AMUL

Sub title- Strategic Management

By: Pooja H Shah

Index
Introduction Product Variants  Business Model Business Strategy Marketing and Advertising Strategies Marketing Mix Market Segmentation Targeting and positioning Product Strategies Conclusion

79 million milk producers in Gujarat • Spurred the White Revolution of India. which has made India the largest producer of milk and milk products in the world. is a dairy cooperative movement in India.Introduction • Formed in 1946. • A brand name managed by Gujarat Cooperative Milk Marketing Federation(GCMMF) • Jointly owned by 2. .

• Has a 15% market share in the Rs 15. Australia. Hong Kong and a few South African countries • Fresh plans of flooding the markets of Japan & Sri Lanka. Bangladesh. Singapore. • Overseas markets .• Dr Verghese Kurien. China. .Mauritius. UAE. USA.000 crore milk category. and a 37% share in the Rs 900 crore organized ice-cream segment. former chairman of the GCMMF -the man behind the success of Amul.

Product Range 1. 15. 7. Milk UHT Milk Bread Spread Cheese Beverage Ice cream Paneer Dahi Ghee Chocolate Mithai 12. 13. 10. 5. 8. 6. 11. 14. 9. 2. 4. Mithai Mate Pouched Butter Milk Nutramul Milk Powders Recipies . 3. 16.

• Develop the supplier over the long term through social change .Objectives • Deliver profitable and equitable returns to a large number of farmers for a long period of time.

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Consumption level. > A low cost strategy products The distribution network >dry and cold warehouses >cash transactions throughout the supply chain Umbrella brand >Common brand for most product categories Third party service providers Logistics of collection .Amul’s Business Strategy Developing Demand > Limited Purchasing power.distribution and sale of dairy products .

Reasons Behind the success Robust Supply chain Low Cost Strategy Diversified product mix Sucess Strong distribution network Technology and E initiative .

Reasons behind success • High collection rate of milk • Required increasing membership with more village societies • Better Cattle management• Better milk yield • Ensure cost to farmers and high quality to customer at low prices .

 Incase of food product hygienic. 2) Value for money  Customers get more than what they pay. .M 1)Quality  No brand can survive long if it’s quality is not equal or exceed customer expectations.  Keep price fair & do best to ensure that retailers don’t gain at the expense of customer. bacteriological & organo elliptic standard ± main essence. taste.

 Amul has nation’s finest distribution network.Marketing and Advertising Strategies 3)Availability  Brand available when and where customers want. . 4)Service  Committed to total quality.

Marketing Mix Product • Dairy Products • Cooking Products Price • Low Pricing Strategy Place • Rural & Urban Market • International Market Promotion • Advertisements .

• Intelligent marketing of milk. . • Amul butter girl is one of the longest running ad campaigns in the country for 41 years. icecream and butter milk. GCMMF spends a mere 1% of its turnover on promotions.Intelligent Marketing • One of the most conservative FMCG entities.

and if Amul is really looking to capture the hearts of the second. pure ghee. Nutramul. Shrikhand.Expansion to foreign shores  GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. would make a lot of commercial sense.and thirdgeneration Indians. .  50 per cent of Americans being medically obese. packaged ready to eat foods market it can definitely expand its market to a large extent. Amul processed cheese. Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets. offering low-fat versions of its brands.  Hence targeting the large Indian community in the US markets with its niche products like mithai.

it is natural for a customer to try more products .Defense Strategy  Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages)  Being exposed to a brand.

Segmentation  Wide range of product categories caters to consumers across all market segments. For example. as it has a cool imagery associated with it. Amul Kool is targeted at children. while teenagers prefer Kool Café. .

which contributed 3% to the brand’s total turnover in year 2009. . with Amul Outlets or parlours to deliver consumers total brand experience • Launched in 2002. there are now over 4700 Amul parlours across the country.Targeting • Changing retail environment • Striking out on its own.

Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%). in order to improve availability of the product and make it affordable.Promotion • Given this wide product portfolio. • The focus shifted to cheese in 2001. • After ice-creams were launched in 1996. Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink . Amul’s approach is to promote its brands in a rotational cycle of two to three years. the category was re-visited in 1999.

Promotion  Uses a variety of media to communicate  Most famous is billboard campaign  The endearing polka dressed girl and pun at various issues increased brand’s fan following. .

 Slogan Likho Disneyland Dekho Contest . The recipe can be submitted on Amul’s website. which has been held for the last four year between October and December in about 50.000 retail outlets.  The Chef Of India contest invites people to come up with recipes using as many Amul products as possible.Promotion  Amul food festival.

Amul music ka maha mukabla .Promotion AMUL sponsored the Singing Competition AMUL Star Voice of India.

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Creams made Kwality walls life hell. Product Positioning Strategy Low price Amul Ice .Successful Product Strategy : 1.  Chocolate milk was launched ‘Amul Kool koko’ 2. Product Re-Positioning Strategy Jaldhara – Narmada Neer .

Product Elimination –  Eliminated Jaldhara – bottled water . Product Design Strategy –  Use of Utterly – Butterly Girl since 1967 5.Successful Product Strategy 3. Product Overlap Strategy –  Amul Processed Cheese Vs Cheese Spread  Nutramul Energy Drink Vs Amul Kool 4.

Successful Product Strategy 6. Snacks. Bread Spreads. Instant Food . Cheese Products  Non Dairy Products Egg: Veg Oils . Diversification Strategy –  Dairy Products Eg: Fresh Milk. Milk Drinks & Desserts.

: • • • • • BRITANIA NESTLE HUL CADBURY MOTHER DAIRY .

Butter  Britannia  Nestle Cheese  Britannia Baby Food  Nestle  Heinz Dairy Whitener Segment  Nestle  Britannia Ice creams  HUL  Kwality Chocolates & Confectionaries  Cadbury   Nestle Pizza  Pizza Hut   Dominos  Nirulas Frozen pizza  Curd   Nestle  Mother Dairy Ultra High Treated Milk   Nestle   Britannia Sweet Condensed milk Nestle Cottage Cheese (Paneer) Britannia Milk Additives Cadbury Smithkline Beecham Flavored Milk Britannia Nestle .

• There are a significant number of retailers who are currently stocking more than two brands. • There is ample scope in the low priced segment as also in other categories. .CONCLUSION • Amul has risen from Indian soil and it remains Indian in every sense. • Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.

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