Marketing Management I

Presented By:

GROUP – 7,Section – D

Anup Abhipsit PGP27205 B Praveen PGP27211 Manish Bhatt PGP27220

Manish Verma PGP27221 Prasoon Kumar PGP27236 R. Manika Rajan PGP27239 Gaurav Somwanshi PGP27254

AMUL: A Marketing Perspective

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Acknowledgement

We would like to take this opportunity to thank everyone who has been crucial in enabling

us complete this project.

Our sincere thanks to Prof. Dr. Ashish Dubey for his invaluable guidance and support that

was crucial for successful completion of this project. We would like to appreciate his continuous

effort to impart quality learning in the field of Marketing Management and motivating us to

pursue research in this field and prepare this project.

We would like to thank the seniors and classmates for their valuable inputs and

suggestions. This has helped us adding newer perspective to our understanding of marketing and

delivering this project more effectively.

Finally we would like to thank the institution for the library and the infrastructure provided

that helped us a lot to do research on the topic and prepare this project.

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Abstract

The analysis of Amul‟s Market structure was done to get an interrelation between the

market structure and consumer behavior environment and the Different Marketing Concepts of

the Marketing Management.

We analyzed the Social, Political and Economic factors that had a significant effect on the

Amul‟s Market. The Political factors like Excessive Government Interference in Decision-Making,

Politicization of Cooperatives, and Government dictated input-output pricing and the effects of

different government Acts passed, have been collected from an exhaustive study and have been

interrelated to the different possible Legal factors of a company as per Marketing Management.

In Economic factors the different factors like GDP, and fluctuating international prices which had

a direct impact on the pricing of Amul products, has been explained in details. In Social Factors,

the influence of the culture, lifestyle and the food habits of Indians has been discussed in detail.

In Consumer behavior analysis the different factors which effect the consumer buying

behavior, in terms of buying the Amul Products has been explained in detail. An in-depth analysis

of the factors like Product, price, price and promotion has been explained in details. The

consumer psychological factors like Motivation, perception, learning and memory has also been

explained in details for the buyers of Amul products.

The Consumer Decision Making behavior factors have also been explained broadly on the

basis of Cultural factors and Social and Personal Factors. And the Five Stage Model has been

applied to the Amul Market and a detailed explanation of the consumer analysis has been

depicted in different segments of the Five Stage Model Analysis.

Since Amul has a large variety of products, a detailed analysis of Amul‟s competitors has

been analyzed. And Amul‟s Competency against this large set of competitors has been portrayed.

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Content

1. Acknowledgement_______________________________________________________1

2. Abstract_______________________________________________________________2

3. Macro Environment Component Analysis_____________________________________4

4. Analysis of competition___________________________________________________8

5. Consumer behavior analysis_______________________________________________11

6. Product_______________________________________________________________19

a) Company‟s Product Hierarchy

b) Product Mix Analysis

c) Packaging Analysis

7. Segmentation, Targeting and Positioning____________________________________23

8. Branding______________________________________________________________27

9. Pricing Component______________________________________________________33

10. Summary_____________________________________________________________35

11. Bibliography___________________________________________________________36

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Macro environmental factors affecting Amul

Macro environmental factors represent non-controllable events which shape business

landscape while presenting opportunities as well as threats. Here we are going to review the

impact of macro-environmental factors on Amul.

Political-Legal Environment

The political & legal environment consists of laws, government agencies, and pressure

groups that influence & limit various organizations & individuals. Sometimes these laws also

create new opportunities for businesses.

Post-independence, India was a milk-stressed country with domestic demand far outstripping the domestic production of milk. Given the nutrition and hunger problems in the country, the government took upon itself the task of development of the domestic dairy industry. Amul being a cooperative run business gained from government‟s initiative as government usually see cooperatives as channel for re-distributing wealth, improving opportunities for weaker sections of society and alternative institution for property ownership. The two-pronged objectives for the government were first to augment the supply of milk for domestic consumption and second to increase the returns to dairy farmers by providing the infrastructure for producing value-added dairy products.

As one of the biggest programmes for development of dairy came the “Operation Flood” in the year1970-71. This was a rural development programme, which received liberal grants from the Government of India (NDDB), the World Bank and the European Economic Commission (EEC).

Operation Flood worked to create an integrated national milk-market, and established institutions to cost-effectively procure, process and market the milk and milk products. It worked through setting-up of small milk producers‟ cooperatives, which procured milk from farmers in the village, and provided them with inputs and services. Thus, there was a forward movement of milk from the village cooperative societies to the processing and pasteurizing plants (dairy unions), and a backward movement of inputs, technology and modern dairying practices from the unions to the local village cooperatives. Excessive Government Interference in Decision-Making: Excessive government interventions in the cooperatives due to vested political interests have led to massive politicization of dairy cooperatives. These cooperatives have a very large rural base, with millions of farmers as members, and they could play a major role during political elections. With electoral forces, and not market forces guiding the decision-making of the cooperatives, most cooperatives have become agencies for implementing the populist policies of the government, and thus unprofitable and unviable business units. Politicization of Cooperatives: Politicization of cooperatives has caused a plethora of problems. Overstaffing, low capacity utilization, weak market orientation and poor financial controls have become the norm rather than exception in case if most Indian dairy cooperatives. Appointment of bureaucrats as managers of the cooperatives has been the case in Madhya Pradesh, Orissa and Uttar Pradesh. These bureaucrats do not have the professional skills required to manage such producer cooperatives. Consequently, under such bureaucratic heads, the cooperatives fail to respond to neither the needs of the producer farmers, nor the needs of the industry.

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Government dictated input-output pricing: In case of most cooperatives the state government fixes the minimum producer price. For instance in Maharashtra and Punjab, the State Government fixes the selling price of milk to government dairies. The selling price is determined by the government through on the spot interventions in case of Andhra Pradesh and Karnataka. This has caused inevitable distortions in the pricing of processed dairy products, and has adversely affected the financial health of the cooperatives. Consumer Protection Act, 1986: The Act provides for constitution of District Forum/State/National Commission for settlement of disputes between the seller/service provider and the consumer. The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and Rules 1993: This Act aims at promoting breast feeding and ensuring proper use of infant milk substitutes and infant food. Recent modifications in the act have forced Amul to revise its product manufacturing process to enhance safeguards and implement new guidelines. Export (Quality Control and Inspection) Act, 1963: The Act aims at facilitating export trade through quality control and inspection before the products are sold to international buyers. Some elements of the law are still in place and hence creating bottle-necks in the Amul‟s ambitious export plan. Environment Protection Act, 1986: This Act incorporates rules for the manufacture, use, import and storage of hazardous microorganisms / substances / cells used as foodstuff. Pollution Control (Ministry of Environment and Forests): A no-objection certificate from the respective State Pollution Control Board is essential for all dairy plants. This act is still in place and acts as a potential barrio to many possible competitors of Amul.

