerous benefits of those products).
National Milk Day Campaign
On 26th November 2019, Amul celebrated National Milk Day by launching a
new campaign by using hashtags like,
#CelebratingDrKurien #BikeRally #VaranasitoAnand and # 26 November.
The objective of this campaign was to connect with the youth and inspire them
to be purpose-driven and motivated in their lives.
During the campaign, Amul organized a bike rally in which 50 bikers travelled
from Varanasi to Anand (2500 Kms) to meet dairy farmers, dairy professionals
and to learn about Dr Kurien and his works.
37
Amul also launched a small 70 seconds film on Dr Kurien on Facebook,
Instagram & YouTube. It also went Live on all the above-mentioned platforms
to record the 12-day journey.
2. Amul on Twitter
On Twitter, Amul has a massive fan base of over 335K followers given that
Twitter is a very different platform when compared to other social media
platforms.
38
On various occasions, Amul posts fun graphics featuring the Amul Butter Girl.
Many people connect with those graphics and retweet them to show how they
feel about the latest happenings in the world.
Twitter is a great platform for a brand to engage with its customers. Taking advantage of this, Amul
tries to conduct interactive activities like contests and giveaways.
A lot of people also use Twitter to express their grievances for a service or a product. Amul makes
sure that it replies to tweets of customers complaining about its products.
Unlike many brands that ignore or delete the negative posts of their customers, Amul takes the
opinions of its customers very seriously and makes an effort to resolve their customers‟ problems on
Twitter even in the presence of thousands of people.
39
3. Amul on Youtube
Amul is also present on Youtube and it enjoys about 4,03,000 subscribers on its official youtube
channel called, Amul The Taste of India. However, On Youtube, it puts out advertisements that are
previously aired on television.
Although, during the Covid-19 pandemic when the country was in lockdown, Amul started a new
campaign called Simple Home Made Recipes that was also promoted as
“#SimpleHomeMadeRecipes”.
More about this campaign will be covered in the next section of the case study. So this is how Amul‟s
digital marketing strategy has played out.
Despite lockdown and Amul also being an FMCG brand, sales have increased due to excess
consumption of households during the lockdowns and its presence on E-commerce sites like Grofers,
Big Basket, Paytm mall, etc. However, it has also doubled its spending on its marketing efforts.
During the lockdown, everyone avoided stepping out of their homes and even if they did, nobody
wanted to travel too far for their food supplies and put their safety at stake. So Amul went one step
ahead and created an App to help its customers locate Amul products near them.
40
Let‟s now have a look at the Marketing campaigns launched by Amul during the lockdown
1. Amul Classics
So we all know that Doordarshan had started airing Ramayan and Mahabharat again after a span of a
long time. So, Amul received a lot of requests from customers to start airing their old 90s retro ads
again.
41
That‟s when Amul took its customers on a nostalgic trip by airing its old com online as well as on
TV.
*Hums Amul Doodh Peeta Hai India in my head *
So, Amul is making a lot of effort to increase its visibility for the Indian public which is sitting home
and consuming content on Social Media platforms.
42
In each episode of this cooking show, chefs shared a new recipe in which they used Amul products.
Around 750 million people viewed these episodes, and Amul even shared pictures of dishes prepared
by their audience.It has released more than 700 episodes on its youtube channel and continues to
upload it regularly.
This move was successful and it received a lot of responses from the audience. With this, our case
study comes to an end. Let‟s now see what the conclusion of the case study has to say.
43
Amul SWOT Analysis, Competitors & USP
SWOT analysis of Amul analyses the brand by its strengths, weaknesses, opportunities &
threats. In Amul SWOT Analysis, the strengths and weaknesses are the internal factors
whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Amul to
benchmark its business & performance as compared to the competitors. Amul is one of the
leading brands in the food & beverages sector.
The table below lists the Amul SWOT (Strengths, Weaknesses, Opportunities, Threats), top
Amul competitors and includes its target market, segmentation, positioning & Unique
Selling Proposition (USP).
This article has been researched & authored by the Content & Research Team. It has been
reviewed & published by the MBA Skool Team. The content on MBA Skool has been
created for educational & academic purpose only.
Similar analysis has also been done for the competitors of the company belonging to the
same category, sector or industry. Browse marketing analysis of more brands and
companies similar to Amul. This section covers SWOT Analysis, Competitors,
Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20
industry sectors.
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.
44
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 variety 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.
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 bottomline.
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 SBU‟s and
concentrate more on increasing its product line through chocolates or other such products.
45
CHAPTER:3.2
Amul Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Amul analyses the brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies
likeproduct innovation, pricing approach, promotion planning etc. Thesebusiness strategies,
based on Amul marketing mix, help the brand succeed.
Let us start the Amul Marketing Strategy & Mix to understand its product,
pricing,advertising & distribution strategies:
Amul is one of the leading brands in milk products in India. Amul has a very diverse
productrange in its marketing mix. It mainly involves all the available dairy products. Amul
uses themilk 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 as follows:
Milk:
Amul Milk, Amul Taaza, Amul slim trim milk etc, are the biggest produce of the
company.The company also offers UHT milk as a part of its offering.
Bread spreads:
Amul butter, Amul Lite, delicious table margarine, unsalted butter, garlic butter &
AmulCheese are the most popular bread spreads by the company.
Beverages:
Beverages like Amul Kool flavoured milk, Amul Masti buttermilk are some popular
offerings of the company
Other products:
Amul Ice cream, Paneer, Dahi, Ghee, Amul chocolates, fresh cream, pouch butter milk are
46
some of the other products which the company has widely diversified its product portfolio
in.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. 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. The company is driven by 1000+ employees
who work with over 3 million milk producing partners.
