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Credit Seminar on An Observation on AMUL,s product Marketing Management System

INTRODUCTION
The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is formed in the year 1946 a US$ 2.2 billion turnover institution (2010-11). It is a institution built up with a network of over 15,712 Village Co-operative Societies and 500,000 plus members Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today has 3 million milk producer members in India .

Amul is one of the largest producer of milk and milk products in the world. The chairman of the organization is Dr. V Kurien
Members: No. of Producer Members: No. of Village Societies: 13 district cooperative milk producers' Union 2.79 million 13,328

Total Milk handling capacity: 11.22 million litres per day Milk collection Total: Milk collection (Daily Average: Milk Drying Capacity: Cattlefeed manufacturing Capacity: 3.05 billion litres 8.4 million litres 626 Mts. per day 3500 Mts per day

AMUL PLANTS
1.First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk. 2.Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, and Amul lite. 3.Third plant is at Kanjari, which produces cattelfeed. 4.Fourth plant is at Khatraj, which is engaged in producing cheese.

BRAND ELEMENTS
Character / Mascot Name Logo

Brand Element
URL Jingle

Tagline/ Slogan

1. 2. 3. 4. 5.

6.

Keller Brand Elements Model Brand Name: Amul is the acronym of Anand Milk Union Limited. The Logo: The Tagline / Slogan: The taste of India The Jingle: Utterly, butterly, delicious ..Amul. The Character / Mascot: The Amul moppet has been the mascot of Amul since 1967, sporting a young girl in red polka dot frock with 'utterly butterly delicious jingle. The URL: www.amul.com

and the consumers. Farmers were the foundation stone of AMUL. state of art technology innovation and eco. The goal of AMUL is to provide maximum profit in terms of money to the farmers. the farmers. not for profit. The system works only for farmers and for consumers. the marketers. VISION Vision of AMUL is to provide and vanish the problems of farmers (milk producers).friendly delightment of customer and betterment of milk producer . QUALITY POLICY They have motivated and devoted work force who are committed to produce wholesome and safe foods of excellent quality to remain market leaders through deployment of quality management system. The AMUL apparition was to run the organization with cooperation of four main parties.MOTTO The main motto of AMUL is to help farmers. the representatives. The motto of AMUL is to provide quality products to the consumers at minimum cost.

5% fat Milk. Utterly Delicious Pizza Amul Gold Full Cream Milk 6% fat.Nutramul Energy Drink Cheese Range Fresh Milk UHT Milk Range Milk Powders Milk Drink . Amul Lite Slim-n-Trim Milk. Amul Shakti 3% fat Milk. Amul Processed Cheese Spread. Delicious Table Margarine Amul Pasteurized Processed Cheese. Amul Kool Chocolate Milk.Amul Emmental Cheese. Amul Pizza cheese .5% fat Milk.5% Fat. Sagar Tea and Coffee Whitener Amul Kool Flavoured Milk. Amul Cow Milk Amul Gold 4. Amul Taaza Toned Milk 3% fat. Amulspray Infant Milk Food.Product mix of Amul Breadspreads Amul Butter.Amul Kool Milk Shake. Amul Gouda Cheese. Amul Fresh Cream Amul Full Cream Milk Powder. Amulya Dairy Whitener. Amul Slim & Trim. Amul Kool Koko. Amul Shakti Standardised Milk 4. Sagar Skimmed Milk Powder. Amul Malai Paneer (cottage cheese). Amul Kool Café. Amul Taaza 1. Amul Lite.

Amul Chocozoo. Avsar Ladoos Sundae Range. Amul Fruit & Nut Chocolate.Curd Products Pure Ghee Sweetened Condensed Milk Mithaee Range (Ethnic Sweets) Ice-cream Chocolate & Confectionery Health Drink Brown Beverage Amul Masti Dahi (fresh curd). probiotic sugarfree Amul Milk Chocolate. Amul Yoghurt Amul Pure Ghee. Sagar Pure Ghee Amul Mithaimate Amul Shrikhand.Amul Lassee. Amul Masti Spiced Butter Milk. Amul Mithaee Gulabjamuns. Amul Bindass Stamina Instant Energy Drink Nutramul Malted Milk Food .

AMUL INDIA) SALES TURNOVER 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 RS (MILLION) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 US $ (IN MILLION) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172 .SALES TURNOVER FROM (1994-2011.

Distribution & Procurement Network .

Distribution & Procurement strategy Amul Strategy Collection Chain Supply Chain Storing the milk Weighing the milk Determination of the fat content Processing the milk Calculation of the purchase price Distributing the milk .