Economic Environment

Globalization & liberalization:

The globalization and liberalization propelled change in consumption patterns. It caused

demand for global products .This if taken as a challenge gives Amul an opportunity to diversify its

product range to compete with global products. Globalization in foods market is still at a nascent

stage and is affecting and shaping Amul‟s growth plans in many ways.

GDP Trends: It is projected that India will have robust GDP growth of 8.8 % in 2011-2012 fiscal

year.

As per Central Statistics Office (CSO) estimates the real growth rate in 2010-2011 was 8.6

%.The grain production is projected to grow by 3.7 % leaving more money in the hands of rural

consumers.

Better Growth in industry segment will cause increase in corporate wages, low inflation

and new job opportunities increasing spending power of urban consumer.

Centre for Monitoring Indian Economy (CMIE) predicts that Personal Final Consumption

Expenditure (PFCE) has grown by 8.6 % in 2010-2011 compared to 4.3 % of previous fiscal.

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The demand for milk and milk products is income elastic and growth in per capita income

is fuelling demand for dairy products

Increase in rural and urban consumption rate, fuelled by high GDP growth rate coupled

with health conscious consumers acts as a catalyst for dairy products consumption.

International price fluctuations:

The diary product prices are most distorted in international markets, mainly due to

subsidies given by developed countries, especially the European Union under its export restitution

scheme and diary under Dairy Export Incentive Programme.

Impacts on AMUL :-

The successful implementation of Amul cooperative model contributed for growth in per

capita milk supply. This activity is partly funded by Amul through its earnings, helping farmers to

invest in cattle.

Increase in disposable income levels and globalization effect of demand for ready to eat

products made Amul to introduce new products like cheese and pizza. It also introduced its first

probiotic ice cream for health conscious consumers.

Import substitution policy of Restriction of import duty of 35 % is helping Amul to retain market share in ghee and butter. These products are heavily subsidized in EU and US.

Amul is pitching for 40 % import duty and for easing of subsidies by EU and US which are signatories of GATT.

Amul is also exporting bulk pack milk powders in the Persian Gulf, Africa and Bangladesh

markets.

Social Environment

Lifestyle &food habits: Due to changing life style of larger part of earning population, eating

habits of urban as well rural population has also changed in due course of time. Vegetarianism

still accounts for a larger section of population & dairy product being integral part of their regular

diet. Fast food culture is on ascendency where consumer is demanding more of ice-creams,

readymade milk products, etc. This presents a great opportunity for Amul to innovate its product

line while maintaining its quality.

Demographic composition: In a young country like India where the average age of population

is below thirty years .the young population has started playing greater part in consumer

expenditure. This young population has higher literacy level which is more health conscious.

Dairy & related products have been always high on priority for health conscious people. The

factor for high dairy product consumption is high children population.

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Culture: Indians are accustomed to eating high amounts of milk based sweet products causing

higher consumption of milk and milk based products. Also traditional Indian culture stresses on

consuming higher amount of milk due to the association of it to better health. Also as most Hindu

Indians believe its auspicious to keep cattle Amul doesn‟t have to worry about continuous supply

of milk for production.

Education: With India‟s literacy and education level going high, the consumers are getting more

aware about food‟s nutritional value. Also awareness about hygienic production and packaging of

food is increasing. Larger number of customers is getting aware about foreign cuisines and their

food choices are changing. But this shift is good for milk producers as the demand is increasing.

Overall this provides an opportunity for Amul to introduce new products meeting consumer

choices and tap new market of locally sold milk products by its packed and processed items.

Urbanization: India is experiencing high rate of urbanization with currently 29% of its

population residing in urban areas and the urbanization rate is high at 2.4% per year. Due to this

rapid urbanization consumption of milk has drastically increased during last two decades. The

expected rise in urban population would be a boon to Indian dairying. Presently, in the organized

sector both cooperative and private companies and the traditional sector cater to this market.

Amul can aim to tap the tier-2 and tier-3 cities to expand its market there.

Technological Environment:

The technological environment has changed dramatically over the last four decades and the

impact on Amul has been wide spread. The factors are discussed below:

Energy Consumption and Recovery: There has been enormous growth in the green energy

technology space. This has forced many organisations including Amul to revise their energy

consumption technology. AMUL‟s innovations in the areas of energy conservation and recovery

have also contributed to reduction in cost of its operations.

Quality Management: Implementation of various quality control technologies like ISO, TQM,

HACCP (Hazard Analysis and Critical Control Points) has helped Amul maintain and continuously

improve the quality of its products. These new industry approved quality standards have been

widely accepted; hence implementation of these standards by Amul has not only improved its

productivity and quality standards but also improved the brand image of Amul in the market.

Net Enabled Kiosks and Service Support: The improvement in these technologies has

helped Amul venture into newer market and penetrate existing market. These have helped Amul

to provide prompt support to the supply chain and its customers. It has been able to connect

both sides of the supply chain by using GIS.

E-Commerce: Evolution of E-Commerce has helped Amul to sell its products online and collect

the money online. This has minimized the costs of product storage and the time in transition.

Rate of obsolesce of Technology – Low to Moderate: The low rate of obsolesce of

technology in dairy industry has enabled Amul to invest on newer technology on a long run at a

larger scale.

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Competitors of Amul

(Amul Butter and Amul Milk Powder)

Analysis of competition:-

Two levels of economic competition have been classified:

The most narrow form is direct competition (also called category competition or brand competition), where products performing the same function compete against each other. For example, Coke and Pepsi are direct competitors; they compete against each other in the soft-drink market.

The next form is substitute or indirect competition, where products which are close substitutes for one another compete. For example, butter competes with margarine, mayonnaise and other various sauces and spreads.

Amul Butter :-

Direct Competitors :-

Amul enjoys a market share of 90 percent in the butter market of India. The rest 10

percent is shared, mainly, amongst

Britannia Milkman Butter Nestle Butter Mother Dairy Butter Regional Rivals( like Gowardhan in Maharashtra, Sanchi in Central India )

This is the Direct Competition which Amul faces. Britannia, Nestle, Mother Dairy

compete with Amul in the butter market itself.

Some recent happenings are given below:-

The market share of Amul has grown from 86 to 90 percent in the last five years. In 2009, due to the unavailability of raw materials due to bad monsoon forced Amul

to reduce its production by 25 percent. The void left was so huge that even the other players( Britannia, Nestle and others ) combined could not fill the gap.

These two points illustrate the fact that Amul enjoys monopoly over the butter market in

India.

However the threat from direct competitors is ever increasing, for instance

"Mother Dairy to cut prices in butter war with Amul"

Mother Dairy has launched its butter in Mumbai market at Rs 70 for 500 Gms and Rs 14 for 100 gms. Amul has been selling its butter at Rs 72 for a 500 gram packet and Rs 15 for a 100 gms packet

Amul currently has 86 per cent of the market share in the state. Mother Dairy is eyeing 10 per cent of the butter market in its initial stages

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Indirect Competitors :-

Amul faces a major threat from the indirect competitor, Nutralite (Margarine).

