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AMUL Marketing
  Strategy
GROUP MEMBERS
INDEX

 Introduction
 Marketing Mix

 Business Model

 Marketing Strategy

 Competitors & Conclusion
LARGEST FOOD BRAND AND BUSINESS IN
INDIA
INTRODUCTION
   Formed in 1946, is a dairy cooperative movement in India.

   A brand name managed by Gujarat Co-operative Milk
    Marketing Federation(GCMMF)

   Jointly owned by 2.79 million milk producers in Gujarat

   Spurred the White Revolution of India, which has made India
    the largest producer of milk and milk products in the world.
INTRODUCTION
   Overseas markets -
    Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong
    and a few South African countries

   Fresh plans of flooding the markets of Japan & Sri Lanka.

   Dr Verghese Kurien, former chairman of the GCMMF -the man behind the
    success of Amul.

   Has a 15% market share in the Rs 15,000 crore milk category, and a 37%
    share in the Rs 900 crore organized ice-cream segment.
BUSINESS MODEL
   Amul followed a unique business model. "Anand
    pattern" cooperative system

   Every day Amul collects 8.4 million liters of milk from
    2.79 million farmers (many illiterate), converts the
    milk into branded, packaged products, and delivers
    goods to over 500,000 retail outlets across the
    country.
AMUL GROWTH
Sales Turnover Of 1505 million US dollar in 2008-2009


                       Sales US $ (in million)

       1600


       1400


       1200


       1000

                                                        Sales US $ (in million)
        800


        600


        400


        200


          0
THE MARKETING MIX



Product                Price
• Dairy Products       • Low Pricing
• Cooking Products     Strategy


Place                  Promotion
• Rural & Urban Market • Advertisements
• International Market
Intelligent Marketing
   One of the most conservative FMCG
    entities, GCMMF spends a mere 1% of its
    turnover on promotions.

   GCMMF has written and re-written rules of
    the game.

   Amul butter girl is one of the longest
    running ad campaigns in the country for 41
    years.

   Intelligent marketing of milk, icecream and
EXPANSION TO FOREIGN
SHORES
   GCMMF had signed an agreement with Wal-Mart to stock its
    shelves with products under its Amul brand name. Amul
    processed cheese, pure ghee, Shrikhand, Nutramul, Amul's
    Mithaee Gulab Jamuns are few of the products marketed in the
    US markets.

   50 per cent of Americans being medically obese, and if Amul is
    really looking to capture the hearts of the second- and third-
    generation Indians, offering low-fat versions of its brands, would
    make a lot of commercial sense.

   Hence targeting the large Indian community in the US markets
    with its niche products like mithai, packaged ready to eat foods
    market it can definitely expand its market to a large extent.
Defense Strategy
   Moving consumers from loose milk to
    packaged milk and gradually move them up the
    value chain (tetra pack to beverages)
   Being exposed to a brand, it is natural for a
    customer to try more products
Segmentation
   Wide range of product categories caters to
    consumers across all market segments.
    For example, Amul Kool is targeted at
    children, while teenagers prefer Kool
    Café, as it has a cool imagery associated
    with it.
Targeting
   Changing retail environment
   Striking out on its own, with Amul Outlets or
    parlours to deliver consumers total brand
    experience
   Launched in 2002, there are now over 4700
    Amul parlours across the country, which
    contributed 3% to the brand’s total turnover in
    year 2009.
Promotion
   Given this wide product portfolio, Amul’s
    approach is to promote its brands in a rotational
    cycle of two to three years.

   After ice-creams were launched in 1996, the
    category was re-visited in 1999, in order to
    improve availability of the product and make it
    affordable.

   The focus shifted to cheese in 2001, Amul Masti
    Chaas in 2004-05 (sales of Masti dahi grew by
    25%), Nutramul and Kool Kafe in 2006 and this
    year the focus is on Amul Koko — cold
    chocolate drink
Promotion
   Uses a variety of media to communicate
   Most famous is billboard campaign
   The endearing polka dressed girl and pun at
    various issues increased brand’s fan following.
Promotion
   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 contest invites people to
    come up with recipes using as many Amul
    products as possible. The recipe can be
    submitted on Amul’s website.

