PROJECT REPORT
ON
M.COM IV SEM- MARKETING MANAGEMENT
Session- 2020-2021
THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Submitted To:
Submitted By:
Dr. Amrita Sahu
Tarun Giri
Associate Professor
Department of Commerce
Roll no.: 19103054
CERTIFICATE FROM THE PROJECT GUIDE
This is to certify that the Project Report titled “Amul The taste of India” is a bonafide work of
Tarun Giri enrolment number 192389 undertaken for the partial fulfilment of Masters in
Commerce (M.Com) degree of Barkatullah University under my guidance. This project work
is original and has not been submitted earlier for the award of any degree or diploma of any
other University or Institution.
Signature of the Guide
Dr. Amrita Sahu
Associate Professor
Department of Commerce,
BSSS, Bhopal
DECLARATION
I Tarun Giri son of Vijay Giri certify that the project report entitled on “Quantitative
analysis of Amul the taste of India”, prepared by me is my personal and an authentic work
under the guidance of Dr. Amrita Sahu, Associate Professor, Department of Commerce.
Date: 15/06/2021
Signature of the Student
Place: BHOPAL
Name: Tarun Giri
Class: M.COM (IV SEMESTER)
Roll Number: 19103054
FMCG (Fast Moving Consumer Goods):- Industry Overview
o Indian FMCG sector size poised to reach US$ 47 bn by 2013 and US$ 74
bn by 2018, growing annually at 10-12%.
o By 2025, total consumption is likely to quadruple making India the 5th
largest consumer market.
o Organized retail is expected to grow by 14-18% by 2015 thereby boosting
FMCG growth.
o Indian rural market currently worth US$ 9 bn is expected to become a US$
100 bn opportunity by 2025.
o Indian FMCG industry worth US$
29 bn roughly constitutes 2.2% of
India‘s GDP. Within the FMCG
sector, Food products are the largest
consumption category.
o Strategic focus on rural marketing,
innovations,
niche
consumer
segments, exports.
o Life style products to further the
current 10% annual sector growth.
GROWTH DRIVERS
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•
•
•
•
•
Increasing disposable income
Growth in organized retail
High consumer confidence
Well established distribution network
Consumer receptiveness to innovation
Rapid urbanization and changing lifestyles
CHALLENGES
• Diverse consumer preferences
• Increasing competition
• Rising logistics, procurement costs
• Ability to win rural consumers
DAIRY INDUSTRY IN INDIA
India has been the leading producer and consumer of dairy products worldwide
since 1998 with a sustained growth in the availability of milk and milk products.
Dairy activities form an essential part of the rural Indian economy, serving as an
important source of employment and income. India also has the largest bovine
population in the world. However, the milk production per animal is significantly
low as compared to the other major dairy producers. Moreover, nearly all of the
dairy produce in India is consumed domestically, with the majority of it being
sold as fluid milk. On account of this, the Indian dairy industry holds tremendous
potential for value-addition and overall development. According to the latest
report by IMARC Group, titled “Dairy Industry in India 2021 Edition: Market
Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement
and Distribution”, the dairy market in India reached a value of INR
11,357 Billion
in
2020.
Along with offering profitable business opportunities, the dairy industry in India
serves as a tool of socio-economic development. Keeping this in view, the
Government of India has introduced various schemes and initiatives aimed at the
development of the dairy sector in the country. For instance, the “National Dairy
Programme (Phase-I)” aims to improve cattle productivity and increase the
production of milk expanding and strengthening and expanding the rural milk
procurement infrastructure and provide greater market access to the farmers. On
the other hand, the private participation in the Indian dairy sector has also
increased over the past few years. Both national and international players are
entering the dairy industry, attracted by the size and potential of the Indian
market. The focus is being given to value-added products such as cheese, yogurt,
probiotic drinks, etc. They are also introducing innovative products keeping in
mind the specific requirements of the Indian consumers. These players are also
improving their milk procurement network which is further facilitating the
development of the dairy industry in India. Looking forward, the Indian dairy
market is expected to exhibit strong growth during the next five years.
KEY FACTS
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•
•
•
65 per cent of the milk is sold in “loose” form
Only 5 per cent of the milk is sold through retail chains
70 per cent is delivered to the homes by ‘milk agents‘
Carton milk or packaged milk has been growing at 24Per cent annually
• Most branded FMCG companies are keen on launching flavoured dairy
products whose market size is pegged at US$ 166 million
MAIN PLAYERS
Milk products- Amul, Mother Dairy, Britannia, Vijaya, Verka and Vadilal
Cheese products- Amul, Britannia, Dabur (Le Bon) are the leading
players. Other prominent players include Verka, Nandini, Vijaya and
Vadilal
Dairy Whiteners- Nestle, Amul, Britannia, Dynamix Diary, Sterling
Agro, Haryana Milk Foods, Mohan Food, Modern Dairy, Mother Dairy
PORTER COMPETITIVE ANALYSIS
• Threat of competition is high as there are no entry barriers and
consequently there are many brands and local players making up the
competitive rivalry
• Threat of substitutes is low as milk is an essential item for beverages like
tea, coffee etc. Also traditional consumption habits make milk a favourite
with most households in India
• Bargaining power of suppliers is low because suppliers mainly comprise
rural households and small co-operatives
• Bargaining power of consumers is high because of competition in the
organized sector and large unorganized market in rural areas.