Amul from starting only when there were no national player as there competitorhas 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 Amul Spray, 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. The company has an annual revenue of over $5
billion. With the same initiative they have followed the low pricing strategy in their
marketing mix. To make this strategy follow they segmented out their ownproducts.
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 Amul Spray,
47
Prolite, Milk powder were completion oriented. Mostly Amul follows a strategy which
ismore 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,
distributorsmargin,
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. The company has an annual
revenue of over $5 billion.
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.
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
48
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. Despite
thepandemic, the revenues for milk based products rose significantly for the company with
continued marketing efforts. Hence, this completes the Amul marketing strategy and
marketing mix.
49
CHAPTER:4
50
Consumer Behavior and Comparative Analysis of AMUL
products
Introduction
In the year 1946 the primary milk association was built up. This association was
begun with 250 liters of milk for every day. In the year 1955 AMUL was built
up. In the year 1946 the association was known as KAIRA DISTRICT CO-
OPERATIVE MILK PRODUCERS' UNION. Thisassociation chose the brand
name AMUL in 1955. The brand name Amul signifies "AMULYA". This word
got from the Sanskrit word "AMULYA" which signifies "Extremely valuable".
A quality control master in Anand had proposed the brand name "AMUL". Amul
items have been being used in a large number of homes since 1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a main food brand in India. (The absolute deal is Rs. 6 billion out of 2005).
Today, Amul is an image of numerous things like of the great items sold at
sensible costs, of the beginning of a tremendous co-employable system, of the
triumph of indigenous innovation, of the advertising wise of a ranchers'
association.
51
the negative reaction by turning down the interest for the milk. To react to this
activity of govt., the ranchers of Kaira locale went on a milk strike. For 15 entire
days not a solitary drop of milk was offered to the dealers. Thus, the Bombay milk
plot was seriously influenced. The milk official of Bombay at that point visited
Anand to evaluate the circumstance. Having appeared the condition, he chose to
satisfy the ranchers request. In this way, their agreeable associations were
constrained at the town and region level to gather and sell milk on a helpful
premise, without the mediation of Government. Mr. VergheseKurien indicated
primary enthusiasm for building up association who was upheld by
ShriTribhuvandas Patel who lead the ranchers in framing the Coemployable
associations at the town level. The Kaira area milk maker's association was hence
settled in ANAND and was enlisted officially on fourteenth December 1946.
Since ranchers sold all the milk in Anand through a helpful association, it was
usuallyset out to sell the milk under the brand nameAMUL.
At the underlying stage just 250 liters of milk was gathered each day. In any case,
with the developing consciousness of the advantages of the helpfulness, the
assortment of milk expanded. Today Amul gather 11 lakhs liters of milk each day.
Since milk was a transient item it gets hard to save milk verdure longer period.
Other than when the milk was to be gathered from the far spots, there was a dread
of ruining of milk. To conquer this issue the association thoroughly considered to
build up the chilling unit at different intersections, which would gather the milk
and could chill it, to save it for a more drawn out period. Along these lines, today
Amul has in excess of 150 chilling communities in different towns. Milk is
gathered from right around 1073 social orders. With the money related assistance
from UNICEF, help from the govt. of New Zealand under the Colombo plan, of
Rs. 50 million for plant to make milk powder and spread was arranged. Dr.
Rajendra Prasad, the leader of India established the framework on November 15,
1954. ShriPandit Jawaharlal Nehru, the executive of India
52
announced it open at Amul dairy on November 20, 1955. The Union looks after
policy formulation, processing and marketing of milk, provision of technical
inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies.
Basically, the union and cooperation of people brought Amul into fame i.e.
AMUL (ANAND MILK UNION LIMITED), a name which suggest “THE
TASTE OF INDIA”.
Literature Review
53
just as the clients. AMUL has driven the milk dairy upheaval in India that has
now developed as one of the biggest milk makers on the planet
In this article we will depict the advancement vision that prompted the
synchronous improvement of the market and flexibly side through a procedure of
social turn of events and training at AMUL. Obviously, usage of this vision a
serious situation and keeping up continued development and benefit requires
improvement of intensity on a fewmeasurements and operational viability. This
article gives bits of knowledge into the executives of enormous flexibly chains by
adjusting and coordinating an assortment of procedures and strategies. This
incorporates building systems, creating trust and qualities in the system, growing
reasonable instruments for sharing advantages over the gracefully chain,
coordination for operational adequacy, development and new innovation for
picking up intensity. It is important that these victories were accomplished inside
the system of a system of cooperatives sorted out in a various leveled way. There
are numerous exercises in AMUL's prosperity for the agreeable division as well
as for firms who plan to work together in developing market
Research Methodology
Research Problem :
• To know the consumer psyche and their behavior towards Amul Milk.
54
• To know the preference of Amul Milk with comparison to Other competitive
brands .
• To know the factors which affects consumer‟s buying behavior to purchase milk
The collected data were not easily understandable, so I like to analyze the
collected data in a systematic manner and interpreted with simple method. The
analysis and interpretation of the data involves the analyzing of the collected data
and interpretation it with pictorial representation such as bar charts, pie charts and
others.
55
1. Which dairy product do you preference?
Preference
Both
SAnToISFACTI
ON
8%
Ye
s
3. What do you like in these products most “Quality,
92 Availability, Price or
%
Taste”?
RANK ON AVERAGE
15
10
0
QUALITYTESTE
AVAILABILITYPRICE
56
4. Do you get milk pouch at?
Convenience
34
%
66%
Consumption
18% 2%4%5% 7%
16% 9%
11%
15% 13%
1 2 3 4 5 6 7 8 9 10
Brand
40
love
35
30
25
20
15
10
5
0
AMUL MOTHER DAIRYMAHANANDA OTHE
GOKUL RS
57
7. Can you recall AMUL advertisement ?
Ad
recall
16%
ye
s
n
o
84%
Chart Title
Fair Poor
8% 0%
Excelle
nt 41%
Goo
d
51%
Results :
Over 62% people chooses pouch packets and total of 92% are satisfied with
dairy products.
