Title:Comparative study of Marketing Strategies between AMUL & Baskin-Robbins.

Subject: MABD

Level/Semester: M.B.A-I

Programme: M.B.A.

Subject tutor: Prof: SURENDRA

Name of the Students: V.G. ARUN PRAKASH & ASIF YOUSAF

Date of Submission: December, 1, 2009

Word count: 2180ds

Word Limit: 2000 WORDS

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TABLE OF CONTENT

DESCRIPTION Pg:No     Cover page : 1     Table of Content : 2     Introduction, Brand profile and Product profile : 3,4     Market segmentation of Amul : 4,5,6     Mnc brand and Product profile and Segmentation : 6,7     Marketing Mix of the selected 2 brands : 7,8     Other visible elements of marketing : 8,9,10     Conclusion : 10     Reference : 11     

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INTRODUCTION

MARKETING:

The chartered institute of marketing defines marketing as the “The management process responsible for identifying, anticipating and satisfying customer requirement profitably.”

The AMA managerial definition:

“Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

INDUSTRY PROFILE:

- Dairy is a place where handling of milk and milk products is done. Dairy technology is the branch of dairy science which deals with processing of milk and manufacturing of their products on a large scale basis.

Now INDIA is one of the largest producers of milk and value-added milk products in the world. During 1997-98, with the help of co-operatives many part of the state had 60 milk processing plant with the capacity of processing 5.8 million liters per day. Also compared to other countries like U.S and Japan, India takes the pleasure of producing milk at lower cost.

BRAND PROFILE:

- It was registered on December 14, 1946. It is the brand name for 2 million farmers. Amul means “priceless”. It was derived from the Sanskrit word called “Ammolya”. It is managed by Gujarat co-operative milk marketing federation Ltd. (GCMMF). Amul’s product range includes Amul butter, Amul milk powder, Amul ghee, Amul spray, Amul cheese, Amul chocolates, Amul shrikhand, Amul ice cream, Nutramul, Amul milk and amulya. Its turnover is Rs. 67.11 billion in 2008-2009. Many

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products of Amul are also available in USA, Gulf Countries and Singapore. Their future plan, appropriately titled “Mission 2020”, envisages that the dairy cooperative of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. Amul is an “Umbrella brand” means common brand for most product categories. Now Amul is directly entering in to retail through “Amul utterly Delicious” parlours in the cities like Ahmedabad, Bangalore, Delhi, Mumbai, Hyderabad and Surat. It has planned to let out franchisee to manage those large chains of parlours throughout the country.

Facts about GCMMF:

Members:13 district cooperative milk producers' Union

No. of producer members: 2.79 millionsNo. of village Societies: 13328Total milk handling capacity: 11.22 million liters per dayMilk collection (Total 2008-2009) 3.05 billion litersMilk collection (Daily average 2008-2009) 8.4 million litersMilk drying capacity 626 Mts, per dayCattle feed manufacturing capacity: 3500 Mts per daySales turnover (2008-2009) 67113 rs. In million (or) 1504 us$ in million

PRODUCT PROFILE:

- Amul ice cream was first launched on 10th march 1996 in Gujarat. In ice cream it has different products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream entered Mumbai in 1997 followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. Amul ice cream achieved No 1 position in the country after combated competition like Walls, Mother dairy and Arun ice cream. Today Amul’s market share is 38% share against the 9% market share of HLL, Which is more than four times compared to its closest competitors. Amul ice cream currently offers 220 varieties of products. Amul ice cream has seven manufacturing units in India. Amul pro-biotic ice cream won one of the world’s prestigious awards – The international Dairy Federation Marketing Award (2007) for Amul Pro-biotic ice cream launch.

MARKET SEGMENTATION OF AMUL:

Demographic factor: Demographic variables of Amul target market are mostly age and income based. Amul have created many sorts of ice cream to cater all age groups. It has

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pro-biotic sugar free ice cream which is aimed to hit diabetic customer and the people aged than 45. If we consider the income segmentation, Amul is targeting upper, middle and lower middle income group and also lower group people by selling ice creams in stick at low cost.