Margarine is a substitute for butter but with no cholesterol which makes it popular

among the consumers. Since, Nutralite's introduction in India, it has grown on to acquire

the 70 percent of the butter-like market. GCMMF's late entry into margarine with brand

Delicious, which was launched mainly to restrict Nutralite from making a dent into the

butter segment, has been at second position with a share of under 30%.

As quoted in Times Of India,

" Even as Amul focused on strengthening its leadership position in butter-which was not

affected even by the aggression of new entrants like Britannia-the margarine market has

grown in its backyard to gain a size of around Rs 300 crore."

If not curbed, margarine market will start eating into the market share of Amul in butter

market.

Amul Milk Powder :-

Direct Competitors :-

The main competitors of Amul in the Milk Powder segment are

Britannia Milk Powder Nestle Everyday Milk Powder Mother Dairy Milk Powder Regional Rivals( like Gowardhan in Maharashtra )

This is the Direct Competition which Amul faces. Britannia, Nestle, Mother Dairy, HUL

compete with Amul in the milk powder market itself.

Amul has a 45 percent market share followed by Nestle, 23 percent and then Britannia,

10 percent.

On a national level, Amul is the clear leader in the milk powder segment. However, it

faces stiff competition from regional players locally like Gowardhan selling under the

brand name of Gowardhan or GO. GO enjoys 10-12 per cent of the market share in

Mumbai and Pune.

Regional Rivals –

In milk segment the main opponents of Amul are regional rivals. Regional Rivals like

Milma (Kerala) and Vijaya (Andhra Pradesh), Verka (Punjab), Nandini (Karnataka), Parag

(Uttar Pradesh) and Saras (Rajasthan), Dinshaw (Madhya Pradesh & Chhattisgarh) are

dominant in their area and thus affect sales of Amul Milk.

Indirect Competitors :-

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Milk (in the liquid form) is the main indirect competition.

The loose milk market is estimated to be around Rs 470 billion; the processed milk

market is only around Rs 10000 crores. Milk powder market is only 7% of the whole milk

market.

Adding more nutrients, variants and identifying multiple uses are the only option in this

nascent market to grow.

Way Forward:-

A Precedent:-

Bajaj Auto Ltd till the mid 90's enjoyed most of the market share of the two wheelers segment

mainly on the account of the scooter's it produced. However, around 1998 two wheeler segment

witnessed a change , the consumers started moving to motorcycles and discarding the scooters

mainly, because of an increase in the disposable income of middle-income salaried people

(following the implementation of the Fifth Pay Commission's recommendations), higher access to

relatively inexpensive financing, and increasing availability of fuel efficient motorcycles. From that

point of time, Hero Honda started eating into the market share of Bajaj and around 2002 it

became the market leader in the two-wheeler segment. Bajaj were a bit late in responding to the

change. So, by the time they launched Pulsar( their first success against the Hero Honda

motorcycles) and change their positioning through advertising they had already lost their

monopoly which they had enjoyed for almost 25 years.

Amul:-

Amul is the market leader in the butter and milk powder market. However, it faces an increased

threat from Nutralite which is trying to eat into its market share. Margarine worldwide is

consumed three time than the butter because of its no cholesterol attribute. Consumers in India

are becoming more and more health conscious. In such a scenario if Amul does not make any

changes, it is bound to lose its market share to Nutralite as Bajaj did to Hero Honda.

Amul needs to change certain attributes of its product and advertise it properly to make the

consumers aware of it. It needs to utilize the emotional value, "the taste of India", of their brand

in consumers mind, like Bajaj did by maintaining the emotional value, "Buland Bharat ki nayi

tasveer, humhara Bajaj", at the same time through advertising convincing people that they are

changing with times. Amul also needs to do the same.

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Consumer Behaviour Analysis

The Stimulus-response model of consumer behaviour basically works by dividing and studying

stimuli and response of a consumer and the point is to understand what happens in the

consumer‟s consciousness between the arrival of the stimuli and the ultimate purchase decision.

For our case, as we have selected Amul, the whole study will centre on what are the consumer‟s

perceptions and how these perceptions were eventually formed by Amul‟s marketing strategies.

Let us illustrate the stimulus-response model first-

Stimuli:-

Stimuli is any such cause that has an indirect or direct effect on the mind of the consumer which

has a certain impact on the perception of the consumer.

Stimuli can be broadly classified into 2 types-

a) Marketing Stimuli

b) Environmental/Other Stimuli

Marketing Stimuli:-

Again this comprises of following 4 components-

a) Product

b) Price

c) Promotion/Distribution

d) Place

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A. Product Decision:-

Product decisions must answer these 3 questions-

a) How does my product fit with my other products/ in market/ other competitors?

b) How will I differentiate my Product?

c) How does the product life cycle affect my plans?

Let us go after these questions one by one.

How does my product fit into the whole scene?

Amul decided to use the „Umbrella Branding Strategy‟ for its milk products, under which, all its

other products after milk, would gain from the brand value initially created by the initial product

or products. In contrast, some companies like Procter & Gamble go for individual product

branding.

The challenge in this for Amul was first to challenge the big and sole company in the business-

Polson. Some describe the competition of Amul and Polson in terms of the the fable of David and

Goliath, wherein Amul is David and Polson is the giant Goliath. Polson, maybe because it was the

sole producer in the market of milk and milk products, was notorious for practicing exploitive

measures. Hence the challenge before Amul was to upstage Polsons‟ monopoly over the market

as well as capture the booming mild products market.

How will I differentiate my Product?

At that time, around the middle 1940‟s, the only competitor of Amul being Polson, a foreign

company which was already infamous among the rural masses for its exploitive practices, it

decided to use the “Swadeshi ” value of their own product. It was a movement by the people of

India, and for the people of India. They product gained a default differentiation from its

competition because of its nationality. The next task ahead was to differentiate themselves by

using the values of „transparency‟ and „clarity‟ in their modes of business.

How does my product life cycle affect my plans?

Milk, being a very short-lived product with a very low shelf-life, has to be distributed earliest and

the distribution and transportation must maintain the utmost hygienic conditions to avoid

„spoiling‟ of the product. Amul achieved this by making a supply chain that was extremely

complex and efficient, and they used their famous „Three-Tier‟ model to implement it.

B. Place

Here we face two questions-

a) What distribution strategy should I use?

b) On what basis should I choose a channel of distribution?

Distribution strategy can be broadly defined into three types-

a) Exclusive- sell in only one outlet

b) Selective- Sell in only a few outlets in each market

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c) Mass or Intensive- Sell in as many outlets as possible

Considering the scope of their market and the nature of the product, the first two strategies are

out of the question. Amul hence went with the Mass or Intensive strategy, in selling at as many

outlets as possible, which numbered around 10,000.