Quality liked most, proceeded by taste , availability and price respectively.
Daily consumption of milk is up to 3 liters for over 65% ofpeoples.
Amul is preferred most by 74% and proceeded by Mother dairy(22%).
88% recalls the Amul tagline and over 84% recalls itsadvertisement.
Amul Gold purchased by 34% followed by Amul Taaza (46%).
Over 82% liked the service of Amul products.
58
CHAPTER: 5
ADVERTISING
59
Advertising
In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that "freedom
of choice" died in 2013, in opposition to the Supreme Court of India overruling the
judgment of the Delhi High Court and criminalising homosexuality again.
On 17 October 2016, Amul butter girl celebrated 50 years since she first appeared in the
topical ad titled "Thoroughbread". The ad showed a jockey holding a slice of bread
during the horse race season in 1966. The impish Amul girl had appeared for the first
time even before that, with Eustace Fernandez showed her offering bedtime prayers
with a wink and a lick of lips, saying "Give us this day our daily bread: with Amul
butter".
Their Ad on Aagey Badhta Hai India had an excellent response from the audience. It
basically spoke about how their Milk is seen as a household product with catchy tune
associated to it. It has over 39 lakh (~4 million) views on YouTube.
In February 2020, Amul posted a picture of the Amul girl treating Joaquin Phoenix with
butter after his academy award win for his role in the 2019 film, Joker
60
Amul posted a picture of its mascot Butter Girl celebrating with PV Sindhu for winning
the bronze medal in Tokyo Olympics in August 2021.
Nostalgia Amul
However, our love and connect with the brand Amul make us ruminate over it. A
native brand success story example-Amul. A Consistent Advertisement elevating
Brand Identity-Amul. The utterly butterly „Amul girl‟ is an icon of the middle
class India right from 1967. Woah! Do we have any other mascot that old?
The Amul girl is a hand-drawn cartoon of a young, chubby Indian girl dressed in a
polka dotted frock with blue hair and a half pony tied up. May be she is the reason
Polka Dots are never out of fashion in India!
Back then, brief provided by Amul was simple; „Draw a mascot which is easy to
paint in walls and outdoors‟. Huge outdoor print Advertisement was still to see the
billboards. The advertisement idea of Amul was conceived by an agency called
ASP (Advertising, Sales and Promotion) headed by Sylvester Da Cunha and his Art
Director Eustace Fernandez.
Although the content for the advertisement may be grave, yet Amul with its
humour punch establish their view and brand in a subtle way.
Even the media strategy of AMUL advertisement was clear, crisp and consistent.
61
was to be seen, now we can even see it in other newspapers as well.
In communications terminology, we call it a strategy to create expectations of
readers to find a particular kind of content in a particular place. Like we always
open the supplement of Hindustan Times, Brunch from the last page expecting the
fixed format short & interesting interview of a celebrity.
If you refer to image below, this is exactly the spot in the 3rd page of Hindustan
Times where you can expect an Amul advertisement.
62
Social Media Strategy Review: Amul
This review is a part of our „Social Media Strategy Review‟ series where we do a 360
degree analysis of a brand‟s entire social media activity. You can read the reviews of
more brands here.
When Verghese Kurien “Father of the White Revolution” reluctantly took the job at the
Government of India‟s experimental creamery at Anand, Gujarat very little he knew that
he will end up giving birth to Gujarat Co-operative Milk Marketing Federation
(GCMMF) and the brand Amul. Nor did he know that his contribution will give him the
honor of being the “Milkman of India”.
The brand Amul has since then travelled far and wide breaking traversing across many
boundaries, and creating and breaking many records. One such boundary that Amul
traversed across and made a new mark is marketing communication. The brand has
created a new standard in marketing communication. Has it done the same with the
social media, the new platform to engage audience? How Amul fares on this frontier is
what I am going to study in this article.
Amul the brand is consumed by all and loved by all, and the same holds true for its
marketing communication effort. The love for Amul‟s advertisements, in particular, and
the brand, in general is such that people from all age groups connect emotionally with
the brand (see the first image), though the fan page is skewed towards male audience
(see the second image), and not everyone talks positive about the brand.
Amul got a good deal of negativity going on social media, but the good thing is its
audience is vocal and not reticent. They express their feeling, which gives the brand an
opportunity to fix things that are wrong with it (see the third image).
63
16.73 R 13-20
21-30
31-40
a0 I
44 #
27.44 #
34 Female
65
64
Results Achieved by the company.
1. Without indulging in hardcore marketing/advertising, Amul has built an unbreakable
bond with its consumers especially Indians.
2. Mainstream marketing/advertising is not the only way to sell products, they become
hot property because of intelligent and updated business tools.
3. It is very important to have a distinctive feature like who doesn‟t know the famous
Amul girl. It was very easy for the brand to transfer their Amul girl from bygone era
to the current scenario and generate content.
4. As the population today vastly consists of youth, the brand has made itself highly
interactive on social platforms and this way their new products get a lot ofvisibility.
Learning
1. To be sellable and loved at the same time, the brand should keep
reinventing itself.
2. Mainstream marketing/advertising is not the only way to sell products, they become
hot property because of intelligent and updated business tools.
3. It is very important to have a distinctive feature like who doesn‟t know the famous
Amul girl. It was very easy for the brand to transfer their Amul girl from bygone era
to the current scenario and generate content.
4. Amul took an intelligent decision to spend less on advertising and more on distribution
of their products which made the brand very accessible. Always identify with your
brand‟s needs because in the end we all are here to make money.
