SBM Project BRAND NAME- AMUL SUBMITTED BY- ANMOL (A50001923014) SUBMITTED TO- Dr. SUPRITI AGGARWAL OVERVIEW OF AMUL Amul is an acronym (Anand Milk Union Limited) of the Indian Multinational cooperative society named Gujarat Milk Marketing Federation based in Anand, Gujarat. It is under the ownership of Gujarat Cooperative Milk Marketing Federation Limited, Department of Cooperation, Government of Gujarat. It is controlled by 3.6 million milk producers. Here's an overview of AMUL as a brand: Product Range: While butter and milk are their staples, Amul offers a vast range of dairy products like cheese, yogurt, and ice cream. They've also broadened their horizon with chocolates, confectionery, and other food products. Cooperative Roots: Unlike most major dairy brands, Amul isn't a single, for-profit company. It's a cooperative, owned and controlled by the very milk producers who supply the milk. This focus on farmer well-being sets them apart. Strong Marketing & Advertising: Amul's marketing campaigns featuring the "Utterly Butterly Delicious" Amul girl are iconic in India. They've cleverly used topical events and social commentary to stay relevant and build a strong brand identity. Household Name: Amul is a trusted brand in India, synonymous with quality and affordability. Their extensive distribution network ensures their products reach every corner of the country. Social Responsibility: Amul empowers millions of milk producers, especially in rural areas, through their cooperative structure. They also actively promote milk consumption and healthy living habits. SWOT OF AMUL Strenght: Strong Brand Recognition: Amul is a household name in India, synonymous with trust and quality dairy products. Diverse Product Portfolio: Amul offers a wide range of dairy products catering to different consumer preferences, along with forays into chocolates and other food products. Extensive Distribution Network: Amul has a robust network reaching even remote areas in India, making their products easily accessible to consumers. Cost-Effective Pricing: Amul balances quality with affordability, allowing them to capture a significant market share. Innovative Marketing: Amul's "Utterly Butterly Delicious" ad campaigns are iconic and known for their social commentary, keeping the brand relevant and relatable. Weakness: High Operational Costs: Maintaining a vast distribution network and large processing facilities can lead to high operational costs for Amul. Limited Success in New Products: While Amul excels in dairy, some product diversification attempts haven't always been as successful. Dependence on Raw Milk Supply: Any disruptions in milk procurement from farmers can significantly impact Amul's production. Opportunities: International Expansion: Amul has the potential to leverage its brand image and expertise for further international expansion. Product Innovation: Developing new and innovative dairy products or exploring plant-based alternatives can cater to evolving consumer preferences. E-commerce Growth: Expanding their presence in the ecommerce space can tap into the growing online grocery market. Threats: Intense Competition: The Indian dairy market is becoming increasingly competitive, with both domestic and international players vying for market share. Rising Input Costs: Fluctuations in milk prices and the cost of other raw materials can squeeze Amul's margins. Growing Trend of Veganism: The growing awareness of plant-based diets could pose a challenge to Amul's core dairy business. Regulatory Hurdles: Changes in government regulations or quality standards can impact Amul's operations. BRAND EQUITY OF AMUL Amul has also secured the seventh spot on the list of the world’s most valuable dairy brands, with an impressive valuation of $3 billion. Amul is the largest FMCG brand in India with annual sales turnover of Rs 72,000 crores (US $ 9 billion) and an outstanding example of the power of the farmer’s cooperative movement. Amul boasts very strong brand equity, which essentially refers to the value and positive perception it holds among consumers. Here's a breakdown of what contributes to Amul's brand equity: Trust & Legacy: Founded in 1946 with a cooperative structure empowering farmers, Amul has a long and trusted legacy in India. Consumers associate the brand with quality, reliability, and a commitment to fair practices. Strong Brand Identity: The iconic "Utterly Butterly Delicious" Amul girl and their clever topical ad campaigns have made Amul a household name. This consistent brand image and relatable marketing have fostered a strong emotional connection with consumers. Product Quality & Affordability: Amul offers a wide range of dairy products known for their consistent quality. They manage to strike a balance between affordability and good quality, making them accessible to a large customer base. Social Responsibility: The cooperative structure empowers millions of milk producers, particularly in rural areas. This social responsibility aspect resonates with consumers who value ethical practices. Emotional Connect: Amul's ads often address social issues and current events, creating a sense of humor and relatability that goes beyond just selling products. This emotional connection strengthens brand loyalty. AMUL POSITIONING Amul's positioning in the market is multi-pronged, focusing on factors that resonate with Indian consumers: Value for Money: Amul has established itself as a brand offering high-quality dairy products at affordable prices. This caters to the price-sensitive nature of a large segment of the Indian market. Trust & Familiarity: Being a household name for decades, Amul is synonymous with trust and reliability. Consumers associate it with consistent quality and tradition. The Taste of India: Amul's marketing campaigns like the "Utterly Butterly Delicious" tagline have successfully positioned it as a brand representing authentic Indian taste. This resonates with a sense of national pride. Family-Oriented & Wholesome: Amul's products are portrayed as being perfect for families, promoting health and