   Slogan Likho Disneyland Dekho Contest
Promotion
   Amul Maharani contest: in this contest
    questions about Amul are asked
Promotion
   AMUL sponsored the Singing Competition
    AMUL Star Voice of India, Amul music ka
    maha mukabla
SUCCESSFUL PRODUCT STRATEGY:

1. Product Positioning Strategy-
     Low price Amul Ice - Creams made Kwality
      walls life hell.
     Chocolate milk was launched ‘Amul Kool koko’


2. Product Re-Positioning Strategy-
     Jaldhara – Narmada Neer
SUCCESSFUL PRODUCT STRATEGY:
3. Product Overlap Strategy –
 Amul Processed Cheese Vs Cheese Spread

 Nutramul Energy Drink Vs Amul Kool



4. Product Design Strategy –
 Use of Utterly – Butterly Girl since 1967



5. Product Elimination –
 Eliminated Jaldhara – bottled water
SUCCESSFUL PRODUCT STRATEGY:
6. Diversification Strategy –
 Dairy Products

Eg: Fresh Milk, Milk Drinks & Desserts,
  Bread Spreads, Cheese Products

Non Dairy Products
Egg: Veg Oils , Snacks, Instant Food
:


 BRITTANIA
 NESTLE

 HLL

 CADBOURY

 MOTHER DAIRY
Butter                   Chocolates &                Sweet
 Britannia
                            Confectionaries          Condensed
 Nestle
                          Cadbury                   milk
                          Nestle                   Nestle
Cheese
 Britannia
                         Pizza                       Cottage Cheese
                          Pizza Hut                 (Paneer)
Baby Food
                          Dominos                  Britannia
 Nestle
                          Nirulas Frozen pizza      Milk Additives
 Heinz

Dairy Whitener Segment
                         Curd                       Cadbury
                          Nestle
 Nestle                                            Smithkline
                          Mother Dairy              Beecham
 Britannia

Ice creams
                         Ultra High Treated Milk     Flavored Milk
                          Nestle
 HLL                                               Britannia
                          Britannia
CONCLUSION


 Amul has risen from Indian soil and it remains
  Indian in every sense.
 There is ample scope in the low priced
  segment as also in other categories.
 There are a significant number of retailers who
  are currently stocking more than two brands.
 Amul has the opportunity to capture the more
  evolved young adults and children who are
  open to new products provided they meet their
  expectations.
THANKYOU…