65
CHAPTER:6
66
CHAPTER:6.1
AMUL
In the year 1946 the first milk union was established. This union was started with 250
liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union
was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS‟ UNION.
67
A quality control expert in Anand had suggested the brand name
“AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a
symbol of many things like of the high-quality products sold at reasonable prices, of the
genesis of a vast co-operative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven model for dairy
development (Generally known as “ANAND PATTERN”). In the early 40‟s, the main
sources of earning for the farmers of Kaira district were farming and selling of milk. That
time there was high demand for milk in Bombay. The main supplier of the milk was
Polson dairy limited, which was a privately privately owned company company and held
monopoly monopoly over the supply of milk at Bombay from the Kaira district. Kaira
district. This system leads to exploitation o This system leads to exploitation of poor and f
poor and illiterates‟ farmers by the private traders. The traders used to beside the prices of
milk and the farmers were forced to accept it without uttering a single word. However,
when the exploitation became intolerable, the farmers were frustrated. They collectively
appealed to SardarVallabhb SardarVallabhbhai Patel, who was a leading activist in the
freedom movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-operative union, Instead of supplying milk to private traders. Sardar
Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation andhelp.
Shri Desai held a meeting at Samarkha village near Anand, on 4 th January 1946. He
advised the farmers to form a society for collection of the milk. These village societies
would collect the milk themselves and would decide the prices at which they can sell the
milk. The district union was also form to collect the milk from such village co-operative
societies and to sell them. It was also resolved that the Government should be asked to
buy milk from the union However; the govt. did not seem to did not seem to help farmers
by any help farmers by any means. It gave the It gave the negative response by turning
down negative response by turning down the demand for the milk. To respond to this
action of govt., the farmers of Kaira district went on a milk strike.
68
Thus their cooperative unions were forced at the village and district level to collect
and sell milk on a cooperative basis, without the intervention of Government. Mr.
VergheseKurien showed main interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the
village level. The Kaira district milk producers union was thus established in
ANAND and was registered formally on 14th December 1946. Since farmers sold all the
milk in Anand through a co-operative union, it was commonly resolved to sell the milk
under the brand name AMUL. At the initial stage only 250 liters of milk was collected
every day. But with the growing awareness of the benefits of the cooperativeness, the
collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since
milk was a perishable commodity it becomes difficult to preserve milk flora longer
period. Besides when the milk was to be collected from the far places, there was a fear of
spoiling of milk. To overcome this problem problem the unio the union thought out to
develop develop the chi the chilling uni lling unit at various various junctions, junctions,
which would collect the milk and could chill it, so as to preserve it for a longer period.
Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected
from almost 1073 societies. With the financial help from UNICEF, assistance from the
govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to
manufacture milk powder and butter butter was planned. planned. Dr.RajendraPrasad,
the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal
Nehru, the prime minister of India declared it open at Amul dairy on November 20,1955.
VISION& MISSION
Amul‟s vision is to provide more and more satisfaction to the farmers, employees and
distributers.
MISSION.
“We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavour to satisfy
the taste and nutritional requirements of the customers of the world, through excellence in
69
marketing by our committed team. Through co-operative networking, we are committed
to offering quality products that provide best value for money.”
QUALITY INITIATIVES
The initiation of Total Quality Management (TQM) way back in 1994 was to work with
the well known quality management initiatives which have proven to be effective
elsewhere to create a culture of transparency, openness and leadership in the organization.
Realizing that with emerging competition, doing business would become more exciting
yet extremely competitive which would require at time not only a whole set of new skills
and competencies but quick adaptabi but quick adaptability to change without muc lity
to change without much stress or turbulenc h stress or turbulence. As a very unique
measure e. As a very unique measure Amul extended all the TQM initiatives to its
business partners whether it was the farmer producer in the villa producer in the village
or a wholesale distrib
70
Some of these awards are the Best Productivity Performance Awards for three
consecutive years from 1985 and Sustained productivity Performance Award in 1988-89
from National Productivity Council, Government of India, Indian Merchant s‟ Chamber
Award
- for Outstanding Performance in the field of R&D of Food Processing Industries Based
on Agricultural Products -1988, again Best Productivity Performance Awards 1994-99
from National productivity Council, G. D. Birla International Award - Outstanding
Contribution to Rural Upliftment , Sahkari Vikas Ratna Award – awarded on the
occasion of Indian Co-operative Centenary Celebration for the outstanding contributions
in the field of Dairy Co-operative movement in Asia – 2005, National Energy
Conservation Award – 2009 from Ministry of Power, Government of India.
PRODUCTION PROCESS:
Collection of Raw Milk: Raw milk is collected from different co-operatives of Gujarat.
About 12, 22,000 liters of raw milk is collected per day. Before this milk is sent to the
laboratory for testing the FAT & SNF proportion, the milk is separated from the raw milk.
The milk is taken from the chilling centers to Collection of Raw Milk Raw milk is
collected from different co-operatives of Gujarat. About 12, 22,000 liters of raw milk is
collected per day. Before this milk is sent to the laboratory for testing the FAT & SNF
proportion. Testing of raw milk : After collecting the samples of milk they are taken to
the laboratory where two types of test are conducted:
1). ELECTRONIC MILK TEST before pasteurizing the milk the samples are taken to the
laboratory. In the laboratory with the help of machine called electronic milktester,
the proportion of SNF & FAT is checked with ph proportion of SNF & FAT is checked
with phosphate osphate solution. When the color of the milk solution. When the color of
the milk becomes yellow, it is sent becomes yellow, it is sent for pasteurization. for
pasteurization.