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The products are then sent to Wholesale Distributors (WD) and from there to the retailers. The products are then transporters to the company Depots located in various parts of the country.The Network Available in over 5 lakh outlets in a network of around 4000 distributors 47 depots with dry and cold warehouses to buffer inventory of all its products Milk is procured from the villages and collected at Village Cooperative Societies (VCS). from there the milk is taken to manufacturing units where the milk is processed into various products. .

downstream flow ‡ Procurement channel.upstream flow .The channel network ‡ Distribution channel.

Procurement Channel (Upstream flow) Distributors GCMMF Head office MU 1 MU...n VCS 1 VCS n Village 1 Village n .

Up-stream 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 to carry milk .

Distribution channel GCMMF Head office Manufacturing First leg Depot..n Downstream flow ....n Second leg WD 1 WD n Third leg Retail 1 Retail..1 Depot..

Down-stream flow own‡ 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 or bikes .

‡It enabled immediate payments to the farmer MILK-O-TESTER electronic weighing scale . ‡This system reduced time required for collecting the milk.Amul working to collect milk ‡AMUL introduced an electronic automatic milk collection system in 691 milk collection centres. ‡The system weighs the milk and measures its fat content at the time of delivery to the centre.

AMUL S BUSINESS GROWTH STRATEGY .

TWIN OBJECTIVES long-term. sustainable growth to its member farmers value proposition to a large customer base by providing milk and other dairy products at low price .

Product Development Strategy Amul-Cool (milk based cool drink) and Amul-Kool café Stamina the instant energy based sport drink has been launched packaged buttermilk is aimed to be another non-carbonated cool drink in the Amul Cool range .

000 `Amul Parlours' across the country ‡ Amul trying to acquire a shelf in the yet to come Wal-Mart.Market Penetration Strategy ‡ Amul is set to build up 10. .

Tazaa is the long-life version of milk which has a longer shelf life as compared to normal fresh milk. which is a variation of an existing product ‡ Amul is also increasing its market base for milk through a new version the Amul Tazaa.Market Development Strategy ‡ Amul is now shifting its focus from urban to rural markets and smaller towns. . ‡ Amul is capturing the market of diabetic and health conscious people through sugar free ice-cream.

Amul Sugarfree and Amul Profile  Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas. . matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.Diversification Strategy Concentric Diversification Strategy ‡ Introducing two pro-biotic ‡ Ice cream ranges.

.Conglomerate Diversification Strategy ‡ priced at only Rs 12 for 200ml which is lower than its competitors whose price ranges around 25 to 30 Rs.

Horizontal Diversification Strategy ‡ Newer products with newer technologies ‡ Order the food through the internet .

Developing markets for its high value products by graduating customer segments from low value products Demand growth strategy Maintaining a healthy level of customer base for its base products .

Improvement Programs ‡ Employees of the GCMMF meet every Friday between 10 to 11 am to discuss quality issues at a depot. . Agenda and Limit (PAL). ‡ Every meeting has a Purpose.

. all ensuring that the product reaches the consumer in time. supplying animal feed.Coordination ‡ GCMMF ensures the distribution of final products by coordinating with retailers and dealers ‡ Unions take care of the supply side of things such as monitoring milk collection. educational activities.

The Business Model .

. design and practices in AMUL s network are strongly driven by the objective of establishing and operating an efficient supply chain from milk production and procurement to product delivery to customers. Management of this network is built around two key elements 1.Use of appropriate technology that includes product.The strategy.Coordination of the diverse elements of the network and 2. process and information technology and managerial practices and systems.

Key elements of this TQM movement have been: Friday Departmental Meetings : Each Friday. operational and strategic capabilities in the entire network farmers. everyone in the network (from the farmers to the carry & forwarding agents) joins their respective departmental meeting to discuss quality initiatives and share policy related information. ISO/HACCP certification was obtained for all the Unions and each village society is in the process of obtaining the same.TQM (Total quality management) At the grassroots has been a strong movement to develop leadership. village cooperatives. Training for Transformational Leadership so that individuals are able to control their thoughts. feelings and behavior and take more responsibility in one s life and surrounding environment. Application of Hoshin Kanri principles to bring about a bottom-up setting of objectives aligning policies for effective management of Unions & village societies on hand with those of channel member on the other hand. at a prescribed time. distributors and wholesalers and retailers. dairy plants. .

000) to evaluate customer perceptions and distribution efficacy of their network.Training for farmers and their families emphasizing the need for good health care for not only cattle during its pregnancy and feeding but also for expecting and feeding mothers and the whole family. . Retail Census: GCMMF undertakes a census of all retail outlets (over 500. This information is used for policy deployment exercise. This effort has brought about a significant social change towards such issues in villages that have cooperative milk societies. This is being done by wholesalers in their respective territories at their own cost.

Promotional Activities .

