In this presentation I have covered 7Ps of Marketing Mix of Amul
1 Product
2 Price
3 Promotion
4 Place
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2. INTRODUCTION
AMUL also known as Anand Milk Union Limited, is an Indian cooperative dairy
company founded in 1946, Gujrat and is managed by Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF).
The founder of Gujarat Co-operative Milk Marketing Federation is Dr Verghese
Kurien and the current Chairman is Shri Shamalbai B. Patel.
Anyone, regardless of class, race, or gender, can be a member of the
cooperative formed under the Anand Pattern, however, they are required to
own a minimum of one cow or buffalo and are inclined on supplying milk.
Amul has been ranked number one in the list of top 1000 brands in Asia by
Campaign Magazine. Their main aim was to establish a co-operative based
society to cease consumer and farmer exploitation by the local milk cartels.
3. INTRODUCTION
Amul is definitely an “Amoolya” brand. Amoolya in Sanskrit means something
which is invaluable or priceless. With a presence in almost
every product which can be made by milk, Amul has won over hearts along
with market share to become a highly valued brand with an Indian origin.
Amul was formed because of a revolt of dairy farmers.
And today, Amul is a brand against which companies want to compete and
come on top but the same is not being allowed by the smart minds in Amul.
The reason Amul is such a strong brand is because of the marketing mix of
Amul. Here is an in depth analysis of the Marketing mix of Amul.
4. PRODUCT
Amul is one of the leading brands in milk products in India. Amul has a very
diverse product range in its marketing mix. It mainly involves all the available
dairy products. Amul uses the milk obtained from their primary source and
then turn it into different products after going through various process.
Amul has a strong product portfolio. Amul product range consists of Dairy
products. Some of the Cash Cow Products are Amul Gold Milk, Amul Dahi,
Amul cheese, Amul butter, and Amul Ice cream. Amul ice cream is ranked
among the top 5 brands of the country.
Consumption of Amul Paneer, Amul Milk, and Amul Dahi is increasing day by
day. Amul holds a market share of 26.2% in the packaged milk product
segment. Amul Chocolates are good in taste and also preferred by a large
population of the country.
5.
6. PRODUCT
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.
7.
8. PRODUCT
Bread spreads:
Amul butter, Amul Lite, delicious table margarine, unsalted butter, garlic butter & Amul
Cheese are the most popular bread spreads by the company.
12. PRODUCT
Other products:
Amul Ice cream, Paneer, Dahi, Ghee, Amul chocolates, fresh cream, pouch butter milk are
some of the other products which the company has widely diversified its product portfolio
in.
13.
14. PRODUCT
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 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.
15.
16. PRICE
Amul has a competitive pricing policy. Some might call it penetrative pricing.
But a penetrative pricing approach is used where the market has a high
degree of competition and the player seeks to position himself on the market
by providing products at lower prices.
However in the case of Amul, when Amul launched, there were no national
players and the dairy industry was unorganized. During the phase of launch
itself, Amul had a goal to provide end-customers with their goods at the most
reasonable prices. And the same vision is still in place today.
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.
17.
18. PRICE
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.
19.
20. PRICE
Today also, you will find that Amul butter, milk and cheese are available at
affordable 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.
21. PLACE
Amul has a large distribution network because its ice creams, milk, cheese,
and butter are found nearly everywhere. Amul distribution strategy is one of
the best distribution strategies of its kind.
As it is an FMCG commodity, Amul practices the process of splitting the bulk.
The initial production of the plant is in bulk. Later on, this volume gets
smaller and smaller, and then a single slab of butter or ice cream is sold at
the store site.
There are two separate networks by which Amul Delivery takes place. One is
the distribution channel responsible for the collection of milk by dairy
cooperatives. The other is the sales system responsible for delivering the
finalized product to end-users.
22.
23. PLACE
In the procurement channel, the milk is acquired separately from farmers and
transferred to cooperatives. The cooperatives then gather all this milk and
give the bulk to the Amul manufacturing plant. Milk is used at the production
plant to produce the finished goods.
Agents, manufacturers, suppliers and retailers are interested in the sales
channel. There are also Amul shoppers who sell all the product in the Amul
portfolio.
There indeed is a lot of transportation that lead to the final product
distribution, however, Amul doesn’t fail to deliver their products to every
corner of India.
24.
25. PROMOTION
Amul Girl is the center of attraction in the Promotion mix of Amul. Famous
Amul girl was a creative idea of Mr. Eustace Fernande. Amul hoardings
primarily feature recent happenings.
26.
27.
28. PROMOTION
The promotions of Amul are mainly for butter but for all the other products
there are hardly any promotions. During the launch of products, Amul is
known to go above the line and advertise milk, butter, etc. But overall, the
main advertisement is below the line through outdoor, trade promotions,
discount schemes and sales promotions.
The biggest possible reason for Amul’s exclusion from hardcore advertising is
that Amul does not want to give out margins in advertising its goods. As per
Amul, the overall advertising budget is 1% of the turnover. Over and beyond
that, the cost of the goods would have a significant effect. And the key
reason for Amul’s strong market position is its outstanding content combined
with an inexpensive price.
29.
30.
31. CONCLUSION
From combating the exploitation of middlemen to making it a mandatory product
in every Indian household, Amul has come a long way. Amul made its way to
success by devising an amazing strategy that could touch the minds of every
Indian.
Amul was able to build a strong presence in the minds of its customers by posting
it on various advertising locations with the “Amul Girl” and then on every social
media platform with current events.
Amul has indeed paved its way as one of the leading cooperative dairy product
sellers with all their continuous hard work, research and developments. They
know their target audience and strive to satisfy their demands.
The bottom line is that we love that an Indian brand like Amul has reached such
staggering heights and that we are a part of the time when such a white
revolution took place.
32. THANK YOU
SMIT GALA
ROLL NO – 13
BBA HONS – MM
FUNDAMENTALS OF MARKETING
ASSIGNMENT 1