C. Promotion

It all began in 1966 when Sylvester daCunha, then the managing director of the advertising

agency, ASP, clinched the account for Amul butter. The butter, which had been launched in

1945, had a staid, boring image, primarily because the earlier advertising agency which was in

charge of the account preferred to stick to routine, corporate ads.

In India, food was something one couldn't afford to fool around with. It had been taken too

seriously, for too long. Sylvester daCunha decided it was time for a change of image.

The year Sylvester daCunha took over the account, the country saw the birth of a campaign

whose charm has endured fickle public opinion, gimmickry and all else.

The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson

butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but covering her

upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who

would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester

daCunha. And so it came about that the famous Amul Moppet was born. That October, lamp

kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline

simply said, Thoroughbred, Utterly Butterly Delicious Amul. It was a matter of just a few hours

before the daCunha office was ringing with calls. Not just adults, even children were calling up to

say how much they had liked the ads. "The response was phenomenal," recalls Sylvester

daCunha. "We knew our campaign was going to be successful."

For the first one year the ads made statements of some kind or the other but they had not yet

acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would

give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas

in good stead in the years to come.

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In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement,

Sylvester daCunha, Mohammad Khan and UshaBandarkar, then the creative team working on the

Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad

with a fervour that was almost as devout as the Iskon fever.

That was the first of the many topical ads that were in the offing. From then on Amul began

playing the role of a social observer. Over the years the campaign acquired that all-important

Amul touch.

India looked forward to Amul's evocative humour. If the Naxalite movement was the happening

thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter,

cholbenacholbena (won't do, won't do). If there was an Indian Airlines strike Amul would be

there again saying, Indian Airlines Won't Fly Without Amul.

There are stories about the butter that people like to relate over cups of tea. "For over 10 years I

have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says

Mrs. SumonaVarma. What does she do with these ads? "I have made an album of them to

amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My

grandchildren are already beginning to realise that these ads are not just a source of

amusement. They make them aware of what is happening around them."

Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy

not to play it safe. There are numerous ads that are risque in tone.

"We had the option of being sweet and playing it safe, or making an impact. A fine balance had

to be struck. We have a campaign that is strong enough to make a statement. I didn't want the

hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.

"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian

Airlines one really angered the authorities. They said if they didn't take down the ads they would

stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says

laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The

high command came down heavy on that one. The Gandhi cap was a symbol of independence;

they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings

were wiped clean. "Then there was an ad during the Ganpati festival which said, GanpatiBappa

More Ghya (GanpatiBappa take more). The Shiv Sena people said that if we didn't do something

about removing the ad they would come and destroy our office. It is surprising how vigilant the

political forces are in this country. Even when the Enron ads (EnrOn Or Off) were running,

Rebecca Mark wrote to us saying how much she liked them."

There were other instances too. Heroin Addiction, Amul's little joke on Hussain had the artist

ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the

hoarding while passing through a small district in UP. He said he had asked his assistant to take

a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in

amused tones. Indians do have a sense of humour, afterall.

From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree

that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads

continue to tease a laughter out of them.

Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That

we laugh because the humour is what anybody would enjoy. They don't pander to your

nationality or certain sentiments. It is pure and simple, everyday fun.

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What I like most about the Amul brand is that they have been consistant over the communication

campaign and brand strategy. AMUL has positioned itself as " Taste of India " and have ensured

that their communication is in line with their positioning strategy.

Now since Amul has unveiled its global ambition, we have to see whether they will change the

communication strategy also.

D. Price

At the time Amul was formed, consumers had limited purchasing power, and modest

consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price

strategy to make its products affordable and attractive to consumers by guaranteeing them value

for money.

Despite competition in the high value dairy product segments from firms such as Hindustan

Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which

Amul introduces its products is consistent with the core philosophy of providing butter at a basic,

affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand

image in the household sector of the society.

Environmental/Other Stimuli

a) Economic

b) Political

c) Social

Economic-

Consumer‟s economic background highly affects his purchasing decisions. When launched in the

1940‟s, Amul had a market that mostly comprised of poor and middle class people, with the

majority of the nation‟s population residing in the villages. The poor people of the villages mostly

are in the agricultural and fairy business. And sometimes there was a surplus of milk, which had

to be utilised in the earliest or else it faced wastage. Amul thus bought this excess milk at low

prices, and this profited both the farmer and the company. To keep their products affordable to

the consumer, they kept their prices well within the purchasing range of the farmers.

Political and Social-

A consumer‟s political inclinations and preconceptions highly affect his decisions. Under the

influence of the British Raj, it was this very sensible to brand the product as “Swadeshi”, so as to

invoke the patriotic feelings of the consumer. It also had the support of the government in the

later stages, which also gave the whole Amul brand a positive image.

Their tagline, “Amul- The taste of India”, best captures this scenario.

“Black Box” analysis/ Consumer Characteristic and Psychology

This is termed as Black Box because it is extremely difficult to analyse it, and the marketer‟s task

is to understand what happens in this “black box”, i.e. what happens in the consumer‟s

consciousness between the arrival of the outside stimuli and the ultimate purchase decisions.

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Consumer Psychology

a) Motivation

b) Perception

c) Learning

d) Memory

a) Motivation

In the context of Amul, it is very easy to see the motivation of the consumer for buying Amul

products. To use the “laddering” concept of Sigmund Freud, the marketer can trace the

consumer‟s motivations from the stated instrumental ones to more terminal ones. The

consumer‟s patriotic level can be used; as well the level of familiarity which the consumer has

with Amul can be used.

Amul, being the producer of Milk products, directly gains advantage even from Maslow‟s model of

needs, as it targets the very bottom of the pyramid- The Physiological needs.

b) Perception

Amul very much efficiently uses the method of “Selective attention”. It uses the first two findings

of the perceptive model-

a) People are more likely to notice stimuli that relate to a current need-

Amul products, mainly butter and milk, satisfy the daily needs of a consumer and are used on a

daily basis.

b) People are more like to notice stimuli they anticipate- When looking at a glass refrigerator, an

Indian consumer expects to see butter and milk in the top and lowermost shelves, which is

where Amul places their products so as to gain the customer‟s attention.

c) Learning-

Amul has used the technique of positive re-enforcement since decades and it is still bearing fruits

to the company as well as its still on the rise. Also, there is now a tendency in the consumer to

“discriminate” the Amul brand among other brands, simply because it‟s brand value is too high

and it considered far too reliable compared to its counterparts.

d) Memory

The common Indian man associates Amul brand with many positive aspects, and in the context

of the associative network memory model, one can say with confidence that Amul is now

ubiquitously identified with aspects like “Been here for a long time”, “Safe”, “Reputable”,

“Dependable” , “Reliable”, “Brand mascot- The Amul Girl (a familiar figure)”, “Conservative”,

“Traditional” and “Swadeshi”.