‡Advertisement as per the situation: Amul focuses more and more on effective advertising.Advertisement strategy ‡ Emotional touch: Since 1967 amul product mascott has been the very recoginazable amul girl showing up on hoadrings and products wrappers with the equally recognizable tagline The utterly butterly delicious amul . They advertise their product to co-relate amul girl with current scenerio. Through this Amul Girl amul cerated emotional touch with the consumers. Some examples are: contd . .

Through all the events taking place in the country. It always remains up to date with current affairs. The first escalator in Mumbai in 1979 is celebrated with a slogan Automatically Amul When the city witnissed a power shortage. . the amul girl said take a cut for power. Amul always had a reply to it.

Amul ± Integrated Marketing Communication .

Communication Strategies: Amul mainly uses indirect action advertising to create a long term relationship with the consumer & never adopted aggressive selling practices. Consumer Advertising 2. Institutional Advertising . 1. Mainly two type of communication strategy was adopted by Amul.

Broadcast Media: Television 2. Print Media: Newspapers. General interest Magazines 4. Non Broadcast Media: Cinema.amul. CSR activities. Outdoor Media: Hoarding / Billboards .com 3. 1. 5. Internet or Social Media: Independent websites.Media Platform: Amul has used following medial platform for creating a high brand equity.tv. Portals.

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Brand mantra for Amul butter is given here. From this mental map AMUL define the brand Mantra. Healthy Reliable Traditional Sporty Youthful Brand Mantra: Youthful Cheerful Cultural Ethnic Family Oriented Fun Loving Fun Loving Cheerful Reliable Healthy .Mental Map to Brand Mantra ‡ Mental Map: A mental map is generally a visual depiction of the core brand association.

give the best quality product to consumer. Strategy of Umbrella branding has also helped established the brand firmly. . Amul¶s utterly butterly campaign is the longest running campaign. Taste of India tagline is in line with their positing strategy. at the best possible price. Sources of Brand Equity:  Not only the core values Core team associated with the brand is still the same helped them maintain consistency in communication.Brand Values & Brand Equity Brand Values: The core values of the company are: To provide remunerative returns to farmer. Playing the role of a social observer through its weekly comments amul girl.

Point of Comparison Points of parity  Product itself  Packaging (Size)  Cost Points of disparity  Quality  National Presence  First mover .

Exports .

‡ GCMMF is India's largest exporter of Dairy Products. . ‡ It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years.

Major Exported Products of AMUL ‡ Consumer Consumer Packs Milk Packs Life) Amul UHT (Long ± Amul Gold Extra Cream Milk ± Amul Amul Gold Extra Cream Milk Slim and Trim Milk Amul Milk Amul Taaza Full CreamPure Ghee Amul Mithaee Gulabjamun Amul Slim and Trim Milk Bulk Packs Amul Full Cream Milk Powder Amul UHT Milk (Long Life) ± Amul Taaza Full Cream Milk Amul Skimmed Milk Powder ± ± ± Amul Pure Ghee Amul Fresh Cream Amul Mithaee Gulabjamun Kool Beverages Amul Nutramul Brown Beverage ± Flavoured Milk ± Butter Milk Amul Fresh Cream ± Lassee Amul Kool Beverages Amulspray ± ± ± Flavoured Milk Amul Butter Amul Shrikhand Butter Milk Amul Cheese Lassee Nutramul Brown Beverage Amulspray Amul Butter Amul Shrikhand Amul Cheese Amul Malai Paneer Amul Ice Cream Amul Malai Paneer Amul Ice Cream Bulk Packs Amul Skimmed Milk Powder Amul Full Cream Milk Powder .

Major export Areas of AMUL Bahrain USA Afghanistan China Japan Nepal Qatar Bangladesh Hong Kong UAE Kuwait Thailand Philippines Sri Lanka Singapore Kenya Malaysia Australia New Zealand .

Major competitor of AMUL product Amul Mother dairy others % of market share 30 55 15 .

AMUL INICIATIVE IN DEVELOPING RURAL RETAILING Insurance against natural calamities Establish telecenters and enhance technology in villages To charge for each service provided to the supplier To purchase all milk that member farmers produced To sell liquid milk at affordable prices so as to serve a large number of consumers To develop and deliver services that will improve lives of people in the network To hire professional managers. to run the federation and unions. whose values included upliftment of rural poor. .

SWOT ANALYSIS Technical manpower Demand Margins Problem in distribution Perishability Competition Flexibility in market Export potential Milk vendors Competition .

SWOT Indian origin creating feeling of oneness in the mind of the customers. manufactures only milk and milk products purely vegetarian providing quality confidence aiming at rural segment large area of loyal customers .

Thank you .