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Amul ppt

  • 1. AMUL Marketing Strategy
  • 3. INDEX  Introduction  Marketing Mix  Business Model  Marketing Strategy  Competitors & Conclusion
  • 4. LARGEST FOOD BRAND AND BUSINESS IN INDIA
  • 5. INTRODUCTION  Formed in 1946, is a dairy cooperative movement in India.  A brand name managed by Gujarat Co-operative Milk Marketing Federation(GCMMF)  Jointly owned by 2.79 million milk producers in Gujarat  Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.
  • 6. INTRODUCTION  Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries  Fresh plans of flooding the markets of Japan & Sri Lanka.  Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.  Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs 900 crore organized ice-cream segment.
  • 7. BUSINESS MODEL  Amul followed a unique business model. "Anand pattern" cooperative system  Every day Amul collects 8.4 million liters of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country.
  • 8. AMUL GROWTH Sales Turnover Of 1505 million US dollar in 2008-2009 Sales US $ (in million) 1600 1400 1200 1000 Sales US $ (in million) 800 600 400 200 0
  • 9. THE MARKETING MIX Product Price • Dairy Products • Low Pricing • Cooking Products Strategy Place Promotion • Rural & Urban Market • Advertisements • International Market
  • 10. Intelligent Marketing  One of the most conservative FMCG entities, GCMMF spends a mere 1% of its turnover on promotions.  GCMMF has written and re-written rules of the game.  Amul butter girl is one of the longest running ad campaigns in the country for 41 years.  Intelligent marketing of milk, icecream and
  • 11. EXPANSION TO FOREIGN SHORES  GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.  50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and third- generation Indians, offering low-fat versions of its brands, would make a lot of commercial sense.  Hence targeting the large Indian community in the US markets with its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.
  • 12. Defense Strategy  Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages)  Being exposed to a brand, it is natural for a customer to try more products
  • 13. Segmentation  Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Café, as it has a cool imagery associated with it.
  • 14. Targeting  Changing retail environment  Striking out on its own, with Amul Outlets or parlours to deliver consumers total brand experience  Launched in 2002, there are now over 4700 Amul parlours across the country, which contributed 3% to the brand’s total turnover in year 2009.
  • 15. Promotion  Given this wide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years.  After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable.  The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink
  • 16. Promotion  Uses a variety of media to communicate  Most famous is billboard campaign  The endearing polka dressed girl and pun at various issues increased brand’s fan following.
  • 17. Promotion  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 contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amul’s website.  Slogan Likho Disneyland Dekho Contest
  • 18. Promotion  Amul Maharani contest: in this contest questions about Amul are asked
  • 19. Promotion  AMUL sponsored the Singing Competition AMUL Star Voice of India, Amul music ka maha mukabla
  • 20. SUCCESSFUL PRODUCT STRATEGY: 1. Product Positioning Strategy-  Low price Amul Ice - Creams made Kwality walls life hell.  Chocolate milk was launched ‘Amul Kool koko’ 2. Product Re-Positioning Strategy-  Jaldhara – Narmada Neer
  • 21. SUCCESSFUL PRODUCT STRATEGY: 3. Product Overlap Strategy –  Amul Processed Cheese Vs Cheese Spread  Nutramul Energy Drink Vs Amul Kool 4. Product Design Strategy –  Use of Utterly – Butterly Girl since 1967 5. Product Elimination –  Eliminated Jaldhara – bottled water
  • 22. SUCCESSFUL PRODUCT STRATEGY: 6. Diversification Strategy –  Dairy Products Eg: Fresh Milk, Milk Drinks & Desserts, Bread Spreads, Cheese Products Non Dairy Products Egg: Veg Oils , Snacks, Instant Food
  • 23. :  BRITTANIA  NESTLE  HLL  CADBOURY  MOTHER DAIRY
  • 24. Butter Chocolates & Sweet  Britannia Confectionaries Condensed  Nestle  Cadbury milk  Nestle  Nestle Cheese  Britannia Pizza Cottage Cheese  Pizza Hut (Paneer) Baby Food  Dominos  Britannia  Nestle  Nirulas Frozen pizza Milk Additives  Heinz Dairy Whitener Segment Curd  Cadbury  Nestle  Nestle  Smithkline  Mother Dairy Beecham  Britannia Ice creams Ultra High Treated Milk Flavored Milk  Nestle  HLL  Britannia  Britannia
  • 25. CONCLUSION  Amul has risen from Indian soil and it remains Indian in every sense.  There is ample scope in the low priced segment as also in other categories.  There are a significant number of retailers who are currently stocking more than two brands.  Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.

Editor's Notes

  • #3: 9819966265
  • #8: Amul followed a unique business model, which aimed at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who were its suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was not sold before the end of the day.The cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came to be known as the "Anand pattern" cooperative system. It was a three-tier structure that comprised village societies, district level dairy unions and a state level federation.
  • #10: Bread SpreadsMilk DrinksPowder MilkFresh MilkCheeseFor CookingDessertsHealth Drinks$
  • #15: High profile locations: Amul parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat.
  • #26: So Amul can overcome it as earlier it had to overcome this problem in the Mumbai market. Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. Amul should direct its resources towards cashing in on Walls market development.