Consumer Characteristics

The customer behaviour is influenced by the following factors mainly:

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a) Cultural Factors b) Social and Personal factors.

a) Cultural factors :

Culture is the fundamental determinant of person‟s wants and determinants. These set of

values or preferences are acquired since child hood from family and other key institutions. In

case of Amul, the scenario is very positive, due to the following facts.

Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk

Powder, Amul Ghee, 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. Thus a child growing up in a traditional middle-class family in India is exposed

to the values of Amul like trusted brand, tasty, liked by the whole family etc.

Even if we segment the people in India into subcultures like nationalities, religions, racial

groups; the cultural influence of Amul remains same, due to its multicultural marketing, which is

accepted by the target segment while spilling a positive influence on other cultural groups.

b) Social and Personal Factors

Amul is a product has been being used by several families since a long time. Hence is trusted by

all family members of a customer who belongs to a middle class family. This has a considerable

effect on the purchasing decision of him. And the brand Amul is known for its „quality for money‟

type of products and at a very low price when compared to any of its competitors. This particular

impression of the brand amul among people is positively increasing at an exponential rate. Hence

no matter which social group a customer belongs to, he always gets a positive feedback, and

always comes across a satisfactory response from both the primary and secondary groups. The

situation remains unaltered even if the customer contacts an opinion expert, as Amul has built

the brand very carefully on the grounds of very affordable price, and high quality.

The Buying Decision Process: The Five-Stage Model

Problem Recognition

In the initial stages of its inception, the farmers and customers of milk products faced

exploitation by the hands of the then only competitor- Polson. Excess of milk that was produced

by the farmers was also being purchased at an unreasonable price by Polson. Hence, there was a

need for a much more honest and reliable company, and this is where Amul came into the

picture. It quickly gained the trust of its market, and became the leading supplier of Milk

Products.

In the current context, a consumer‟s “problem recognition” can well be associated with the basic

necessity- Hunger.

Informational Search

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Considering the limited scope of information search done by the consumers, it becomes

necessary for Amul to quickly establish itself in the minds of the consumer as well as in the

stores near him. Amul does this by regularly printing its comics in the papers and thus leaves

an impression in the mind of the consumer, as well as its strong distribution channel ensures

that it will be present in the nearest store of the targeted consumer.

Evaluation of Alternatives

Currently, although Amul still leads the market, it faces stiff competition from the market.

To face this, Amul must differentiate itself from the alternatives, and it gains the attention of

the customer by using its brand value, as mentioned in the earlier topics.

Purchase Decision

In the context of Amul, it is definitely a non-compensatory model of consumer choice, as

being a food product; it has to be good in all its aspects. Price can be fluctuated, and if this is

considered then it may be a compensatory model too- as a consumer may buy a higher

priced Amul product rather than going for a cheap but local product.

Talking about the perceived risks associated with Amul, they are purely physical, and

Amul has done well to minimise them by maintaining high standards of quality and hygiene.

Post Purchase Behaviour

Amul also relies on word-of-mouth publicity, as it has confidence in the satisfaction level of

the customer after consuming its products. It also has a toll free number so as to listen to

consumer complaints and suggestions.

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PRODUCTS OF AMUL Amul Product Portfolio Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods Examples: - Durable Goods:-Milk Powders, Ready to Serve Soups Non-Durable Goods: - Fresh Milk, Cheese Range & Ice creams Dairy Non products Dairy products Cheese Product-Width The width of a product mix refers to how many different product lines the company carries. Example: The total number of items is 8. (Bread spreads, cheese, desert, cooking, health drink, milk drinks, powder milk & fresh milk) Product-length The length of a product mix refers to the total number of items in the mix. Example: Product Length of Amul‟s Product mix is 66 Product Width of Amul‟s Product mix is 5 (No of lines) Hence the average product length is (Total Length / Number of lines) = 66/5 is more than 13

Product Depth The depth of a product mix refers to how many variants are offered of each product in the line

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Amul’s Product Depth Name of Product Variants Price

Name of Product

Variants Price

Amul Butter 100g Pack Rs. 25

Amul Butter 500g Pack Rs. 122

Delicious Table Margarine 100g Pack Rs. 13

Delicious Table Margarine 500g Pack Rs. 60

A m u l Lite Low fat Bread spread 200g Tub Rs. 32

Amul Cheese 400g Tin (EOE) Rs. 117

Amul Cheese Slices 200g Pack Rs. 77

Amul Cheese Chiplets 200g Pack Rs. 66

Amul Cheese 1kg Block Rs. 233

Amul Cheese Spread 200g Tub Rs. 50

Amul Pizza Cheese Pack 200g Rs. 55

Amul Emmental Cheese 400g Pack Rs. 160

Amul Gouda Cheese 250 g Rs. 115

Amul Gouda Cheese 1 kg Rs. 440

Amul Malai Paneer 200g Dice Pack Rs. 36

Amul/Sagar Pure Ghee 1 Liter Tin Rs. 265

Amul/Sagar Pure Ghee 500ml Pouch Rs. 125

Amul/Sagar Pure Ghee 2 Liter Tin Rs. 495

Amul/Sagar Pure Ghee 5 Liter Tin Rs. 1,225

Amul Pure Ghee 1 Liter Refill Rs. 260

Amul/Sagar Pure Ghee 1 Liter Pouch Rs. 242

Amul Shrikhand 500g cup Elaichi Rs. 53

Amul Shrikhand 500g cup Mango Rs. 55

Amul Shrikhand 500g cup Kesar Rs. 66

Amul Shrikhand 500 g Badam Pista Rs. 61

Amul Mithaee Gulabjamun 1kg Tin Rs. 115

Amul Mithaee Gulabjamun 500g Tin Rs. 64

Nutramul 500g Refill Rs. 110

Amul Chocolates 35g Milk Rs. 15

Amul Chocolates 35g Fruit & Nut Rs. 16

Amul Almondbar 35g Rs. 15

Amul Chocozoo 232g Tin Rs. 125

Amul Chocozoo Tub 500 g Rs. 180

Amul Taaza Double Toned Milk 1 Liter Tetra Rs. 35

Amul Taaza Double Toned Milk 200 ml Tetra Rs. 9

Amul Tazza Toned Milk -Nothern East States 1 Liter Tetra Rs. 38

Amul Gold Milk Tetra 1 Liter Rs. 39

Amul Lite Skimmed Milk 1 Liter Tetra Rs. 40

Amul CALCI + high calcium Milk 1 Liter Brik Rs. 42

Mithaimate Sweetened Condensed Milk 400g Can Rs. 58

Amulspray IMF 500 g Pouch Rs. 110

Amulspray IMF 500g Refill Rs. 111

Amulspray IMF 500g Tin Rs. 115

Amulspray IMF 1 kg Pouch Rs. 202

Amulspray IMF 1 kg Tin Rs. 222

Sagar Skimmed Milk Powder 500g Pouch Rs. 110

Amulya Dairy Whitener 500g Pouch Rs. 113

Amulya Dairy Whitener 500g Refill Rs. 114

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Amulya Dairy Whitener 1 kg Pouch Rs. 227