2). METHYLINE BLUE REDUCTION TEST This test is conducted for checking for
how long the milk will remain fresh. To check this, 10 ml of milk is taken and 1 mlof
71
METHYL solution is added to it. It is then kept under water at 57 degree Celsius. After
one hour if the solution losses its color then it is called raw milk. If the solution remains
the same even after 5
hours than it is considered fresh milk, which remains constant for a long period of time
the dairy fixes the proportion of SNF & FAT. After laboratory gives green signal and
conforming the raw milk at reception dock is brought into the house connected with pump
is sent to the milk processing plant. This is then chilled below 4 degree Celsius and then
stored in the milk silos. After that milk is processed which has two steps: Pasteurizing and
Standardizing?
Pasteurizing and and standardizing To pasteurize the milk means to kill the germs in
the milk by a particular method w by a particular method which was invented b hich was
invented by a scientist called JAMES PASTE y a scientist called JAMES PASTEUR and
so UR and so the name pasteurization. In the pasteurization method the milk is first
heated at 72 degree c to 76 degree c for 15 seconds and then it is immediately cooled
below 4 degree c by this method they destroy the pathogenic bacteria present in the raw
milk. But if the right degree of temperature is not provided there are chances that milk
might contain germs. After this process some milk goes to s process some milk goes to
separator machine and eparator machine and remaining is proportio remaining is
proportionately sent for nately sent for standardization. Standardization process bifurcates
the milk in 3 categories varying according to the SNF & FAT contents. The equipment
named OSTA. Auto Standardization Adjusts the FAT directly. The computer is just
ordered whether gold or standard milk is to be rationed and the same will be received with
appropriate contents.
STORAGE: Then the milk is sent to the cold storage of the dairy where the milk is
stored until it is dispatched. Here the milk is stored is temperature ranging from 5 degree
c to 10 degree c, it is maintained with the help of exhaust fans having silicon chips. About
40000 liters of milk is dispatched from the cold storage of the dairy plant every day. The
damaged pouches are kept asid pouches are kept aside and the milk is once ag e and the
milk is once again put to the storag ain put to the storage tank.
73
PRODUCT EVOLUTION:
Amul Milk Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. Amul's genesis is linked to the
freedom movement in India. Sardar Vallabh bhai Patel, an eminent Indian freedom fighter
encouraged the dairy farmers from the Kaira district in Gujarat to form a cooperative to
counter the 'exploitatively' low prices offered for their milk by the monopoly milk
Supplier of the area, Polson's Dairy. The dairy farmers met in Samarkha (Kaira district,
Gujarat) on the 4th of January 1946, and decided to set up a milk producers' cooperative
that would deal directly with the Bombay government, the final buyer of their milk. This
was the origin of the Anandmodel. Initially, when the Bombay government r when the
Bombay government refused to deal efused to deal with the cooperative, th with the
cooperative, the farmers called a e farmers called a strike. The government finally
relented when Bombay went without milk for a fortnight. The successful union registered
itself as the Kaira District Cooperative Milk Producers' Union Ltd. (KCMPUL), Anand,
in Gujarat in December 1946. And so did GCMMF and brand AMUL establish
consequently. The main motto of Amul is to help farmers i.e. Milk producers. producers.
Amul system works ystem works under o under objective bjective of highest highest
possible possible compensation compensation to the milk the milk producers
an producers and lowest d lowest possible possible price to con price to consumers.
Farmer sumers. Farmer is paid is paid money in money in cash payment cash payment for
the milk. Milk gives them money for the daily necessities. Amul is the one who started
using their profits for the milk producers common good. Over the last five and a half
decades, Dairy Cooperatives in Gujarat have created an economic network that linksmore
than 3.1 million village milk producers with millions of consumers in India. These
cooperatives collect on an average 9.4 million liters of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless labourers
and include a sizeable population of tribal folk and people belonging to the scheduled
castes. The turnover of GCMMF (AMUL) during 2012 – 13 was 97.74 billion billion
(US$1.77 billion).
74
LOGO OF THE COMPANY
Logo of AMUL is a ring of four hands, which are co-coordinated each other. The actual
meaning of this symbol is co-ordination of hand of different people by whom this union is
now at top.
FIRST HAND: Is for farmers (producers), without whom the organization would not be
existed. Farmers are the inspiration of the AMUL-taste of India.
SECOND HAND: Is for the representatives of processors by whom the raw milk
processed in to different finished products.
THIRD HAND: Is for marketers without whom the products would not been able to reach
to the customers. FOURTH HAND: Is for customers without whom the organization
could not carry on because they are the p because they are the people who consume the
peoples who consume the products.
75
economic, national and human. Amul was also set up with some basic objectives to fulfil
including all social, economic, national and human objectives.
Human Objectives:
i) To help the villagers associated with Amul to sell their milk products
ii) To provide good working conditions to the employees
iii) To provide growth opportunities to the backward and unprivilegedvillagers
iv) To provide job satisfaction to the employees
Economic Objectives:
i) Expansion of distribution network.
ii) Creative and Unique marketing strategies.
iii) Optimum utilization of available resources.
iv) Creation and expansion of loyal customer base. Even though the basic
objective is not to make profit, some profits are still to be made so as to
survive and expand
76
MOTHER DAIRY
Mother Dairy was commissioned in 1974 and is a wholly owned subsidiary of the
National Dairy Development Board (NDDB). It was an initiative under Operation Flood,
the world's biggest biggest dairy development development program program launched
launched to make India a milk sufficient sufficient nation. nation. Over the years, Mother
Dairy has contributed significantly in achieving this objective through a series of
innovations and programs. Today, Mother Dairy manufactures markets & sells milk and
milk products including cultured products, ice creams, paneer and ghee under the Mother
Dairy brand. The Company also has a diversified portfolio with products in edible oils,
fruits & vegetables, frozen vegetables, pulses, processed food like fruit juices, jams, etc.
to meet the daily requirements of every household. The Company over the last many
years has created a market leadership position for itself in branded milk segment in Delhi
& NCR through through a robust network network of its booth and retail channels.
channels. It has also expanded expanded its reach to other regions in North, South, East
and West with its offering of Milk and Milk products products pegging pegging it
among it among the few the few companies companies to own such a vast chan vast
channel of distr of distribution ibution in India.
Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed to
uphold institutional structures that empower milk producers and farmers through
processes that are equitable. A significant portion of its income is ploughed back into the
value chain to support and maintain the system. Safal, F&V arm of Mother Dairy was the
first Company to organize the fruits and vegetables business in India. Today Safal is the
market leader in organized fruit & vegetable retail business in Delhi NCR and operates
the largest number of F&V Stores in Delhi NCR and has significant presence in
Bangalore. Safal was also the first brand in India to launch frozen vegetable in mid 90s.
Over the years, the brand has gained significant customer support and has become a
household brand with market leadership and presence across the country.
77
Safal also has a state of the art plant in Bangalore which produces and sells around 23000
MT of aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in
food processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has
a prominent prominent presence presence across 40 countries viz., USA; viz., USA;
Mother Dairy is also present into edible oils segment under the brand name Dhara which
was launched under the 'Operation Golden Flow' program of NDDB as a market
intervention program to address a larger cause of the Indian farmers & consumers. Trust,
Purity and Taste are the hallmarks of Dhara cooking oil. Europe, Russia, Middle East,
Asia and Africa and exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion,
etc.), Fruit Pulp & Concentrate, Frozen Fruits & Vegetables, etc. It has been a constant
endeavour at Mother Dairy to stay connected with its stakeholders. The corporate tag line
of the latest brand campaign - Happy Food Happy People - captures the essence of what
the Company stands for. Mother Dairy is committed to bring happiness to every
individual with its range offering pure, hygienic and adulteration-free high-quality
products which has been the strength, differentiator and heritage of the brand over years.
Mother Dairy has been recognized as the 2nd best in the FMCG Industry and has also
been ranked at 39th amongst India's Top 100 Best Companies to Work, in a study by
Great Place To Work Institute in association with the Economic Times for their annual
2015 survey. The corresponding ranking in 2014 was 62nd amongst the list of Top 100.
.
78
HISTORY
Mother dairy was set up in 1974 under the operation flood programming. It is know a
wholly owned company of the National Dairy Development Board (NDDB). Mother
markets and sells dairy products under the mother dairy brand like liquid milk, dahi, ice
cream, cheese and butter. butter. It is one of the largest largest liquid plants in Asia.
Completely Completely automate automate all function function of the milk processing
milk processing area ensures area ensures high quality, reliability, quality, reliability, and
safety. safety. Mother Dairy Mother Dairy sources its sources its entire requirement of
liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and
vegetables from farmers/growers associations.
Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of
Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66%
in the branded branded sector in Delhi where it sells 2.3 million million liters of milk
daily and undertakes undertakes its marketing operations through around 14,000 retail
outlets and 845 exclusive outlets of Mother Dairy.
The company sells milk products under the "Mother Dairy" brand. Safal is the fruit and
vegetable arm of Mother Dairy. It operates a large number of fruit and vegetable stores in
the NCR, and also has a significant presence in Bengaluru. Safal also has a plant in
Bengaluru, which produces around 23,000 MT of aseptic fruit pulp and concentrates
annually. It supplies to food processing companies such as Coca-Cola, Pepsi, Unilever,
Nestle, etc. Safal also has a presence across 40 countries viz., USA, Europe, Russia,
Middle East, Asia and Africa and exports Fresh Fruits & Vegetables (Grapes, Banana,
Gherkin, Onion, etc.), Fruit Pulp & Concentrate, Frozen Fruits & Vegetables, etc .Mother
Dairy is also present into edible oils segment under the brand name Dhara, which was
launched under the Operation Golden Flow program of NDDB.
79
VISION & MISSION
Vision - Provide quality food and beverages to consumers at affordable prices while
ensuring fair returns to the producers.
PRODUCT EVOLUTION:
Mother Dairy
Milk In this booming period Mother Dairy is looking to take advantage of the
opportunities which are in galore available for all milk manufacturers. Mother Dairy -
Delhi was set up in 1974 under the Operation Flood Program. It is now a subsidiary
company of National Dairy Development Board (NDDB). Mother Dairy sources its entire
requirement of liquid milk from dairy cooperatives
Mother Dairy milk (bulk vended) is fortified with vitamin A with 2000 IU per litre as
social accountability. This program started with the Mother Dairy, Delhi, in February
1980. Thereafter the dairy continues this program on their own without having any
financial assistance from the government since it is felt that BVM is generally consumed
by the middle/lower middle/poor population. It is found that the dietary practices adopted
by these classes are deficient in Vitamin A. Mother Dairy sources significant part of its
requirement of liquid milk from dairy cooperatives.
Processing of milk is controlled by process automation whereby state-of-the-art
microprocessor technology is adopted to integrate and completely automate all functions
of the processing areas to ensure high product quality, reliability and safety.
Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of
Delhi, Mumbai, Saurashtra and Hyderabad. They have a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets.
80
MARKETING MIX OF AMUL AND MOTHER DAIRY AMUL:
Product in the marketing mix of Amul
Amul has a 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 has a 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.
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.
81
prices keeping in mind the end customers. You may call these products costly, but the
cost has nothing to do with Amul‟s strategy. Remember that transportation costs as well
as storage and distribution costs are very high in FMCG. Thus, as the cost of
transportation, storage and distribution has increased over the years, so has the cost of
Amul products gone up. But considering their value for the average India consumer, these
products are still priced at an affordable rate.
82
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 naughtiest 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.
