AMUL Marketing Strategy

• Introduction• History• Marketing Mix• Business Model• Marketing Strategy• Competitors & Conclusion

World's Largest Pouched Milk

Brand

World's Biggest Vegetarian Cheese

Brand

• 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.

• 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.

Sales Turnover Of 1505 million US dollar in 2008-2009

Product• Dairy Products• Cooking Products

Price• Low Pricing Strategy

Place• Rural & Urban Market• International Market

Promotion• Advertisements

• 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 run ad campaigns in the country for 41 years.

• Intelligent marketing of milk, icecream and butter milk.

Intelligent Marketing

• Gujarat Cooperative Milk Marketing Federation 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.

• 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.

Third party service providers - core is milk processing , production of dairy products - logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores

Umbrella brand - common brand for most product categories - Amul's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks - Safal

Developing demand• limited purchasing power, modest consumption

levels • a low-cost price strategy products

The distribution network• dry and cold warehouses • cash transactions throughout the supply chain

• 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

Defense Strategy

• 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.

Segmentation

• 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 400 Amul parlours across the country, which contributed 3% to the brand’s total turnover last year.

Targeting

• 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

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.

• Below-the-line activity has grown too — such as the 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 promo invites hotel chefs to come up with recipes using as many Amul products as possible, and is conducted at city, state and national level.

Promotion

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

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

6. Diversification Strategy – • Dairy ProductsEg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads, Cheese Products

• Non Dairy ProductsEgg: Veg Oils , Snacks, Instant Food

• BRITTANIA• NESTLE• HLL• CADBOURY• MOTHER DAIRY

• Organizing market to farm supply chain is critical to the success of market-based development

• Infrastructure investment is crucial to rural development

• From livelihood to wealth creation is equally important for rural development

• Wealth creation will require transforming community

• leaders into business leaders and developing home

• grown entrepreneurs

THANKYOU…