Amul Shakti Health Food Drink 500g Refill Rs. 115

Amul Kool (Kesar, Elaichi, Rose) 200ml Bottle Rs. 12

Amul Kool (Kesar, Elaichi,Chocolate) 200ml Tetra Rs. 12

Amul Kool Kesar 250 ml can Rs. 25

Amul Kool Café 200 ml Glass Bottle Rs. 15

Amul Kool Café 250 ml Can Rs. 22

Amul Kool Café 200 ml Tetra Brik Rs. 15

Amul Kool Koko 250 ml Can Rs. 22

Amul Kool Milk Shake (Mango & Badam) 220 ml Can Rs. 22

Amul Kool Milk Shake (Mango & Strawberry) 180 ml Tetra Pack Rs. 15

Amul Fresh Cream 200 ml Tetra Brik Rs. 30

Amul Fresh Cream 1 Lit Tetra Brik Rs. 113

Amul Masti Spiced Butter Milk 200ml Tetra Brik Rs. 10

Amul Masti Spiced Butter Milk 1 Liter Tetra Brick Rs. 35

Amul Lassi(Rose) 200 ml Tetra Brick Rs. 12

Amul Basundi l Liter Tetra Brick Rs. 103

Amul Mithai mate 400 g EOE can Rs. 58

Line stretching Every company‟s product line covers a certain part of the total possible range. Line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line down market, up-market or both ways. Example: Amul is now aggressively adopting the down market stretch by introducing (CHHOTA AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income group) Amul has been introducing products with consistent value addition but never left the core philosophy of “Providing milk at a basic, affordable price”

Packaging of Amul Products:-

Amul Butter:-

Printed Corrugated Cartons: - They serve the dual purpose of

Protection: - The inherent structure similar to the corrugated arch structure provides good mechanical properties. It acts as a barrier for moisture and heat. Marketing: - The print on the cartons provide for information transmission. They communicate about the benefits of the product. They provide the list of the nutrients and the quantity in which they are present in Amul Butter.

Moreover, the cartons are light weight and the transportation cost associated with it is small.

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Amul Milk Powder:-

The packaging is varied as small sachets or standard sized packets or in tins. Such a packaging protects the milk powder form moisture, oxygen, light, heat and maintains their quality and shelf life. In absence of package, milk powder readily takes up moisture from the air, leading to a rapid loss of quality and caking or lumping.

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Segmentation, Targeting and Positioning:

Amul has carefully segmented the market for each of its product offerings and wisely selected

the target market for each product category. This has resulted in efficient communication of its

value offering to its customers and capturing of leading position in most of its product category.

We have analysed below how it could have segmented the market for Butter and bread spread

category and Milk Powder category.

Amul has broadly segmented the Butter and Milk Powder market in India into 2 categories:

1. Consumer Market

- It involves all households and individuals who purchase these products for their own

consumption. They are the mass market who purchase frequently but at lower

volumes. They are very price sensitive and are characterized by high price – demand

elasticity.

2. Business Market

- It involves the industries, organisations and institutions who purchase these products

for either their own consumption or as a raw material to produce some other products

to be sold in the market. They are high volume purchasers of Amul. They are not

greatly affected by minor changes in price, but stress on availability, quality etc.

Segmenting the Butter Market in India:

Consumer Market:

1. Usage Rate (Frequency and Quantity)

According to the frequency and quantity of usage the consumer market of butter can be

divided into the following categories:

- Light

- Medium

- Heavy

These categories have distinct needs in terms of price, size of product package availability

etc. Accordingly Amul has leveraged the knowledge of these needs by introducing product

offerings in different package sizes and at different distribution channels.

Examples:

- Small Families/School Going Kids

- Households using it for cooking

2. User Status

According to usage status the consumer market of butter can be divided into the

following categories:

- 1st time user

- Potential User

- Regular User

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The potential users include Users of butter substitute, Price sensitive Customers who may

start to use butter regularly if they get it at a lower cost.

3. Lifestyle

The lifestyle of consumers is a unique criterion Amul has used to segment and

target the market for its Amul Lite product. The market is segmented as per following

criteria:

- Health/Calorie Conscious

- Outdoor-oriented

- Frequent Travellers

Here the health/calorie conscious consumers are most likelyt to use Amul Lite product as

a low calorie butter substitute.

The Outdoor-oriented and frequent traveller segment can be targeted for the Amul Butter

Munna pack – a smaller pack ideal for one serving.

4. Region

India shows definitive differences in usage of butter across different regions. Also

differs the form of butter people prefer to use across the regions. Accordingly Amul has

segmented the market into different regions as below:

South, North, East, West

It has helped target the market with unique product offerings in terms of size and

packaging for these markets. For example usage rate is higher in North and Western

India as compared to South India, also Southern cities prefer Amul Lite/Bread Spreads

over butter.

Business Market:

Amul has effectively segmented the business market according to their unique needs. The

various segments it has targeted can be summarized as below:

Industry type: Hotels/Restaurants, Bakeries, Confectionaries, Airlines, Institutions, Offices

For example it has targeted the Airlines segment by introducing Airline packs of Amul Butter and

Amul Lite.

Segmenting the Milk Powder Market in India:

Consumer Market:

1. Usage Rate (Quantity & Frequency):

According to the frequency and quantity of usage the consumer market of Milk Powder

can be divided into the following categories:

- Light

- Medium

- Heavy

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These categories have distinct needs in terms of price, size of product package availability

etc. Accordingly Amul has leveraged the knowledge of these needs by introducing product

offerings in different package sizes and at different distribution channels.

2. Lifestyle:

Lifestyle is a determining factor for segmenting customers of its products like Amulspray

and Sagar Skimmed Milk. Amul has effectively targeted the below to market segments for

these two products.

- Health/Calorie Conscious Persons

- Working mothers

3. Age:

It has been observed that the users of Milk Powder are largely affected by the age of the

users. Accordingly Amul has segmented the market into different age segments and met

the unique needs of these segments.

- 0-3 years

- Young singles – 15-35 years

- 50+ years

People in these age groups need Milk Powder for different purposes as baby food, a milk

substitute, as protein supplement etc.

4. City/Semi-Urban:

The consumption pattern of Milk Powder differs significantly across places with different

levels of urbanisation.

For example, urban households where daily purchase of fresh milk is low can be targeted

for Amulya/Sagar Skimmed Milk Powder.

Business market:

1. Demographic:

Amul has utilized demographic segmentation of the business market according to the

industry the business falls in. For example the below segments can be targeted for Amul

Milk Powder for the business markets.