well-being. This image makes it a go-to choice for everyday consumption. Cooperative Model: Unlike many private companies, Amul's farmer-owned cooperative structure sets it apart. This positioning appeals to consumers who value ethical sourcing and supporting rural communities. BENEFIT LADDER OF AMUL Amul's benefit ladder goes from the basic features of their products to the ultimate benefit they provide to consumers. Here's how it climbs the ladder: Functional Benefits: Basic Level: Amul offers a wide range of dairy products like milk, butter, cheese, yogurt, etc. These products provide essential nutrients like calcium, protein, and vitamins. Emotional Benefits: Second Level: Amul's products are associated with qualities like good taste, purity, and freshness. Consuming them can evoke feelings of satisfaction, indulgence, and well-being. Social Benefits: Third Level: By choosing Amul, consumers are associating themselves with a trusted brand that promotes family values and a healthy lifestyle. Amul's association with the farmercooperative model adds an element of social responsibility. Core Value: Top Level: The ultimate benefit Amul offers is a sense of trust and reliability. Consumers know they're getting high-quality dairy products that are perfect for their families and contribute to a healthy life. This core value builds brand loyalty and strengthens Amul's position in the market. AMUL PORTFOLIO Amul boasts a wide portfolio of products, primarily focused on dairy but also venturing into other food categories. Here's a breakdown of their product offerings: Dairy Products: Core Products: This includes staples like Amul milk, buttermilk, various cheese varieties (including mozzarella and paneer), curd (both sweet and regular dahi), and ghee. Spreads: Amul offers a range of bread spreads, including butter, garlic butter, and peanut spread. Ice Cream: Amul ice cream is a popular choice in India, available in various flavors and formats. Beverages: Amul offers a range of beverages, including buttermilk variants (high protein, rose lassi, blueberry shake), fresh cream, and even camel milk. Other Products: Amul also offers products like yogurt (including flavored options), sour cream, whipping cream, and mithai mate (a condensed milk product for sweets). Beyond Dairy: Protein Products: Amul has a line of protein products catering to fitness enthusiasts, including whey protein and high-protein buttermilk. Chocolates: Amul chocolates are a popular indulgence, available in various forms like bars, tablets, and moulded chocolates. Frozen Snacks: Amul offers a range of frozen snacks like puff pastry sheets and pranthas. Bakery Products: They have ventured into bakery products with offerings like bread and rusks. Other: Amul also offers supplementary products like cattle feed and organic products. BRAND PROGRESS IN LAST 5 YEARS Amul has also secured the seventh spot on the list of the world’s most valuable dairy brands, with an impressive valuation of $3 billion. Amul is the largest FMCG brand in India with annual sales turnover of Rs 72,000 crores (US $ 9 billion) and an outstanding example of the power of the farmer’s cooperative movement. 2023: 550.55 billion INR 2022: 610 billion INR 2021: 530 billion INR 2020: 385.5 billion INR 2019: 329.6 billion INR MARKET SHARE Dominant Market Share: Industry estimates suggest Amul enjoys a leadership position in the Indian dairy market, with a market share likely exceeding 70% for some products like butter and cheese. Product Category Variations: The market share might vary depending on the specific dairy product category. For instance, sources suggest Amul holds a dominant share in butter (around 70-75%) and cheese (over 70%) but might have a slightly lower share in fresh milk (around 50%). AMUL BRAND ARCHITECTURE Amul's brand architecture can be described as a mixed approach, with elements of both a house of brands and a branded house strategy. Here's a breakdown: House of Brands Elements: Sub-Brands: Amul has several sub-brands under its umbrella, each catering to specific product categories or consumer segments. Examples include Amul Kool (ice cream), Amul Pro (protein products), Amul Mithai Mate (condensed milk), and Amul Chocolate. Independent Brand Identities: These sub-brands have distinct logos, packaging designs, and sometimes even marketing campaigns that differentiate them from the core Amul brand. This allows them to target specific needs and preferences. Branded House Elements: Strong Master Brand: The Amul brand itself is very strong and recognizable. It acts as an endorsement for all sub-products, leveraging its trust and reputation. Brand Consistency: There's still a sense of brand family across Amul's offerings. The sub-brands often incorporate elements of the core Amul brand identity, like the use of similar colour palettes or design elements in packaging. Benefits of Amul's Brand Architecture: Market Expansion: The sub-brands allow Amul to enter new product categories without diluting the core brand image. For example, Amul Pro caters to fitness enthusiasts, a segment Amul might not directly target with its core branding. Targeted Communication: Sub-brands enable Amul to tailor messaging and marketing campaigns to specific consumer segments, increasing effectiveness. Brand Strength: The strong master brand (Amul) provides a foundation of trust and reliability for all sub-products. SURVEY QUESTIONNAIRE QUESTIONS How long have you been associated with selling Amul products 0% 20% 40% less than 1year 1-3 years 3-5 years more than 5 years 40% On Average, How many products do you sell per week? 20% 20% Less than 50 50-100 20% 100-150 More than 200 40% In your opinion, What contributes most to the strength of AMUL's Brand Equity 33% 34% Product Quality Brand Loyality Vlaue of Money 33% Which aspects of AMUL's positioning strategy do you believe appeals most to your customers? 33% 34% Quality Of products Affordability Brand Image 33% What is the most popular Category of Amul Products Amoung Your Customers? 6% 14% Dairy Products Ice cream 55% 25% Beverages Other Products