83
created a powerful distribution and sales network at a national level to achieve success in
its operations. Its source of liquid milk is the farmer-based organizations at village level
and dairy cooperatives.
The company has a huge infrastructure that includes a robust network of more than fourteen
hundred retail outlets and more than one thousand booths. As Mother Dairy deals with
perishables that need refrigeration it has a production facility for every region
84
MOTHER DAIRY:
STRENGTHS:
Strengths are defined as what each business does best in its gamut of operations which
can give it an upper hand over its competitors. The following are the strengths of Mother
Dairy:
Farmer support: The Company has the goodwill of the dairy and vegetable farmers in the
regions they operate in. This gives them the unending and relatively cheap supply of raw
materials.
Presence in multiple sectors: Mother Dairy deals with milk and milk products including
cultured products, ice creams, paneer and ghee under the Mother Dairy brand. Under the
label Dhara it sells edible oil and fruits & vegetables, frozen vegetables, pulses, processed
food like fruit juices, jams, etc under the label Safal. This helps the company to become
a popular name in the household of an average Indian.
High trust and goodwill: The Company has goodwill and trust in the minds of the
customer since the company has been supplying milk on a day to day basis. The
connection that the company has to the people at the grassroots level.
Satisfied customers: The Company has been deeply associated with Indians and thus have
a clear grasp of the Indian sentiments and the demands of the Indian customer in all their
product verticals.
Composition of the juice The juices have no artificial flavours and are completely rich in
vitamins and antioxidants. The Real Active which has no added sugars is also rich in fiber
and can be consumed even by diabetic patients. The brand also sells vegetable juices and
a combination of fruits and veggies.
WEAKNESS:
Weaknesses are used to refer to areas where the business or the brand needs
improvement. Some of the key weaknesses of other Dairy are:
Localisation: The market for milk is local essentially because of the perish ability of
the products. For example in Kerala there is Milma, in Karnataka there is Nandini and in
Tamil Nadu Tirumala Milk cooperative.
85
0Low per capita consumption of milk: Though India is the largest producer and consumer
of milk the per capita consumption of milk is low, and customers in addition to milk also
consume paneer, ghee, butter or curd in their day to day life. This makes it important for
dairy companies to have the presence in all these categories which are expensive for
the business.
Packaging: Most of the products that are dealt by Mother Dairy such as milk, ice creams,
vegetables etc are all perishable in nature and a lot of care and research has to be done on
the packaging that can make them last. There is also a need for use of technology in
packaging and storage.
Distribution costs: The products of Mother Dairy are perishable and thus needs freezers
and other paraphernalia for distribution. The areas covered are also minimal in terms of
expanse. This increases the cost of distribution heavily.
Opportunities:
Opportunities refer to those avenues in the environment that surrounds the business on
which it can capitalize to increase its returns. Some of the opportunities include:
High market potential for consumables in India: Most consumables have a high demand
in India and the growing population of India is creating more demand. The dairy market
alone is around 80,000 crores INR which is mammoth sized.
Favourable environment in India: The government is favourable towards agriculture and
the food processing industry has been able to receive a lot of perks as a result of this
focus.
THREATS:
Threats are those factors in the environment which can be detrimental to the growth of
the business. Some of the threats include:
Low barriers to entry: There are low or no barriers to entry in the food processing
industry and the competition is right from individual suppliers to conglomerates. This is
creating a lot of threats for Mother Dairy.
86
Competition: Some of the major competitors of Mother dairy include Amul, Brittania,
and Nestle etc.
OBJECTIVES OF THE STUDY: OBJECTIVES OF THE STUDY:
To perform the comparative analysis between Amul Milk and Mother Dairy Milk
to understand their marketing and positioning strategy
To study the current market position of Amul Milk and Mother Dairy Milk
To compare the marketing mix of Amul Milk and Mother Dairy Milk
To determine the consumer preferences of Amul and Mother dairy products with
the help of some parameters -quality, taste, price, packing style etc.
To identify various factors this motivates people to use Mother & Amul
dairy products.
30 30
87
PRICE RANGE OF PREFERRED BY THE CONSUMERS
0 RS.46 -
RS.55
RS.26 -
RS.45
RS.16 -
mother dairy amul
RS.25
< RS.15
SATISFACTIONS
0 10 20 30
LEVEL 40 50 60
OF RESPONDENTS
SATISFACTIONS
LEVEL OF
RESPONDENTS
50
45
40
35
30
25
20
15
10
5
0
HIGHL SATISFIED NEUTRAL DISSATISFIED HIGHLY
Y DISSATISFIED
SATISFI
ED amul mother dairy
88
CHAPTER:6.2
Parag Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a
wholly owned company of the National
Dairy Development Board (NDDB).
Parag Dairy markets & sells dairy
products under the Parag Dairy brand
(like Liquid Milk, Dahi, Ice creams,
Cheese and Butter), Dhara range of
edible oils and the Safal range of fresh
fruits & vegetables, frozen vegetables
and fruit juices at a national level through its sales and distribution networks for marketing
food items.
Parag Dairy sources significant part of its requirement of liquid milk from dairy cooperatives.
Similarly, Parag Dairy sources fruits and vegetables from farmers / growers associations.
Parag Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/
pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It
is Parag Dairy‟s constant endeavor to
(a) Ensure that milk producers and farmers regularly and continually receive market prices
by offering quality milk, milk products and other food products to consumers at
competitive prices and;
(b) Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.
At Parag Dairy, processing of milk is controlled by process automation whereby state-of-the-
art microprocessor technology is adopted to integrate and completely automate all functions
of the milk processing areas to ensure high product quality/ reliability and safety. Parag Dairy
is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization.
89
Parag Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Parag
Dairy.
The company‟s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Parag Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today boasts of
approximately 62% market share in Delhi and NCR. Parag Dairy also manufactures and
markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk,
Lassi & Flavored Milk and most of these products are available across the country.