AMUL
The Taste of India
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all
meaning "priceless", are found in several Indian languages. Amul products have
been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder,
Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand,
Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading
food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a
symbol of many things. Of high-quality products sold at reasonable prices.
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 magical spell on the masse.
AMUL stands for,
A = Anand
M = Milk
U = Union
L = Limited
Anand milk union ltd. is based on four
hands, which are coordinated with each
other. The actual meaning of this symbol
is co-ordination of four hands of different
people by whom this union is at the top
position in Asia.
• First hand is of farmers, without
whom the organization would not have existed.
• Second hand is of processors, who process the row material (milk)into
finished goods.
• Third hand is of marketer, without whom the product would have not
reached the customers
• Fourth hand is of customers, without whom the products would have not
carried on.
BASIC INFORMATION
Company Name: Amul India (Gujarat Co-operative Milk Marketing Federation
Ltd.)
Business Type: Manufacturer
Product/Services: Infant Milk Food, Skimmed Milk Powder, Butter, Cheese
(Cheddar, Mozzarella, Emmental, Gouda), Cheese spreads, Ghee, Condensed
Milk, Chocolates, malted milk food, Breadspreads, fresh milk, UHT milk, Icecream.
Address: Amul Dairy Road
Number of Employees: 501 - 1000 People
URL: http://www.Amul.com
OWNERSHIP & CAPITAL
Year Established: 1973
Representative/Business Owner: B M Vyas
Trade & Market
Main Markets: North America, South America, Western Europe, Eastern Europe,
Eastern Asia, Southeast Asia, Mid East Africa Oceania
Total Annual Sales Volume: Above US$100 Million
BRIEF HISTORY OF AMUL
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative
movement in India. It is a brand name managed by an apex cooperative
organization, Gujarat Co-operative Milk Marketing Federation Lt. (GCMMF),
which today is jointly owned by some 2.6 million milk producers in Gujarat,
India.
AMUL is based in Anand, Gujarat and has been a sterling example of a cooperative organization's success in the long term. It is one of the best examples
of co-operative achievement in the developing world.
"Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially
the highly successful one known as AMUL, will naturally wonder what
combination of influences and incentives is needed to multiply such a model a
thousand times over in developing regions everywhere.”
The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made
India the largest producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand
with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6
million producer members with milk collection average of 10.16 million litres per
day. Besides India, Amul has entered overseas markets such as Mauritius, UAE,
USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South
African countries. Its bid to enter Japanese market in 1994 had not succeeded, but
now it has fresh plans of flooding the Japanese markets. Other potential markets
being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man
behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.
AMUL : THE ORIGIN
The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges ofthe
Himalayas. Similar is the story of Amul which inspired Operation Flood and
heralded the 'White Revolution' in India. It began with two village cooperatives
and 250 litres of milk per day, nothing but a trickle compared to the flood it has
become today. Today Amul collects processes and distributes over a million litres
of milk and milk products per day, during the peak, on behalf of more than a
thousand village cooperatives owned by half a million farmer members.
THE START OF REVOLUTION
The revolution started as awareness among the farmers that grew and matured
into a protest movement and the determination to liberate them. Over four
decades ago, the life of a farmer in Kaira District was very much like that of his
counterpart anywhere else in India. His income was derived almost entirely from
seasonal crops. The income from milch buffaloes was undependable. The
marketing and distribution system for the milk was controlled by private traders
and middlemen. As milk is perishable, farmers were compelled to sell it for
whatever they were offered. Often, they had to sell cream and ghee at throwaway
prices. In this situation, the one who gained was the private trader. Gradually, the
realization dawned on the farmers that the exploitation by the trader could be
checked only if marketed their milk themselves. In order to do that they needed
to form some sort of an organization. This realization is what led to the
establishment of the Kaira District Cooperative Milk Producers' Union Limited
(popularly known as Amul) which was formally registered on December 14,
1946. The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in
June 1948. An assured market proved a great incentive to the milk producers of
the district. By the end of 1948, more than 400 farmers joined in more village
societies, and the quantity of milk handled by one Union increased from 250 to
5,000 litres a day.
AMUL’S SECRET OF SUCCESS:
The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to market the
production enhancement package. What's more, it does not disturb the agro
system of the farmers. It also enables the consumer an access to high quality milk
and milk products. Contrary to the traditional system, when the profit of the
business was cornered by the middlemen, the system ensured that the profit goes
to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere. Amul has been able to:
• Provide a support system to the milk producers without disturbing their
agroeconomic systems.
• Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par
excellence, of an intervention for rural change.
• Bring at the command of the rural milk producers the best of the technology
and harness its fruit for betterment.
• Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles and
limitations.
• Plough back the profits, by prudent use of men, material and machines, in
the rural sector for the common good and betterment of the member
producers and. The Union looks after policy formulation, processing and
marketing of milk, provision of technical inputs to enhance milk yield of
animals, the artificial insemination service, veterinary care, better feeds
and the like - all through the village societies. The village society also
facilitates the implementation of various production enhancement and
member education programs undertaken by the Union. The staff of the
village societies has been trained to undertake the veterinary first-aid and
the artificial insemination activities on their own.
THE WINNING EDGE
Three aspects of India‘s modern dairy sector are particularly note worthy.
VAST MARKET
In Indian context there is vast market available. It‘s focus is the increasingly
affluent middle class, numbering more than 300 million which is confined to
well-defined urban pockets & is easily accessible. Milk occupies pride of place
as the most coveted food in the Indian diet, after wheat & rice. Milkbased sweets
are a culinary delight in all homes throughout the year
CO-OPERATIVE SYSTEM
The milk production is pre-dominantly rooted in the co-operative system. Its
focus is on the small rural farmers having one or two cows/buffaloes yielding 35 litres of milk per animal. This system is the basis of Operation Flood, the
world’s largest dairy movement program.
PROFITABLE MARKETING
The preferred dairy animal is the buffalo. Some 65 % of the world buffalo milk
is produced in India. Value for its high fat content is 7% w.r.t. 3.5% that of cow.
It is also high in calcium, phosphorous, lactose & proteins. Thus Buffaloes milk
is the delight of the milk processing for its
more profitable handling.
Amul was formed on Dec. 14, 1946 by an apex co-operative organization, Gujarat
Co-operative Milk Organization ( GCMMF ). Amul based in Anand, Gujarat has
been a sterling example of a co-operative organization‘s success in the long run.
It was suggested by quality control experts. Amul has spurred the Operation
Flood of India, which has made India the largest producer of milk & milk
products in the world.
Dr. Verghese Kurien former chairman of the GCMMF is recognized as the man
behind the success of AMUL. On 10 August 2006 Parth Bhatol was elected
chairman of GCMMF.
Amul is an embodiment of faith in the ability of our farmers to break the shackles
of poverty & to create a socio-economic revolution in rural India. Through the
‘Anand Pattern‘, our farmers demonstrated to the world, the key to successful
‘Management Of Development‘. Anand Pattern is an innovative three tier
structure combines the hard working farmers with professional management &
modern technology.
Slowly & gradually Amul has also expanded its distribution network across the
country. Currently, there are 3,500 distributors for value added milk products &
1800 distributors for fresh milk to ensure that Amul products are available to all
segments of consumers in India through more than 20 lakhs outlets. GCMMF has
expanded its network to more than 4,000 parlors across various towns & cities of
the India.
MISSION
After achieving the new milestone of Rs.6,700 crores, now Amul has set new
mission. Federation chairman Parthi Bhatol has mentioned about ―Mission
2020. It envisages that the dairy co-operative of Gujarat will have a total turnover
of Rs.27000 crores by the year 2020. They also plan to double the processing
capacity of dairy plant to 20.7 million kg.per day.
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organization. It is a state level apex body of milk cooperatives
in Gujarat which aims to provide remunerative returns to the farmers and also
serve the interest of consumers by providing quality products which are good
value for money.
CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company,
has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities
of GCMMF.
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Member’s: 13 district cooperative milk producers' Union
No. of Producer Members: 2.9 million
No. of Village Societies: 15,322
Total Milk handling capacity: 13.07 million litres per day
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Milk collection (Total - 2009-10): 3.32 billion litres
Milk collection (Daily Average 2009-10): 9.10 million litres
Milk Drying Capacity: 647 Mts. per day
Cattlefeed manufacturing Capacity: 3740 Mts. per day
Achievements of GCMMF
•2.8 million milk producer member families
•13,759 village societies
•13 District Unions
•8.5 million liters of milk procured per day
•Rs. 150 million disbursed in cash daily
•GCMMF is the largest cooperative business of small producers with an annual
turnover of Rs. 53 billion
•The Govt. of India has honoured Amul with the “Best of all categories Rajiv
Gandhi National Quality Award”.
•Largest milk handling capacity in Asia
•Largest Cold Chain Network
•48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets
•Export to 37 countries worth Rs. 150 crores
•Winner of APEDA award for nine consecutive years
GCMMF (AMUL) has the largest distribution network for any FMCG company.
