A Report Assignment on Amul

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CONTENTS.noTopicPage no

1Introduction01

2Marketing & Advertising strategies01

3Product03

4Product mix06

5Positioning &Segmentation09

6Targeting10

7Price & Place11

8Distribution Channel & promotion12

9Advertising13

10Conclusion14

Introduction

Formed in 1946, is a dairy cooperative movement in India with 250 liters of milk per day with name KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. A brand name AMUL is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). The brand name Amulmeans AMULYA(suggested by a quality control expert in Anand). This word derived from theSanskrit wordAMULYAwhich meansPRICELESS. Amulhas spurred the white revolution of India, which has made India the largest producer of milk and milk products in the world and the White Revolution has finally created a billion-dollar brand. Today Amuldairy isNo. 1dairy in AsiaandNo. 2in the world, which is matter of proud for Gujarat and whole India. Amulhas more than 150 chilling centers in various villages. Dr. Varghese Kurien, former chairman of the GCMMF the man behind the success of Amul.

Marketing and Advertising StrategiesLooking at the current Indian marketing scenario, we can say that we are moving back in time. Kotler says that in the evolution of marketing, before the marketing concept became popular, there is a selling concept which states that "customers and businesses, if left alone will ordinarily not buy enough of the organizations products. The organization must therefore undertake an aggressive selling and promotion effort" In this present scenario, it is true that companies will survive only if there is a super efficient sales force. The reasons are that increasingly every product is being commoditized and there is an increase in the power of retails, information explosion that has given the consumer an unusual power. This has ensured that without an efficient sales force companies cannot survive.Amul is the largest co-operative movement in India with 2.2 million milk producers organized in 10,552 co-operative societies. (Now this data is much older but I was not able to find the latest data) The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money. In butter, cheese and saturated fats, Amul has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution.

1) Quality No brand can survive long if its quality is not equal or exceed customer expectations. In case of food product hygienic, taste, bacteriological & organoleptic standard are main essence.2) Value for money Customers get more than what they pay. Keep price fair & do best to ensure that retailers dont gain at the expense of customer.3) Availability Brand available when and where customers want. Amul has nations finest distribution network.4) Service Committed to total quality.The Four Ps Of the Brand AMULPRODUCTThe brand AMUL offers different types of product for different markets and has a huge product mix. The diverse package basket clearly reflects how AMUL has been successful in segmentation of its target group.

Products of brand AMUL1) Dessertsa) Amul shrikhandi) Mangoii) Saffroniii) Almondiv) Pistachiov) Cardmomb) Amul Amrakhandc) Amul mithai Gulabjamun mixd) Amul mithai kulfi mix2) Fresh milka) Amul Shaktib) Amul Tanyac) Amuld) Amul Gold3) Cookiesa) Amul Pure Gheeb) Sagar Pure Gheec) Amul malai Paneer4) Powder Milka) Amul infant milk formula 1b) Amul spray infant milk foodc) Amul full cream milk powderd) Amulya Dairy whitener5) Amul Ice Creama) Royal treat Rangei) Raj Bhogii) Cappuccinoiii) Butterscotchb) Nut- O-Mania Rangei) Kaju Drakhshiii) Kesar Pistaiii) Roasted Almondc) Utsav Rangei) Anjirii) Roastediii) Almondd) Natures Treat i) Alphanso Mangoii) Fresh Litchiiii) Anjiriv) Black Currant6) Chocolate and Confectioneryi) Amul Milk chocolateii) Amul fruit&nut Chocolateiii) Amul Bindazz iv) Amul Rejoicev) Amul kesar 7) Curd Productsa) Yogi Sweetened Flavoured Dahi (Dessert)b) Amul Masti Dahi (fresh curd)c) Amul Lite Dahi d) Amul Prolife probiotic Dahi e) Amul Masti Spiced Butter Milkf) Amul Lassee8) Amul Kool Flavoured Milk a) Mango b) Strawberryc) Saffrond) Cardamome) Rosef) Chocolateg) Butterscotch9) Health Beverage a) Amul Shakti White Milk Food b) Amul Ready to serve soups10) Bread spreadsa) Amul Butterb) Amul Lite Low Fat Bread spreadc) Amul Cooking Butterd) Delicious Margarine

PRODUCT MIX

1} Bread Spread:-(a) Amul Butter - Table (salted) 100g , 500g - White (unsalted) 500g(b) Amul Lite 200g(c) Table Margarine 100g , 200g