Industry type: Hotels/Restaurants, Ice-cream manufactures, Educational Institutions,

Offices, Hospitals

Market Positioning:

Amul has been able to create a wide market recognition where its products and Amul as a brand

is positioned quite uniquely as compared to other competitors. Its market positioning can be

characterized by the following:

• Quality with affordability

• Value for money

• Indigenous Product with world-class standards

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We have studied how Amul has been able to create the Market Positioning for itself. We have

observed that it is the effect of unique value proposition of Amul as a brabd and its product

offerings. The Value offerings of the products we are studying is given below:

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Branding:

Amul uses „Amul‟ as the Primary brand and all its products like Amul Butter and Amul Milk Powder are used as Secondary brands. This type of Branding is called Umbrella Brand structure. Brand Elements: Brand Name: The brand name "Amul," from the Sanskrit "Amoolya" (meaning „Precious‟) Brand Logo: Logo is very simple with two rectangle crossing each other and name of the brand i.e. Amul and slogan is mentioned.

Mascot: “Amul Baby”, which is a chubby butter girl usually, dressed in polka dotted dress is the Mascot of the brand. This mascot is very famous in India and Amul has not changed it since its introductionin1966. Amul doesn‟t use any celebrity to endorse its brand but instead it used this mascot.

Slogan: Slogan is “The Taste of India”. By this company wants to say that the brand is so widely used in India that it has become a unique ingredient in all dishes of India and thus the taste of India. Packaging: Amul focuses a lot on packaging. It gives a quality packaging such that products packed inside are intact and doesn‟t get destroyed in handling. The colour of the packages is also eye smoothing and images on the packaging gives tempting look

Point of Parity Vs Point of Differences The following POPs and PODs are applicable to all our considered products ( Amul Butter, Amul

Lite, Amul Cooking Butter, Amulspray, Amulya, Sagar Skimmed Milk Powder, Sagar Tea Coffee

Whitener, Amul Full Cream Milk Powder ) simultaneously.

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For Amul Butter:

Amul is the market leader when it comes to butter, owning 90% of the market. Amul was also

the first to enter the butter market in india, hence Amul enjoys the Customer loyalty of nearly

90% of the market and also most of its competitors are market followers of Amul butter. Inspite

of these competitive advantages Amul maintains its parity with its competitors.

Point of Parity (POP) of Amul Butter

The Points of Parity of our Amul Butter products includes: 1. Freshness: The freshness of the butter is assured by taking great care in the pattern of

packing and by adding special ingredients to increase the shelf life of butter. All the care that could be taken to assure the freshness that can be taken by its competitors is already being taken care of and improvising on it, by continuously innovating on the methods.

2. Ready to Use: Amul Butter like all of its competitors is a ready to use product with added preservatives to increase its shelf life by a considerable extant.

3. Hygiene: Amul butter is manufactured in a plant where extreme precautions is taken to

maintain the hygiene and quality of the product. The fact that Amul butter never got a complaint regarding its hygiene factors since it was launched in 1956, proves that the quality of hygiene maintained by Amul butter is worth the trust that has been developed on the product by 90% of the consumer market.

4. Good Taste: Amul butter is liked and preferred over other butter products since 1956.

And the most important factor contributing to this is clearly the good taste assured by Amul butter.

5. Value for money: Amul has been able to provide a fair quantity of the product at

affordable price since the beginning. And the consumer satisfaction is assured when it comes to value for money, with the quantity he receives for the amount paid and the hygiene factors maintained, along with the packaging structure.

6. Emphasis on Quality Control: Amul concentrates on its quality control through

continuous innovation in the means to improve the quality of the product. It also keeps its position as the market leader with respect to its competitors by maintaining high quality standards.

7. Affordable price: Amul butter has always been available at an affordable price to a

common man. And this is clear from the highest market share it has.

Points of Differences (PODs) of Amul Butter products The following points of differences can be associated with amul butter products.

1. Availability at large number of stores: Amul products are available in all its retail

stores spread throughout india. Amul has a very well connected retail structure with more than 500 Retail outlets spread throughout india.

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2. Good Packaging: Amul butter is a ready to use product hence in case the consumer purchases a higher amount of the product than required, then he might have to store the remaining part of the pack for later use. Amul butter‟s packing has a wrapper covering the butter which the consumer can use to wrap the remaining butter, which increases the shelf life of the butter by a considerable extant. And the way the packing presents itself gives an assurance to the consumer that the butter is absolutely hygienic to be consumed.

3. Innovative and Attractive Products: Amul is known for continuously Innovating its products by introducing new flavours to the already existing products. In case of Amul butter, Amul introduced Amul Lite and Amul Margarine.

4. E-initiatives i.e., online selling of products: Amul was one of the first FMCG (fast-

moving consumer goods) firms in India to employ Internet technologies to implement B2C commerce Amul has made its products available online, so that the products can be directly purchased online where in it will be delivered to the consumer at his door. This feature of home delivery service added to the product makes the Amul product a more preffered product when compared to its competitors.

For Amul Milk Powder:

Amul Milk Powder occupies 45% of the Market share, making Amul the company occupying the

highest market share. Amul has been continuously growing in acquiring more and more Milk

Powder market share since its launch. The POPs and the PODs of the Amul Milk Powder Products

are as follows.

Point of Parity (POP) of Amul Milk Powder Products

The Points of Parity of our Amul Butter products includes: 1. Freshness: Amul Milk Powder is known for its freshness, and trust on Amul Milk powder

is to such an extent that is used as a supplement for milk to very young children.

2. Ready to Use: Amul Milk Powder like all of its competitors is a ready to use product with added preservatives to increase its shelf life by a considerable extant.

3. Hygiene: Amul Milk powder is manufactured in a plant where extreme precautions is

taken to maintain the hygiene and quality of the product.And the Plant of Amul where the Amul products are produced is a HACCP certified plant with all the latest equipments installed to assure superior hygiene in iits products.

4. Good Taste: Amul Milk Powder is liked and preferred over other Milk powder products

since 1958. And the most important factor contributing to this is clearly the good taste assured by Amul Milk Powder due to the latest technology used to manufacture it.

5. Value for money: Amul has been able to provide a fair quantity of the product at

affordable price since the beginning. And the consumer satisfaction is assured when it comes to value for money, with the quantity he receives for the amount paid and the hygiene factors maintained, along with the packaging structure.

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6. Emphasis on Quality Control: Amul concentrates on its quality control through continuous innovation in the means to improve the quality of the product. It also keeps its position as the market leader with respect to its competitors by maintaining high quality standards.

7. Affordable price: Amul Milk Powder is available in attractive Tin Containers with a

reasonable price when compared to any of its competitors. Amul Milk powder is currently a rapidly developing product in the market currently occupying 45% of the market share due to its competitive pricing.

Points of Differences (PODs) of Amul Milk Powder products

The following points of differences can be associated with amul butter products.