Age Under 6 years, 6-11, 12-19, 20-34, 35-49, 50-60, 60+

Family size Young, single: young, married, no children: young, married, Youngest child under 6: Young, married, youngest child under 6 Or over: older, married, with children: older, married, no children under 18: older, single: other

Gender Male, female

Income Low (up to 40,000 p.a), lower middle (Rs.40,001 – 80,000 p.a), middle (Rs.80,001 – 1, 20,000 p.a), upper middle (Rs.1,20,001 – 1,60,000 p.a) and high (above Rs. 1,60,000)

Occupation Unskilled worker, skilled worker, petty traders, shop owners, businessman/industrialist, self employed (professional, clerical/salesperson, supervisory level, officers/junior executives, middle/senior executives.

Education Illiterate, school up to 4 years, school between 5 and 9 years, ssc/hsc, nongraduate, graduate/postgraduate (general), graduate/postgraduate (professional)

Socio-Economic Classification (SEC) of Amul Ice cream is as follows:

Occupation Education

 Illiterate School  

 <4years

5-9 years

ssc/hsc

Non graduate

Graduate / post graduate(general)

Graduate / post graduate(professional)

Unskilled workers              Skilled workers     D C C B2 B2Petty traders     D C C B2 B2Shop owners     C B2 B1 A2 A2Business man              No. of employees:              None D C B2 B1 A2 A2 A11 to 10 C B2 B2 B1 A2 A1 A110+ B1 B1 A2 A2 A1 A1 A1

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Self employed/professionals D D D B2 B1 A2 A1Clerical/sales man D D D C B1 B1 B1supervisory level D D C C B2 B1 A2

MNC BRAND AND PRODUCT PROFILE:

- Baskin-Robbins is a global chain of ice cream parlours founded by Burt Baskin and Irv Robbins in the year 1953. It is the largest franchise with more than 6000 locations in 35 countries. Its major markets are located in UK with 2800 outlets and in Japan with 800 outlets. Its headquarters is in Massachusetts USA.

- Baskin-Robbins is the King in ice cream marketing; they created a unique positioning for its brand by introducing interesting new flavors. They allow their customer to sample as many flavors as they want before making their final choice. They have more than thousand flavors in the library and 31 different flavors in every store.

MARKET SEGMENTATION OF BASKIN ROBBINS:

Demographic factor: Demographic variables of Baskin-Robbins target market are mostly age and income based. It has sugar free ice cream which is aimed to old aged people. If we consider the income segmentation, Baskin-Robbins is targeting upper, middle and high income groups.

Age Under 6 years, 6-11, 12-19, 20-34, 35-49, 50-60, 60+

Family size Young, single: young, married, no children: young, married, Youngest child under 6: Young, married, youngest child under 6 Or over: older, married, with children: older, married, no children under 18: older, single: other

Gender Male, female

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Income Upper middle (Rs.1,20,001 – 1,60,000 p.a) and high (above Rs. 1,60,000)

Occupation Skilled worker, shop owners, businessman/industrialist, self employed (professional, supervisory level, officer’s senior executives)

Education School between 5 and 9 years, ssc/hsc, nongraduate, graduate/postgraduate (general), graduate/postgraduate (professional)

MARKETING MIX OF AMUL AND BASKIN-ROBBINS:

Mostly people or businesses will focus on Price, Place, Promotion and Product as their elements of marketing mix. But now the marketing mix is increased with Five P’s and also to Seven P’s. Regarding Amul we are going to mostly concentrate with Four P’s i.e. Price, Place, Promotion and Product.

PRODUCT: Amul’s product development was driven both by the spirit of thecooperative system and profitability. Being a cattle farmer’s cooperative, Amul committed to buy all the milk which is offered by the farmer. Today Amul is a symbol of many things. They are the vast genesis of a vast co-operative network. They are the marketing Savvy of a farmer’s organization. Their products are Butter, Milk drinks, Powder milk, Fresh milk, Cheese, Desserts, Health drink and utterly delicious pizza were as Baskin-Robins has unique range of flavors and they have variety of products like Ice cream, candy, sundae’s, shakes & softy. They provide their product with high quality so consumers never mind paying more. They have more than thousand flavors in library and thirty one different flavors in every store.

PRICE: There are many ways to price a product, they are Premium pricing, Penetration pricing, Economy pricing, Price skimming, Psychological pricing, Product line pricing, Optional product pricing, Captive product pricing, Product bundling price, Geographical pricing and Value pricing but Amul’s philosophy had all along been to deliver value for money to its customers. Despite being priced economically, Amul

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maintained its product quality. Baskin-robins way of pricing is premium pricing that means using a high price where there is uniqueness about the product. The quality they provide is very high which will match the price.