2} Powder Milk:-(a) Amulya (dairy whitener) - Pouch 3g, 25g, 50g, 200g, 500g, 1kg- Refill 200g- Tin 500g, 10kg (b) Sagar TCW (Tea Coffee Whitener)50g, 200g, 500g, 1kg(c) Sagar SMP (Skimmed Milk Powder)200g, 500g, 1kg(d) Amul Spray (Infant Milk Food)- Pouch 50g, 200g, 500g, 1kg- Refill 200g, 500g, 1kg- Tin 500g, 1kg- Amul Instant Formula 1&2 500g tin

3} Health Drinks:-(a) Amul Shakti - Pouch 25g, 50g, 200g, 500g- Refill 200g, 500g- Jar 200g, 500g(b) Nutramul 500g (Refill & Glass Jar)4} For Cooking:-(a) Mithai Mate:- 400g, 7.5kg(b) Amul Ghee:--Refill 200ml, 1L -Pouch 500ml -Tin 1L, 2L, 5L(c)Sagar Ghee :-- Refill 200ml, 1L -Pouch 500ml -Tin 1L, 2L, 5L(d) Utterly Delicious Pizza :-- Regular 160g -Preimium 220g(e) Masti Dahi :-- Cups 100g, 200g, 500g -Pouch 200g, 500g(f) Malai Panner :-- Frozen (diced) 100g, 200g, 500g- Refrigerated (blocked) 200g, 1kg5} Fresh Milk:-(a) Amul Fresh Cream :- 125 ml, 200 ml, 500 ml, 1L(b) Amul Cool(Elaichi, Kesar, Rose, Coffee, Mango, Stawberry)125 ml tetra wedge, 200 ml glass bottle, 200 ml tetra pack(c) Amul Milk:-- Amul Lite 500 ml, 1 L - Taaza 200 ml, 500 ml, 1 L - Gold 500 ml, 1L- Shakti 500 ml, 1 L(d) Milk Pouch: - 200 ml, 500 ml, 1L(e) Amul Masti Butter Milk: - 125 ml, 200ml, 1 L6} Desserts:-(a) Amul Shrikhand(Elaichi, Kesar, Badam Pista, Mango & Amarkhand)100 g, 200 g, 500 g, I kg(b) Amul Gulab Jamun 500 g, 1 kg(c) Amul Lassi :- (Kevda, Rose) 125 ml, 200 ml, 1 L(d) Amul Kool Caf Glass : 200 ml Tetra Pack : 200 ml 7} Cheese:-(a) Amul Cheese Tin: 400 g Block: 200 g, 400g, 1kg Cube: 50g, 200g,500g, 1 kgSlices: 100 g, 200 g, 750 g(b) Amul Emmental Cheese 400 g, 5.5 kg wheel(c) Gauda Cheese 250 g, 1 kg(d) Amul Pizza Mozerella Cheese 200 g, 1 kg(e) Amul Cheese Spreads( Peeper, Garlic, Plain) 200 g8} Amul Choclates:-(a) Milk Chocolate 35 g (b) Fruit & Nut 35 g(c) Almond Bar 35 g (d) Amul Bindaaz 35g(e) Rich Dark Chocolate 30g (f) Fundoo Chocolate30g(g) Milk Chocolate 15g, 30g (h) Chocozoo 500 g (tub), 260 g (tin)(i) Amul Chefs Cooking Chocolate(Classic, Premium) 500g

PRODUCT LINESVERTICAL LENGHTHORIZONTAL DEPTH

Bread Spread36

Powder Milk426

Health Drinks210

For Cooking625

Fresh Milk837

Desserts427

Cheese520

Amul Choclates911

Average line = 41/8 = 5.12Average Depth =162/8 = 20.25

Product Analysis Product specification:- Meets AGMARK standards and BIS specification .no IS. 13690.1992 Product personality:- It is a UNISEX product USP(unique selling point):- USP of Amul is its TASTE. Amul butter is made from fresh cream by modern continuous butter making machines.(purely vegetarian)Product Positioning Placing a product in that part of the market where it will receive a favorable reception compared to competing products. A mass market player, no premium offerings USP Quality with affordability Up against niche players value addition to customers Sheer size and scale of operation New offerings for health conscious and vibrant India Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics. Low Priced Amul Ice Creams made Kwality Walls life hell.Flank Attack.. Age Wise..Aug 25 2007 Amul launches Chocolate milk under brand name of Amul Kool Koko. This is targeted at teenagers and youths.Nov 11, 2007 Amul in Multinational Arena With Snack Launch: Munch Time. Flavors: Masala , Mint and Tomato New Product Activity.Nov 26, 2007 Amul Launches Fresh Paneer (Free From Any Harmful Chemicals)Flank AttackExpanding its Cheese Segment.Current market share 65%.Segmentation AMUL basically segmented its product on two basis they are:- Consumer Based Market Segmentation & Industry Based Market Segmentation