It has nearly 50 sales offices spread all over the country, more than 3,000
wholesale dealers and more than 5,00,000 retailers.
INTRODUCTION
A) Aim & Establishment of the company:
• It all began when milk became a symbol of protest
• Founded in 1946 to stop the exploitation by middlemen
• Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in
Anand, a small town in the state of Gujarat in western India. The
exploitative trade practices followed by the local trade cartel triggered off
the cooperative movement. Angered by unfair and manipulative practices
followed by the trade, the farmers of the district approached the great
Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to
get rid of middlemen and form their own co-operative, which would have
procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed
down by the cartel. Under the inspiration of Sardar Patel, and the guidance
of leaders like Morarji Desai and Tribhuvandas Patel, they formed their
own cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers Union
Ltd. began with just two village dairy co-operative societies and 247 litres
of milk and is today better known as Amul Dairy. Amul grew from strength
to strength thanks to the inspired leadership of Tribhuvandas Patel, the
founder Chairman and the committed professionalism of Dr Verghese
Kurien, who was entrusted the task of running the dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the
same approach should become the basis of a National Dairy Development
policy. He understood that the success of Amul could be attributed to four
important factors. The farmers owned the dairy, their elected
representatives managed the village societies and the district union, Â they
employed professionals to operate the dairy and manage its business. Most
importantly, the co-operatives were sensitive to the needs of farmers and
responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up
with the basic objective of replicating the Amul model. Dr. Kurien was
chosen to head the institution as its Chairman and asked to replicate this
model throughout the country.
MISSION STATEMENT
“We at GCMMF (Gujarat Co-operative milk Marketing Federation)
endeavour to satisfy the taste and nutritional requirements of the customers
of the world, through excellence in marketing by our committed team.
Through cooperative networking, we are committed to offering quality
products that provide best value for money.”
PRODUCT LIFE CYCLE STAGES
A product passes through distinct stages during its life in market, each
posing different challenges, opportunities and problems .Profits rise and
fall at different stages of the product life cycle. There are four different
stages of product life cycle, namely
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life
cycle.
Products like milk, butter, chocolate and cheese are in the maturity stage,
while ice-creams, chocolates and shrikhand are still in the growth stage.
On the other hand, products like milk powders, infant food, frozen food
items and mix are in introduction stage. The company adopts aggressive
selling techniques for those products which are in the introductory stage,
while very less promotional programmes are carried out for those products
which are in the growth or maturity stage.
LIST OF PRODUCTS MARKETED
o Breadspreads:
•Amul Butter
•Amul Lite Low Fat Breadspread
•Amul Cooking Butter
o Cheese Range:
•Amul Pasteurized Processed Cheddar Cheese
•Amul Processed Cheese Spread
•Amul Pizza (Mozarella) Cheese
•Amul Shredded Pizza Cheese
•Amul Emmental Cheese
•Amul Gouda Cheese
•Amul Malai Paneer (cottage cheese)
•Utterly Delicious Pizza
o Mithaee Range (Ethnic sweets):
•Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
•Amul Amrakhand
•Amul Mithaee Gulabjamuns
•Amul Mithaee Gulabjamun Mix
•Amul Mithaee Kulfi Mix
•Avsar Ladoos
o UHT Milk Range:
•Amul Shakti 3% fat Milk
•Amul Taaza 1.5% fat Milk
•Amul Gold 4.5% fat Milk
•Amul Lite Slim-n-Trim Milk 0% fat milk
•Amul Shakti Toned Milk
•Amul Fresh Cream
•Amul Snowcap Softy Mix
o Pure Ghee:
•Amul Pure Ghee
•Sagar Pure Ghee
•Amul Cow Ghee
o Infant Milk Range:
•Amul Infant Milk Formula 1 (0-6 months)
•Amul Infant Milk Formula 2 ( 6 months above)
•Amulspray Infant Milk Food
o Milk Powders:
•Amul Full Cream Milk Powder
•Amulya Dairy Whitener
•Sagar Skimmed Milk Powder
•Sagar Tea and Coffee Whitener
o Sweetened Condensed Milk:
•Amul Mithaimate Sweetened Condensed Milk
o Fresh Milk:
•Amul Taaza Toned Milk 3% fat
•Amul Gold Full Cream Milk 6% fat
•Amul Shakti Standardised Milk 4.5% fat
•Amul Slim & Trim Double Toned Milk 1.5% fat
•Amul Saathi Skimmed Milk 0% fat
•Amul Cow Milk
o Curd Products:
•Yogi Sweetened Flavoured Dahi (Dessert)
•Amul Masti Dahi (fresh curd)
•Amul Masti Spiced Butter Milk
•Amul Lassee
o Amul Icecreams:
•Royal Treat Range
(Butterscotch, Rajbhog, Malai Kulfi)
•Nut-o-Mania Range
(Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
•Nature's Treat
(Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black
Currant, Santra Mantra, Fresh Pineapple)
•Sundae Range
(Mango, Black Currant, Sundae Magic, Double Sundae)
•Assorted Treat
(Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,
Megabite, Cassatta)
•Utterly Delicious
(Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
o Chocolate & Confectionery:
•Amul Milk Chocolate
•Amul Fruit & Nut Chocolate
o Brown Beverage:
•Nutramul Malted Milk Food
o Milk Drink:
•Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate)
•Amul Kool Cafe
•Amul Kool Koko
•Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)
o Health Beverage:
•Amul Shakti White Milk Food
SWOT ANALYSIS
STRENGTH:
1. Corporate Image.
2. Diversified product line.
3. Dedicated work force.
4. Totally integrated operation.
5. Good for sightedness and long term vision.
6. Low capital cost
7. Brand Power.
8. High quality product.
9. Customer as well as customer support.
WEAKNESS:
1.Supply is not regular.
2. Distribution of Amul pouch milk is not proper in some of areas
3. Co-ordination of company or retailer is not proper.
4. ”Weak management support and less effective customer care” said some
retailers.
OPPORTUNITIES:
1. With the liberalization new avenues of exploiting open market economy are
being open up.
2. Being the oldest co-operative society use their brand name as already being
leader in dairy products, the other competitors are very far behind AMUL.
3. New product from Amul i.e. Amul preferred outlet(APO) can be very
successful in the market as we receive better response from Distributors as well
retailers and consumers.
4. Must take the advantage of priority given to the Dairy industries by the Govt.
in terms of loan.
THREATS:
1. With the globalization and liberalization various global brands are started to
peak in.
2. Competition from other Co-operative and local industries are present in the
market.
3. The milk curdling problem allows the competitors to penetrate the market
which is previously covered by the Amul. The milk from Softe plant is
responsible for that as a retailer can not bear huge loss. Some serious problem
found is of the late delivery of milk in area like R.K.Puram. Sometime
distributor‘s attitude and rude behavior is responsible for decrease in sales.
THE AMUL MODEL
This model aims to provide ‘value for money to the customers and protect the
interests of farmers simultaneously’.
The Amul Model is a three-tiered structure that is implemented in its dairy
production:
•
•
•
Amul acts as a direct link between milk producers and consumers that removes
the middlemen which help them offer products at affordable prices.
Farmers (milk producers) control procurement, processing, and marketing.
Run by Professional Management
With this model, Amul has made a significant impact in the market along with
taking care of the farmers and also providing value for money services to its
customers.
Let us now understand Amul’s target audience in the next section.
Amul’s Target Audience
Amul has targeted the mass market of India with no premium offerings and works
on providing the best quality products at affordable prices.
So Amul formulates its pricing policy on the low-cost price strategy which has
attracted a lot of customers in the past and it continues to do so.
Now let us understand Amul’s target audience based on customer-wise targeting
and industry-wise targeting. Their strategy divides the target audience on the
following two bases:
Customer-Based Target Audience
Segment-wise breakdown of Customer-Based target Audience
Customers
Amul Products
Kids
Chocolate, Amul Kool, Amul Milk
Youth
Amul Pizza Cheese, Cheese spread
Health Conscious
Amul Shakti, Amul Lite Butter
As the table showcases how Amul has its product range targeted towards a
diversified customer base.
Industry Based Target Audience
Amul has segmented Milk for various industries such as ice-cream
manufacturers, restaurants, coffee shops, and many similar industries.
Further, it has segmented Butter, Ghee, and Cheese for bakeries, pizza, snack
retailers, confectionaries, and many more.
The target audience study tells us that Amul has a strong presence in both
business-to-business (B2B) and Business-to-Customers (B2C).
This is how Amul’s target audience is served, given that it has a decent
concentration in both B2B and B2C segments. Let us understand the marketing
strategies and campaigns implemented by them to market themselves in the next
section of this case study.
Marketing Mix of Amul
Marketing Mix is the combination of factors that can be controlled by a company
to influence consumers for purchasing their products. Amul has become a
household name when it comes to staple items like cheese and ice cream. We’re
going to be looking at the marketing mix of the dairy giant which includes the 4Ps
of marketing. Product, pricing, place, and promotion.
Product
Amul is one of the most diversified brands when it comes to dairy products in
India. It has the widest range of products compared to its competitors. Amul’s
well-built portfolio includes Amul milk, buttermilk, bread spreads (ghee, butter,
garlic butter), Amul Dahl (mishti dahi, regular dahi), Amul Chocolates, Amul
cheese (mozzarella, regular), Amul mithai mate, Amul milk powders, and Amul
ice cream.
The entire range of products has enough competition but Amul’s quality of the
products is unbeaten so far. Amul butter, cheese, and ice creams will always be
voted in a poll for their quality and taste. Amul chocolates have been trying hard
to climb up the ladder with parallel growing brands like Nestle and Dairy Milk.
