5. INTRODUCTION
Formed in 1946, is a dairy cooperative movement in India.
A brand name managed by Gujarat Co-operative Milk
Marketing Federation(GCMMF)
Jointly owned by 2.79 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.
6. INTRODUCTION
Overseas markets -
Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong
and a few South African countries
Fresh plans of flooding the markets of Japan & Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF -the man behind the
success of Amul.
Has a 15% market share in the Rs 15,000 crore milk category, and a 37%
share in the Rs 900 crore organized ice-cream segment.
7. BUSINESS MODEL
Amul followed a unique business model. "Anand
pattern" cooperative system
Every day Amul collects 8.4 million liters of milk from
2.79 million farmers (many illiterate), converts the
milk into branded, packaged products, and delivers
goods to over 500,000 retail outlets across the
country.
8. AMUL GROWTH
Sales Turnover Of 1505 million US dollar in 2008-2009
Sales US $ (in million)
1600
1400
1200
1000
Sales US $ (in million)
800
600
400
200
0
9. THE MARKETING MIX
Product Price
• Dairy Products • Low Pricing
• Cooking Products Strategy
Place Promotion
• Rural & Urban Market • Advertisements
• International Market
10. Intelligent Marketing
One of the most conservative FMCG
entities, GCMMF spends a mere 1% of its
turnover on promotions.
GCMMF has written and re-written rules of
the game.
Amul butter girl is one of the longest
running ad campaigns in the country for 41
years.
Intelligent marketing of milk, icecream and
11. EXPANSION TO FOREIGN
SHORES
GCMMF had signed an agreement with Wal-Mart to stock its
shelves with products under its Amul brand name. Amul
processed cheese, pure ghee, Shrikhand, Nutramul, Amul's
Mithaee Gulab Jamuns are few of the products marketed in the
US markets.
50 per cent of Americans being medically obese, and if Amul is
really looking to capture the hearts of the second- and third-
generation Indians, offering low-fat versions of its brands, would
make a lot of commercial sense.
Hence targeting the large Indian community in the US markets
with its niche products like mithai, packaged ready to eat foods
market it can definitely expand its market to a large extent.
12. 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, it is natural for a
customer to try more products
13. Segmentation
Wide range of product categories caters to
consumers across all market segments.
For example, Amul Kool is targeted at
children, while teenagers prefer Kool
Café, as it has a cool imagery associated
with it.
14. Targeting
Changing retail environment
Striking out on its own, with Amul Outlets or
parlours to deliver consumers total brand
experience
Launched in 2002, there are now over 4700
Amul parlours across the country, which
contributed 3% to the brand’s total turnover in
year 2009.
15. Promotion
Given this wide product portfolio, Amul’s
approach is to promote its brands in a rotational
cycle of two to three years.
After ice-creams were launched in 1996, the
category was re-visited in 1999, in order to
improve availability of the product and make it
affordable.
The focus shifted to cheese in 2001, Amul Masti
Chaas in 2004-05 (sales of Masti dahi grew by
25%), Nutramul and Kool Kafe in 2006 and this
year the focus is on Amul Koko — cold
chocolate drink
16. 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.
17. Promotion
Amul food festival, 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. The recipe can be
submitted on Amul’s website.
Slogan Likho Disneyland Dekho Contest
18. Promotion
Amul Maharani contest: in this contest
questions about Amul are asked
19. Promotion
AMUL sponsored the Singing Competition
AMUL Star Voice of India, Amul music ka
maha mukabla
20. SUCCESSFUL PRODUCT STRATEGY:
1. Product Positioning Strategy-
Low price Amul Ice - Creams made Kwality
walls life hell.
Chocolate milk was launched ‘Amul Kool koko’
2. Product Re-Positioning Strategy-
Jaldhara – Narmada Neer
21. SUCCESSFUL PRODUCT STRATEGY:
3. Product Overlap Strategy –
Amul Processed Cheese Vs Cheese Spread
Nutramul Energy Drink Vs Amul Kool
4. Product Design Strategy –
Use of Utterly – Butterly Girl since 1967
5. Product Elimination –
Eliminated Jaldhara – bottled water
24. Butter Chocolates & Sweet
Britannia
Confectionaries Condensed
Nestle
Cadbury milk
Nestle Nestle
Cheese
Britannia
Pizza Cottage Cheese
Pizza Hut (Paneer)
Baby Food
Dominos Britannia
Nestle
Nirulas Frozen pizza Milk Additives
Heinz
Dairy Whitener Segment
Curd Cadbury
Nestle
Nestle Smithkline
Mother Dairy Beecham
Britannia
Ice creams
Ultra High Treated Milk Flavored Milk
Nestle
HLL Britannia
Britannia
25. CONCLUSION
Amul has risen from Indian soil and it remains
Indian in every sense.
There is ample scope in the low priced
segment as also in other categories.
There are a significant number of retailers who
are currently stocking more than two brands.
Amul has the opportunity to capture the more
evolved young adults and children who are
open to new products provided they meet their
expectations.
Amul followed a unique business model, which aimed at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who were its suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was not sold before the end of the day.The cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came to be known as the "Anand pattern" cooperative system. It was a three-tier structure that comprised village societies, district level dairy unions and a state level federation.
High profile locations: Amul parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat.
So Amul can overcome it as earlier it had to overcome this problem in the Mumbai market. Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. Amul should direct its resources towards cashing in on Walls market development.