Consumer Based Market Segmentation KIDS Amul Kool Chocolate Milk Nutramul Energy Drink Amul Kool Millk Shaake WOMENS AMUL Calci YOUTH UtterlyDelicious Pizza Amul Emmental Cheese Amul Cheese Spreads HEALTH CONCIOUS Nutramul Amul Shakti Health Food Drink CALORIE CONCIOUS Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk

INDUSRY BASED MARKET SEGMENTATION MILK PRODUCTS Ice Cream manufacturers Restaurants and food chains Coffees shop chains BUTTER/CHEESE/GHEE Bakeries and confectionaries Pizza retailers Snack retailers

Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Caf, as it has a cool imagery associated with it. Segmentation is not as easy in curd and low fat products, due to mixed audiences, various culinary applications, eg. Ghee, butter and cheese.

In India, the most used spread is ghee, then butter, cheese, low fat butter, margarine, cheese spread and mozzarella cheese.

Targeting Changing retail environment Striking out on its own, with Amul Outlets or parlors to deliver consumers total brand experience Launched in 2002, there are now 400 Amul parlors across the country, which contributed 3% to the brands total turnover last year. High profile locations: Amul parlors are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat.

PRICEThe next important aspect that provides a Competitive Advantage to AMUL butter over its competitors is its price. AMUL butter spends less than 1% of its revenues into advertising which is much less than the industry average of 8-9%. Add to this, theyve a highly efficient distribution channel which facilitates effective pricing. The Cooperative network of the Milk Union eradicates the scope of the middle man on the supply side ensuring fair pricing and the strong marketing channel of GCMMF carries forth the trend, which gives them a strong pricing advantage. Cost of milk Labour cost Processing cost Transportation Cost Sales Promotion Cost Taxes etc.PLACEThe biggest strength of Amul is its very strong marketing channel spread across the length and breadth of the country. Under their umbrella, theyve more than 2.8 million farmers supplying them milk and the GCMMF has a network of more than 3500 distributors and more than 5 lakh retail outlets. This makes availability a very strong factor contributing to AMUL success.

The flow in the above figure gives a broad picture of how the distribution channel functions. The Gujarat Cooperative Milk Marketing Foundation Ltd. forms the backbone of the organization which is responsible for managing the entire cooperative under the umbrella brand of AMUL. Theyve implemented technology on the supply side and their supply chain management from farmers to GCMMF is Just in Time.From GCMMF to consumer, there are two ways in which the distribution channels function. One is shown above where from Centralized GCMMF; they subsequently decentralize the operations to 47 depots which then deal with more than 3500 distributors.

The other way is the inception of AMUL Parlor, where theyve been able to create a direct B2C model. Amul has a vision to have a parlor across the country at a distance range of every 3-4 kilometers. This shows their intent to frame a parallel strong distribution channel which would give their products unparalleled availability compared to the competitors.

Life. But my research shows that not many consumers are aware of their presence which is a matter of concern for them. Given this wide product portfolio, Amuls approach is to promote its brands in a rotational cycle of two to three years. Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various issues increased brands 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. ADVERTISINGAs we discussed above that the Amul ads are one of the longest running ads based on a theme, now in the race for the Guinness records for being the longest running ad campaign ever. Now AMUL advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular.(Source: The pictures have been taken from Official Amul Website- www.amul.com)

CONCLUSION

GCMMF that owns Amul, Asias largest milk brand realized that with the changing lifestyle & increased awareness about health issues, there has been a discernable shift towards health based drinks from carbonated drinks. To utilize the potential of flavored milk, butter milk & other milk based beverages that have an age old tradition in India. By identifying the targeted teenagers & youth, who were biggest consumers of colas & aerated drinks. The New variants of the brand were advertised through major national channels with special focus on youth oriented TV channels like MTV &Cartoon Network. By identifying the trend & introducing variants, Amul has been emerged as the fastest growing brand in non-carbonated soft drinks category.

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