1. Availability at large number of stores: Amul products are available in all its retail

stores spread throughout india. Amul has a very well connected retail structure with more than 500 Retail outlets spread throughout india.

2. Good Packaging: Amul Milk Powder is known for its packing, as it is packed in a Tin Container which can be used at a container to preserve the Product if incase the consumer wishes to use it in small quantities. And the consumer can choose to select the Amul powder sold in the paper boxes a well, and the amul has a higher hand in this regards over its competitors as none of its competitors were able to acquire the HACCP Standards in its packaging

3. Innovative and Attractive Products: Amul Milk Powder is known for continuously Innovating its products by introducing new flavours to the already existing products. In case of Amul Milk Powder , Amul introduced Amul Spray(in 1968),Amul WMP(in 1960),Amulya(in 1987),Amul IMF(in 2001),Amul Instant FCMP(in 2002) and Sagar SMP(in 2005)

4. E-initiatives i.e., online selling of products: Amul has made its products available

online, so that the products can be directly purchased online where in it will be delivered to the consumer at his door. This feature of home delivery service added to the product makes the Amul product a more preffered product when compared to its competitors.

Product Related Attributes of Amul are: Amul has been the brand of quality and availability. Amul has tried to achieve this through following:

1. Nutrient Rich Products 2. Freshness of the Product 3. Availability of products 4. Quality Packaging 5. Taste of products 6. Robust Distribution Network 7. ISO 9002 certification at village cooperatives 8. TQM approach for consistent Quality

Brand Portfolio of Amul:

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Amul has been present in a number of variants. It is a genesis of a vast co-operative network. The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions. The range of products includes liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. By insisting on an umbrella brand, GCMMF not only skilfully avoided inter-union conflicts but also created an opportunity for the members to cooperate in developing products. Amul has launched 8 different kinds of products since its beginning. These different product varities has been adding value to Amul by adding flavours to the already existing amul products. The influences made by the products under consideration are as follows: 1. Milk Drinks: It is the largest and most selling product for Amul. It includes 11different sub-brands. The company has further added variety to these brands by providing them in various flavours and various forms like pouch packs, bottles etc. 2. Powder Milk: It includes varieties like milk for Infants, Tea coffee whitener and hasa total of 5 sub-brands. Amul Spray, Amulya, Amul Full cream Milk Powder(FCMP) and Sagar tea Cofee whitener comes under its sub-brands. 3. Amul Fresh Milk: It is the basic product started by Amul. It has 8 different sub-products further available in various flavours. It launched a Sports Drink called „Stamina‟ this year aimed at capitalising on the interest generated in the health and wellness market and the run-up to the Commonwealth Games held in India. 4. Cheese: It includes various sub-products. This product variety is really successful inTier-1 cities like New Delhi and is really gaining much share in the recent past.None of our selected Amul products comes under this category. Including it as it is considered as particular flavour directly related to the Amul milk products. 5. Bread Spreads:

It includes three sub-brands each of them meeting AGMARK standard and BIS specifications.

Some of the varieties are available in different weight packs. Amul butter and Amul lite comes

under its sub brands.

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A detailed Hierarchical structure of different product categories of amul is displayed below , which will help in getting a clear structure of different products associated with different product varieties launched by Amul.

Amul 1956

Chocolates 1973

Nutrauamul 1973

Eclairs 2001

Amul Shakthi

Chocozoo 2005

Shrikhand 1980

Gulab jamun 1997

Gulabjamun mix 1999

kulfi Mix 2001

Laddo 2004

Basundi 2005

Khoa 2006

Fresh milk 1956

UHT Range 1980/99

Condensed Milk 1996

Butter Milk 1998

Fresh Curd 1999

Flavoured Milk 2001

Freash Cream 2002

Kool Kafe 2005

Milk Powder 1958

Amul spray 1968

Amul WMP 1960

Amulya 1987

Amul IMF 1&2 2001

Instant FCMP 2002

Sagar SMP

Cheese 1962

Cheese Spread 1986

Paneer 1997

Pizza Cheese 1998

Emmental Cheese 1999

Frozen Pizza 2002

Gouda Cheese 2002

Breadspread

Amul Butter 1956

Amul lite 1994

Margarine 2004

Ghee 1956

Cow Ghee 2002

Icecream 1996

Fat Free Dessert 2002

Softy Mix 2001

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Pricing Component:

At the time Amul was formed, consumers had limited purchasing power, and modest

consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price

strategy to make its products affordable and attractive to consumers by guaranteeing them value

for money.

GCMMF ensures that the product mix and the sequence in which Amul introduces its

products in consistence with its core philosophy of providing milk at a basic, affordable price.

Amul has successfully been able to employ both Value pricing as well as Going Rate

pricing strategy to its product range. Value pricing involves winning loyal customers by charging

a fairly low price for a high quality offering as compared to competitors. It has thus focused on

becoming a low cost producer without sacrificing quality to attract a large number of value-

conscious customers.

Example: Amul Butter Munna Pack, Amulspray and Amulya Rs. 5 and Rs. 10 packs;

Competitive and marginal lower pricing

Amul takes into consideration the following aspects while deciding upon the prices of its

products:

1. Competition

2. Commitment to deliver economical products at the best and affordable prices.

3. To maintain the brand image and also to establish the emotional connect to its billions of

customers – by communicating itself as “The taste of India”.

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Cost Leadership: AMUL‟s objective of providing a value proposition to a large customer base

led naturally to a choice of cost leadership position. Given the low purchasing power of the

Indian consumer and the marginal discretionary spending power, the only viable option for AMUL

was to price its products as low as possible. Amul‟s policy has been to offer wide range of

products at all price points to reach maximum segment of market.

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Summary

In this project our team has discussed various macro environmental, consumer behavioral

factors and competitor analysis of Amul.

The macro environment analysis emphasizes on social, legal, economical, political and

technological factors and their impact on Amul. It presents various threats as well as

opportunities for Amul.

Consumer behavior analysis for Amul delves into market and other stimuli. These stimuli

act on consumer and influence his decision to buy a product. In marketing stimuli Amul is

compared with Polson and how maul is evolved over a period of time. The advertising strategy of

making sarcastic and funny comments on social, political trends captured the share of

consumer‟s mind. Amul girl slowly positioned itself in hearts of Indian consumers.

The competitor analysis explains the position of Amul in relation to various MNCs such as

Britania, Nestle, Mother Diary and other regional brands. Undoubtedly Maul is market leader in

milk segment and butter products. It is challenger in ice-cream and chocolates segment of the

market. Amul is follower in dairy products like cheese, paneer, health drinks and pizza. To be in a

position of being a market leader in the categories where Amul is either challenger or follower its

main threat is from regional brands.

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Bibliography

References: 1).http://www.cmie.com/ 2). http://mospi.nic.in/ 3) http://www.amul.com