PLACE: Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods/services are moved from the manufacturer to the consumer. Amul GCMMF’s formidable distribution network comprises of 300 stock keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an 18,000-strong cold chain, and 500,000 non-refrigerated retail outlets to reach their consumers. Baskin-Robins has their own privilege of selecting their locations, they usually target their place where there is high foot traffic, malls and in most important locations.

PROMOTION: This include all of the tools available to the marketer for ‘marketing communications’. Over the years, Amul’s advertising philosophy had been “to be simple, fresh innovative”. The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern. Baskin-Robins not only sell the product but also sell the fun. Their promotion says “We sell fun, not just ice cream”. They also do in-store promotion campaign and also do all sort of promotional activities like grand opening activities, direct mail campaign, Birthday club email marketing and they advertise in television and in online.

Other Visible Elements of Marketing:

Packaging of Amul Ice cream: Amul ice creams are packaged in sticks, cones, cups as well as take home packs and institutional/catering packs. Stick ice cream is mainly sold for low income groups. They have stick, cup and cone ice cream from low range to high range to cover many people from low income group to high income group. Family pack is sold from 250 grams. Now they also have institutional and catering packs.

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Packaging of Baskin-Robins Ice cream: Baskin-robins ice cream are packaged in cups, cones, waffle bowls, shakes, roll cakes, pre-packed ice creams, hand-packed ice creams, novelties and in snack type.

OUTLETS:

Outlet of Amul – Amul has recently entered into direct retailing through “Amul Utterly Delicious” parlours, which is run by the company or its wholesale dealers. Large chain outlets are as follows:

1. Delhi Metro Rail Corporation 2. The Somnath Temple 3. National Institute of Design 4. Infosys Technologies in Bangalore, Mysore & Pune 5. Wipro campus in Bangalore 6. L.J. College, Ahmedabad 7. Ahmedabad Airport 8. Surat Municipal Corporation 9. Delhi Police 10. Gujarat State Raod Transport Corporation 11. Jubilee Mission Medical College, Trichur, Kerala 12. Sanjay Gandhi Hospital Parlour, Amethi 13. Indian Institute of Management, Kolkata 14. Cafe Amul, MDG, Gandhinagar .

In order to come close to the customers they have decided to create a retail outlet called “Amul Preferred Outlets” (APO).

Outlets of Baskin-Robbins – There are 25 outlets across India including Chennai, Mumbai, Bangalore, New-delhi, Pune and Cochin. Now they are thinking of expanding their outlets.

Labeling:

Labeling of Amul – Amul labeling are very attractive and even their advertisement pictures and wordings will be available. They wishes their costumers on festival vocations through labeling and also important factors like manufacture date, net content,

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expiry date, certification for quality and MRP rate will be available in labeling. It makes people to identify their product easily.

Labeling of Baskin-Robbins – Even in Baskin-Robbins there are some standard things like net content, MRP rate etc… will be available in labeling and their label colours are very attractive and in all the labeling you can see letter “B” and “R” in big font and bold. It make’s the customer to find their product through labeling.

WEBSITE:

Website of Amul & Website of Baskin-Robbins – www.amul.com & www.baskinrobbins.com

Amul and Baskin-Robbins have their company’s own website in which all the details of the company’s are given like their company’s profit, distributions, outlets, about product, product advertisement. There are even some attracting visual effect promotion is available in their website.

Thus how comparisons between two brands are made in term of outlets, Packaging, Labeling, website and 4p’s of Marketing mix.

CONCLUSION:

Amul is using very good strategy of selling their products. They do have product diversification i.e. dairy and non-dairy which have advantage of expansion of network and advantage of each underline objectives. Products are available for all most all the segment. Unlike AMUL, Baskin Robbins caters only to premium and elite customers. In country like India, majorities are middle class. Where, AMUL caters to all segments and more popular in India. Even Baskin Robbins has diversification related to its core product i.e. ice cream cakes, beverages, juices and milk shakes. Product variety is more in Baskin Robbins compared to Amul. Baskin Robbins has to mainly concentrate on attracting the middle class audience in India. They can even distribute their products to retail outlets, which is the easy way to reach the customers. Amul has to mainly concentrate to improve their product variety. Number of flavors in AMUL is less compared to Baskin Robbins. Both companies have to look upon certain aspects to improve themselves.

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Reference:

www.amul.com

www.baskinrobbins.com

Marketing Management book of Philip kotler and keller 12th edition

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