However, no other brand has been able to build a portfolio such as that of Amul
and that is one of the biggest competitive advantages for the company.
Pricing
Amul’s pricing is economic and affordable. The low-cost pricing strategy may
also be termed penetrative pricing. When Amul first started out, there were no
Indian players in the market and the company has established itself across India
with quality products and affordable prices. Of course, over the years inflation
has affected all the areas of business and Amul is no exception. The distribution
and storage costs of FMCG products are quite high but Amul has made sure it
keeps its prices in sync with people’s expectations and even today a majority of
consumers’ first choice is always Amul.
Place and distribution
Amul is one such brand that has established its presence in every part of the
country. All grace to the massive distribution channel that makes sure that Amul
products reach homes pan India. The distribution model works on buying in
bulk and disintegrating it further into smaller chunks where the final product
reaches the end customer.
Amul has two distinguished channels for distribution 1. The procurement or acquisition channel through which Amul buys raw
material that is milk from villages and diary co-operatives and sends it to
the manufacturing facilities which convert the raw material into a wide
range of finished goods.
2. The distribution channel which consists of carrying and forwarding
agents, distributors, dealers, and retailers. Amul has its own exclusive
showrooms where all Amul products are available.
Promotion
Amul is well known for its longest advertisement campaign character- the Amul
girl. Courtesy of Mr. Eustace Fernandes, the creator of the famous mascot, Amul
girl has been widely popular with Indian households as she’s not only the butter
eating, song singing adorable character that everyone loves, but she’s also an
informant of current affairs, taking timely digs through Amul’s commercials.
These commercials hit home and make a point. Well, if you have noticed,
products such as Amul butter and Cheese are the only ones that are majorly
advertised. The reason for its absence in hardcore marketing for other products is
that the company does not want to give away its margins in marketing and
according to the company it spends only around 1% on marketing and
advertising. No wonder its prices are always better than its competitors despite
cut-throat competition.
Segmentation, Targeting and Positioning (STP) Analysis of Amul
Amul is a brand that has something for everyone in its product range. Let’s have
a look at how Amul has worked through the three strategies to become a billiondollar brand.
Segmentation
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•
Customer-based Segmentation: Kids- Amul chocolates, Amul Kool
drinks, Amul Butter, Amul Lite butter, Amul Pizza Cheese, Regular
cheese, Cheese spreads, Amul milk powder, Nutra Amul
Industry-based segmentation: Milk- Ice cream manufacturers,
Restaurants/food chains, cafes, and Coffee shop chains. Butter, Cheese,
Ghee- Indian households, Bakeries and Confectionaries, street vendors,
and snack shops.
Targeting
The value for money brand has established its image by being a product that is
easily available, affordable, and surpasses the quality of other brands thus
targeting the entire demographic be it urban or rural. It has targeted kids, adults,
and industries all together under its product umbrella.
Positioning
What comes to your mind when you say butter? It's obviously Amul as it has
positioned itself as the national butter and consumers’ first, and sometimes the
only choice. Campaigns like “The Taste of India” have added an emotional
quotient to its marketing and vouches for itself as a family product in every
household. Value for money, quality, and availability are other crucial attributes
that have positioned Amul to where it stands today.
Amul's Competitive Advantage in Marketing
Established in 1946, Amul clearly has a competitive advantage as the oldest
Indian milk brand in India. It has two main advantages over its competitors in the
market.
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•
Supply chain and distribution channel: Amul has an organized and
systematic supply chain and years of experience compared to its peers
which makes it a tough one to compete with. Amul has over 5 lakh retailers
that make products available throughout the country.
Distinguished and wide range of product portfolio: Amul has a wide
range of products that are easily available to the end consumers through
retailers and exclusive Amul shops. Amul’s product portfolio analysis
reveals that Amul Butter and Ice Cream are the cash cows in maintaining
the company’s brand presence in the market.
Amul’s Marketing Campaigns and Strategy
In this section, we would go through Amul’s social media marketing strategy and
campaigns implemented by them.
1. The Story of the Amul Girl, India’s Most Loved Ad Icon
Amul Girl is the official mascot of the Amul brand. It is a hand-drawn cartoon of
a young Indian girl dressed in a polka-dotted frock with blue hair and a pony tied
up.
The Amul Girl was created as a response to Amul’s rival brand Polson’s buttergirl back in 1967. It has made a world record for the longest run ad campaign that
ever happened on planet earth!
Amul Butter Girl’s first-ever ad copy released in 1967
Here are some of the best advertisements of Amul Butter Girl,
Amul’s mascot strategy has worked out very well offline but lets us now check
how is it working on the digital fronts.
2. Amul’s Digital Marketing Strategy
In this increasingly digitized world, every brand needs to revamp its marketing
strategy. Amul too has cut down its expenditure on TV Ads and has started
focusing more on the online form of advertising just like its competitors.
