Amul

THE COMPANY
• Amul means priceless in Sanskrit
• Since 1946
• Market leaders for Amul butter
• Turnover of 25 billion
 MAN BEHIND AMUL

•Dr Verghese Kurien, the Chairman of

the GCMMF, based in the in Anand
town of Gujarat, India.

•Verghese Kurien’s Amul experiment

in Gujarat soon blossomed into the
much larger Operation Flood, spread
over 23 states, 170 districts and
90,000 village cooperatives.
PRODUCTS
 NETWORK
• Available in over 5 lakh outlets
• Around 4000 distributors
• 47 depots
•10000 village cooperative societies
• Aproxx. 4,50,000 retailers spread all over India
•The milk procured per day is 5 million
liters
•Where the total capacity of operation is 7
million liters per day
•The peak processing till date has been 6
million liters per day
PRODUCTION PROCESS
1) Collection of Raw Material

2) Pasteurizing & Standardizing

3) separation process

4) Quality check

5) Packaging

6) Storage
 SUPPLY CHAIN AT AMUL

Out of the entire milk procured,

approximately 40 per cent is sold as liquid
milk and 60 per cent is converted to value
added products.

GCMMF = Gujarat Co-operative Milk Marketing Federation; 

MUs = Member Unions; VCs = Village Co-operatives.
 THE CHANNEL NETWORK

• Distribution channel- downstream flow

• Procurement channel- upstream flow

 DOWNSTREAM FLOW
• FIRST LEG
• Manufacturing units to company depots using 9 and 18
MT trucks
• Frozen food-below 18C
• Dairy wet-0-4C
• SECOND LEG
• Depots to WDs
• Transport through insulated 3 and 5 MT TATA 407’s
• THIRD LEG
• WDs to retailers
• Transport through rickshaws according to the best plan
 UPSTREAM FLOW

• Milk is taken to VCS by farmers by bicycles

• Transportation of milk from the co-operatives

to the manufacturing units through trucks
equipped with tankers equipped to carry milk
PRODUCT
 PRICE
• Amul adopted a low-cost price strategy to make its
products affordable and attractive to consumers .

• Amul introduces its products is consistent with the core

philosophy of providing products at a basic, affordable price
to appeal the common masses. For eg. This helped AMUL
BUTTER to create its brand image in the household sector
of the society.

Rs 87 Rs 18
 PLACE
• GCMMF is India's largest exporter of Dairy Products.

• It has received the APEDA Award from Government of India for

Excellence in Dairy Product Exports for the last 9 years..

• Besides India, Amul has entered overseas markets such as Mauritius,

UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few
South African countries.
 PROMOTION
INITIAL PROMOTIONAL STRATEGY

The butter, which had been launched in 1945, had a staid,

boring image, primarily because the earlier advertising agency.

LATER STAGE

However, in 1966, a man named Sylvester daCunha, from the

ad agency of ASP, took over the Amul account. After this the
country saw the birth of a campaign whose charm has endured
fickle public opinion, gimmickry and all else.
MARKETING OF AMUL
 The moppet who put Amul on India's
breakfast table

50 years after it was first launched, Amul's

sale figures have jumped from 1000
tonnes a year in 1966 to over 25,000
tonnes a year in 1997. No other brand
comes even close to it. All because a
thumb-sized girl climbed on to the
hoardings and put a spell on the masses.
For 30 odd years the Utterly Butterly
girl has managed to keep her fan
following intact. So much so that the
ads are  now ready to enter the
Guinness Book of World Records for
being the longest running campaign
ever.
 Amul "Utterly Delicious" Parlours

Amul has recently entered into direct

retailing through "Amul Utterly
Delicious" parlours created in major
cities Ahmedabad, Bangalore,
Baroda, Delhi, Mumbai, Hyderabad
and Surat. Amul has plans to create a
large chain of such outlets to be
managed by franchisees throughout
the country. AMUL created Amul
Parlours at some prominent
locations in the country, which are
run by the company or its wholesale
dealers.
 MARKETING STRATEGIES

4 MAIN STRATEGIES

• First is quality

• Second, it is value for money

• The third element is availability

• The fourth part is service

HENCE….