The company markets an array of fresh and frozen fruit and vegetable products under the
brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than
20,000 retail outlets in various parts of the country. Fresh produce from the producers is
handled at the Company‟s modern distribution facility in Delhi with annual capacity of
200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in
Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a
100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international
market.
With increasing demand another state-of-the-art fruit processing plant has been set up at
Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also been
marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of
edible oils and is available across the country in over 2, 00,000 outlets. The brand is currently
available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined
Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.
Parag Dairy has also launched extra virgin Olive Oil under the Daroliva brand.
Parag Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to deliver
a range of delicious products and bring a smile on your face. In times to come, Parag Dairy
shall strive to remain one of India‟s finest food companies.
90
Consumer Perception towards Amul & Parag Dairy Products
Export Potential
India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close
to India.
Low Cost of Production : Milk production is scale insensitive and labour intensive. Due to
low labour cost, cost of production of milk is significantly lower in India
Concerns in export competitiveness are Quality: Significant investment has to be made in
milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be
imparted to improve the quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast
market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas
and other ethnic sweets to the large number of Indians scattered all over the world.
OBJECTIVE OF THE STUDY
Amul & Parag Dairy is the market leader of dairy based food products in Agra City. Amul is
the major competitors in the market against Parag Dairy. It is important to get an idea
regarding Amul‟s & Parag Dairy position in Agra City. It would not help Amul to capitalize
on existing potential but also to formulate strategies and to fill the look holes and gaps to
fight the competitive situation The Objective also contains:
o To determine the market share of Amul & Parag dairy based product.
o To determine the consumer preferences of Amul & Parag dairy product
with the help of some parameters -quality, taste, price, packing style.
o To compare the dairy product of Amul and Parag dairy on the basis of above
parameters.
91
Data Interpretation & Graphical analysis
30%
55%
15%
AMUL PARAG
OTHERS
Interpretation:
55 percent consumers use Amul & 30 per cent used others and last 15 percent consumer
used Parag dairy products.
20
%
YE
80 S
% NO
92
Interpretation:
80% Consumer satisfied with their products and 20 % consumer not satisfied their
products.
AMUL PARAG
80%
68% 70%
60%
40%
32% 30%
20%
Interpretation:
Amul Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand
preferred by consumer e.g. 68% Amul and 32% Parag. Price satisfaction with
consumer 70% Amul and 30% Parag.
93
Interpretation:
50per cent consumers demand for Amul dairy products & 30 per cent consumer
preferred others branded products and last 20 percent consumer preferred Parag
dairy products.
OTHERS
Interpretation:
All consumers Preferred with their product and some consumer change product Taste
by consumer Amul 80% and no20% and Parag with Preferred 45% and not Preferred 45%.
Price by consumer Amul 30% and no70% and Parag with Preferred 40% and not Preferred
60%. Packing by consumer Amul 25% and no75% and Parag with Preferred 75% and not
Preferred 25%. Quality wise Amul 15% and no 85% and Parag with Preferred 60% and not
Preferred 40%.
RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The method of study operate by
me is totally is to increase $ to gather the more information regarding this project.
The major emphasis in such studies is on the discovery of the ideas fruitful relevant
information. As such the research design appropriate for such studies must be flexible enough
94
to provide opportunity for considering different aspect of a problem under study.
I collected the information regarding this project through –
I. PRIMARY DATA
II. SECONDARY DATA
95
CHAPTER:7
QUESTIONNAIRE
96
01. How Amul is using the power of Marketing?
97
11. Number of consumer buying Amul products due to price, brand name, taste, purity and
quality?
12. Consumer percentage about Amul products then the other brands are liable at the same
quality they switch over?
13. Number of consumers which !ant more number of Amul booths to be set up your
locality?
15. Number of Consumers perception that Amul products are Worth the paid by them?
98
CHAPTER:8
CONCLUSION
99
CONCLUSION
Amul, the market leader in the Indian milk industry, had pioneered several progressive
initiatives and stayed current through continuous product development and knowledge of
consumer trends. No company in India had yet tapped into the camel milk market, and this
could give Amul a head start in an unexplored segment. The company needed to assess its
capabilities and competitors in India‟s booming dairy products market, where a growing
economy and increasing health awareness were pushing Indian consumers to look at healthier
nutritional options. Should Amul enter the promising camel milk segment to take advantage
of the evolving preferences of Indian consumers and the current industry and global trends?
Knowing that Indian consumers were as yet unaware of camel milk as a market product,
should Amul introduce the product exclusively for autistic and diabetic patients, or should the
company promote camel milk as a healthy variant for fitness- and health-conscious customers
in general? How would Amul leverage its substantial brand presence to overcome the
challenges faced in the launch and distribution of camel milk?
Amul has been ranked No. 1 brand by Campaign Magazine in its list of Top 1000 brands of
Asia. From struggling with the exploitation of middlemen to being every Indian household‟s
mandatory product, Amul has come a long way.
By creating amazing strategies that could touch every Indian‟s heart, Amul made its way
towards success. Subtle placements of „„Amul Girl‟ with current affairs and then posting the
same on every social media platform, Amul was able to create its strong presence in the minds
of the customers.
It has been gathering the attention of a lot of customers with the help of digital marketing and
has adapted consumer-friendly strategies. Considering this current global pandemic situation,
we all should act realistic and choose the online mode to market our product.
At the end, it has been concluded that Amul stands profitable at same time
competitive due to three strong practices namely Branding, matching supply and
demand and professional management. 125, NOIDA. namely Branding, matching
supply and demand and professional management.
100
Reference
www.google.com
www.wikipediya.com
www.amul.coop
www.mpcdf.com
www.amul.com
www.amul.com/organization.html
101