But before that let’s have a look at its social media presence from the below table.
Social Media Overview
Facebook
Instagram
Twitter
16,28,390
Facebook
followers
on 3,14,000 Followers 3,35,000
on Instagram
Twitter
Followers
on
1. Amul on Facebook & Instagram
In the present day, The shift from offline to online marketing was fairly an easy
task for Amul. They were already creating content for banners and newspapers
previously and now they just follow the same style for their creatives on Facebook
& Instagram as well.
Their most popular creatives on Facebook and Instagram revolve around the
Amul Butter Girl the buzz-worthy happenings all around the world.
Let’s now take a look at some of Amul’s digital marketing campaigns which were
a hit on Facebook as well as Instagram.
“Eat Milk with Every Meal”
In 2013, Amul hired a digital marketing agency called Draftfcb Ulka to come up
with a campaign for the digital space as well as print.
The objective of this campaign was to educate Indian buyers about the goodness
of milk and its byproducts.
In older times milk was considered the world’s favourite energy drink but in the
present era of junk food, the importance of milk has been undermined.
So, in this campaign, Amul focused on repositioning Milk and its entire range of
dairy products to seem trendy and tempting to all.
Moreover, Amul created graphics to enlighten its consumers about the various
scenarios in which they could consume Amul products (along with the numerous
benefits of those products).
National Milk Day Campaign
On 26th November 2019, Amul celebrated National Milk Day by launching a
new campaign by using hashtags like,
#CelebratingDrKurien #BikeRally #VaranasitoAnand and # 26 November.
The objective of this campaign was to connect with the youth and inspire them to
be purpose-driven and motivated in their lives.
During the campaign, Amul organized a bike rally in which 50 bikers travelled
from Varanasi to Anand (2500 Kms) to meet dairy farmers, dairy professionals
and to learn about Dr Kurien and his works.
Amul also launched a small 70 seconds film on Dr Kurien on Facebook,
Instagram & YouTube. It also went Live on all the above-mentioned platforms to
record the 12-day journey.
2. Amul on Twitter
On Twitter, Amul has a massive fan base of over 335K followers given that
Twitter is a very different platform when compared to other social media
platforms.
On various occasions, Amul posts fun graphics featuring the Amul Butter Girl.
Many people connect with those graphics and retweet them to show how they
feel about the latest happenings in the world.
Twitter is a great platform for a brand to engage with its customers. Taking
advantage of this, Amul tries to conduct interactive activities like contests and
giveaways.
A lot of people also use Twitter to express their grievances for a service or a
product. Amul makes sure that it replies to tweets of customers complaining about
its products.
Unlike many brands that ignore or delete the negative posts of their customers,
Amul takes the opinions of its customers very seriously and makes an effort to
resolve their customers’ problems on Twitter even in the presence of thousands
of people.
3. Amul on Youtube
Amul is also present on Youtube and it enjoys about 4,03,000 subscribers on its
official youtube channel called, Amul The Taste of India. However, On Youtube,
it puts out advertisements that are previously aired on television.
Although, during the Covid-19 pandemic when the country was in lockdown,
Amul started a new campaign called Simple Home Made Recipes that was also
promoted as “#SimpleHomeMadeRecipes”.
More about this campaign will be covered in the next section of the case study.
So this is how Amul’s digital marketing strategy has played out.
Amul’s Digital Marketing Strategies during COVID-19
Despite lockdown and Amul also being an FMCG brand, sales have increased
due to excess consumption of households during the lockdowns and its presence
on E-commerce sites like Grofers, Big Basket, Paytm mall, etc. However, it has
also doubled its spending on its marketing efforts.
During the lockdown, everyone avoided stepping out of their homes and even if
they did, nobody wanted to travel too far for their food supplies and put their
safety at stake. So Amul went one step ahead and created an App to help its
customers locate Amul products near them.
Let’s now have a look at the Marketing campaigns launched by Amul during
the lockdown
1. Amul Classics
So we all know that Doordarshan had started airing Ramayan and Mahabharat
again after a span of a long time. So, Amul received a lot of requests from
customers to start airing their old 90s retro ads again.
That’s when Amul took its customers on a nostalgic trip by airing its old com
online as well as on TV.
*Hums Amul Doodh Peeta Hai India in my head *
So, Amul is making a lot of effort to increase its visibility for the Indian public
which is sitting home and consuming content on Social Media platforms.
2. Simple Homemade Recipes
During the start of the lockdown, Amul came up with a campaign called
#SimpleHomeMadeRecipes.
They invited chefs from all parts of India and all types of eateries like Bakeries,
Hotels, Catering establishments, etc, and asked them to showcase their cooking
skills to their Facebook audiences.
In each episode of this cooking show, chefs shared a new recipe in which they
used Amul products. Around 750 million people viewed these episodes, and
Amul even shared pictures of dishes prepared by their audience.It has released
more than 700 episodes on its youtube channel and continues to upload it
regularly.
This move was successful and it received a lot of responses from the audience.
CONTROVERSIES
· In 1976, an Amul ad poked fun at the sterilisation drives conducted during the
national Emergency. “We have always practised compulsory sterilisation,” says
the Amul girl, holding up a plate of butter. Eyebrows were raised but no more.
· In the 1980s, members of the Shiv Sena threatened to vandalise the agency’s
Mumbai office after they produced a billboard during Ganesh Chaturthi. The
tagline: Ganpati Bappa More Ghya (Lord Ganpati, take more).
· Massive protests followed a 1982 billboard that responded to news of UK
authorities conducting virginity tests on Indian women arriving at London’s
airports. The tag: Indian virgin needs no urgin’. The agency issued another ad in
apology: Urgin’ our virgin; accept our peace offerin’.
· During an Indian Airlines strike in the 1990s, Amul’s ad proclaimed, “Indian
Airlines serves Amul butter – when it flies”. The airline was incensed and even
threatened to stop doing so.
· When Jagmohan Dalmiya, chief of the Board of Control for Cricket in India,
was accused of misusing funds in 2008, an Amul ad read: Dalmiya mein kuchh
kala hai? Amul Maska khao, paisa nahin. He threatened to sue the brand for Rs
500 crore.
· Amid allegations of rape against magazine editor Tarun Tejpal in 2013, an
Amul ad showed him in an elevator, the Amul Girl outside. The tagline: Kya se
kya kho gaya. Amul—Tehelka macha de. There was a backlash. Many thought
the ad was, well, in bad taste.
· British Airways was at the receiving end of Amul’s wit when, in 2015, they
almost misplaced Sachin Tendulkar’s luggage. The billboard read British
Errways. And the airline called the agency to express its displeasure.
CHALLENGE FACED BY AMUL
The lockdown times have tested the fortitude of individuals, of families, of
relationships, of organizations and of also brands. We’ve seen iconic
organizations and brands fall by the wayside and succumb to the crisis at the
first sign of distress. This says a lot about the character of the organizations and
the brand. One of my favorite brands however Amul has not just survived but
has also outdone itself on all counts. Amidst the COVID related lockdown,
Amul has truly stamped its place in the hall of fame yet again and has endeared
itself to the fans in these tough times.The brand has consolidated its dominance
in a crisis like COVID.
Amul competes with different brands across categories even within the diary
and milk products sector – brands like Cadbury’s, Nestle, Mother
Diary, HUL and other titans. Amul is a leader in almost all these categories and
has nothing to prove in terms of mere numbers - revenue, volumes, marketshare etc, it’s already there.It also leads the category in the softer aspects of the
brand with its honest, trustworthy, value for money positioning.No wonder that
Amul regularly features in the line-up of the Top 10 most trusted brands in
India.The tagline ‘Taste of India’ is an amazing unifying factor for the brand in
some sense invokes a feeling of patriotism. Amul has a simple value proposition
– Great value for money and great quality.
However, in challenging times like these, the brands’ resilience gets tested.
So,once you have numbers in your bag and the consumers’ trust on your side,
what do you do next - well you just cement your position to catapult yourself to
the stratosphere. That’s a happy place where the only challenge to your position
is your own limitation to growth and not another competitor.
SUGGESTIONS
Communicate with your customers to enhance your appeal, engage with your
audience to connect beyond the transaction, demonstrate compassion to form
powerful bonding with the stakeholders and innovate to stay ahead for the
market to follow. Amul has outshone itself in all these departments and how!
Communication to stay in touch: Amidst the COVID related lockdown, Amul
has been one of the more visible brands. Amul rode on the popularity of the epic
tele serials Ramayana and Mahabharat. They unleashed a campaign consisting
of ads under the ‘Amul Classics’ tag which were a series of old advertisements.
This was interspersed with the new ad-clips and new products. This ensured that
the audience across the age spectrum was engaged. The older group connected
with the classic ads through sheer nostalgia and the younger lot connected with
the new slick ads.
Conclusion
Amul has been ranked No. 1 brand by Campaign Magazine in its list of Top
1000 brands of Asia. From struggling with the exploitation of middlemen to
being every Indian household’s mandatory product, Amul has come a long
way.
By creating amazing strategies that could touch every Indian’s heart, Amul
made its way towards success. Subtle placements of ‘‘Amul Girl’ with current
affairs and then posting the same on every social media platform, Amul was
able to create its strong presence in the minds of the customers.
It has been gathering the attention of a lot of customers with the help of digital
marketing and has adapted consumer-friendly strategies. Considering this
current global pandemic situation, we all should act realistic and choose the
online mode to market our product.
References
 www.amul.com
 www.gcmmf.org
 www.indiandairy.com
 www.nddb.com